Running an accounting firm is not an easy task and especially in the current era where technology is overtaking every industry. Earlier, when anyone considered opening an accounting firm, all he needed was a bunch of accountants who are good at numbers and books but those requirements have now become outdated for starting an opening firm in this technology-driven era and the role of accountants has also changed.
Cloud computing has played a very big role in changing everything for the accountants and the accounting firm and therefore, one can’t dream of running an accounting firm successfully without the involvement of modern technology like cloud computing. But you will be surprised to know that in this modern world where 59% of small businesses are thinking that they will not need an accountant after 10 years, 72% of small businesses have changed their accountant or CPA firm just because they were reactive service instead of proactive services, there are still many accounting firms who are happy to install accounting software on their office desktop and use it with several limitations.
Another strange fact about accounting firms using traditional accounting solution is that they don’t think their business needs cloud and that is only because they are now aware about the limitations in which they are working and the outdated chains of technology that is stopping them from climbing on the growth path. Therefore, in this blog post, we will look at several situations which are like an alarming sign for accounting firms, indicating that a switch to cloud accounting solution has now become a necessity rather than an option.
When office hour is not enough
Working only during the office hour is for the employees not for the boss. It is true that you always can’t stay in office for completing your extra work or for enhancing your accounting service by providing round the clock support. Everybody has a personal life and therefore, they need to spend time with family at home, go on vacation or go out of the town for some other purposes. If in such situations, your being out of office is degrading the service of your accounting firm or if your office hour is not enough to complete your daily business operations then its’ high time to switch to the cloud as it allows you to work from anywhere and at any time.
When you are not able to hire outsourced employees and give flexibility
Outsourcing has now become a new normal for most of the business and therefore, most of the companies, including accounting firms are going for outsourcing. But if you are not able to hire outsourced employee because you will not be able to manage them from your traditional method of accounting then you should move to the cloud solution as with the multi-user access, you will be able to monitor your outsourced employees in real-time.
The same thing applies to the flexibility provided by you to the employees. Nowadays, most of the employees are able to perform better if they are not restricted through office hours and if you are not able to provide the required flexibility to your employees then you will not be able to get expected results from their performance. With the cloud accounting solution, you can allow your employees to work even from home like a team through the multi-user access. Along with that, you will not have to compromise on the control as you will be admin and can monitor every change on a real-time basis.
When you think that your data is vulnerable
With the evolution of technology, the method of hacking and stealing data has also evolved and if you think that your current accounting system is not strong enough to protect your client’s sensitive financial data then you should move to the cloud. If you are saving your data on the hard drive then there is very less chance of a client trusting your security measures as while sharing financial information, most of the businesses, regardless of their size, are very much careful. So, if you think that your business is being hampered because of the outdated security system you are using with your traditional accounting solution then you should move to cloud accounting as the cloud comes with various security layers and it is near to impossible for even some of the smartest hackers to breach into your data on the cloud.
So, if you notice any of these situations in your accounting firm then you should immediately plant to move to the cloud accounting solution. Although it is recommended to start using the cloud accounting solution right from the start of your journey into the accounting industry, many people who think that their traditional system is enough should go through this blog and look for the signs of warning which will appear very soon.