We are living in an era where technological solutions have become a normal part of our world. From video calling friends to use Facebook to get connected with friends, we are using each and every form of a technological solution in order to stay ahead of the world. There used to be a time when technological solutions were alien for everybody out there but now we can say that none of the professionals out there or businesses out there think twice before using any type of technological solution. And one such technological solution that has become almost inherent to each and every type of business out there is cloud.
It doesn’t matter whether you keep tabs on the technological field or not, you must have heard about cloud computing because from Google Drive to Facebook, everything is powered by cloud computing technology. Well, cloud computing has become inherent to many different types of fields out there and we can say that financial management is no exception to this trend. Long ago, financial management was all about pen and paper and then it slowly moved to account software.
But this was not the end of technological evolution in terms of financial management since from using accounting software solutions on the desktop, we moved to shift the accounting software solution to the cloud.
Now each and every type of business is using the power of the cloud to deal with financial management in the best possible way and you will need to do the same in order to get expected results from your efforts.
Well, in this blog post, we are going to look at how cloud slowly became inherent to financial management and how financial management was influenced by cloud computing and other technologies with time.
The early phase of financial management
When you will look at how financial management was taken care of during the early 80’s or 70’s period then you will understand that financial management was limited to only pen and paper. It didn’t matter how big your budget was or how well you were on papers. You have to make sure that you are taking care of your accounting and finances on paper in a well profound manner since there was no other option.
But pen and paper had their own limitations. Managing huge piles of papers was never easy for any firm out there and this is one of the most important things that most of the firms struggled with. In addition to this, any type of disaster in the premise of the firm led to a complete loss of financial l data.
The movement to software solutions
When people started realizing that pen and paper were limiting a firm’s ability to take care of accounting, everyone out there found out that they needed a new technology to take care of accounting and finances and this is where the new software solution era began.
With accounting software solutions, people were now able to deal with financial management in less time and much of the manual workloads of financial accounting were now automated. This made a big impact on the overall financial management system and this is how the first technological evolution in the era of accounting begins.
Well, accounting solutions started acting as a magic wand for most of the firms out there and every firm was ready to abandon pen and paper and they were ready to move to the accounting software solution without any second thoughts. Now, the arduous journey of managing accounting on pen and paper was completely wiped out with the introduction of accounting software solutions and soon the market was inundated with different types of accounting solutions.
The beginning of cloud accounting
Well, whenever a new technology is introduced in the market, most of the people or experts consider it to be the best form since nothing is better than the current form of the technological solution. But with time, people start finding limitations of the technological solutions that once used to be revolutionary. Well, the same thing happened with cloud computing.
You should know that once accounting software solutions were considered as the best accounting solution but soon people started realizing that using the accounting software by installing one the desktop was again binding the firms in the chains of limitations and sending firms on an arduous journey of managing finances.
And it was during this phase when the powerful cloud computing solution started becoming a new normal for everyone. From cloud storage to cloud app and development, the powerful cloud computing solution was not being used in many different ways. Well, it didn’t take much time for the cloud to become a crucial part of financial management.
With applications like cloud hosting becoming a new normal, people started shifting the accounting software on the cloud platform. In the earlier phase, cloud hosting required firms to go extravagant with their budget since there was no option of a third party cloud hosting provider. But with the influx of third party cloud hosting provider, it became possible for even small and medium sized businesses to shift to cloud accounting without any second thoughts.
It offered cloud storage
With the power of cloud hosting solutions like QB hosting, now most of the firms out there were able to store their financial data on the cloud platform instead of storing the sensitive financial data on the desktop. This made sure that all the financial data was completely safe and even the smarties hackers out there were not able to breach the data.
You should know that cloud computing comes with various layers of security like two-factor authentication, anti-virus, end to end encryption, and much more. All these security layers keep the cloud secure.
Maintaining backup for the financial data was like going on an arduous journey for most of the small businesses out there since manual data backup required a lot of money, effort, and time. Well, all these things were completely changed with the introduction of cloud computing solutions.
You should know that cloud computing solutions like cloud hosting came along with the power of cloud backup. If you are going to choose a cloud hosting provider for hosting your accounting software then they will offer cloud backup as an add-on with the cloud solution and this is one of the biggest benefits of shifting to the cloud accounting solution.
The best part is that you don’t have to pay even a single extra penny in order to use the power of automatic cloud backup which is mostly done on a nightly basis.
If we will look at the history of financial management then we will realize that financial management has gone through a vast journey of transformation. Although the basics of financial management have remained the same for many decades, the way we manage finances has surely changed a lot. From pen and paper to software solutions and then to cloud computing, we have already covered an arduous journey to reach where we are at today. But in the future, we might see a new technology emerging and making financial management better.