“The reaction of weak management to weak operations is often weak accounting.” – Warren Buffett
In the recent past, staffing companies had to purchase accounting software packages as is. One product, one suite of functions whether you needed them or not. If the product didn’t provide all your needs, you bought a supplementary one that did. Accounting cloud software changed all that. Now, instead of a preponderance of software suites and clunky IT systems, everything you need is in one place.
And that’s just the tip of the iceberg.
- It enhances accessibility and flexibility. Your team can access data from anywhere in the world, provided they have an internet connection. This is perfect for the modern working environment where working remotely is increasingly common.
- Cloud-based accounting software seamlessly integrates with other business applications, such as payroll and time-tracking systems. Sophisticated automation reduces data entry errors and automatically updates the system, providing everyone with up-to-the-minute information.
- The software is maintained and updated by the service provider, so your business benefits from continual upgrades of features, functions, and security measures. Including data encryption and regular backups that protect sensitive financial information from theft or loss.
1. Cost Savings And Efficiency:
Cloud-based staffing company accounting software provides enormous cost savings and streamlined efficiency for finance teams.
- Automation of manual processes is a primary benefit that frees staff to work on more important aspects of the job; for example, data analysis and collaborative decision-making to increase profitability.
- Elimination of expensive hardware and IT infrastructure. By leveraging cloud-based infrastructure, companies don’t have to include licensing and updating costs and maintenance expenses in their budget.
- Software is subscription-based, so you only pay for the functions you need on a monthly basis. This ensures that IT costs are stable throughout the year, so you can create a budget accurately.
2. Data Security And Protection
Cloud-based accounting software service providers are responsible for the security and protection of your sensitive financial data. As a result, they ensure that their security and protection systems are robust enough to repel even particularly determined hackers.
Protection measures include:
- Staffing company software uses sophisticated data encryption and access controls (more stringent than two-step verification) to bar entry to your data. They also have high-tech disaster recovery measures in place so if the unthinkable happens, your data is quickly restored.
- They also protect the physical location of their data centers to ensure your data can’t be destroyed physically. There is always a backup should the unthinkable happen and your data is compromised.
- Software as a Service (SaaS) providers regularly conduct security audits and update systems when necessary to ensure uninterrupted protection for your sensitive financial data.
3. Remote Access And Mobility
The Covid pandemic impacted all areas of our lives. We had to learn how to live, work, and play virtually. The impact continues to be felt, especially in the work environment where more people work remotely or at least remotely part-time.
Cloud-based software made this possible, but it does much more than let you work in your pajamas.
- It provides instant access to your team members in the field. For example, if they’re at a construction site, where a meeting room isn’t an option, your staff member can whip up the information needed on their phone.
- If someone asks a question, you can go directly to the account to verify the information.
- It enables your finance team to work together while not in the same physical location. For example, one of your team’s members is on a business trip in Paris, but you need to call an emergency meeting. Once time differences have been ironed out, everyone can be present. No excuses.
With all the information at hand and staff input, you can make critical decisions based on real-time revenue, expenses, and cash flow.
4. Scalability And Growth Potential
One of the great benefits of SaaS is its fluidity. You can make changes that are immediately logged. This can be particularly helpful if you use third-party agents, such as freelancers, for certain financial processes.
It’s also helpful if you have a large corporation and need to track vast amounts of information related to payroll, seasonal fluctuations, and other operations that manage the mundane yet essential tasks inherent in running a business.
Other advantages include:
- Immediately add or remove employees
- Immediately revoke or provide access to users
- Integrate additional function as needed
- Save money on software upgrades
- A central platform for comprehensive financial management
- Seamless integration with other business applications
5. Stay Accounting Compliant
What is good for the goose is not necessarily good for the gander. Compliance in one region might be different in another. This can be tricky if you have a multinational business. Fortunately, accounting for staffing companies that have branches across borders is simplified with software that automates calculations per tax regulations.
This is achieved using adjustable financial report templates to accommodate real-time updates in national regulations and standards. Real-time updates ensure that your financial records are always current and correct, which is essential to avoid the risk of tax audits, fines, and penalties.
6. Live and Customizable Reporting
Immediate access to real-time data in one spot gives all the decision-makers all the information necessary at the same time, so they can decide on a beneficial course of action. The ability for financial team members to generate and access reports in the correct format with no (human-based) errors is invaluable in maintaining the financial health of your business.
Customization is an essential feature in cloud-based financial management software because you might need to make important changes to the system virtually immediately. You can also drill down into a customer’s account and source invoices that go back to the very start of the business relationship, even if that means going back several years.
All the metrics provide essential information regarding daily cash flow and expenses. For example, are there items that can be adapted, added, or removed to save costs with minimal impact on employees.
7. Integration And Efficiency
We’ve already taken a glance at the importance of the integration and efficiency of cloud-based accounting software, but here we’re taking a slightly deeper look. It comes down to three factors: 1) Seamless integration of new software 2) that incorporates all of the existing data 3) without requiring manual input or importation.
