6 Ways Cloud-based Technology is Changing the Game for Bookkeeping

There’s no denying it: Technology is changing the world around us — and usually for the better.

From self-driving cars to smartphones, it seems there’s no limit to the innovations produced every year, and the world of bookkeeping is no different. Believe it or not, but the outsourced finance industry is advancing along with the rest of these digital solutions, especially when it comes to the use of cloud-based software technology.

Chances are, you’ve already heard of this trendy keyword a few times. And, with a majority of organisations planning to incorporate cloud services into their infrastructure, anyone who isn’t is already falling behind.

So, what exactly is cloud-based software tech, and what does it have to do with bookkeeping? Stick around to find out!

1. It Is Improving Communication Abilities

Communication remains a crucial aspect of any business’s success, regardless of which industry they operate in. And, in a complex sector like finance, clients who are outsourcing bookkeeping and accounting needs require consistent, quality status updates.

A few years ago, a simple phone call or e-mail might’ve been enough to keep them satisfied and send them all the necessary information. Today, the world of outsourced finance looks much different, as firms need to adopt an active, hands-on approach that proves they’re committed to solving their clients’ problems.

This is where cloud-based software technology comes into play. Utilising advanced digital tools, clients will have full access to online dashboards, live reports and more to see the status of their finances whenever they wish.  

Furthermore, all internal and external communication is unified into one simple channel, improving the efficiency of interactions between clients and coworkers.

As a result, firms can spend less time managing the back-and-forth with customers and focus more on keeping their data secure.

2. It Is Improving Data Protection

Possibly one of the most crucial responsibilities of any firm offering outsourced bookkeeping and finance is the management of data: more specifically, keeping it protected at all fronts.

Once more, cloud-based software technology offers a few convenient and effective solutions for providers to take advantage of. Regardless of what type of data they’re keeping secure, they can enjoy round-the-clock benefits such as:  

• Comprehensive encryption.
• Regular cloud-to-cloud backups.
• Professionally designed disaster recovery systems.
• 24/7 monitoring for security threats.
• Data-loss prevention systems.

This means that clients and firms alike can rest assured knowing their sensitive information is protected on all fronts, enabling them to focus more on maintaining service quality and expanding customer reach.

3. It Makes Accessing Data Easy

Traditional accounting and bookkeeping software only works on one computer and can only be accessed by one user, making collaboration slow and difficult.

Cloud-based finance and bookkeeping software tools have surged in popularity as they keep your finances organised and give you easy access to real-time data anytime, anywhere. These tools centralise information, allowing business owners, bookkeepers and accountants to stay connected and seamlessly manage financial data remotely.

Cloud-based finance makes it easy to manage user access and permissions while ensuring that everyone is always looking at the same data.

4. It Is Reducing Error Risks

Though mistakes are virtually inescapable across all industries, the outsourced finance sector is arguably one of the worst areas for them to be made. Aside from upsetting the client, a significant error can hinder the firm’s credibility, impacting its growth for months on end.  

As such, the automation possibilities offered by cloud-based software technology are nothing less than a lifesaver for firms worldwide. With these in place, clients who are outsourcing their bookkeeping needs speed up routine tasks while having less to worry about, knowing that advanced digital algorithms are preventing errors long before they can be made.

Automation provides benefits for firms, too. For example, an innovative online system overseeing tasks like data entry or transcription, usually performed manually, can free up more time and increase productivity.

If an error occurs, cloud-based software accounting and bookkeeping tools make verifying and locating the issue more straightforward, with audit trails and easy-to-use, advanced search capabilities.

Furthermore, only one ledger is kept as a file in the cloud, improving information accuracy, minimising errors and keeping you compliant at BAS and tax time.

5. It Reduces Costs

With servers, networks and local storage devices to maintain, the costs of traditional accounting systems and bookkeeping services can quickly add up.  

Cloud-based software technology allows you to get started with just an internet-connected mobile device, making it cheaper than the traditional alternative.

6. It is Customisable

It can be challenging to find a traditional accounting and bookkeeping system that does everything you need it to do. However, cloud-based solutions such as XERO, MYOB and Oracle Netsuite can integrate with other apps and add-ons, allowing you to build an online, scalable ecosystem with functionality customised to your business needs and objectives.

Look for a bookkeeping partner with experience dealing with software migration and implementation to ensure that your business uses cloud-based software technology to its full potential.

Conclusion

Cloud-based accounting is at the forefront of the industry’s future, which is why Numeric Eight is using it to streamline our services and overall quality. By utilising cloud-based software technology, we can spend less time on data entry and more time on offering advice to help you improve your systems and lower your costs.

Contact us today to learn how our local, outsourced bookkeeping and accounts management experts can take your business to the next level!