Every day sees something new being developed or discovered, be it new technology, fashion or medicine, there is always something new that makes the life of many people across the world easier. In this competitive world, if you wish to remain successful, you need to be up to date with advancements especially those related to your industry. As failure to change may result in being forgotten and written off by the industry you work in and the world you live in. An industry that recently made a huge advancement in the way it works is the Finance Industry. Finance is the core of a company. No one wants to run at a loss and fail as a company therefore finance and having adequate amounts of it is very important.
To ensure that finances are alright, a company needs to keep accounts of every transaction made and accurately make reports. If there is even one error, it could potentially result in huge fines and losses. This is because financial reports pretty much assess the state of the company and its finances and any errors in this could cause serious misunderstandings and inadequate decisions which could harm the company.
The traditional way of creating reports is to ether hire a third party to compile the reports or create a huge finance division to create the reports and oversee the financial aspect of the company. However as said before an advancement was made in the industry which rendered these two methods obsolete. Cloud Accounting was introduced to the industry and has revolutionized the way a company does their accounting.
Cloud Accounting is basically an Accounting software that is hosted on a remote server much like the Apple Cloud and Google Drive. This means all you need to do to access this software is be authorized to use it and then access it from wherever you are. Straight up, it can be gathered that is very convenient and it is so. You are not constrained to one device or one location to handle all the aspects of accounting. You can even access the accounts from a Branch or abroad. This means you can access what you want, when you want, therefore there is absolutely no delay. Both traditional methods involve some delay with the third party Accounting firm being worse as they are an entirely different company.
Furthermore the costs of changing to Cloud Accounting is far lower than in traditional methods. You need to subscribe to a reputable service such as xero bookkeeping services, train your employees to use the software and then just pay according to the type of service you have chosen. All of this is affordable than the traditional methods. Hiring a third party means that they have their own profit margins so their service is priced higher. Furthermore you would need to pay them every time you need to use their service which can be costly in the long term. Having your own finance department means you need to hire a team of employees to handle the finances , train all of them and pay them salaries which once again in the long term is more expensive as salaries are not low.
So if you want to access your financial reports with ease and at a lower cost