Companies across industry sectors are transitioning to cloud-based solutions. Forbes reported that between 2016 and 2017 hybrid cloud adoption increased from 19 percent to 57 percent of organizations surveyed. That’s a three-fold growth, and trends are continuing upward. A survey conducted earlier this year found that 81 percent of enterprises have a multi-cloud strategy. The construction industry is no exception. One report found that 87 percent of the construction industry said they were open to using cloud-based solutions. Accounting is one area where the construction industry is taking advantage of the benefits of the cloud. Here are six reasons why.
Gain easy access.
Construction has always been a mobile industry. Employees are working on numerous sites that may be a great distance apart. Accounting on the cloud ensures that whether your accounts payable manager is working from home or your project manager needs to check the budget status from a project site, they can both gain access. Imagine a contractor waiting for a shipment at the construction site. The vendor says the shipment is delayed because the last bill wasn’t paid. Cloud-based tools enable the contractor to quickly search invoices, provide a date and a check number so that the issue is resolved quickly. The contractor doesn’t have to call and wait for an answer from Accounting, and Accounting doesn’t have to stop what they are doing to search for an answer. Submit purchase orders. Allow employees to clock-in. Get real-time updates on when vendors were paid. All accounting functions can be done from a laptop, tablet or smartphone from wherever your employee may be.
Think of cloud-based solutions as a way of organizing a distributed workforce. There are often various individuals involved and documents that need to be submitted for accounting processes to take place. The cloud allows for greater collaboration between the moving parts. Photos, documents, and data can be easily shared from various locations.
If accounting software shuts down, an entire project can be thrown off schedule. The traditional software was subject to the reliability of the machines that housed it. If a laptop crashed, or the company upgraded to a new system, integration was always a concern. Manual backups most likely had to be installed, losing days of productivity. Cloud-based accounting solutions require no software or installations. If your computer crashes, simply put in your username and password from any computer and you’re back up and running.
Decrease upgrade frustration.
Have you ever had to wait on software updates? How about waiting and waiting for an update only to realize the new version of your software isn’t compatible with the type of computers or operating system used by your organization? That doesn’t happen with cloud-based solutions. Updates are invisible and always compatible with any machine.
There’s a lot that goes into setting up, maintaining and protecting accounting systems. Servers must be maintained and secured. Patches and upgrades must be performed regularly. You must have a disaster recovery plan, as well as a backup strategy. With cloud-based solutions, upfront business costs are reduced. Upgrades, maintenance, system administration costs and server failures are non-existent issues. There are no expensive service calls. Your cloud service provider replaces all these functions. By transitioning to cloud-based services, many construction firms find they can get by with a smaller IT force, further reducing overhead costs.
Get more efficient.
By transitioning traditional accounting workflows into cloud-based solutions construction companies are able to spend less time managing information. Manual data entry is reduced. Instead of searching through files for copies of invoices or backup documents, your finance team can simply search for the electronic record that has been stored in its secure location.
Construction companies manage a lot of data and varying workflows. Transitioning to a cloud-based solution for accounting drastically improves efficiency and collaboration while reducing overhead and costs. Learn more about the solutions offered by CFO on the go.