Implementing Green Accounting: Can Cloud Solutions Pave the Way?

by Mae

Utilising cloud computing in your company has several advantages. These include your daily operational effectiveness, state-of-the-art cyber security capabilities and more efficient internal technical support.

Another aspect, however, will be advantageous not only to you and your company but also to society as a whole thanks to the cloud’s favourable environmental effects on the rest of the world.

Is cloud computing environmentally friendly?

The time for justifying the importance of pursuing an environmentally responsible company model has long since passed. Many businesses today are focusing their attention on this problem.

Businesses shouldn’t ignore the role that cloud computing technology can play in furthering this, though. Enhancing these credentials can increase employee satisfaction and engagement and serve as a selling factor for an increasing number of prospective clients.

How is using the cloud environmentally friendly?

It involves maximising resources while sharing services. Some of its environmental benefits start to take effect right once, while others may take time.

These consist of:

  • Less hardware is required
  • Decrease in the quantity of power you require
  • An improved cooling technique
  • Reduction in the amount of emissions
  • Processes that are simpler for remote work
  • Minimising commuter-related transportation emissions

Reducing your energy usage

You need a dependable, consistent power source and an energy-consuming cooling system to run your own server.

Running on-site data centres uses a lot of power. However, moving to a cloud server can significantly reduce your environmental impact. Further investigation revealed that switching to the Cloud will save energy use by about 90%.

Gains from dematerialisation

Dematerialisation (DEMAT) is the move from physical certificates to electronic accounting. A data centre’s negative effects on the environment begin long before it ever starts operating. It begins when the raw materials needed to construct a server are mined and the hardware is constructed.

The constant turnover of equipment that needs replacing or updating results in electronic waste at the other end of the life cycle.

Less hardware is required as a result of dematerialisation. Using fewer minerals and materials to build the equipment has a lower negative impact on the environment.

Cut back on emissions

According to a different measurement of the greenness of the cloud, cloud computing can reduce greenhouse gas emissions by up to 90% for small enterprises and nearly a third for major corporations.

When you consider how pooling your demands with those of other organisations can result in significant cost savings on energy, hardware purchases and disposal, and emissions, it’s clear that doing so is a lot more effective course of action.

Avoid being idle

Instead of needing to run your own servers, which are often idle, you may share resources with other companies when you use the cloud.

According to certain calculations, cloud computing is much greener than previously believed. This is because cloud data centres are almost entirely utilised (they have very little unused capacity). While traditional business data centres frequently run at no more than 10% capacity.

In the Cloud, unused capacity is automatically applied to other demands, as opposed to just hanging about doing nothing.

Instead of leaving servers underutilised for extended periods of time each day, cloud computing data centres that allocate resources to businesses in one region of the world during their working hours can then allocate resources to businesses elsewhere when they reach their working hours. It is a far more effective method of working.

Keeping it cool

The way the cooling and venting systems in data centres are run is one of the main ways cloud computing reduces electricity consumption.

Instead of having thousands of conventional data centres, each requiring its own cooling system, everything is done on a single site. It results in a significantly less negative environmental impact per client as well as a decrease in cost per business.

Additionally, a cloud-computing data centre can be established anywhere, including in nations with lower temperatures, in place of having a data centre at the physical area where you are situated.

Less cooling is needed when the ambient temperature is higher, which is significantly more environmentally beneficial. The newest cutting-edge technology is available in cloud computing facilities, and these facilities can more easily embrace new strategies for lowering their environmental impact than any traditional data centre could.

Change to using renewable fuels

One company that currently tracks and reports statistics on how its data centres are fuelled is Google. It does this by utilising a concept known as a carbon-free energy percentage (CFE%).

The percentage that is measured reflects the amount of energy that comes from carbon-free sources as compared to fossil fuels. More than half of the time, Google operates carbon-free data facilities.

Creating such a metric and then acquiring the requisite carbon-free energy is far simpler for a sizable cloud computing data centre than it would be for every single enterprise.

It can also be utilised to attract new clients by setting the standard for environmental responsibility in the field of cloud computing.

The less-travelled path

The impact of your employees’ daily travels will be negligible if all of them live close to your office and can walk or cycle there.

However, when your company expands, it’s possible that at least some of your employees will require a different mode of transportation to get to work, which is not particularly environmentally friendly, especially if it uses fossil fuels.

Your staff will find it easier to operate remotely thanks to cloud computing, which will reduce the environmental effect of their commute by using less fuel and emitting fewer pollutants.

Many people can work from anywhere using the Cloud using system such as Sage’s Intacct, as long as they have a good internet connection. And even areas with poor connectivity may soon experience improvements as a result of the introduction of 5G technology.

Does green computing cost a lot for companies?

The environmental advantages of cloud computing are numerous and substantial, and they can contribute to your company’s overall commitment to sustainability and environmental friendliness.

These advantages join a host of others that come with using our cloud services, such as help for disaster recovery and more effective operations.

It doesn’t have to be expensive either; also, keep in mind that you are saving money by not having to invest in, maintain, or run your own servers.

These advantages can be provided to you through our cloud-based accounting programme, Advanced Financials, aiding both the environment and your bottom line.

About Us

At Itass Solutions, we know that Sage Intacct is a fantastic tool for financial management. We love it because of the types of different reports the system generates, the cloud-based accounting solution, multiple users can use the system at the same time and integration with other business systems means we’re big fans of Intacct.

Itas Solutions started off serving one client in 1995 and now services over 200 businesses across the UK. We are always available to assist our clients.

Itas is a business that our customers have trusted for more than 20 years, and we have expanded thanks to recommendations from them and IT professionals who value our educated but personalised service.

To discover more about how Itas can help your business with finance automation, Sage implementation, and increased purchasing management, contact us at [email protected], phone us at +44 (0) 1824 780 000, or send an email.

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