In the 21st Century, we have witnessed several enhancements in Information Technology and the cloud environment and Cloud Accounting is one of the rapid enhancements of them which is not only the future but in present also most of the business houses are dependent on this only. In this article, we will discuss why it seems that could accounting is the future and will replace traditional accounting.
What is Virtual Accounting:
Before discussing the article that why it seems to be the future in the accounting and bookkeeping industry, we must briefly discuss the meaning of Virtual Accounting and how it is different from the Traditional Accounting system.
Virtual Accounting is the process of maintaining financial records and accounts of the clients through computerized mode remotely without physically visiting his office. On the other hand, the Traditional accounting system requires physical meetings of Accountant/ Client to prepare accounting records.
Why Cloud-based Accounting is the Future:
As we discussed above, Cloud-based accounting or virtual accounting is not only means that accounting is being done remotely but also data is kept safe at the cloud and paper-based work is negligible ultimately results in better service delivery and increased in productivity and that’s the reason it is not only the demand but also professionals are starting providing their services through internet remotely not only to their own country but also to International clients. The following are some of the points by which we can see that adopting virtual accounting by accounting professionals is necessary not only in the future but in today’s competitive environment also.
- Reduced Cost: By working in a cloud environment, the Cost of the professionals can be substantially reduced as in traditional accounting they are using accounting software that needs investment by way of upfront along with regular maintenance. But if the same is being done in a cloud-based environment, these costs could be reduced as the high-end services can be accessed on pay per use basis or by paying a monthly subscription depends upon the consumption. In normal accounting practices, there is a need for hard drives or storage devices to store information of clients and the same can be avoided in cloud accounting as the data can be saved in the cloud.
- Increased productivity and responsiveness: Cloud services allow 24 X 7 access to both the accountant and the clients to their data and they are not limited to their office hours to reach out to each other. Scheduled backups in the cloud also help in avoiding data loss. In the traditional system, production is stopped after office hours, but in a cloud-based environment, productivity can be continued even after business hours and that also helps to meet deadlines.
- Team of Specialized experts: As we know the work is being conducted remotely, so the location of a bright candidate to work for our company is not the bar in a cloud environment. Most of the time there is the issue that brilliant minds are not available with accounting firms and brilliant minds are not always able to relocate themselves for work. But, these conflicts have been resolved by this as everyone is working remotely in this system so wherever the location of the accountant is, he can be hired if he seems fit for the role without any issue of location.
- Client satisfaction: In any of the cases, if the client and accountant personally meet to discuss or complete a project then both of you will need to manage your time and meet at the same place which will result in inconvenience along with the killing of precious time also. On the other hand, if you are working in a cloud environment, you can complete these processes through web communication only which will result in convenience and on-demand assistance to your company also.
Conclusion:
By all this we can conclude that there are a lot of benefits of working in a virtual world of accounting rather than traditional accounting systems as many of the MNC’s have started outsourcing their accounting work to remote professionals. Everyone wants to get their work done in an efficient manner. Transition to the cloud of accounting is just the beginning. If technology gets any chance to prove its worth, the accounting profession can take the business to the next level of efficiency.