Time

Cloud accounting allows less time to be spent on number crunching, and more time to look behind the numbers, improving overall business performance. Less time will be spent travelling for face-to-face meetings. Your accounts can simply be accessed remotely, rather than relying on physical storage software.

Data security

People often raise concerns over whether cloud accounting technology is safe to hold confidential financial details. However, cloud accounting actually has several privacy controls, such as multi-factor authentication and encryption. The cloud is also constantly backed up to ensure no data is lost. Therefore, if your computer is lost or damaged, your data remains safe on the cloud. Traditional accounting relies on physical software, and so data is at risk of being lost if equipment is impaired.

Carbon footprint

Cloud accounting is all online, therefore using less paper. Traditional accounting however relies

more heavily on physical documents and hardware. Cloud accounting is therefore better for the environment and reduces the business’s carbon footprint.

Cost

When using traditional methods of accounting, specific hardware must be purchased, which is expensive to buy and to run, replace and update. Cloud accounting doesn’t require this. You usually pay a fixed monthly fee, and in return gain access to up to date, online software and full support from the provider. The monthly fee also includes as much storage as you need, at no additional cost.

Real-time collaboration

Due to the fact that traditional accounting relies on physical storage software, you are therefore unable to access your accounts remotely. However, cloud accounting sees all of your accounts and financial information stored online and in one place, giving you real-time collaboration with your accountant at any time.