Technological advancements are continuously present in the workplace for ease of use and added convenience to a business. Some developments have even grown more in demand in recent years.
One driving technology in organizations today is cloud technology, a virtual space where companies can freely store different types of information vital for their day-to-day operations.
While the concept of the cloud is not new to various industries, the increased number of businesses enforcing remote work has only accelerated the necessity for such technology.
With so many companies worldwide now adapting to flexible work arrangements, information access has become more important to ensure operations continue running smoothly regardless of where you and your teammates are reporting.
Now, even with an increasing number of countries returning to normal, the convenience ultimately given by cloud technology is expected to continue driving up demand in the future.
In the Philippines, one survey shows that 94% of Filipino businesses saw cloud technology as an important factor in the workplace during the pandemic, with 88% claiming to be more supportive of using cloud-based solutions to grow their businesses in the coming years.
While there are numerous business aspects the cloud can improve, accounting work is one of the integral parts of the business that the cloud can help optimize. But what does working in the cloud mean, and how can it help improve your accounting responsibilities?
What is Cloud Accounting and How Does It Work?
Cloud accounting, or cloud-based accounting, is a subcategory of cloud technology. It involves having accounting records and information uploaded to cloud storage so that they can be accessed by the necessary personnel whenever and wherever.
With cloud accounting, businesses are no longer confined to inputting data in ledgers, risking losing records in accidents. Instead, they can rest well knowing their accounting information and other similar data are stored in the cloud, which only requires correct credentials and a stable connection.
In a world slowly adjusting to hybrid work arrangements, being able to do these tasks without the restriction of being at the office can create more streamlined and effective operations for accountants and business owners alike.
Why Should Your Business Use Cloud Accounting?
Besides the convenience cloud accounting and cloud technology offer, it also comes with many benefits that can positively impact Filipino businesses looking for better alternatives to manual input or those seeking to lower their spending.
- Lowers operating costs
By opting to partially or fully migrate accounting operations to cloud services, your business can save on the time and resources used to acquire and maintain equipment otherwise used for manual input.
Keeping your operational data in cloud storage allows you to put the saved costs into other departments or initiatives, as you no longer have to actively invest in facilities, hardware, and appliances relating to manual accounting processes.
- Minimizes accounting errors
Manual input and processes are prone to errors due to human nature. Integrating cloud accounting technology in your operations calls for artificial intelligence (AI) to sift through manually inputted data and clean them accordingly, minimizing mistakes and automating workflows.
- Improves business continuity
Cloud accounting allows businesses to access data on demand without worrying about office hours. Unlike on-premise accounting, these stored files are no longer confined to on-site locations. Employees needing files in the cloud can easily access them via the internet anytime.
- Boosts team collaboration
With cloud accounting technology, file sharing amongst team members has never been easier! The access given by data stored in cloud services lets departments discuss and simultaneously use the software easily, improving the flow of overall operations.
- Gives your business a competitive edge
Digitizing your operations allows your employees to streamline processes and improve turnover periods, making your enterprise more competitive in the industry. Apart from your marketing and other business development efforts, leveling up your accounting functions can make all the difference in your daily operations.
6 Important Factors to Consider Before Switching to Cloud Accounting
While cloud technology can surely put you and your business ahead of the rest, its overall success still depends on how you use it in your operations. Assessing whether your business is ready to take on the responsibility of cloud technology should be a priority before launching it.
The scope of cloud accounting differs from industry to industry, so you should recognize if your business is one of those that can fully utilize the potential cloud technology has to offer.
Cloud technology thrives most in industries that sift through and handle large volumes of data, which can help key people in an organization make informed decisions moving forward.
While one of the goals of cloud accounting technology is to help businesses be cost-effective, it is also still an investment in the first place.
Your company should only choose cloud technology programs if you have the necessary means to pay for the service. It can mean paying subscription fees upfront or partnering with an outsourced cloud accounting firm as they handle all your finance functions.
- App integration
Because cloud accounting technology aims to streamline manual processes into digital equivalents, being able to connect to different applications already used by the company can further speed up your adjustment process to this upgrade.
An ideal cloud-based accounting service can be integrated with the company’s respective bank accounts, so transactions are updated regularly in the digital ledger or record book.
- Data security
When companies upload their files into cloud storage, they become encrypted, making it harder for any data breach. It also helps to subscribe to cloud servers that provide consistent security updates as part of its maintenance procedures.
- Training and support
Cloud technology requires human assistance so your business can get the most out of the service. Your team should prioritize training accounting staff to navigate the software. Employees properly trained in supporting cloud accounting technology can be an asset to the company’s revenue generation and digitalization operations.
- Platform compatibility
Choosing a cloud service that caters to more than one platform can also benefit your organization. Access to your cloud server from mobile and desktop devices provides added convenience for your employees to access their data, easily improving workflow and efficiency.
Ready to Move Your Accounting Functions to the Cloud?
In 2020, the Philippines had a Cloud Readiness Index (CRI) score of 55.3, placing 11th in the Asia Pacific region. As more businesses migrate to the cloud, the country’s cloud market is projected to hit $2.8 billion come 2025.
With working arrangements drastically shifting to favor remote work, cloud technology is a great asset for any company, particularly in departments handling computing and data management volumes.
While any cloud network service has its own pros and cons, companies are ultimately responsible for gauging which service best suits their preferences and business operations.
If your business is looking for a reliable cloud accounting service in the Philippines, CloudCfo may be the company for you! Established in 2016, CloudCfo is a team of accounting and finance experts that offers cloud accounting services, helping startups and SMEs across the country adapt to digital financial operations.
Contact us today to learn more about our cloud technology services and how we can help scale your business!