7 Key Benefits of Cloud Accounting

Cloud accounting solutions are speedily becoming the norm, providing a new level of integration and visibility over financial data that was not previously seen. Meeting the need for increased mobility and access to information on-the-move, cloud accounting software has provided the gateway for businesses to keep scaling across the globe, and increasing efficiencies. 

With this increasing interest in cloud accounting, we’ve explored the 7 key benefits that businesses derive from using cloud accouting software, giving you an in-depth understanding of its uses and scope for your business.

Key takeaway: Cloud accounting provides 7 key benefits to businesses that want to move away from traditional accounting software to a cloud accounting system. Exploring these benefits provide a foundational business case for moving your accounting data to a cloud software. 

How much of an impact is cloud accounting making on businesses?

The cloud accounting market has grown strongly in recent years, with a compounded annual grwoth rate of $5.39 billion expected during 2025. It is further projected to grow to $7.75 billion by 2029. [1] The reasons this exceptional growth has continued are attributed to:

• Business continuity planning
• Data accessibility
• Scalability requirements
• Cost reduction 
• Globalization

Other major trends expected to sustain the projected forecast are integrations between emerging technologies, mobile-first web designs, real-time collaboration tools, blockchain integration, and AI automation technology. 

As the cloud accounting market rapidly expands, businesses that adopt the right tools will stay ahead. Envoice combines the reliability of traditional accounting with the power of cloud technology, offering smart automation, workflow approvals, automated coding and expense allocation, seamless integrations with popular accounting sofware, and real-time collaboration. Test Envoice with a free trial.

7 Key benefits of cloud solutions

The move to online accounting software is usually accompanied by some reservation – especially if desktop software has served you well. However, there are 7 undeniable benefits that come from cloud computing that cannot be achieved with the older desktop versions.

1. Automation

Traditional accounting systems do not have the capability to automate low-skill tasks such as manual data capture, automatically creating and sending invoices, and updating financial data simultaneously for multiple users to see in real-time.  

Managing accounts through a cloud accounting platform eliminates this issue by giving the same financial data to finance teams. The starting point of this invaluable objective is automation. Getting rid of human error, pushing financial data through the workflow seamlessly, and updating cash flow as it goes, brings a new power to accounting processes. 

Not all cloud accounting providers offer the same quality of automation. Agree to a demo or a free trial period and then use it to the fullest. The best cloud providers are open to discussing your unique needs when it comes to using their automation tools. 

Increase your understanding of automation with: AP Automation – All you need to know

2. Keep and share data securely

Cloud finance solutions must offer robust security measures, which is generally either compliant with or exceeds the PCI Data Security Standard. Providers understand that you are handing over the security of your financial operations and take it seriously. If they can’t tell you about their security measures, don’t work with them. 

Your financial data is kept on remote servers and are strictly monitored by software providers since the reputational risk for them is high. Those who run on-premise accounting solutions may feel safer because they can see where the information is being stored. However, the truth is it is difficult for an office to match the security of a data center. [2]

Disaster recovery initiatives are also largely helped along by having all your financial data on remote servers that are subject to stringent safety requirements. 

With cloud-based software, you can give account permissions to multiple users for seamless data flow. All you need to do is grant an approved user access details, and they will have secure and direct access to your financial data, eliminating the need for back-and-forth emailing or sharing (and potentially losing) a USB stick with sensitive financial data.

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3. Work remotely from anywhere in the world

One of the biggest advantages of cloud accounting software is that it allows you to work seamlessly from anywhere, as long as you have an internet connection. Similarly, you aren’t tied to one device either. You can start work on your laptop at home and continue on your phone during your commute. Accounting tasks never have to lie on someone’s desk again, waiting for approval. 

Flexible, on-the-go software is especially useful for business travelers. To meet the additional needs of these types of employees, Envoice offers a complete expense management solution. Your employees can now create an expense report, convert it, and submit it for reimbursement from anywhere in the world. To make it even easier for business travelers, Envoice includes additional features such as mileage tracking and partial reimbursement for subtracting personal expenditures from receipts.

