The Impact of Cloud in the Accounting Industry: A Review and Analysis

The accounting industry witnesses many spikes across the year, be it the tax season or month-end closing. However, with the pandemic and the amount of workload it has brought, accountants and CPAs throughout the world are now experiencing an increased continuous stress level.  

While the accounting industry has shied away from adopting the latest technology into their day-to-day activities, tech tools are now considered the ultimate aids to relieve the heavy workload. COVID-19 has sped up the technological transformation in the accounting sector, making accounting less stressful. 

Cloud is one of the best tools for accounting firms to leverage for their business growth. Now that remote working has become the new norm, the cloud allows users and employees to stay organized, streamline their accounting processes, and be flexible now and into the future.  

1. From number crunchers to trusted advisors – the changing role of accountants 

A significant effect cloud technology has had in the accounting industry is the ability to work remotely and efficiently. This, in turn, allows accounting firms greater access to clients worldwide and talent pools that previously were not easily accessible. 

Over the last decade, the role of accounting professionals has evolved drastically. As cloud accounting continues to simplify and automate accounting processes, accountants are moving from number crunchers to offering strategic advisory services to their clients. This is mainly due to rising client expectations and increasing competitiveness in the accounting sector.  

The disruption is highlighting the true value of accountants for business growth and how the insights provided by them can be beneficial for both long-term growth and business survival. Accountants have proved that they can work from anywhere and also manage a remote firm successfully.  

2. Increasing demand for Business Advisor Services 

With this transition to the cloud, accounting professionals are facing increasing challenges, including pressure to increase profits, increased competition, and technological advancement.  

Most accounting firms are facing some tough choices: 

• Should I reduce my fees from existing clients? 
• Should I explore new areas to sell my services? 
• How can I add more value to the clients with the same charge? 
• How can I get the best clients who want the services I provide at the current charge? 

The last challenge can be the ace in the hole for accounting firms, as being proactive can often be hard and isn’t within the basic skillset of many professionals. But accountants who are not being proactive in their approach may face shrinking fees or may even lose their clients.  

So, how can they change their approach to business development? By adopting cloud accounting.  

3. Work smarter and faster with cloud accounting 

Bookkeeping involves some of the most monotonous and repetitive tasks and those dealing with it daily get fed up with everyday invoicing, billing, and transaction reconciliation. Cloud accounting software provides relief from these tasks and also ensures that they are done with complete accuracy.  

Accountants or small accounting firm owners can use this time for important concerns such as serving clients, innovating, and growing their business. Bookkeeping or accounting tasks are probably not on top of their list. However, they’re important – get your processes in order, and you would be more confident about the valuable insights to make better decisions for your business. 

When data is on the data, businesses can get an up-to-date overview of their current financial position. Instead of looking at reports that are weeks or months old, they get a real-time report and analysis of their finances. Such information can be important when planning for the future finances of the business and also making strategic decisions.  

4. Stepping into the cloud to ensure more safety for your accounting business 

News about security breaches and ransomware attacks might have accounting professionals wondering: Is my accounting data on the cloud safe? 

Before answering this question, let’s consider an alternative option: self-hosted software. Accounting data stored on a server located in your office may seem more secure, but in the case of natural disasters such as floods or fires, or even man-made disasters such as theft or technological malfunctions, all your data can be lost instantly. 

Cloud accounting, on the other hand, helps to mitigate such issues by providing security measures such as Intrusion Detection Systems, firewalls, data encryption, and automatic backups by the cloud providers. Even if your system is stolen, all your data is backed up and remains fully updated. Nobody would be able to access the software on the cloud if you’re using a secure password.  

5. Grow your business with cloud accounting 

Cloud technology is sure to have a huge impact on the accounting industry. With an array of benefits to offer, cloud accounting is the right choice for any business that wants to keep pace with its competitors. 

So, if you’re considering the transition to the cloud, it is recommended to move ahead with a strategic approach. Ensure that you explore all the options available and choose the right cloud accounting provider to reap the potential benefits of the cloud. 

If you want to implement cloud accounting solutions for your business, reach out to our solutions consultant at +1-855-906-2884.