CPAs Embracing Cloud Computing

Modern-day CPAs (certified public accountants) need the software to manage multiple processes such as:

Subscription management: Complex pricing and revenue generation require specialized software so that market needs are responded quicker than in the traditional setup.

Revenue recognition: This process differentiates between revenue and expenses. This is important to make your books reflect your profit and loss in real-time.  Revenue recognition will help the company to maintain a balance between the inflow and outflow

Project accounting: This is required for certified public accountants because it analyzes, tracks, and reports the financial results of a given project. It is a specialized form of bookkeeping that is offered by some companies.

Sales and use tax: The tax your client pays for sale, transfer or exchange of taxable goods. It is a trust tax. Use tax is sales on goods bought outside the state where you live. There are different rates of taxation in different states so the calculations are complex. This is where Cloud accounting solutions make accounting easier for bookkeepers.

Fixed assets: The value of fixed assets depreciates. It is calculated as an expense to cover the upkeep of the assets. Tax return laws apply in this case.

For all the needs discussed so far, Cloud accounting is the ideal solution. Some companies which provide Cloud accounting services give their client a chart that can be shared, is reusable and multi-dimensional. Such a process adds to your company’s output and makes time for the company to take on more clients. 

Such companies also provide Dashboard analytics which allows their clients’ immediate access to financial data across entities. Tool tracks analyze and display key performance indicators. It is very useful for bookkeepers in guiding clients towards good investments.

Terese and Max, an accountancy firm, has a great reputation. Lately, both partners noticed that some of their long-standing clients are moving their portfolios to other companies. Not many new clients approached them. In fact, a few of the staff members also exited the firm stating that the working conditions are tough. Both Terese and Max are not at all demanding employers. Moreover, their well-infrastructured office premise is centrally located. So, what could be the problem? They held one-on-one meetings with the staff. What emerged truly knocked them out of their comfort zone! The staff held the software, they were using, the main culprit. Terese and Max started looking for a shift to another better software solution. After talking to their IT people, it became clear that the firm was spending a lot of time and money on a cycle of maintenance. Every time they upgraded their software, there would be a break in their circuit integration.

They realized that they had been too busy to notice that their staff was struggling with old and outdated software. Their old software was detaining them down and was not efficient in dealing with the developments that had taken place since they had installed it when they began their startup.   

They did not choose any software which was declared as one-size-fits-all. They preferred to install cloud management solutions. This was a good option because integrating their present software with various applications and databases was proving to be very expensive. It would also disrupt the company’s working pattern. Cloud computing managed smooth integration without disrupting their systems.

Glitches and their solutions

How skillfully you solve the problems encountered by your company will have a lasting effect on the financial health of your company. Problems that are commonly faced by companies that continue to use outdated software are listed below:

• Restrained growth.
• Disconnection of systems and processes.
• Difficulty in tackling new business challenges and regulatory compliance.
• Struggling with keeping track of all your clients.

Problem #1: Restrained growth

Many companies do not upgrade their accounting systems because they do not have the IT resources for upgrading. Some of them are lax in this area because they lack financial resources. The new systems may not fit their requirements and they need to be customized. Customization is a time and money consuming process. Some companies go in for upgrades and find that the new process is disappointing because it does not fulfill every demand raised by the nature of their work. This is the main reason why companies prefer to continue with their old and problem-causing processes and systems.

Solution 

Some good software companies offer financial management resources to propose a solution to this. They offer a touch-free up-gradation that is set up and managed by the seller. Your company will not require the services of IT personnel.

Problem #2: Disconnection of systems and processes 

Joining and consolidating your present system with various databases and applications is expensive, and disruptive.

Solution 

Some of the reputed software companies provide pre-integrated systems so that your work is not disrupted. These systems are less expensive. These companies also offer the option of integrating Cloud applications in totality on site. They can also integrate these applications in a phased manner and can save you from holding back.

Problem #3: Difficulty in tackling new business challenges and regulatory compliances.

Old systems are not suited for dealing with new challenges and integrating them quickly. These were non-existent when your old software was installed. To install these compliances and challenges will prove time consuming and expensive. The functioning of this kind of software is also suspect.

Solution 

Cloud financial management solutions proposed by software companies can add new dimensions swiftly and make your software future-ready.

Their payment plans let you subscribe at your own need-based pace.

Problem #4: Struggling with keeping track of all your clients.

Your old accounting system probably gives out only financial reports. You would be forced to outsource the other needs of your client.

Solution 

With Cloud accounting, you can get instant reports and dashboard analysis. You can also track all the financial and statistical details that you need.

Conclusion

Modern finance and accounting processes demand issues be solved instantly. Transactions must be processed with greater efficiency, which only technology can render.