Cloud computing accounting involves hosting and carrying out accounting tasks such as auditing, storing data, bookkeeping, data entry, and data processing on the internet, a feature born out of an innovative marriage between technology and business.

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This Is How Cloud Computing Is Changing the Accounting Industry

a hand connecting an ethernet cable to a cloud with a blue background

Advancing from the traditional way of storing information, accounting firms have continually sought ways to improve the way information is being processed and stored.

Before now, information lost could barely be retrieved and the processing of big data was a very hectic task.

However, with digitization, the introduction of cloud computing has become a solution to the challenges faced by thousands of accounting firms.

Here are some statistics showing how cloud computing is changing the course of accounting:

1. 92% of US accountants say that new technology is delivering value to their business.

2. 66% of accountants feel their firms need to increase the pace of technology adoption to stay competitive.

3. The use of cloud computing in the EU increased particularly in the retail trade in 2021, compared to 2020.

4. 81% of all enterprises have reported that they have a multi-cloud strategy already laid out or in the works.

5. At the end of 2021, 67% of all enterprise infrastructure was cloud-based.

6. It is reported that 82% of the workload will reside on the cloud.

7. Amazon web services have the largest cloud computing market share at 32%.

8. Platform-as-a-Service (PaaS) is expected to grow in adoption to 56% by 2020.

Benefits of Cloud Computing in the Accounting Industry

Lower Price

The price of subscriptions on cloud servers is one of the alluring factors for accounting firms. Choosing cloud accounting allows you to free yourself of the cost spent on equipment and programs used in carrying out traditional accounting.

Also, since all tasks are carried out online, it helps to cut down costs as you do not need to pay for an office to keep accounting equipment.

Improved Efficiency

Your clients may have been satisfied to communicate through phone or mail if they’d been living a few decades back. Today’s clients, however, need more sophisticated but easy ways to work with you.

Another cloud computing advantage for accounting firms is the different ways it opens up communication with clients such as online dashboards, up-to-the-minute announcing, and bound-together communication frameworks.

Your office can effectively serve a client anywhere around the world, in real-time.

As a result, numerous individuals can have access to the same information at the same time. Your firm can also reduce errors that happen when information is entered at different times.

Increased Accessibility

The beauty of cloud-based solutions is that they can be used from a remote location and can be accessed at any point in time.

This allows for 24x7 accessing multiple information with an internet device from anywhere.

Not only would this increase productivity, but also facilitate high customer and client interaction.

Greater Data Security

on the right is a cloud with a symbol of a lock and three computers connected. The background is blue and black with numbers and letters.

The security of accounting information for clients is so vital every client would want to go that extra mile to safeguard their accounting information. As such, cloud computing has proven to be one safe way to save and monitor information in your cloud server.

Accounting firms utilizing cloud computing can use the skill and assets of their cloud accomplices to guarantee that all information is thoroughly secured.

What’s the Impact of Cloud Computing in Accounting?

In a system where multiple information needs to be recorded, a means by which it can be recorded faster and accurately is highly needed.

Cloud computing contributes to helping accounting firms become more organized, help automate the input process, and improve the accuracy of the input data.

Besides, the issue of accounting, reporting, risk control, and information security is also better which contributes to improving the effectiveness of accounting firms.

However, this application requirement will become an inevitable trend in the future as it improves the operational efficiency of accounting firms.

a laptop in the middle, a tablet on the right, and a smartphone on the left, all of them with a symbol of a cloud. On the top left a black coffee.

What Is the Cost of Implementing Cloud Computing in Your Accounting Firm?

Companies are progressively contributing to cloud-based arrangements for common trade applications. These improve a whole lot of things in the accounting sector, and the benefits would provide value for years to come.

An amazing premise-based server has a price range between $10,000–$15,000, while cloud-based server costs between $70,000–$100,000 or more.

The same is found for the switches, the firewalls, and the aggregate of the leftover portion of the equip that's utilized in a cloud circumstance.

How Cloud Computing Can Help Your Accounting Firm

The advantage of cloud computing in an accounting firm can not be overemphasized. It improves security as important files would no longer be saved on drives.

It also helps to make data entry more efficient and thus improves the public impression of your firm as adopting technology shows that your accounting firm is up-to-date with the trends in the industry.

Also, the overall working performance, delivery speed, and output performance are more efficient, thereby improving the productivity of your firm.

Client Hub is a cloud-based accounting collaboration tool that not only makes communication between clients and the accounting firm easy and efficient but also secures and supports efficient bookkeeping for clients.

Originally published Jan 10 2022

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Frequently asked questions

What is cloud computing in accounting?

Cloud computing is a set of on-demand services hosted on remote servers, allowing accounting firms to access accounting information from a remote location through an internet device using a cloud application provider that works as a cloud accounting software.

How does cloud computing help accounting?

When compared to the traditional way of bookkeeping, and while carrying out other accounting services, cloud computing makes accounting easy, efficient, and productive. It improves the safety of storing confidential information, enhances the delivery speed of accounting firms, makes the processing of small and big data more efficient, and helps accountants or accounting firms focus more on generating revenue instead of spending much time on data entry and big data processing.

How is cloud computing changing accounting?

Cloud computing for accounting firms has enhanced speed and enabled swift processing of information for clients while simplifying the sharing of their information (of course with their permission). Also, with this in place, clients and accounting firms can have remote meetings at their convenience.

What is billing and accounting in cloud computing?

Billing and accounting in cloud computing is a process that allows accounting firms to make and send online charging and installments, mechanized updates, and charging entrances to clients in a more productive and adaptable way. Cloud computing accounting helps clients to record monetary exchanges.