It’s all about saving time and time is money. The more time saved, the more time your teams can spend on tasks that add value to the business.
Additional advantages include:
- Automatic syncing of systems and data
- Better decision-making with access to real-time data
- Task automation
- No duplication of information
- Optimized financial processes
8.The Go Green Initiative
An interesting (scary) fact: The average American office worker uses 10,000 sheets of paper annually. And this is in an age where a large chunk of business is already conducted digitally.
Finance is an industry that is particularly paperwork-heavy; printing invoices and receipts, inventory lists, and daily, monthly, and annual financial reports. Not to mention the copies the managers, directors, and board members need to have the same data.
A single hub that logs and stores the data, makes intricate calculations, and generates digital reports on every metric imaginable could eliminate the need for printed versions. No one needs to have the same software installed and keep up with regular updates so they can be on the same level. It’s in the cloud, where it’s accessible to everyone.
Reducing paper use is great, but there are other ways in which cloud-based accounting software can be good for the planet.
You use fewer ink cartridges to print on paper, so your company produces less waste that goes into landfills. You also reduce the carbon footprint of all related activities, for example, less gas is used because there are fewer deliveries. You can even reduce your office space because there’s no need for filing cabinets and store rooms for old files. The smaller your office space, the smaller your carbon footprint.
By simply reducing the amount of paper your office uses, you help the planet in at least four ways!
NRDC’s website is a fount of information and tips for going green, including articles and data reports.
Comparison Of Cloud-Based Accounting Software With Traditional On-Premises Solutions
We can talk about the value of cloud-based accounting software all we like, but there’s nothing like seeing a direct comparison.
Let’s take a look at cloud-based vs. on-premises solutions:
Accessibility & Mobility:
Typically installed and accessed locally on specific computers or servers, limiting access to the physical location.
Remote access may require additional setups like VPNs or remote desktop connections.
You can access your financial data from anywhere with an internet connection.
This accessibility allows for real-time collaboration among team members and enables remote work.
Purchasing software licenses and server infrastructure, and paying for ongoing IT maintenance and support.
Upgrades and updates may be additional expenses.
Subscription basis, where you pay a recurring fee based on usage or the number of users.
This model often eliminates the need for upfront hardware costs, IT maintenance, and software upgrades.
Scaling can be more complex and time-consuming.
There are additional costs for additional hardware, software licenses, and server resources to accommodate growth.
Scalability and flexibility to easily adjust your subscription plan or storage capacity based on your business needs.
It allows for easy expansion or downsizing without significant infrastructure changes.
Maintenance & Updates:
Your organization is responsible for maintaining servers, applying software updates, and implementing security measures.
This requires dedicated IT staff and infrastructure management.
Cloud accounting software providers handle maintenance, security, and updates on their end.
This alleviates the burden of maintaining servers, applying patches, and ensuring data backups.
You have direct control over your data security measures.
You can implement customized security protocols and safeguards based on your organization’s needs and requirements.
Robust security measures are in place, including data encryption, regular backups, and disaster recovery plans.
However, entrusting sensitive financial data to a third party may raise concerns for some businesses.
Obviously, the decision between the two options depends on your preferences and your business’s needs.
Conclusion And Final Recommendations
Cloud-based accounting software isn’t for everyone, even though there are so many advantages to be gained. Its speed, efficiency, accessibility, and flexibility make it the perfect solution for all businesses, no matter how big or small.
It enables businesses to make informed decisions quickly and authoritatively, so the impact is immediately felt. One of the best features of cloud-based software for accountants is its stability and reliability. You can generate accurate reports based on several metrics to forecast revenue and expenses, which is a boon when you plan the next financial month or year.
Security is paramount to cloud-based software providers because it’s one of the foundations of their reputation. The more secure your data, the better their reputation. Security is both virtual and physical. Barring major incidents, your data will always be safe, backed up, and recoverable.
Note: You can verify your software provider’s security claim by visiting this website, which provides information regarding providers’ vulnerabilities.
You can also go to Software Advice to read up on some of the cloud software vendors available.
Sage Intacct is a cloud-based accounting software provider that automates necessary but time-consuming tasks, freeing your financial experts to gain valuable insight into the health of your business or organization. You can seamlessly integrate Sage Intacct into your existing systems and Sage will provide the training needed to optimize functionality.
Some of Sage’s advantageous features include multi-entity accounting, financial reporting software, and accounting software integration. It’s all you need to automate your accounting, bookkeeping, and reporting so you can focus on your business’s growth.
If your financial system needs an upgrade then look no further than Sage Intacct. Our product’s features will automate and simplify your financial manager’s job, so that you can collaborate on projects that will add value to your business.
Consider LWI to help in choosing the ideal accounting software solution for your staffing company, or refer to our guidelines to ensure an informed decision.