The old stereotypical picture of an accountant is someone sitting at their desk behind teetering mounds of paperwork.
However, paper was never a very convenient way to store crucial financial information, which is one of the main reasons why cloud storage for accountants is such a growing market.
In this guide, we’ll cover the risks of sticking to the traditional accounting storage methods in a world far removed from those old Dickensian stereotypes, and we’ll explain everything you need to know about how and why you should be making the switch to a cloud-based solution.
The risks of paper, why cloud storage for accountants is the way forward
First, we’ll talk about the risks of paper accounting for those who are determined to stay with the traditional methods for as long as possible.
Here are some of those risks:
1. Losing documents
When you’re an accountant, the chances are that every single piece of paper on your desk is very important, whether it’s a bill, an account statement, an invoice or vital tax information. In some cases, that piece of paper may be irreplaceable if it goes missing.
And we’re not just talking about misplacing a document, there’s also the risk of entire storage rooms of documents being destroyed by a natural disaster.
2. Human error
Humans make mistakes, even accountants. And using paper-based accounting leaves you so much more open to mistakes being made and not noticed until real problems have been caused.
A form could be missed, a number could be mixed up, data could be misread and input incorrectly.
3. Security issues
So far we’ve covered accidents that can cause serious issues, but what about more deliberate actions? Paperwork will always be vulnerable to someone physically breaking in and stealing or tampering with it, and the legal and compliance repercussions can be serious.
4. Inefficiency
The accounting industry is working in an online world, so for accountants to be operating offline with paper documents limits their ability to collaborate effectively with colleagues, other teams or clients.
This inefficiency can cost money, so isn’t it time to move into the 21st Century and start using document digitization?
The ultimate guide to cloud storage for accountants
So, those are the paper document storage problems for the accounting industry, let’s move onto the benefits of cloud storage for accountants. Why should you choose cloud storage for your most important documents?
1. Security
We’ve talked above about the risks of paperwork being destroyed or lost accidentally or on purpose but what about the potential cybersecurity risks of cloud-based software? As it happens, one of the major benefits of cloud technology is that it’s very safe and secure, especially when utilising blockchain.
Encryption means that your sensitive documents are almost impossible to hack.
Meanwhile, backups are in place to ensure that there’s also minimal chance of your documents and data being lost.
Meanwhile, version control is in place to protect critical documents from human errors or hacks, so you can be sure your files are safe.
2. Efficiency
Another reason why cloud storage for accountants is such a positive step is that it enables effortless collaboration. Multiple users can access and edit the same document simultaneously, simplifying real-time teamwork on projects.
This represents a major advancement over the email exchanges and version control problems that often hinder traditional methods.
Cloud storage is also much more scalable than traditional paper storage, which can be especially helpful for businesses like accountants, who can often experience fluctuations in their data storage needs, especially during peak times such as tax season.
Cloud storage provides exceptional scalability, enabling firms to adjust their storage capacity as needed without major investments in new hardware. This flexibility ensures that firms can manage increased workloads without sacrificing performance or efficiency.
3. Cost Efficiency
The shift to cloud-based storage can also save time and money for a business, which can only be good news for accountants.
Digital document archiving is much more cost-effective than traditional data storage methods, which require substantial upfront investments in hardware, software, and maintenance. Cloud storage operates on a subscription-based model, allowing businesses to pay only for the storage they use.
With Cert-Trace®, accountants can potentially save up to 90% of the costs associated with paper documentation, saving money on paper, ink, printers, copiers and the physical storage space required to keep them safe.
4. Compliance
Legal and compliance issues can be a real headache for any business, especially those dealing with sensitive client information, like accountants.
Cert-Trace® and its cloud-based solution can help accountancy firms meet regulatory compliance requirements easily by ensuring that documents are safe and secure, meeting the highest industry standards.
Another upside to this is that you can minimize any compliance costs associated with paper document management processes, avoiding fines and penalties that can be imposed for documents not being properly stored and accessible.
Making the switch to cloud storage
So, there are some of the reasons why accountants should consider switching to the cloud, but how do you find the best cloud storage for accountants?
It’s important to understand your specific requirements, not just for now but to reflect on what your needs might be in five or ten years’ time.
This way, you can map out what features and functionality you need in terms of storage, security, accessibility, scalability, resilience and support. Most of all you need to find a provider like Cert-Trace® that understands your industry and your needs as well as having the tools and technology to deliver a reliable service.
Cloud storage solutions come with varied pricing models, so it’s important to balance cost savings with the available features.
Additionally, consider scalability carefully: a solution that supports growth but comes with significant cost increases should be evaluated thoroughly before committing, even if it initially appears affordable.
So now that you’ve seen how cloud storage can help accountants solve the problems of paper document storage, why not get in touch with our Cert-Trace® team at info@tracert.digital to find out more?
