How to check return on investment in cloud-native accounting software

It’s fair to say cloud technology has changed accounting. The question is by how much?

Anecdotally, it’s easy to see how it can positively impact daily operations. However, it’s important to measure every success if we want to understand return on investment (ROI).

The first way is to count how much money the purchase saves you. That said, there is much more to measuring cloud technology’s value.

Let’s look at a case study. In our case – because we’re IRIS, discussing cloud native tech – we’re best placed to talk about IRIS Elements.

4 ways to evaluate cloud software’s return on investment

Let’s look at cloud-native software from four perspectives: time, risk, growth and real-world results.

1: Time savings

Time is money, especially in the accounting industry. IRIS Elements drives efficiency by automating and simplifying compliance activities. That means work like preparing year-end accounts and tax returns (and far more) can be done very quickly.

If you want to do more advisory work, then busywork needs to take care of itself. In IRIS Elements, that means time-sapping duties like job and task tracking. It also means being able to auto-complete data fields and sending automated communications to clients.

How does our automation compare? Firms using IRIS Elements complete year-end compliance work 64% faster than with other leading software. Onboarding is quicker than manual processes by up to two hours (See the section: Measuring cloud-native software with real-world results to see where we got this data).

2: Risk reduction

If you want to reduce the risk of costly, reputation-damaging errors, a single database makes all the difference.

If the same live data feeds into all tasks, you don’t do things twice, and you stay accurate. Everything is much more consistent, from proposal to AML and beyond. As well as no more conflicting records or duplicate entries, you have better audit trails and a real sense of confidence.

3: Security

If you’re not secure, you’re at risk. Good software gives you confidence and control. It can put an end to doubt in a way no spreadsheet can.

For example, with IRIS Elements, you have enterprise-level security. Because of the way that the cloud is built, would-be hackers are thwarted at every turn.

This safety extends to wherever you go. That’s thanks to the cloud-native architecture of the platform. You can log in from the office, home or abroad.

4: Scalability and growth

The best software supports business growth. Whether you’re looking to take on more clients, tackle more complex workloads, or scale up your existing operations, the platform adapts.

How does it work in practice? IRIS Elements is packed with features that make scaling straightforward. Automated workflows take care of repetitive tasks, freeing up your team to focus on what matters most.

This is where centralised data plays yet another role. It keeps all information organised and accessible, no matter how big your client base becomes.

Plus, integrated compliance tools ensure you’re ready for any new regulations and standards. As a result, you can confidently broaden your service offerings and onboard new clients; there’s much less pressure to hire more staff to handle demand.

This scalability also gives you the flexibility to take on more complex or high-value projects as they arise. The software is built to remove traditional bottlenecks and streamline processes.

Measuring cloud-native software with real-world results

IRIS KPO, our outsourced accountancy services team, carried out a benchmarking exercise on accountancy software. Rather than focusing solely on IRIS products, the review compared processes across a range of UK practices, assessing multiple compliance platforms, including, but not limited to, IRIS Elements.

Key insights

• Year-end compliance efficiency: Firms using IRIS Elements complete year-end compliance jobs 64% faster than those using other leading software, dramatically reducing turnaround times for core services.
• Automated job/task management: The platform’s automation features save approximately 100 hours per year for a typical 250-client practice.
• Faster client onboarding: By integrating engagement letters, proposal management, and AML checks within a single workflow, onboarding each new client is about 2 hours faster compared to manual or fragmented processes.

Translating results to financial ROI

• Firms with 100 company clients: These save around 20 hours annually, equating to about £2,000 in staff time or billable hours.
• Firms with150 personal tax clients: About 15 hours saved per year, worth just over £1,000.
• Firms that onboard 36 new clients a year: 75 hours saved, translating to nearly £4,000 in value.
• Task management for 250 clients (plus the 36 you’ve onboarded): Over 100 hours saved, valued at approximately £8,500 annually.

What value will you find?

The ROI of cloud accounting software, like IRIS Elements, must extend beyond financial savings. Instead, it covers a firmwide transformation in how to operate and grow.

So next time you are weighing up a software investment, make sure it contributes to the bigger picture.

In other words: how does it empower your team, strengthen compliance, and future-proof success?

Explore our cloud-native solutions today.