Running a successful business depends on a few key strength points. Your work has to be of extremely good quality to ensure client satisfaction but, other than that, managing your finances efficiently and public relations are two other pillars on which a good business rests.
Managing a company’s accounts is a very complex job but hiring a professional accountant to manage the books can be a huge drain on the funds too. This has contributed to the rise of accounting software, which has made the work much easier. But there are some disadvantages to the traditional accounting software.[1]
- It is expensive to upgrade your current software every time a new update comes.
- It works on one computer and if the data has to be accessed by another computer, it requires a portable device, which is a huge security concern.
- Since it works on one computer, only one person has access to it. In the absence of that person, other key people may not be able to access the data.
- Customer service is usually expensive and slow.
Cloud-based accounting is the brand new technology[2] that is cheaper and also aims to do away with the issues raised by traditional accounting software.
Cloud-Based Accounting
Cloud-based accounting software is the latest technology in managing accounts and finances. It is a dynamic system where the software provider securely stores all the necessary data, which can be accessed by the business owner using Internet connection. It is cheap, easy to use and makes your finances easier to manage. A good cloud-based accounting software can save you a lot of money and effort and yet provide you world class support. However, with cloud-based computing, there is a big question regarding who actually owns the stored data. Therefore, those who are more concerned about security and privacy still may prefer traditional locally based desktop accounting software.[3]
There has been a huge shift to cloud-based accounting by small business owners. If you are on the fence about shifting to cloud-based accounting here are a few advantages that might just convince you to take the leap today.
Upfront business cost is less
Since your entire account is managed by your service provider you do not have to spend time worrying about version upgrades, maintenance, system administration costs and server failures. Everything runs online so you do not have to install anything. This saves time, money and space. Moreover, with the latest cloud-based accounting software, updates are usually free and everything is automatically backed up. So, you don’t have to invest on backup separately.
Multiple user access
All the relevant data is stored in the cloud and hence it can be accessed, edited, updated and used by anyone who has been granted access to the information. Moreover, since you can control who gets access to what information, security is watertight. The data can also be accessed from anywhere as long as you have access to Internet connection.
View your accounts in real time
Since everything is maintained and organized in the cloud you can see your accounts and get the updates in real time. A simple search will tell you which payments have been already made and which are due. Therefore you do not have to go through piles of records. Moreover, it reduces the chances of human errors as the database is updated instantly. The advanced cloud tools allow you search virtually and, therefore, you can find any discrepancy or error in seconds.
Uses a broader suite of secure apps
Cloud-based accounting software is extremely versatile as cloud applications not only provide access to information and documents from any device, but also integrate with other cloud-based tools. It is very easy to set up and sync, making it very user friendly as well. With the use of cloud-based accounting, it’s you who can effortlessly extract and control data across a number of different platforms and reduce time spent on manual data entry.
Migrating your accounts from traditional software to a good and stable cloud-based accounting software can work wonders when it comes to saving time and effort. In the long run, it is proven to be cheaper as well. So, embrace this new technology today and spend your time and effort in making your business better and bigger.
Featured photo credit: NordWood Themes via unsplash.com
Reference
| [1] | ^ | Small Biz Daily: Cloud Accounting vs. Traditional Accounting Software |
| [2] | ^ | hexadesign: Advances of Cloud Computing |
| [3] | ^ | SapphireOne Blog: Cloud based accounting or traditional desktop based accounting software for Enterprise business? |
The post Why should Small Business Owners shift to Cloud-Based Accounting Software? appeared first on Lifehack.
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