CCH Wolter Kluwer, an accounting research manager, conducted a research study in 2013. It was a national research study commissioned by CCH. The study was “Cloud computing – a matter of survival for the accounting industry?” The findings of the study were interesting and expected.
CCH’s study approves that the change to cloud-computing software or platforms for accounting services is well proceeding. Acceptance has now reached momentous levels among accountants and small business owners and is predominantly high amid younger demographics. Future intents show that within two to three years, a mainstream of Small and Medium Enterprises (SMEs) and their accountants will be managing their accounting on the cloud. For the accounting industry, the change to cloud-based computing offers some direct threats but also long-term prospects.
Cloud computing will mechanize much of the low-level, managerial services that accountants have provided to small and medium enterprise clients for so long. This is not lost on business owners, who show they will consider replacing much of their accountant’s work now with cloud software. A significant number also say that they will deliberate replacing their accountants if they do not work with a cloud computing system. This fondness for cloud computing is increasing abruptly amid younger groups of business owners.
Cloud computing cannot replace an accountant by any means. However, accountants with a wide knowledge of cloud computing will certainly be given preference in future jobs in small to medium-sized businesses.
Before understanding the benefits of cloud computing, let us thoroughly understand accounting and cloud accounting differences.
Cloud Accounting
Cloud accounting is the same as traditional accounting, and bookkeeping procedures are done on accounting software. The cloud accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud,’ where it is processed and sent back to the user. All application functions are done off-site, on the cloud, not on the desktop. The accounting functions are done online and not on desktop software. The internet or another network is used for the process. Users access the cloud accounting software through a cloud application service provider. The software does not have to be installed onto a computer. It can be accessed from any place in the world, provided the cloud applications service provider is present.
Benefits of Cloud Computing for Businesses
- You have access to your accounting and bookkeeping data anytime and anywhere in the world. You can spend time on other activities related to business operations or spend your quality time with family. You can go online to access cloud accounting software while sitting at home and stay updated with the accounting and bookkeeping functions in your business from the comfort of your own home. An up-to-date view of the financial status of your business enables you to make the right decisions at the right time.
- You can go paperless in accounting and bookkeeping, which makes cloud-based accounting Eco-friendly, too. Paperwork takes a lot of time and resources for accountants and business owners. Small business owners need time to interpret accounting information. Accounting software makes it easy to interpret this critical information without cumbersome papers.
- Cloud accounting software offers multi-user access.
- A better relationship is built with your accountant when you use cloud accounting. You can access accounting data online and give quality time to your accountant for discussion related to business bookkeeping.
- Cloud accounting software is automatically updated.
- Cloud accounting reduces upfront business costs, and you do not face regular maintenance fees.
Conclusion
Cloud computing is the future of accounting procedures in small and medium-sized businesses. Accountants must seek training to learn the cloud computing operations for job survival in the accounting industry. Cloud computing cannot replace accountants. It only makes their jobs more efficient and time-effective. The accounting industry is shifting from manual accounting to cloud computing in nearly all small and medium-size entrepreneurship, and this is the preference of business owners as well.
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