3 Ways Cloud Accounting Software Helps Build a More Efficient Organization, part 1

Written by Mark Severance | Fri, Oct 09, 2015

Cloud Accounting Software Helps Build Efficiencies in 3 Ways

There is more to accounting than just managing numbers in a spreadsheet. There is an aspect which is more about nurturing client relationships, which is done by aligning revenue recognition and billing with service delivery, ultimately ensuring that your overall approach to managing company finances is setting everyone up to have the right tools and data on hand to maximize the profitability of current and future projects and job functions. With the centralized nature of accounting, it’s natural to expect a reliable and versatile financial software solution that brings data from all areas of the business together. Now, more than ever, it is crucial that accounting tools be flexible, since so many people use mobile devices to complete specific tasks. That is why every professional services organization should have accounting software able to connect to the Internet on-demand.

While cloud solutions are growing in popularity, the reality is that many SMBs are still only getting started with them. Cloud-based accounting software provides convenient access to comprehensive functionality. A 2014 survey from Software Advice found these results:

16 percent of its 151 unique respondents used cloud-based software, compared to 46 percent that relied on on-premises tools.
Over 50% of the surveyed organizations reported that they would consider a move to the cloud, citing confidence in its reliability and security.
Cloud-based solutions are often safer than traditional ones because the cloud service provider handles all updates and maintenance.

Many professional services firms have yet to adopt cloud-based accounting, though it is arguably inevitable that they shall. Let's consider these three ways in which it can help improve organizational efficiency.

1. Simplify strategy by simplifying workflow

Organizations routinely have to perform revenue recognition, conduct billing and undertake project accounting. Each of these activities has far-reaching implications for the company. The ability to perform project accounting for the sole purpose of identifying sources of revenue leakage can lend efficiency, along with opportunities for optimization, in everyday operations.

There is no simpler way of streamlining accounting systems but to move over to a cloud-based system. It may be easier to transition each manual process over to the cloud system one at a time. That way you have the option to separate each workflow and perform it only when the need arises. Time tracking, revenue recognition, etc. can all be done at the ideal moments with cloud accounting software.

2. Automated data capture and real-time analysis

How much time has been spent going back and manually calculating the expenses of a project after the fact? Not only are these efforts extremely time consuming, but they end up inaccurate at times. What's needed is automated data capture that allows for information to be pulled into an integrated system for real-time analysis.

"Automated data capture allows for real-time analysis of business relationships."
In practice, this setup allows for better client relationship management. Once you are able to integrate timesheets into your cloud financial software, calculating the cost of a project becomes simple since the total hours logged on a project are right there. That way, you can see when and where your consultants could be best utilized in the endeavor.

3. Seamless collaboration across all departments

Why not use data across all departments? The automation and real-time character of cloud-based solutions open up so many possibilities. Since implementing cloud software can help break down the silo mentality usually associated with the use of spreadsheets and on-premises accounting systems, there will be no limit to the new uses for data across all areas of your company.

For example, the finance department becomes more like a business development consultant than just a records-keeper. Without constraint of application of data, the facts become advice, capable of offering insights on the efficiency of daily operations.

If you are interested in learning more about cloud accounting software or have any questions about this this blog CONTACT US. If you are looking for cloud accounting solutions or ERP consultants to help take your business to the next level, contact us at www.arxistechnology.com, or call 866-624-2600.

Arxis Technology, Inc. is an ERP technology consulting firm specializing in the implementation and support of accounting and business management software, custom application development, and network engineering and design. As ERP consultants and resellers for Intacct Cloud Financials, Sage 100 ERP (formerly MAS 90), Sage 300 ERP (formerly Accpac), Sage 500 ERP (formerly MAS 500), SAP Business ByDesign, SugarCRM, and SageCRM, Arxis services clients from locations in Los Angeles, Orange County, Chicago, Phoenix, Washington DC, Philadelphia, Baltimore, and Ireland.

Another version of this blog was posted on Arxis Technology, Inc.’s blog site on 7/31/2015: http://www.arxistechnology.com/news/intacct-news-building-a-more-efficient-organization-with-cloud-accounting-software-part-1.asp

Photos courtesy of www.freedigitalphotos.net by artists hywards

Tags: cloud accounting solutions, cloud accounting software, cloud accounting, erp cloud solution, cloud erp solution, cloud software implementation, cloud business solutions, Cloud ERP solutions, Cloud based ERP

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