Cloud-based software has proven to provide more efficiency for accountants. With accounting platforms such as Simple Fund 360, Class Super, MYOB and Xero already operating ‘in the cloud’, it’s worth understanding the benefits of cloud technology for accountants.
What is the cloud?
The easiest way to understand the cloud is to think of it as computing over the Internet rather than through desktop software. In the cloud you are no longer tied to one device, with the ability to access and back up information across desktop, mobile and tablet.
It also makes integration with other cloud technology possible. For example in the Self-Managed Super Fund (SMSF) space you may have already noticed your administration software Simple Fund 360 or Class Super is in the cloud and therefore integrates with other cloud technology like wealth management platform BT Panorama and accounting software such as Xero & MYOB.
The value of the cloud
Cloud-based products help to take some of the leg work out of compliance, allowing you to focus on value added engagements with your clients. Helping to scale your business without significantly adding to cost, and allowing smaller practices to have access to enterprise grade capabilities.
The power of up-to-date data and reporting allows accountants to gather timely and relevant insights regarding clients and their activity. This may better empower accountants to deal with their clients proactively and enables a focus on value added services.
Cloud technology helps to drive efficiency and effectiveness simultaneously. It enables not only greater work output levels but also fosters better integrity of data, reporting and accuracy by providing access to up-to-date information.
What you need to know about the cloud
Integration
One of the biggest benefits of cloud technology is connectivity, with many cloud providers allowing access to APIs through the cloud to securely share data with integration partners. Having an integrated business may give you greater flexibility, allowing your firm to automate and streamline processes.
Up-to-date financial data
Using cloud applications you can access the software on any device, such as your smartphone, tablet and desktop. This means you can view financial data from anywhere, giving you the power to make timely decisions.
Storage and hosting
Cloud technology can save you from hosting your own data and from the need to maintain costly hardware. By using cloud applications, everything is done online with external service providers, who are responsible for the storage of your data and maintenance of the software. Cloud technology also provides access to large scale affordable storage which allows you to collaborate and exchange files with clients and their advisers.
Security
It’s important to carefully choose a reliable cloud service provider that values data security and has robust processes in place to keep your sensitive information safe. The leading cloud solutions undergo regular penetration testing to ensure they are adhering to the highest level of security standards.
Technical issues
Cloud technology can have lower levels of down time than desktop software, but often requires a high speed Internet connection to help you achieve optimal levels of efficiency. With cloud technology, service providers have the ability to quickly address any technical issues in the software and deploy fixes with minimal impact to your operations.
Costs
With traditional software, the cost is generally limited to a single upfront investment. Cloud software, however, is typically a subscription model where you are paying for hosting storage, support and continual improvement to that solution.
Innovate with the cloud
There are a number of factors that must be considered before moving your business to cloud technology. Many businesses have already experienced efficiency benefits along with a richer customer experience and a more connected practice. And with an increasing number of SMSFs now managed via cloud applications, it’s worth finding out how it could benefit your business.
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