Accounting

Benefits of the Cloud Accountant

Benefits of the Cloud Accountant

Have you considered what is best for you and your business? Today, more Accounting professionals are starting to notice the trend and move towards offering cloud based services to their clients. There are many benefits and solutions that cloud accountants can offer. Here’s a comparison between your traditional accountant or tax preparation service to a cloud accounting professional.

Traditional Cloud
Accounting Software Desktop programs are costly to maintain and do not traditionally allow you to access without being directly in front of the computer and requiring regular back-ups to be made manually by the users. Cloud based accounting software allows you the flexibility to access your financial information anywhere that has an internet connection, staying current and up to date with all tables as well as no additional backups required, as this is done by the software provider.
Accessibility Traditional Accountants require you to schedule an appointment and require you to come into the office with all of your required paperwork. Cloud Accountants utilized technology to connect with you remotely virtually anytime, anywhere, and sometimes on-demand, whenever you are available.
Cost Due to increased overhead costs and additional staff, charge out rates average between $50 – $100 for bookkeepers, $150 – 200 for Junior Accountants, and $250 – 500 for Partners on a per hour basis. Costs accumulate and are typically billed out for every task that is completed by the Accounting firm. Cloud accounting firms typically have less overhead as technology is utilized to minimize these costs resulting in lower charge out rates, either by using flat monthly rates or value-added packaged pricing. So no need to worry about being charged for making a phone call or connecting with your Cloud Accountant.
Staff Your typical accounting firm segregates their duties so that you have a bookkeeper, junior accountant, account manager and partner to complete your year end and tax filings. As a cloud accountant, typically the CPA does everything from the bookkeeping to the final tax preparation for your business, to ensure full awareness of your account.
Other Technology Standard technology is used such as traditional programs (spreadsheets, email, phone, etc.) and files are usually shared via email, fax or paper copies. Cloud software is highly utilized to improve the productivity and efficiency of a remote office. Various technology allows quick and easy expansion of your Accounting system without having to incur large, up-front expenses to expand your capabilities. Communication boards are setup as well as other communication channels (website chats, Skype, Slack, etc.). Document exchange is typically completed through a client portal or secure document transfer program (cloud-based), as well as digital signatures to sign all required documentation.
Training Depending on the firm, traditional accounting firms have standard training. Bookkeepers typically have a certificate or degree in business or accounting, Junior Accountants are on their way to becoming a CPA, and Senior Accountants and Partners are full-fledge CPA’s, some with specializations in tax, audit or more specific topics. Tax preparation companies typically have a standard training course provided by the company, no additional education is required. Each Cloud accounting firm is different however most Accounting professionals are full-fledged CPA’s that perform all duties from bookkeeping to tax preparation and year end filings. In addition to this, some CPA’s also do obtain specializations to be able to provide additional value-added services to each one of their clients.

Depending on your needs and how comfortable you are with technology, you will need to find the right fit for you and your business. With the growth of technology within business and the Accounting industry, there will be more traditional accounting firms that will soon make the move to cloud technology. It’s just a matter of time!