Accounting Made Easy with Cloud Computing
The concept and technology of cloud computing are not very new and has existed for a few decades now. However, the professionals in the financial sector, like accountants and bankers, have been welcoming this concept with open arms only now.
So, what triggered this sudden dependence of accountants on cloud computing?
Historic Relationship of Cloud Computing and Accounting
Cloud computing is an impeccable way of storing mountains of data without hassle. However, in the finance sector, the data to be stored is highly sensitive and extremely vital. Hence, it could not be trusted in the hands of a third-party.
Furthermore, due to earlier legislations of data storage and management, it was not possible to store data in locations out of state jurisdiction. This was a problem because, when using cloud services, data is usually stored in a different country server altogether!
Thus, due to security and political reasons, cloud computing was at bay from the financial industry for quite some time.
Fortunately, as technology improved, security became more robust and legislations were altered to make data storage more convenient. Now, accountants and other finance professionals are jumping at the opportunity to incorporate cloud computing in their workflow!
Cloud Computing is Big but Not Difficult
For budding accountants or accountants who have not been leveraging cloud computing in their workflow yet might find the concept of cloud computing and cloud storage very complex. So, let us break it down.
Cloud computing comes in three forms:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
Developing infrastructure, platform and software from the ground up costs very high and is often unaffordable for micro and small-scale businesses. Therefore, most of the smaller finance companies and accountants employ one or more of the cloud computing services mentioned above for secure data storage, easy access and efficient accounting.
How Will Cloud Computing Benefit ACCA Professionals?
ACCA professionals are globally recognized. Often, they have to work with teams across the state and country borders. Therefore, the best way to stay connected and be in the loop is to take the entire workflow to the internet. That is where cloud computing jumps into the rescue.
Cloud storage and services allow accountants to access and manipulate data in real-time from anywhere and at any time. This makes collaborating with teams from various locations incredibly easy and efficient.
Additionally, ACCA professionals can also dictate the degree of access to the data by members of the team or by the clients themselves.
In the case of accounting firms, they do not have to spend time in hiring technical personnel to maintain their servers. Cloud computing takes care of it all.
Conclusion
All in all, cloud computing takes accounting and taxing workflows to the next level by improving speed, efficiency and accuracy while ensuring safety and security of sensitive data.
It offers additional convenience in collaboration with teams and clients. Updating information like banking details and sending receipts can be sped up greatly with cloud computing.To be a part of the next-gen accountants, take a look at this course on ACCA.