Over the past few years, more nonprofit organizations have started the shift towards ‘cloud computing’. According to PC Mag, cloud computing is simply defined as “storing and accessing data and programs over the Internet instead of your computer’s hard drive.”
What data and programs are nonprofits storing and accessing? Their accounting data and programs.
Why are nonprofits choosing cloud-based accounting software, and how does cloud accounting work?
The Basics of Cloud Accounting
In order for something to be considered ‘cloud computing’, it has to be accessible over the Internet, or the data has to sync with other information over the web.
This is exactly how cloud accounting works – the files that are normally stored on your computer’s hard drive are stored online.
The main benefit to cloud accounting is that now you (and your team) can access your files anytime, anywhere. So whether you’re traveling or working from home, you’ll always be able to login to your cloud accounting platform and view your data. This makes it significantly easier for nonprofit teams to share, collaborate, and propel their mission forward.
Why Nonprofits Choose Cloud Accounting
While the biggest reason nonprofits choose cloud accounting over traditional accounting is accessibility, there are other benefits to making the switch:
Security
With your data safely stored ‘in the cloud’, it is protected from a variety of catastrophes that could happen if you were using traditional storage methods. For example, if someone broke into your office and stole your laptop/computer, then they most likely have access to your financial information.
Other catastrophes could include fire, flood, hard drive failure, and general data loss.
Cost
Typically, cloud accounting software is more cost-effective than traditional accounting software. This is because there is virtually no set up or installation required – users login to their accounting system over the Internet without having to purchase and maintain software licenses. (While there may be fees associated with adding new users to your software, the costs are significantly cheaper than if you had to install and setup the software on a brand new hard drive.)
Contact Us to See if Cloud Accounting is Right for You!
We connect organizations with the right nonprofit accounting software to help them save time, lower costs, and streamline operations. To learn more, call us today 877-889-0629 or fill out our contact form!