Why Most Canadian Corporations Are Choosing Cloud Accounting Firms
May 12, 2020 | Written by: Sohail Afzal
The concept of ‘Cloud Accounting’ has evolved due to excessive reliance on virtual reality and the desire to digitize businesses. The widespread of internet-based applications have given birth to cloud accounting. Most of the Canadian corporations are moving their traditional accounting functions to the cloud. They are looking for more in-depth insights into various cloud accounting features. Cloud accounting solutions provide a platform that gives a holistic view of the entire organization’s performance on a dashboard that is full of infographics.
There are many reasons why Canadian corporations are more likely to hire cloud-based accounting firms. One of the most important reasons is that they want faster access to their financial data. Traditional accounting firms use desktop-based applications that hinder access to financial data. Cloud accounting firms are more process-oriented, they need to understand their client’s business nature and business processes to make a successful transition of their financial data to cloud accounting. During the transition period, cloud accounting firms also focus on improving business processes for their clients.
Technological advancements in the field of accounting have forced many accountants to upgrade their skill sets. Cloud Accounting firms perform and control all accounting functions in the same way that traditional accounting firms do for businesses, but the difference is that they perform all of these functions off-site. With cloud accounting firms, it has become easier to get real-time financial reporting. Cloud accounting solutions can simplify and automate financial operations and share financial intelligence on a single dashboard.
Thousands of businesses are familiar with cloud accounting software. They are comfortable synchronizing their bank statements with off-site accounting solutions as they know how it works. Cloud accounting firms provide companies with a platform to make a successful transition of their financial records to an easily accessible cloud accounting solution. The real power of cloud accounting is that it enhances business processes and financial reporting.
Cloud accounting solutions offer a more secure way to store financial information than traditional accounting software. Your company’s financial data that is stored in a cloud is not accessible to any unauthorized user because the cloud data is password protected. With cloud accounting, multiple users can access the same data with their unique passwords. One of the biggest advantages, why most companies choose cloud accounting firms, is that in cloud accounting, they can have multiple back-ups in different locations. If one server network goes down, you can still access your financial data without any delay. On the contrary, the traditional accounting system does not have this provision – once the data is lost, it is lost and it may never be recovered.
Most of the Canadian corporations prefer to organize virtual meetings on a skype with screen sharing. This will save them a lot of their precious time and travel costs. Many companies also prefer to work in a paperless environment; through cloud-based accounting – they can save on their document printing expenses. When businesses are on the cloud, their financial documents can be shared in emails back and forth. This will also make the document tracking easy.
GTA Accounting believes that as cloud accounting penetrates more into businesses, the accounting fraternity would have an increasing percentage of clients. Accounting firms that are fully equipped with their cloud accounting services will get more business.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.