How Do Cloud-Based Accounting Services Benefit Australian Businesses?

Outdated systems, missed deadlines, messy paperwork? 

Accounting systems can feel like running in a hamster wheel for many Australian businesses.

But what if we say that you can step out of this endless loop?

Cloud-based business accounting services can help you regain control of your financial operation. 

Want to know more? Dig into the blog to make informed decisions with real-time insights, automated processes, and secure data storage with cloud-based accounting.

Let's get started. 

Cloud-based accounting services refer to managing your accounts and finances "In the Cloud." Unlike traditional or self-installed accounting software, cloud-based accounting software lets you perform accounting tasks on a server hosted in the cloud. 

You do not need a desktop application for cloud accounting. All you need to do is log into your cloud software. You will get all your data safely stored and constantly updated on a cloud server.

Cloud accounting software runs on a cloud provider's platform and adopts a Software as a Service (SaaS) model. (Similar to other cloud-based platforms.)

From accounts payable to accounts receivable and managing ledgers, you can do so much more within the same application. Moreover, many cloud platforms have an open API, so any third-party software can also connect with your system.

Why Opt for Cloud-Based Accounting Services?

Managing finances has never been easier and more accessible than it is today. It is also true that traditional accounting is convenient. 

It makes you wonder why you would want to change the methods you have been using for decades. Moreover, how would changing an entire accounting system benefit you or your business? 

Let’s understand the importance of a cloud-based accounting service and the role of technology in accounting with a hypothetical example. 

“You have a company spread across Australia with your accountant working remotely from Sydney and the headquarters in Melbourne. 

With traditional accounting services, will you be able to access your financial information until your accountant provides it? Wouldn’t it be a headache to always wait for your accountant to pull up the numbers for you or update them?”

Zero transparency, poor accessibility, constant delays and negligible security are some of the many reasons why you must consider online accounting services in Australia. 

Cloud-based business accounting services are benefiting many businesses across Australia.

The fact that - “The Australian Cloud Computing Market is forecasted to reach U$23.38 billion by 2029, which was valued at U$11.07 billion in 2023” signifies that businesses are reaping the benefits of cloud computing.

From authorized access and accurate financial information, businesses are turning to cloud-based accounting services for several reasons. Below are the top 8 benefits of cloud accounting that you may not be aware of.

1. Increased Accessibility

Clients across the globe? Remotely working teams? Different time zones? No problem. 

With cloud-based accounting services, you can access your financial information at your convenience. You are no longer tied up with your desktop computer, as you can access your data from any device - laptops, smartphones or tablets. 

Your financial data is always within reach, no matter when and where you work. Whether you're at home, on the subway or at a cafe around the corner, the only requirement is an internet connection. 

Moreover, with today’s “Undefined Hours Workday” lifestyles, connecting with your employees, colleagues and partners from around the globe becomes so much easier with cloud-based systems. 

2. Cost-Efficiency

What are your cost requirements for a traditional or desktop-based accounting system? 

• Hardware investments
• Licence costs
• Costs for servers (To house your application data)
• Regular maintenance costs ( For your servers and other hardware)
• How about the running cost of your desktop? (The electricity bills)
• What if something goes wrong with your hardware? (Salary for an IT expert)

Now, think about all the repair parts, the time it takes for the repair parts to arrive, and installation fees for your software. Cost of training your employees, fees for bug fixes, cost of downtime and other miscellaneous costs. 

Too much, right? In cloud-based accounting software, all you need to do is pay for some initial set-up fees, and an internet connection and subscribe to the quarterly or yearly plan. All the headaches that were once yours with a traditional system are passed on to the provider. 

Everything is done online, with no surprises, demanding bills or urgent service call-outs.

3. Real-Time Data Insights

Thomas makes an update in a financial file from his home office in Sydney. Meanwhile, Sarah from the sales team comes running to your cabin about a sales dip. 

