Is your company still working on desktop software and spreadsheets to manage your bookkeeping and accounting? If yes, it’s time to switch up your operations and productivity with Cloud-based accounting. Using Cloud lets remote servers save, access, and share data, including images, videos, business information, files, and folders from anywhere in the world. All you need is a stable internet connection and you can even work sitting on a beach in Florida!
According to the latest update from the International Data Corporation, worldwide spending on public Cloud services is predicted to reach $1.35 trillion in 2027. Additionally, the annual spending growth is expected to slow slightly over the 2023-2027 forecast period; the market is set to achieve a five-year compound annual growth rate (CAGR) of 19.9%.
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What is Cloud Accounting Software
Cloud accounting software is a web-based solution empowering businesses to seamlessly conduct all your financial operations from any location. Hosted on secure servers managed by the software provider, it grants real-time access to financial data from any internet-connected device.
As opposed to the mechanism of traditional hard drives, your data is much safer and secure on online servers. This feature proves extremely useful in case of a fire or natural calamity where your human resources can continue working from anywhere–bid farewell to downtimes.
This technology efficiently handles crucial accounting tasks such as invoicing, expense tracking, and financial reporting, enhancing overall accuracy and productivity. With data securely stored and easily shared among authorised users, Cloud accounting software promotes collaboration in a virtual workspace. Its scalability and flexibility make it an indispensable tool for businesses seeking modern, accessible, and data-driven financial management solutions.
Cloud v/s On-Premise: A Comprehensive Comparison
Cloud-based software, hosted and managed by service providers on external servers, offers accessibility through web browsers or dedicated interfaces.
On the other hand, on-premise software is installed and operates on a company’s in-house hardware infrastructure, localised within the premises.
Let’s delve into a detailed comparison for a better understanding of what would work best for your company:
(Tabular comparison)
| Aspect | Cloud-Based Software | On-Premise Software |
|---|---|---|
| Accessibility | Accessible via web browsers or specific interfaces. | Restricted to the company’s internal network. |
| Setup & Installation | Quick deployment, no hardware setup. | Requires local installation on company-owned servers. |
| Maintenance | Handled by the service provider; automatic updates. | In-house responsibility for updates and maintenance. |
| Growth & Scalability | Easily scalable with flexible subscription models. | Scalability is dependent on the company’s hardware capacity. |
| Security | Provider-managed security protocols. | Company has direct control over security measures. |
| Pricing Plans | Typically subscription-based, reducing upfront costs. | High upfront costs for hardware and software licences. |
| Remote Access | Facilitates remote access for off-site teams. | Limited remote access capabilities; usually on-site. |
Caption/ alt text for the table: A detailed comparison of Cloud-based vs on-premise accounting software
While both Cloud and on-premise solutions have distinct advantages and limitations, the choice depends on factors like business size, type and industry, scalability requirements, and security preferences. A thorough analysis of the benefits, limitations, and alignment with specific business requirements is crucial for making an informed decision when choosing the right deployment methodology for your business.
Top 5 Benefits of Cloud-Based Accounting
Here are the top 5 advantages of having Cloud-based accounting software in your organisation.
Collaboration and Efficiency
Cloud-based accounting enhances collaboration and efficiency by providing a centralised platform for team members to collaborate in real time. This collaborative approach streamlines communication and workflow, reducing bottlenecks and increasing overall efficiency. With data accessible to authorised users globally, businesses experience improved teamwork, leading to better decision-making and streamlined operations.
Cloud accounting benefits go beyond mere features – they are essential elements that redefine how businesses operate, ensuring security, efficiency, and global connectivity.
Privacy and Data Security
Cloud-based accounting isn’t just about automation; it’s a rock-solid defence against the pitfalls of manual accounting. The precision of automation in Cloud systems significantly boosts data security, leaving little room for human errors that often lead to breaches in various industries.
Cloud privacy signifies the consistent technological development and regulatory and legislative features that can help your businesses utilise the Cloud, offering ease and building trust amongst your clients and customers that their data is in safe hands. Usually, when using a Cloud service, a business is required to share their daily invoices, and the responsibility of recording and accounting is handled by the accounting software company or the Cloud service provider.
Pay-As-You-Go and Serverless
This is one of the key drivers of the increased adoption of Cloud-based accounting software on a global front. Many people are confused by the term ‘serverless’ when discussing Cloud technology. Yes, like any other software program, Cloud, too involves a server. The only difference is that the accounting tool is being run on an external server.
So, how is that beneficial for you?
It eliminates the need for businesses to manage their own servers. While a typical Cloud service might charge the company for the number of servers they want to host their infrastructure on, the business simply pays for the resources they directly use under a serverless model. This drives efficiency by eliminating the need to pay for servers even when they are not in use and frees up the business’s time to spend on its core activities.
Artificial Intelligence as a Service
With the advent of AI services transforming the entire industry and beyond, it has started playing a significant role in the accounting and finance realm.
Febi uses Artificial Intelligence and advanced machine learning algorithms to cater to all your accounting, invoicing, payments, taxation and file management needs. What makes it stand out from the existing software in the market? It
offers a single window clearance for all your accounting and technology/ legal compliance needs. Febi’s models are trained to handle vast amounts of financial data and have exceptional computing and reporting capabilities.
Imagine having the ease and informed decision-making one can perform with one-click access to 30+ reports, including a balance sheet, cash flow, day book, trial balance, and more. More than that, you can leave all the bookkeeping and reporting tasks to us. This means all you need to do is upload your documents and receipts to the platform and we handle the rest for you. You can easily upload data through an email or even through your Whatsapp.
Scalability and Accessibility
In the context of Cloud-based accounting, let’s delve into two critical aspects: scalability and global accessibility. Scalability allows your business to expand effortlessly. Whether handling increased data or adapting to shifting operational demands, Cloud systems facilitate seamless growth.
Now, consider accessibility. Imagine your team collaborating globally in real time. Cloud-based accounting eliminates geographic barriers, providing access to financial data whenever and wherever needed. It’s akin to possessing an exclusive pass to your business’s financial intricacies, enabling prompt decision-making and agile responses. In the domain of Cloud-based accounting, scalability and accessibility are not embellishments – they are pragmatic tools that foster smooth operations and global accessibility/connectivity of your business.
To sum up, Cloud accounting offers businesses numerous tangible and intangible benefits. It helps enhance collaboration, improves data security, and provides a bird-eye view of financial operations. Deciding between Cloud and traditional methods is easy based on your business size, industry needs, scalability, and security preferences.
Are you ready to take the plunge? Grab a free demo of Febi and see firsthand how Cloud accounting can take your business to a whole new level. Experience AI-Powered Bookkeeping: Effortless Compliance, Maximum Precision.
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