CCH Wolter Kluwer, an accounting research manager, conducted a research study 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.
The study from CCH proves that the change to cloud-computing software or platforms for accounting services is proceeding well. Acceptance has reached momentous levels among accountants and small business owners and is predominantly high among younger groups. Future intents show that mainstream SMEs and their accountants will manage their accounting on the cloud within two to three years. The change to cloud-based computing offers some direct threats and long-term prospects for the accounting industry.
Cloud computing will mechanize much of the low-level, managerial facilities accountants have provided to small and medium enterprise clients for so long. It is preserved for business owners, who will now consider replacing much of their accountants’ work with cloud software. A decent number also say they will deliberately replace 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.
You cannot replace an accountant with cloud computing by any means. However, accountants with a vast knowledge of cloud computing will undoubtedly be given preference in future jobs in small to medium-sized businesses.
Before understanding the benefits of cloud computing, let’s through the accounting and cloud accounting differences.
Cloud Accounting
Cloud accounting is the same as traditional accounting; 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,’ which is processed and returned 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 globally, provided the cloud applications service provider is present.
Benefits of Cloud Computing for Businesses
- You can access your accounting and bookkeeping data anywhere and anytime. You can spend time on other business operations-related activities or spend quality time with family. You can access cloud accounting software online while sitting at home and stay updated with the accounting and bookkeeping functions in your business from the comfort of your home. An up-to-date view of your business’s financial status lets you make the right decisions at the right time.
- Go paperless in accounting and bookkeeping. This step is 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 solve this critical information.
- Cloud accounting software offers multi-user access.
- A better relationship is built with your accountant. You can access accounting data online and give your accountant quality time for discussion related to business bookkeeping.
- Cloud accounting software is automatically updated.
- Cloud accounting reduces upfront business costs. You do not face regular maintenance fees.
Conclusion
The future of cloud computing is accounting procedures in small and medium-sized businesses. Accountants must seek training to learn cloud computing operations to survive in accounting jobs. 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-sized entrepreneurship. It is the preference of business owners as well.
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