Old school accounting software is already in the archive basement for most government agencies and major organizations that are now relying on the cloud to manage their financial data.
Old school Vs new technology
Despite the Cloud being as widespread as it is today, there are several companies that have stubbornly held on to old school methods for financial accounting. William Buck, a mid-tier accounting and advisory firm has shown some startling results through a new research. William Buck maintains that several mid-size companies in Australia have missed out enormous opportunities simply by bypassing cloud accounting technology.
A very small percentage of Chief Financial Officers in 400 mid-size companies had made the switch to cloud accounting according to the CFO Pulse survey. The survey also found that only 25% of the Chief Financial Officers were contemplating shifting to cloud accounting over the next five years.
What are they missing?
Cloud accounting is technology from the modern world that saves mid-size companies invaluable resources amidst other benefits when implemented. Here is a list of opportunities that the companies are letting slide by not choosing cloud accounting.
- Cost saving – In lieu of cloud accounting, companies invest on accounting software and hire an accountant or book-keeper. Other significant costs that the company incurs are system administration costs, maintenance, overhead costs, version upgrades and server failure costs. All of these costs will be non-existent when companies outsource to cloud accounting as all the accounts will be managed by a cloud accounting service provider.
- Advancement – There are several advanced features that come standard with cloud accounting services. One of the most important features is a multi-company feature. In case several organization records have to be maintained, then utilizing this feature is the easiest way to save money while still having access to financial records. Each organization’s records can be customized as required while still retaining the ability to integrate them and work with just one system.
- Performance growth – Business conditions are never consistent. Despite the variety of factors, both internal and external to the company affecting the business, cloud accounting gives businesses the flexibility to adapt to the changing conditions. One can generate real-time financial dashboards and reports while retaining the core focus of the company on the strategic initiatives.
- Ease of access – A company’s financial datalike the payroll, inventory, expenses and more information can be accessed worldwide by the company when relying on cloud accounting services. There are no limitations on the geographic location, the time or even download or install requirements to view the files on individual desktops. All the cloud accounting services require is an internet connection.
With such reliable and easy to use opportunities that the cloud accounting services provide, streamlining business processes is now just a matter of using modern technology. In order to get compliant to the changing business conditions and to have access to better reports and insights, switching to cloud accounting are the solution for mid-size businesses.