August 29, 2014
Benefits of Cloud Accounting – Pay for What You Use
Posted by Steve Chapman
Paying only for what you need and what you get for an accounting system is one of the great benefits of cloud computing. These are some of the ways that you can realize this benefit:
Adjust user counts as needed to match your business cycles. Whether your business grows or shrinks because of seasonal cycles, economic cycles, or structural changes, having your accounting system in the cloud allows you to match your IT outlay for systems to your business needs. Because there’s no large upfront investment in IT equipment or software, you can easily scale down without fear that your investment sits idle. On the other side, you can scale up with no further capital investment.
Adjust functionality as you need it. Most small businesses start with a basic accounting system, probably QuickBooks or Peach Tree. As small businesses grow and become more sophisticated they naturally desire more complex system functionality. Cloud accounting systems allow you to add horizontal and vertical functionality as you need it.
For example, if you need to add sophisticated revenue recognition functionality, you just select to add it to your system. The revenue recognition module will use your existing items, vendors, customers, and chart of accounts so you don’t have to jump to a new system. Because of this, the interface is familiar for the new functionality, and all of it meshes nicely with the system you already have. And you don’t have to go through a new system implementation with extensive data conversion.
If you want to start with a system that fits your team for where you are now, but allows you to grow as your business matures, you should be thinking cloud accounting systems. Find out more about the benefits of cloud accounting from Armanino’s Cloud Solutions team and about other add-ons and integrations to keep your team operating at top efficiency.
Steve has over 15 years of experience in business systems consulting, and 20 years of experience in management accounting and finance with small and mid-sized businesses in the construction, distribution, service, and technology industries.