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Impact of Current Changes in US Accounting System on Businesses
In today’s dynamic regulatory environment, financial executives of every firm should be aware of the accounting changes by U.S General Accepted Accounting Principle (GAAP) which aims at improvement in the accounting process. Due to instability in the market conditions, it has become a necessity for the International Accounting Standards Board (IASB) to bring a vigorous change in the accounting procedure of every industry. It has been anticipated that about 90% of the accounting, by the end of 2017, would be on the cloud. The simple reason for adopting this change is: the cloud is fast, secure, and inexpensive software. Embracing cloud-based solutions is one of the notable accounting industry trends that has gained momentum in recent years, offering efficiency and accessibility to financial data.
But the question that is striking the mind of every business entrepreneur is, What will be the impact of cloud-based accounting on businesses?
Impact of Cloud-Based Accounting Industry Trends on Business
Automatic Backup of Data
Earlier, upgrading a data file in the system involved multiple versions that needed to be addressed. But with cloud accounting, there is no need to upgrade the different time-consuming versions. In the realm of accounting industry trends, cloud-based software customization enables a seamless experience with everything just a click away. Previously, making backup files was a requirement, but now, with the advancement in cloud accounting, the system automatically stores data backups in the cloud.
File Remain Tangible, All the Time
Even if you are working on your accounting sheet or analyzing the profit and loss statements, at the same time your accountant or bookkeeper can operate the file without any problem. This brings transparency between the entrepreneur and accountant, as the accountant can interact with the business owner in real-time and can assist him with any questions about data entry or what the financial statement reflects.
Data Entry Becomes Easy and Accurate
In this information age, when all your transaction data is readily available by your bank in your statements, then why you need to re-enter the data manually in your accounting software? It is a waste of time and money both. Cloud-based accounting system enables you to upload or automatically bring “Live feeds” of your bank and credit card transaction data into your accounting software. The time consumed by data entry is drastically reduced to an extent.
With Cloud Accounting, You can Get the Flexibility and Mobility
You can check your business account balance, overall cash position, outstanding invoices, and much more 24/7 from anywhere as long as you can access an internet connection. Nowadays, you can run your business from your laptop, iPad, tablet or mobile phones, as there are many cloud accounting software available in the market which you can easily download to your device. This leads your business towards a more flexible way of running your business.
Better Business Decisions
Obsolete software that requires you to manually do your bookkeeping tasks put your business at a disadvantage because, in reality, your books of accounts were lagging behind. A modern business needs information that is real time and up-to-date as per the business requirements. What else you require to make an informed business decision? So, now you can take your business decision without any strain.
If you are facing problem to adopt this technological change or else you are not able to manage the accounting process in cloud-based software, the best way is to outsource accounting back office tasks to a reliable partner who is expert in this field. Cogneesol is one of the leading outsourcing firms with more than 9 years of experience that offers finance and accounting outsourcing services to various industry verticals across the world. With the advancement in technology, Cogneesol can help you with every latest version in software accounting and can assist your business with cloud-based accounting to make your process easier.
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