It’s surprising how technology keeps evolving over the years. Just a few years ago, accountants and CPAs practiced accountancy on their locally-installed desktops from their office. But, over the years, they’ve shifted towards technologies such as cloud, which enables remote working capabilities for them.
While some of the accountants have already adapted to the new technology into their workspace, many are still exploring what they can achieve with the cloud.
What is cloud hosting?
Cloud hosting refers to installing and storing your accounting application and data, respectively, on the cloud servers of a third-party provider instead of the on-premise infrastructure.
With cloud hosting, the applications can be accessed from anywhere at any time, and on any device with a stable internet connection. Cloud adoption gives you a better view of your finances and accelerates your business. It enables multi-user access to real-time data, thereby saving time.
Multiple vital factors such as security, performance, scalability, business continuity and disaster recovery, and cost help you decide the right cloud hosting provider. Choosing the type of cloud hosting provider directly impacts your business.
The right service provider will offer multiple layers of security to safeguard the data from cyberattacks by enabling antivirus, malware protection, and firewalls. Also, they provide at least 99.999% uptime to keep your applications up and running.
All in all, migrating to cloud-based solutions is not just an option anymore; it’s a necessity.
Let’s see how cloud accounting introduces agility and scalability into your accounting business.
Business agility is a measure of how responsive your business is to a fluctuating environment and how well it responds if conditions around it change.
With on-premise infrastructure, businesses are not able to pivot with the rapidly changing environments such as workplace requirements, economic influences, and changing customer needs.
So, how are the C-suites planning to cultivate agility into their business models?
Many enterprise-level businesses are adopting cloud-based models as it offers a key means of enhancing workplace agility. Cloud storage can be easily reorganized, reconfigured, or even move to another location as per your business demands. Cloud hosting providers make the IT processes more flexible by offering computing resources without any physical limitations.
Moreover, they provide pay-as-you-go pricing plans to support the changing needs of the business. Thus, the cloud can turn out to be a cost-efficient solution deriving business growth.
A limited number of resources at the office premises can be problematic for businesses. Usually, adding more resources would require your IT team to purchase, deploy, and set up the additional IT infrastructure to your office premises, which would take days or sometimes weeks. Moreover, in-house servers would require physical rack space that adds to overall expenses.
To simplify the provisioning of resources as per the changing business needs, many organizations are opting for cloud-based solutions.
Cloud technology offers to scale up or down the resources as per the business requirements. For example, if the server where the accounting application such as QuickBooks is hosted reaches its max capacity, it can be reconfigured by adding more memory, storage, or network resources in minutes. The cloud service providers securely deploy upgraded infrastructure without hampering your business productivity.
Adopting cloud-based infrastructure offers numerous other benefits as well. It facilitates collaboration between accountants and CPAs across the globe without the limitation of physical location. Since all the applications and data are hosted at a central repository, it gives accountants an opportunity to deliver faster results and increase business productivity.
Other than that, the hosting provider offers a High-Performance computing server so that the accounting application and data always remain up and running. To ensure the best geographical redundancy, the data centers are located far away from one another and frequently backed up.
So, even if one data center is down because of events such as calamities, floods, or human-made disasters, it doesn’t impact the financial data.
An accounting business is incomplete without coordinating with other applications such as tax software, payment applications, invoicing, inventory management, and more.
To Wrap Up
It’s quite clear that a revolution in the accounting industry is taking place. Many tech-savvy businesses have adopted cloud services and are at the beginning of seeing the impact of cloud-based applications.
The industry has started to realize that the cloud helps companies to make better business decisions as it offers trend analysis and experimentation.
Sooner or later, businesses have to migrate to the cloud. So why not do it now and stay ahead of your competitors?