Increase your understanding of automated expense tracking with: How a Modern Expense Tracker Will Transform Your Finance Workflow

4. Collaborative Accounting

Quite often, different people from multiple locations need access to the same document at the same time. Instead of struggling with assigning the correct access rights or emailing the document back and forth, cloud platforms streamlines this process in a way that on premises solutions never will. 

Working in the cloud allows multiple employees to perform accounting tasks at the same time.  For instance, an invoice can be automatically scanned, categorized, and sent for review. When the review approves the information, the invoice is forwarded for approval, and then for payment. This can all happen in a matter of minutes, depending on the response time of the approvers. Response time is increased in cloud accounting work because notifications appear in the software or on email immediately.  

Need more information? Expense approval best practices in 2025 will help you visualize the automated approval process.

5. Overall reduction in costs

Not only will the amount of time saved overall lead to a reduction in general costs, the desktop accounting software that companies use often has a lot of small fees that quickly amount to a massive expense. Think about the customized software that needs to be manually installed on everyone’s computers in addition to the periodical software updates and upgrades.

When using cloud-based software, these upgrades and additional extra features and plugins are automatically included. In addition to saving costs, this also ensures that your employees are always working with the latest software and information, ensuring that there won’t be any payroll mistakes when new tax rates are rolled out.

So, every time you log in to your accounting platform, you can rest assured that the software is up to date and any security fixes are taken care of automatically.

6. Improved Accuracy and Efficiency

So often, expense reports are incomplete due to missing receipts and invoices. Cloud software allows users to take photos or scan receipts and documents on the go and safely store them in one place.

Software such as Envoice simplifies the process even more by using AI software to read data from receipts and invoices automatically. You can even submit your invoices directly using your mobile phone or tablet. This, in turn, saves accountants and bookkeepers valuable time that is currently spent on data entry.

You don’t need your accountants to spend their time entering in coffee receipts from Starbucks.

With Automated invoice processing: A modern approach you can learn about how automated invoicing can provide cost savings, and reduce manual processes. 

7. Instant access to key financial information

When running a company, you often have to make critical decisions about the financial health of your business daily. Finance leaders no longer have the luxury of waiting for weeks or until month-end to get an up-to-date view of key performance indicators. 

The answer lies with cloud based accounting software. Automation, multiple user access, collaborative accounting, less manual errors and greater speed all go hand-in-hand to bring you the latest data for you to make informed decisions. Accounting practices that occur speedily and with a high degree of accuracy is the only way to keep control of costs – and that’s what cloud based solutions offer. 

Why businesses should switch to cloud based accounting

In addition to the advantages of cloud-based accounting discussed above, the decision to move to cloud accounting software is often made because:

• Business owners don’t want to wait for their accountants to provide them with an update on the health of their company. They want to be able to see a daily snapshot of their financial picture.
• Companies want to transition to being a paperless office without losing any efficiency.
• Businesses are looking to grow, but hefty accounting overheads are eating into their potential to scale. Cloud-based accounting frees up more financial resources for expansion.
• Owners want their team to be able to collaborate efficiently across different departments and even across continents. Moreover, they want their employees to be able to submit documents and invoices directly without having to use up the valuable time of company accountants.
• The current accounting system is unorganised, and the financial overview of the company isn’t clear due to missing invoices.

The future is now

Cloud accounting cost efficiency compared with an on premises solution yields significantly greater benefits as your business grows. A modern cloud based accounting software system is no longer a novel idea, as can be seen by the projected growith of this market in the next 4-5 years. [1]

Benefits such as automation, data-security, remote working, collaborative accounting, instant access to important financial data, increased efficiency, a reduction in human error, and an overall reduction in costs, make cloud accounting an attractive option for improving business processes. 

To experience these benefits yourself contact an Envoice representative to discuss your business needs with an automation expert. You can also book a demo, or try Envoice for 14 days without a commitment risk. 

References: 

1. Global accounting software market report
2. https://www.soscanhelp.com