The accounting software market is poised to undergo rapid growth in the years ahead, and the adoption of cloud-based solutions is expected to outpace the adoption of premises-based options.
While many companies still buy software licenses and get applications that they can download on their own computers, others recognize the advantages of the cloud software model that will allow them to access applications online without having to install software onsite.
According to Allied Market Research, the global accounting software segment was worth $11.9 billion in 2020 and is expected to climb to $70.2 billion by 2030. That works out to a compound annual growth rate of 19.6% during the forecast period between 2021 and 2030.
The healthcare industry is among the sectors using cloud-based solutions for reasons that include lower cost, flexibility and scalability, ensure compliance, unify people and documents, and easier maintenance.
Are you interested in learning about what healthcare entities can gain from cloud accounting software? Continue reading to learn about four key benefits you need to know about.
1. Get Things Done Faster
If you’re in the healthcare space, your primary mandate is helping patients. Back office responsibilities, like accounting, are essential. But they shouldn’t be so complex and onerous as to shift the focus of your healthcare practice from administering the best care to patients. Cloud systems facilitate automating routine tasks and processes and simplify internal controls, statutory & financial reporting, and regulatory compliance across all lines of business, no matter what circumstances come your way.
When your healthcare organization uses cloud accounting software, you can avoid duplication, oversights, and other human errors that can waste time, rack up excess costs, and slash efficiency and productivity. You need your financial data to be accurate to ensure sound decision-making, and cloud accounting applications will eliminate the most common reason for errors.
Another benefit of cloud accounting software is that it’ll be frequently updated without any necessary input from your healthcare organization. The vendor providing the cloud reporting software will handle updates and roll out fixes, which means you’ll be able to focus on your business.
2. Security Baked In
If you’re using an on-premises accounting software application, you’ll face specific security issues. Your IT team must be on top of things to ensure updates and patches are rolled out quickly. Otherwise, your company will be at a disadvantage security-wise. Also, consider that backup systems aren’t foolproof since there’s the risk of encountering multiple versions of the same file. Your healthcare business can’t afford to lose data simply because of user error.
But a cloud accounting system has security baked in, so your accounting team doesn’t have to worry about HIPAA compliance related issues. This means your data is constantly and automatically backed up and housed offsite in a secure environment – meaning you can stop blindly trusting your information and instead trace its journey for yourself across all the healthcare products, services and annuities you offer. So, there’ll always be a backup of your data that can be retrieved. Whether problems like thefts, viruses, or mishaps rear their ugly heads, your healthcare operations can access data stored in the cloud and tackle the tasks that need their unique expertise.
Another reason to use cloud accounting software is the data centralization and sharing features, making your data lineage no longer a mystery. When using a cloud accounting application like Workiva, your healthcare organization will have a single cloud accounting software file, meaning when you update source information, any linked content automatically updates, keeping all your documents in sync. This will eliminate the nightmare scenario of having people in different departments input information in different versions of the same document.
Accounting software offers features like tax compliance, accounts receivable and payable, invoicing, cash flow analysis, income and expense statements, payroll, and more. But if multiple versions of the same file are floating around — a possibility if you’re working with on-premises software — that’ll throw a wrench in your operational efficiency.
Using the cloud means your healthcare business can avoid these types of problems. You’ll also be able to closely manage login permissions,allocate user access, and embed commenting threads, tasking, and automatic audit trails to help keep everyone informed in a single work environment, even when everyone’s in a different location.
4. Regulatory Compliance
You’ll also get help with regulatory and industry-specific compliance when you use cloud accounting software. And the cloud solution will always be up to date — which is essential since you’ll want to stay on top of any possible law or policy changes. It’s necessary to get an accounting solution that offers the following:
- Transparent and connected reporting
- Sarbanes–Oxley Act (SOX) compliance
- U.S. Securities and Exchange Commission (SEC) reporting for enhanced collaboration and transparency between teams and auditors
- Generally Accepted Accounting Principles (GAAP)
- ASC 606, a revenue recognition standard that impacts all organizations that enter into contracts with customers to transfer goods or services
Ultimately, the cloud software system you get for your healthcare organization should offer the best in internal controls management solutions.
These are just some of the advantages of getting cloud accounting software for your healthcare practice. While the main objective is meeting the needs of patients who come to you for help, you also need to ensure you have the right back office systems like a HIPAA compliant accounting software.
Do your research and find the right cloud accounting application for your healthcare organization’s needs.
The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.