The utilization of a cloud-based system allows people outside of a business to access company financial records remotely and securely. From an accounting standpoint, annual events, such as an audit, can now be handled without outside personnel even stepping foot into a company's office, which can be a useful tool given the COVID-19 pandemic.
Utilizing a cloud-based system comes with a list of benefits that generally add to a company's efficiencies, accuracies, and cost savings.
- Data about sales/income and purchases can flow straight from the bank to the books.
- The financial health of a business can be clearly seen at any time.
- The ability to have multiple users makes it easy to collaborate among departments and teams.
- Safe and secure data that is backed up and stored off of company computers.
- The ability to establish customized dashboards to show important financial information at a glance.
The downside of not working off of a cloud-based system can be a bit more tedious and can present some of the following problems:
- Data that is not always up to date.
- Hardware is required to move information from computer to computer, or insecure email and document sharing programs.
- Key people cannot access financial and other business details as easily when needed.
- Keeping backups can be a costly and time-consuming process - if they are done at all.
- Updating can be expensive, time-consuming, and difficult, whereas cloud-based software typically updates automatically.
As mentioned earlier, a specific example of how a major process for a business can be simplified with cloud-based systems is during the auditing period. During an audit, records, documents, reports, and more are needed from the year prior. Having a system in place, such as NetSuite, allows users to begin conducting audits with their firms without having any in-person interaction. The less a company has on paper and in a filing cabinet, the better. Rather than relying on someone to remember where papers and documents are located, being paperless simplifies everything. If the records of a company are digital customers can facilitate audits by building in auditable workflows, like delegation of authority, that auditors can then access by creating customizable NetSuite workflows and scripts.
While records become permanent in a cloud-based system like NetSuite, processes are repeatable. For auditors that need to have access to multiple different reports on the general ledger, receivables, payables, etc, NetSuite users can create a customized dashboard that delivers those reports via Saved Searches.
Making the switch to cloud-based systems for business accounting and other aspects is a simple way to stay in check with new technology and overall improve the flow of regular business tasks. For more information on how advanced accounting software can help improve your business, reach out to us today.