The advancement in technology has led to numerous benefits to distinctive business types. The accounting industry is also leveraging the technological benefits by incorporating the latest software and tools.
The certified accountants are moving from the traditional accounting approach to the advanced approach of cloud accounting.
Cloud accounting involves the use of accounting software and data hosted on an external server and making it available through the internet medium from any location and any device.
Software like QuickBooks, NetSuite, Freshbooks, Xero, etc.has moved from the desktop to the cloud and is fetching even better results.
A CPA firm needs to have cloud accounting in place for delivering the best accounting results to its clients in the present scenario and move with the latest technological trends in the accounting industry.
The Cloud Stats
- According to RapidScale, 94% of companies witnessed security improvement with cloud accounting
- 91% of companies reported that cloud accounting makes it easy for them to meet compliance requirements set by the government
- 63% of enterprises are transforming digitally due to greater cloud adoption engagement
- 66% of IT employees mention security as their biggest when it comes to adopting cloud accounting
- 24% of companies whose top priority is employee satisfaction are likely to switch to cloud
- More than half of the IT professionals are confident of the growth of machine learning and artificial intelligence to 67% by 2020
Also Read: Emerging Cyber Security Threats to Watch Out For in 2020
Impact of Cloud on the Accounting Industry
With each innovation, the accounting industry has evolved significantly in the past decade. The cloud technology is making accounting applications less costly, easily accessible, and time-saving.
The cloud proves to be a big opportunity for the accountants which they can leverage to have meaningful business insights and increase the business performances.
The transformation from the traditional methods to cloud accounting is not easy as a change in work culture, administrative processes and attitude are needed to align with the new accounting approach.
The value of accountants become questionable with cloud accounting, especially when it comes to SMBs. They will be looking for an app to replace the accountant’s role completely. However, this is not the true scenario as no app can take the place of professional accounting advice.
The cloud accounting cannot replace accountants but simply help them lower their workload for managing and carrying out the various administrative and accounting tasks.