Vikas Chadha is the Managing Director of the London based award-winning Global Accounting and Financial services outsourcing major GI Outsourcing. GI outsourcing has presence in UK and India with offices in London and Mumbai with a team of around 200 Accounting and Finance professionals who work on various financial services for clients in sectors including Hospitality, Travel, Retail, Health, manufacturing etc. among others. The company has a strong pedigree and history of nearly 20 years of service and a pool of esteemed clients with a strong loyalty towards GI outsourcing.
The leap of accounting services from the traditional format to the cloud is one of the most feasible decisions in many ways. Cloud Accounting Services also known as online accounting, simply allows one to access their end-to-end accounting services at any point in time from the web browser through the internet.
Cloud Accounting services help entrepreneurs systemise their business functioning by optimising their processes. The huge variety and different kinds of cloud-based software available today spoil the users with a distinctive variety to choose from based on their customised requirements. It perhaps enables businesses to accommodate the ever-growing and ever-growing dynamic needs of their clientele. Over the last year and a half, Pandemic has played a huge role in the growth of the Cloud Accounting Services. It has mandated businesses to adapt to cloud for several factors including working from confined spaces, easy access to data, cost effectiveness, etc. ensuring that the time gets invested in relevant activities thereby contributes towards revenue generation.
Cloud Accounting Services v/s Traditional Accounting
Cloud Accounting Services bring in the most obvious benefit to the businesses with the freedom of not staying glued to their Personal Computers, Laptop, hard drives, etc., unlike traditional accounting services. This allows it to offer a host of additional functions without any added cost.
Traditional accounting brings along an unattached cost through the infrastructure set up including a high annual maintenance cost, which takes a plunge on the business’s profits. On the other hand, Cloud Computing Services go mild on cost as the maintenance takes place over the cloud making it cost effective as compared to traditional accounting.
Another important difference remains in the access of real time data which is a key function offered by Cloud Accounting Services. Traditional accounting enables access to data only once it is fed into the system.
Traditional Accounting being restricted to a particular device comes with a high risk of being lost if the device crashes or fails to get the data saved. Cloud Accounting Services perhaps offers seamlessness with the highest degree of efficiency as compared to any other form of accounting.
Key areas for entrepreneurs to use the Cloud Accounting Services
While businesses decide to use Cloud Accounting Services, it is essential to take a well-informed decision of its impact on the different areas of their accounting needs. To get the best from it, it is essential to, first of all, have a high speed, uninterrupted data connection. This will ensure that they get access to real time data at any given point in time. Below are the key areas where Cloud Accounting Services will majorly contribute:
Process Automation:
Automation of functions is one of the most critical aspects resulting in a reduction of manhours. Cloud Accounting Services enables entrepreneurs to completely automate accounting functions such as book keeping, liquid currency collection, reconciliation, etc. End-to-end utilization of these functions will allow businesses to cut down on expenses incurred by hiring additional resources.
Access to additional insightful data:
Access to the right data at the right time is the most important requirement for any kind of decision making. Cloud Accounting Services ensures that you have the required numbers and analysis well on time to make well informed decisions.
Payment of taxes:
Virtual payment of taxes such as VAT, GST, etc. becomes simpler and saves a lot of time. Cloud Accounting Services records all your transaction making tax payment easier.
Simplifies work from home:
Cloud Accounting Services makes it easy to work from any part of the world. It allows entrepreneurs to work from distance with flexible work hours and have access to key data at all times. If you are someone keen on working remotely then Cloud Accounting Services is definitely what you need.
Benefits of Cloud Accounting Services
Here are some key benefits for the young entrepreneurs including Small & Medium Enterprises’ and Small & Medium Businesses to keep in mind when considering Cloud Accounting Services:
Limits excess expenses:
Most businesses function on a tight financial rope. A penny saved is indeed a penny earned. Cloud Accounting Services plays a key role in helping businesses go that extra mile by helping them save costs.
Clarity on future income v/s expenses:
Cloud Accounting Services gives a clear picture of the direction in which a business is headed. It basically tracks timely reports on incomes and expenses which can further be analysed in no time.
Records growth, profits, debts, and losses:
While every entrepreneur knows where they stand, it will be safe to rely on facts that are monitored and analysed at frequent intervals. Examination of losses incurred can help work on a factual plan of action to reverse the same. Besides helping businesses keep away from debts, it also helps save a lot of time.
Contributes to financial decisions:
Cloud Accounting Services gives a clear picture of where one stands thereby helping them plan investments.
Offers security:
Data security & privacy is key aspect for any business. Cloud Accounting Services protects data with highest level of security standards with backups taken at regular intervals.
Allows multiple usage of data at one time:
Cloud Accounting Services allows multiple people in the team to work on a data set at the same time which saves work hours and gets work done faster.
Data Centralisation:
Centralisation of end-to-end data is one of the best advantages offered by Cloud Accounting Services which leads to transparency. The data is compiled and managed at one single platform and can be accessed for years to come.
Final Word
We live in a globalised world with adaptive processes automated by technology. The dynamically changing scenario demands businesses to catch up with the global pace. Cloud Accounting Services being a key area of a business’s growth has become more relevant than ever before. Whilst businesses may try to keep the traditional ways of accounting and book keeping intact, sooner or later will have to adapt to the technologically driven accounting practices as that will bring a huge difference to the entrepreneurs’ financial decisions.