The cloud is a term that gets thrown around a lot lately. It seems like every other day there’s a new cloud-based application or service. But what does it mean for accounting firms? And more importantly, what benefits can cloud technology provide to help these businesses overcome common challenges?
In this blog post, we’ll discuss the benefits of cloud technology in accounting firms and how cloud consultants can help your business take advantage of them.
So, What Is Cloud Technology?
Cloud technology is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the internet (“the cloud”) to offer faster innovation, flexible resources, and economies of scale.
You may already be using cloud technology without knowing. For example, Gmail is a cloud-based email service. Netflix and Spotify are cloud-based media services. And iCloud is a cloud-based storage service.
Specifically within the accounting sector, the cloud accounting market is expected to reach $4.25 billion by 2023.
The Technical Challenges Accounting Firms Face
The cloud presents a number of advantages for accounting firms, the most important being the ability to overcome technical challenges. Technical challenges can include:
- Lack of in-house IT resources: Most small accounting firms don’t have an in-house IT team, or if they do, it’s usually just one or two people. This can make it difficult to keep up with the latest technology trends and implement new applications and updates.
- IT infrastructure: Maintaining an on-premises IT infrastructure can be expensive. It requires constant upkeep and upgrades as new technologies are released.
- Disaster recovery: In the event of a natural disaster or power outage, an on-premises IT infrastructure can be crippled. This can lead to lost data and productivity, as well as downtime for your business.
Also, accounting firms might still use outdated software, like Microsoft Excel, which can be inefficient and time-consuming.
The Benefits of Cloud Technology in Accounting Firms
There are a number of benefits that cloud technology can provide to accounting firms, the most important being:
- Cost savings: One of the biggest benefits of cloud technology is the cost savings it can provide. When you move to the cloud, you no longer have to invest in expensive on-premises hardware and software. Instead, you can pay for only the resources you use, when you use them.
- Increased productivity: Cloud technology can also help increase productivity by giving employees access to the applications and data they need from anywhere, which is a significant asset for tax season. This can be a big benefit for accounting firms, which are often spread out across multiple locations.
- Improved security: With cloud technology, your data is stored off-site in a secure data center. This means it’s less likely to be lost or damaged in the event of a natural disaster or power outage.
Additionally, cloud-based applications are usually updated automatically, so you can be sure that your accounting firm is always using the latest technology.
Work with eMDTec’s Cloud Consultants
eMDTec is an IT company with cloud consultants who can help you make the most of cloud technology.
We have a team of certified cloud experts who can help you assess your needs and develop a cloud strategy that’s right for your business. Contact us today to learn more about how we can help you take advantage of the benefits of cloud technology in your accounting firm.