Key Points Accountants Should Be Aware of About the Cloud
Cloud computing is one of the most popular and widespread digital technologies today. It allows remote hosting of any kind of software service making them available to users at all times and from any location. An easy way to imagine cloud services is to picture enlisting services directly from the internet removing the need for any kind of in-house hardware or software infrastructure. Cloud computing provides all the facilities of SaaS or software as a service via the internet.
Cloud software is designed to be deployed on the web, unlike in-house software which runs on company-owned computer systems. They are designed to be compatible with multiple users at the same time and to accommodate multiple vendors. What does cloud computing mean for the accountant? It has been observed that moving to the cloud has a tremendous impact on the company's financial health. Mentioned below are some of the key points that accountants should be aware of regarding cloud implementation.
- Reduction in up-front costs - Proprietary software that is used locally often has license fees, subscription payments and maintenance costs attached to it. Companies also need to invest in separate IT teams who can guide the employees and troubleshoot any problems. Compared to this, cloud computing has fewer costs involved. Since cloud software is designed to have multiple users, the subscription fees are a lot less. Added to this, companies do not need to invest in maintenance and separate IT teams, as these are taken care of by the cloud service provider.
- Quick Implementation - Compared to traditional IT infrastructure, cloud technologies are easier to implement and take far less time during their implementation stage. There is no software to install or hardware to account for. All the company needs to do is provide internet access at their workstations and employees can begin using the services online.
- Reduced maintenance and support costs - All the upgrades and maintenance are directly done by the service provider online. Any kind of support is available on the cloud platform directly. There is no need to maintain and repair expensive hardware or hire a team of IT professionals. Added to this, cloud services provide added benefits like data-backup, recovery from disaster, enhanced cyber security features and various other tools and services.
Most of the software applications that are used by company employees, including accountants are moving to cloud platforms. Tasks that were time-consuming and labor-intensive such as auditing, payroll management, tax calculations, and bill management among others have become incredibly streamlined thanks to cloud computing.
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