The Cloud Computing Revolution in Accounting

Since the earliest days of computing, the idea of using a central computing resource to serve a network of terminals or client machines has been the foundation of one of the most popular models of computing. This was the predominant computational model through the end of the 70s. But starting in the early 1980s, the personal computer, a machine that contained sufficient computing power internally to run any host of high-level applications, began taking over. By the end of the 1990s, the personal computing model, where most computational tasks were carried out directly on the client machine, had become the dominant model.

Then internet connection speeds began dramatically increasing. By the mid-2000s, average network speeds had reached a level where renewed interest in distributed computing began to garner more interest from developers. Since then, a new form of distributed computing has taken hold. This is known as cloud computing.

Why cloud computing is the future for accounting

The cloud is like the mainframe computing model of old but with a few modern twists. One of the things that makes cloud computing so effective is its ability to almost infinitely scale. Traditionally, a business that was experiencing phenomenal growth would have been restricted by the huge costs of scaling up its operations. Nowhere was this truer than with its accounting department. The costs of going from a staff size where one person was performing crucial accounting tasks to a size where 30 people required accounting access could easily range into the six-figures. With the cloud, such scaling upwards may only cost a couple hundred dollars more per month, and it can be instantly accomplished using proven software.

 

The cloud also has the hugely beneficial effect of keeping costs extremely low while never requiring large, up-front capital outlays. The efficiency of cloud computing is often four time or more of that of traditional computing. These huge efficiency gains can be directly passed onto the client, in the form of cash savings. The cloud also obviates the need to buy expensive, rapidly depreciating computer equipment and to hire IT staff. For a small business, this can amount to hundreds of thousands of dollars in immediate savings that can then be used for investment in the company, earning a tangible return.

One of the best sites in the business is Swizznet. Swizznet is a full-service cloud-based accounting firm that specializes in serving businesses as well as professional accounting firms. They offer highly flexible rates and offer real scalability to new and growing businesses. In fact, this scalability is one of the most powerful features of cloud-based accounting platforms.

The highly scalable nature of cloud computing means that, should a business experience a downturn, it won’t be stuck with a bloated accounting and IT department. It also won’t be saddled with massive excess capacity that it has no way of monetizing. In short, cloud computing is a leaner, meaner and massively superior computing model that allows business to get and to pay for precisely what they need, at the moment they need it.

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