Cloud accounting services can help impact climate change

Last updated on 1 July 2021

Traditionally, companies need to purchase accounting software and computer servers to host these software and their attendant data. The cost involved in keeping the servers and software up-to-date can add up over time.

Furthermore, as more and more companies make such purchases, the energy required to run the hardware (servers) also increases. Correspondingly, more carbon is emitted into the environment from the increased usage of electricity, which generally requires the burning of fossil fuel.

Many business owners are not overly concerned about the environmental impact that their business decisions may have. Some even go as far as saying that it does not concern them in anyway.

In Singapore, the government has identified climate change as an existential threat to the country. While the country’s carbon emissions may be just a small fraction of the world’s, Singapore will be doing its part in reducing its carbon footprint.

To that end, the government has put forth a low-emissions development strategy with plans to halve the country’s 2030 peak greenhouse gas emissions by 2050, and to achieve net zero emissions “as soon as viable” in the second half of the century. This is on top of the pledge to reduce emission intensity by 36 per cent from 2005 levels by 2030.

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From a business owner’s perspective, you feel that any action on your part to be more environmentally-friendly may not go far enough. However, many drops make an ocean and everyone’s efforts is needed, no matter how seemingly small.

Cloud based accounting is generally more environmentally-friendly as it utilises electricity and other resources more efficiently, by means of using shared data centres, so that less equipment is needed for everyone to operate at full capacity. Companies that utilises less will also benefit from the flexibility in the plans provided.

With remote working becoming more prevalent and in some cases necessary, cloud accounting services is the way to go in streamlining operations and removing the hassle and capital outlay for hardware and software purchases and renewals. 

The consolidation of energy demand meant economies of scale when data centres adopt environmentally friendly practices. One such example is the partnership between cloud accounting services provider, Xero, and Amazon Web Services (AWS). AWS has committed to achieving 100 per cent renewable energy usage for its global infrastructure by 2025.

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On the same note, according to a report from Channel News Asia, the National University of Singapore and Nanyang Technological University had recently launched a new S$23 million research programme to develop novel and more energy-efficient ways of cooling data centres in tropical climates such as Singapore. Through economies of scale, significant investments into research on energy efficiencies and sustainable models are made possible and feasible.

During this period of uncertainty, where tightening of safe distancing measures can happen at any time, companies looking for accounting services in Singapore should look for a service provider that also provides cloud accounting services. This ensures that your team is ready to adapt to unforeseen circumstances that may require them to work outside the office.

Embracing cloud accounting services can also indirectly decrease automobile emissions while reduce unnecessary print outs and yet increasing your team’s efficiencies as they can access the information they need readily at any place and at any time.

At Metrocorp, we urge you to join us in playing our part in this global effort to affect climate change.  Contact us today, and let us work with you, as you embark on this transformative journey, starting with cloud accounting services.