A Complete Guide to Cloud Based Accounting Software

A Complete Guide to Cloud Based Accounting Software

The best cloud based accounting software systems may seem like a relatively new concept because of the rapid-fire adoption of late, but they are an improvement on existing ideas that have been present in business for some time. Accounting software is among the more logical choices to maintain in a hosted environment because of the added levels of control and security that your business will be able to implement.

Cloud based accounting and bookkeeping software is being touted as the next advance in business, allowing remote operations and logins and following a model similar to that of other cloud based or hosted business services. But is it safe for your business to store sensitive financial information and client details online using cloud accounting solutions and access them from remote locations?

Why Move to Cloud Based Accounting Software?

Like just about every other business solution available today, whether computerized maintenance management or video and teleconferencing solutions, cloud based accounting and bookkeeping services offer significant advantages to companies, making it possible to centralize financial records and still allow for remote operation and use of your accounting program, this service model presents a few obvious benefits.

Considering the improved accessibility, the opportunity for advanced functionality within today’s mobile business environment plays a pivotal role in the push toward cloud based accounting systems in general. Cloud based accounting software is the logical extension of this thought process and makes particular sense for businesses that need to keep their financial affairs updated and in shape.

Let’s explore the features and advantages of cloud based accounting software in your organization. 

What Are the Key Features of Cloud Based Accounting Systems?

Cloud based accounting software solutions allow businesses several key features to streamline all financial activity. These features include:

  • Access to financial data in real-time.
  • Reduced maintenance costs associated with traditional accounting software solutions.
  • The ability to access financial data from any location
  • Live bank feeds when the cloud based accounting system is directly linked to your bank accounts.
  • Improved security features with encryption and access control.

The overall objective of businesses adopting cloud based accounting software is to remove manual tasks associated with traditional bookkeeping modes to reduce redundancies and other errors which can be detrimental to maintaining perfect financial records. With cloud-based capabilities, your cloud computing accounting software solution will be more accessible than before to provide financial clarity at all times. 

What Are the Advantages of a Cloud Based Accounting System?

One of the best features of cloud based accounting solutions is how user-friendly they can be. Cloud based accounting solutions shouldn’t be a chore to use and, thus, not discourage anyone from using them. Even your experienced accountants can quickly adopt a cloud based accounting solution and streamline how your accounts are handled. 

With remote working functionalities thanks to the cloud-based technology of cloud computing accounting solutions and associated apps from the service provider, financial information can be available whenever and wherever it is needed. You may even be able to outsource your cloud based accounting services to a different service provider and stay in the know-how using your cloud based accounting portal. 

Automation features of cloud based accounting software allow sales and income data to be directly synced up with online portals such as a point of sales system or website sales. This data can also be synced with your banks without having to report anything and streamline how your accounts are handled manually. 

With cloud based accounting software and apps, you can always glance at your financial activity using user-friendly dashboards. Multiple users can be registered within your system with different levels of authority to ensure that unauthorized employees do not obtain sensitive data. Multifactor authorization modes can enable your cloud based accounting software to be safe from hackers and help not compromise critical financial data. 

The Logistics of Cloud Based Accounting Security

There are several essential parts to the security of a cloud based accounting solution that is preferable to having a premise-based system.

Physical Security 

The main benefit is that all data is stored in a hardened and secure environment. Your servers will be protected, typically in an environment that utilizes the same physical security measures as most banks. Best of all, cloud based accounting software security updates are automatically provided by the service providers to ensure that your business is always compliant with the latest security measures. 

Electronic Security 

Typically, cloud based accounting or hosted accounting software systems employ secure encrypted connections and Virtual Private Network (VPN) connections for sensitive information. This can help assure that sensitive data is only for the eyes of authorized personnel. 

Remote Access 

In the past, if employees had remote access to the accounting and bookkeeping systems (and they generally did), they were logging in on an unsecured connection and into your company’s premise-based servers, typically unsecured.

A hosted, cloud based accounting software system solves many cloud based accounting security issues in today’s business world. The capability to remotely log in and access your accounting system is a necessary component, and the fact that security measures are built-in on several levels can be a valuable asset. Cloud based accounting software vendors are always at the top of their game when it comes to secure access to their systems with elements such as multifactor authentication.

Finding the Right Partner

The most important factor when deciding on a new cloud based accounting software, and determining whether your data is safely and securely handled, is selecting the right cloud based accounting service provider for your business. More so than with most business solutions, due diligence is required when deciding on the cloud based accounting service provider for your cloud based accounting solution. There are many options available in cloud based accounting solutions, and choosing one with the proper security measures to fit your needs is critical.

Please consult with our cloud based accounting software page to explore more cloud based accounting service vendors and select the right vendor for your business needs. 

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