Imagine the scenario where Thomas is offline. You are unaware of the data update and are unsure about the reasons behind the sales dip. 

How do you analyze what went wrong or make the right decisions? All you can do is wait for Thomas to give you the insights, so that you can accordingly implement the necessary changes. 

• Identifying trends 
• Taking corrective measures
• Getting real-time updates 
• Real-time data backup 
• Instant accessibility from around the world
• Better cash flow management 
• Immediate analysis 

Cloud-based accounting services offer all of these benefits and more. You can pivot effective strategies and seize every opportunity to grow your business as and when needed. 

4. Enhanced Security and Compliance

Now that all your data is flying across the Internet, is it valid to ask if your data is safe in the cloud? After all, the security of your data, especially financial data, is your top priority. 

Imagine having very important business data on your desktop or someone’s laptop. What would you do if the data was lost, stolen, or your desktop was hacked? 

Compare that with top-notch security and compliance regulations adhered to Australian Tax Regulations. 

• Multi-factor authentication
• Regular backups
• Protection from data breach and data loss
• Audit trails
• Easy access to historical data

Online accounting services in Australia and software providers understand the importance of data protection. Millions of dollars are spent to ensure that your data is protected from mishaps or cyber-attacks. 

5. Scalability and Flexibility

How do you store and manage your financial data with a traditional system? Is your traditional accounting software scalable and flexible? 

• Can you system scale with the ever-growing data?
• Can you afford expensive upgrades every now and then?
• Can the rigid framework of your system accommodate the changing business requirements?
• Is the system compatible enough to handle growth?
• How many users can access the data?
• Is it flexible enough to add customized metrics or dynamic reports?

Cloud-based accounting services allow you to upgrade your plan and add new features when you need them. These systems are inheritably scalable and flexible, giving you all the benefits you need to manage your business without interruptions. 

6. Automation of Routine Tasks

Do you have an employee who sits in a dark corner office with piles of paperwork covering his face? Have a look. You might have one if you are using traditional accounting software.

Outsourcing accounting work in Australia will reduce your dependency on paperwork and manual data entries. What more?

• No more spending hours on time-consuming tasks
• Less prone to errors (Including human errors)
• Better invoice tracking
• Automation of almost all repetitive tasks
• Increased productivity
• Also good for the environment

You can save time, reduce your carbon footprint, and automate almost every task with cloud-based accounting. Thus, you get more time to focus on other business tasks and improve productivity.

7. Easy Integration

Traditional accounting systems are built on legacy systems. These systems are outdated and mostly incompatible with modern APIs.

What would you choose? Wasting endless hours manually transferring data between systems or real-time updates across all systems? The latter option, right?

From CRMs to inventory management, your data will move automatically with cloud-based accounting across platforms.

• No more potential errors
• No more dealing with constantly waiting for the data to sync
• No manual updates
• No file transfers
• No dealing with outdated information
• No more juggling between multiple tools

With cloud-based accounting software, all your disconnected systems can be patched together for seamless communications and effortless decision-making.

8. Customizable

Traditional systems do not offer customizable features. Traditional accounting systems are rigid and offer standard solutions to everyone. Then how do you stand out from the crowd? 

With cloud-based services, you can get the benefit to tailor the software to your specific needs. Customizable features, from advanced reporting and automated invoicing to other specific add-ons, easily scale and adapt to technological trends.

Online accounting services in Australia offer all that your on-premise software offers, but with added technological benefits.

We are sure that the benefits of cloud accounting are going to help you with your finances. Moreover, cloud-based accounting solutions can reduce your energy consumption costs and carbon footprint by up to 90%.

From crazy cat videos and real time chats to data storage and accounting, everything happens in the cloud these days. The incline toward adopting cloud-based solutions is continuously growing every year. 

Still, wondering how the benefits of cloud accounting would help with your financial decisions? Contact our team at Augmented Systems. With 200+ projects completed, our expert team will guide you through all your accounting dilemmas.