As more businesses look to increase efficiency, cloud accounting is helping many businesses to streamline their processes, solving the issues of today, whilst providing scalable platform to grow into the future. In addition to the new challenges we face in 2020 around remote management, there are many great benefits to moving to cloud-accounting.
Very simply, cloud accounting software lets you keep everything in one place. This gives you greater visibility of your finances, and it also helps finance partners and investors to keep on top of your business’s growth in real time.
For a modern business, there might be a need for multiple people to have access to finance and performance data. Cloud accounting platforms can help stakeholders monitor the health of a business, preventing information silos.
Understandably, many finance executives are reluctant to trust their confidential finance data to a third party. Large cloud vendors can offer security that “is many times superior to what companies are able to provide themselves, because vendors’ economies of scale allow them to spend much more.”
Another thing to note is that businesses are now required to keep their records digitally and to provide their VAT return information to HMRC through Making Tax Digital compatible software. Having your files available in the cloud makes providing audit trails simpler and less time consuming.
Collaboration has become somewhat of a corporate buzzword; what you need are actionable insights to make it happen. To begin with, you must move away from inefficient, disconnected spreadsheets and toward a unified, integrated enterprise financial software platform. Having such a platform will both relieve much of the pressure on finance and improve the speed and fluidity of your financial processes. This allows real-time data to be communicated upon when it is of its most pertinent nature.
The recent IFRS 15 accounting standard introduces rules to ensure that companies use a consistent method of recognising revenue from contracts. Especially if your business creates complex sales contracts with multiple and distinct performance obligations (deliverables), there are new calculations to perform and processes to follow. Legacy finance systems are not optimised to handle the new requirements.
Companies often have subsidiaries, regional divisions, or recent acquisitions that are using a different finance system from the head office. This disrupts the flow of data and necessitates manual workarounds such as spreadsheets. Consolidating on the cloud can provide a single view of operations without the cost and lengthy implementations that inhibit on-premises finance.
ION is built on the cloud and helps transition businesses from cumbersome, on-premise, legacy solutions to intelligent cloud-accounting business solutions. As a team of independent specialists, we work with your team to understand your challenges and identify the best cloud accounting solution for your business.
Contact our team to discuss how we can unleash cloud accounting in your business.