Mid-market companies have been adopting financial software as their accounting backbone since the 1980s. Inexpensive shared computers, workforce within the walls of offices and simpler accounting techniques have made this an easy option. However, once the workforce began to move to remote locations in the 1990s, and large company servers began hosting the financial software, the costs started rising exponentially. No longer was it economically feasible to provide access to the main servers from all the branches and every member of the workforce without incurring heavy expenditures.
The advent of the internet and the phenomenal technological innovations which accompanied it led to a lower cost alternative to this drawback. Very soon software as a service or cloud became the medium of choice, and accounting in the cloud became the accepted norm among small and mid-level companies due to the many inherent benefits it offered to the users.
Since the hardware and software is built and maintained externally, the high costs of using individualised financial software are no longer required. The cost of managing those systems and the need for additional technical manpower vanishes, and there is also the added advantage of accessibility to the best technology available without having to pay the excessive costs.
The software is easier to use and it is faster to access. This leads to greater efficiency in the workspace, and more time to focus on other critical areas of work. If the smaller concerns had to build their own technology units and rely upon their own servers, then due to budgetary restraints, they would have had to choose the second best options rather than the latest technologies available in the industry. The operators of the cloud accounting units have to provide the quickest and most efficient service in order to get newer customers and retain the existing ones.
Since most software come from the service providers, be it financial software or any other type that have multiple tenants, they provide automatic upgrades to their systems regularly. The third party service providers have their own teams which indulge in building, implementing, upgrading and maintaining their servers, thus ensuring that the work continues without any break and ensures seamless service to the customers.
Data protection and strict security are among the guarantees which are provided by cloud accounting service providers. It is their responsibility to make sure that their clients are not only able to access their data easily, but also that no one else has access to their confidential data. This assurance makes it easier for their clients to use the software, without being concerned about the loss of privacy and data theft.
Most hosted accounting software systems are simple and easy to use, thus mitigating the need to set up regular training sessions in order to keep the workforce in tune with the latest upgrades. This also reduces the learning curves and the start-up processes, thereby saving time and energy.
About the Author: James Bentham is a UK blogger writing on behalf of Iris Exchequer, who specialise in financial software. He has over 6 years’ experience in creating content for the web and specialises in business and technology topics. James is intrigued by the cloud and the opportunities it opens up both for home and business users.