What initially started as a simple tool is now becoming a very popular accounting software for businesses as it offers businesses a way to save money. Companies are already doing their working practices in ways that suit the cloud computing technology.

Eighty percent of the 900 organizations surveyed by KPMG are saying that they have plans of adopting the cloud computing technology. Ten percent of them are already using the accounting software at present.

Basically, cloud computing is “the process of sharing IT resources to achieve more power and productivity with fewer costs and roadblocks”.

Here are the five key ways as to how cloud computing revolutionizes the business world.

1. Breaks down barriers to entry

Cloud computing basically removed in-house implementations and large capital outlays. New technologies and innovations are no longer limited to big companies that have the resources to create such. Furthermore, companies no longer need to purchase expensive server equipment since cloud computing, as a bookkeeping software, will take care of keeping data and information and only charges a fee for the resources used.

Google, Amazon, and Microsoft also make use of cloud computing to extend their services.

2. Allows businesses to react with agility

Business operations will always include changes in situations needed to address business demands. This is where cloud computing helps businesses. Should a business need to be over specified due to peak usage or if it is underspecified in order to manage heavy load sessions, cloud computing provides the services. Businesses are able to access their IT resources using flexible and dynamic systems.

With cloud computing, the instant and unexpected cyclical demands of businesses are addressed more effectively and efficiently with cloud computing.

3. It uses pay-per-use cost model

IT functions of businesses mean the need to pay for spaces whether or not the space is needed or is too big for the demand. In most cases, companies have to buy more desktop computers, machines for internal server rooms, as well as space for offset servers. What’s worse is that, as the demand increases, so does the need to add more of these expensive materials and equipment.

Cloud computing has changed the trend. Since it operates on a need basis, businesses only need to pay for the space that it uses. They only need to pay more when the need for greater space arises. With cloud computing, no idle space is being paid for.

4. Less maintenance, more innovation

It is said that around $8 for every $10 is used by businesses for maintenance rather than innovation. With cloud computing, this maintenance cost is reduced as the maintenance operations are already shouldered by the technology which is being done offsite. The pay-per-use scheme already includes upgrades and maintenance.

5. Being able to build products that are adaptable to today’s fast-moving businesses.

Conventional methods of storing and accessing data of businesses include purchasing software in boxes and installing it on all computers in the office. With cloud computing, applications are hosted by a central server and are used by businesses via the internet. Security of data is ensured with the said accounting software.

Cloud computing is very beneficial to businesses for their accounting software needs.

"What's remarkable about the cloud is you can do this type of work on demand. We've never had information ability like this before,” said Eugene Kolker, Chief Data Officer at Seattle Children’s Hospital.

You may also Like Us on Facebook, Follow us on Twitter and Follow us on Google+ for more Updates.