While migrating to the cloud comes with many benefits, the one that catches the attention of any growing company is its cost-saving potential. Cloud accounting saves you money in more ways than one; by streamlining your processes to save time in lowering staff costs.
Here are five ways that shifting to cloud accounting can help your company save:
Eliminating Manual Tasks Through Automation
Cloud-based accounting means improving the speed and accuracy of your accounting by automating routine processes. Cloud-based solutions mean no longer cutting and pasting data, manually recording and reconciling expenses, and making entries across multiple spreadsheets.
We know that time is money and the more time it takes to finish a task, the more you pay. High-volume tasks are prone to human error. Mistakes are costly, and it takes time to correct them.
Using Less Electricity
Less hardware means using less power which translates to lower electric bills. Processing data on a local server increases carbon emissions; by moving to the cloud, you decrease electricity consumption. Not only will save electricity costs, but your company is considered “greener” for it. And by reducing your impact on the climate, you improve your brand’s image by positioning yourself as an environment-friendly and sustainable business.
Savings on Hardware and Software Licenses and Upgrades
On-premise accounting solutions require maintaining hardware and paying for the software license needed for each user. While the software is relatively cheap, there are hidden costs to customize, implement, and maintain hardware to meet the demands of software upgrades, routine backups, and security. Desktop software means hefty upfront fees and costly software updates while cloud accounting means only paying a monthly subscription.
Maintaining Less Staff
To implement and maintain your software, you will need to pay an IT staff to fix bugs, manage upgrades, and troubleshoot problems. Keeping full-time staff means spending more on training, benefits, salaries, and providing them with the tools and resources needed to do their jobs effectively. All these costs ultimately add up.
With cloud-based accounting, you don’t need employees dedicated to maintaining your system since your vendor’s IT team is in charge of keeping servers secure and updated. Software updates and fixing glitches are also their responsibility.
Increased Productivity with 24/7 Access
When you have access to your software, tools, and data in real time, you eliminate costly downtime. Time and money are lost when you travel back and forth between the site where your dedicated accounting hardware is kept. With cloud-based solutions, you can give your accountant or bookkeeper access to your financial information and reports, speeding up processes.
Investing in a scalable solution that is easy to implement, maintain, and eliminates manual processes is how your company can cut costs in the long run. Cloud accounting provides you with the flexibility to expand and the ability to save both time and money, allowing you to focus your funds on business growth and rewards.
Until the next time,