Modernising accounting process with cloud accounting
The days of using desktop software, bookkeeping spreadsheets, and manual data entry for accounting processes have long passed. If your organisation is still relying on such outmoded methods to balance your books, you’re missing out on the many advantages of cloud accounting tools that have helped countless businesses streamline their processes, boost efficiency, and reduce expenses. Let’s understand the advantages of cloud accounting and how you can apply modern processes to your accounting workflow to benefit your organisation.*
What is cloud accounting?Cloud accounting involves modernising an organisation’s accounts department by taking advantage of today’s digital infrastructure and processes, including automation, cloud computing, and advanced analytics. The organisation’s financial data and accounting software are shifted from in-house servers and hard drives to the cloud, where they are more secure and remotely accessible over an internet connection.
What are the benefits of cloud accounting
Cloud-based accounting software is significant so that the company finances are in order. For instance, cloud accounting will save valuable time that’s typically spent organising day-to-day finances. As technology continues to change the way we do business, more and more businesses are turning to accounting applications hosted on the cloud. Modernising a business’ accounts processes brings with it several benefits. We have mentioned the most significant ones below:
Automation:Modern cloud-based accounting solutions automate several mundane manual tasks, such as data extraction and entry, generation of recurring bills, subscription payments, and ledger updation. Automating such repetitive tasks speeds up processes and eliminates human errors, and the system can alert the accounts team when it encounters exceptions, such as an invoice not matching with a purchase order.
Compliance:Incorporating cloud accounting services contributes toward the creation of accurate financial statements and tax reports, assuring an organisation’s tax compliance solutions. This eliminates the chances of underreporting tax liability, which could lead to audits and fines, as well as overreporting, leading to unnecessary excess payment. Modern cloud-based accounting solutions also consider domestic and foreign tax structures to ensure compliance in all domestic and international transactions.
Updated software:Cloud-based services and software are regularly updated by the cloud service provider, ensuring that you always have access to the latest versions. The newest software versions are equipped with advanced tools and up-to-date security measures and reflect the latest tax rates and laws to ensure error-free accounting.
Paperless processing:Cloud accounting processes eliminate massive amounts of paperwork associated with traditional accounting methods. Working with paper reports, cheques, invoices, and receipts is not only time consuming but is also wasteful. In addition, physically storing piles of documents is inefficient and expensive. Switching to electronic documentation is a lot more organised, reduces costs, and helps reduce carbon footprint.
Security:Cloud accounting services are continually updated with the latest data security measures to keep your sensitive information safer than it would be on an in-house hard drive or a server. Data stored on the cloud can only be accessed by authorised personnel and is regularly backed up to keep it safe. So, even if an employee’s laptop crashes or is stolen, or a natural disaster damages your physical office and destroys your in-house filing system, the latest version of all your organisation’s financial data is safely stored in the cloud. This means that you never have to worry about losing an important document again.
Scalability:This is a significant advantage of cloud accounting for growing businesses. As an organisation expands in scale, manual spreadsheet-based accounting processes often can’t keep up with the pace of expansion, which negatively affects business growth. Modern cloud-based accounting solutions bring with them the flexibility and scalability to handle increasing business demands and add features and functions as needed.
Customisation:One can tailor a cloud-based accounting solution to suit specific business needs. A proficient system allows for customised processes built around an organisation’s precise requirements to speed up and streamline accounting workflows.
Efficiency:Every organisation aims to be more efficient, to better apply the resources at hand, and adopt processes that positively impact the bottom line. A competent cloud accounting solution eliminates the need for employees to enter and validate data manually, improves accounting accuracy, and saves time that may be spent on tracking down physical documents. This frees up resources that can be better directed towards core business processes that focus on enhancing the business and boosting profits.
How Infosys BPM can help?
The accounts payable on cloud platform helps your organisation take advantage of all the benefits of cloud accounting, speed up financial procedures, and make your accounts department extremely efficient. Know more about how Infosys BPM offerings that can help modernise your accounts processes.
*For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed on organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive, yet modular suite of services is doing exactly that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.