Cloud-Based Accounting and the Future of the Finance Industry

The cloud is no longer a hypothetical discussion when it  Business-Finances
comes to accounting and the finance industry.
Annually, the cloud is growing by 36 percent and is
expected to be a $19.5 billion industry by 2016.
So why is the finance industry embracing this new technology?

Here are a few reasons.

The Cloud Improves Internal Processes

Implementation of new accounting software is expensive, time-consuming,
and often fraught with bugs and errors when first installed. Comparatively,
a cloud system can be put in place within minutes at a fraction of the cost
of a new software install. Furthermore, the cloud allows employees
anywhere in the world, at any time of day, to access the system’s data
and information, so long as they have Internet access.
It helps automate processes and eliminate errors.

The Cloud Improves Client Interactions

Clients are busy people, and what used to require a lengthy phone call or
office visit can easily be accomplished through the cloud without disrupting
the client’s schedule or your accountants’ schedules. Clients can set up
and manage their accounts, collaborate with advisors,
and conduct transactions anywhere, anytime.

The Cloud Offers High Levels of Security

On-site databases and servers are susceptible to a number of perils.
Hardware goes down, databases become corrupt, and natural disasters
threaten the data and equipment. With a cloud-based system, financial
professionals can retrieve backup files if there’s a problem with the
system, and even after a natural disaster, they can be back up and running in very little time.

Additionally, protection from hackers and cyber terrorists that’s normally
outside the budgets of many smaller finance firms is offered as part of
most secure cloud-computing services. This allows all sizes of firms to
enjoy the high-tech encryption and other features of advanced security systems.

The Cloud Frees Resources for Other Endeavors

IT specialists are becoming rare, and are expected to be even harder to come by
in the next few years. It’s difficult to keep a full staff on hand to install, maintain,
and upgrade systems on site. The cloud allows finance companies to free these
IT staffers for endeavors that directly benefit the company. These valuable
professionals are no longer troubleshooting hardware, which cuts down
on operational costs and the need for additional staff to maintain on site systems.

Learning to Utilize the Cloud for the Finance Industry

though accounting on the cloud is easier and more cost-effective than on site
systems, there is a learning curve involved. According to this John Ferraro profile,
furthering your education can drastically improve your ability to take advantage
of the accounting resources available in the cloud. He has connections at the
University of Notre Dame as well as the University of Virginia, both of which
offer excellent master’s degrees and other programs for the financial
professional to improve their knowledge of utilizing cloud
computing specifically for this industry.

Advancements in security protocol have made cloud computing safer than ever,
allowing the strictly regulated finance industry to take advantage of this
convenience, as well as other industries in which the cloud is already a proven success.

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