For some, this might be a swear word and for others, this might be the norm but it has become almost a necessity in business to utilize cloud accounting. In the past one drawback of cloud accounting was the quality and reliability of your internet connection. However, with modern internet connectivity, this has become far less of an issue. In our opinion the positives far out way the negatives.
We have found the following important items to note:
Flexibility and Connected
You can enjoy flexibility and access information from anywhere using an internet connection. Information can be access using any smart device or desktop. Therefore, there is no need to be office-bound anymore. Outsourcing certain sections of your accounting work or financial department can be done with ease making your workforce more productive and effective.
Financial data is always secure. The old desktop version of the software requires backing up regularly and in practice, backups are not always done. Furthermore, automating this bank up process can be costly. Business’s financial information is always safe and secure even when a workstation/laptop is stolen or destroyed. All that is required is a different workstation, internet connectivity, and work can continue. No unauthorized access to data as you would require a username and password.
Onboarding a new team member or revoke access to a departing member is very easy. It’s also not required for team members to be in the same building or on the same network to have access to financial information. Each person is granted relevant permissions levels on the system only allowing access to the information and functionality needed at their level.
You and your team can work in real-time on data. This enables you to reduce the time to perform tasks as team members are working on the same information in real-time. In other words, there is no longer a need to send information back and forth between team members.
Software is updated automatically without the business or departments being interrupted. You have access to the latest version of the software at all times. Above all, as new features are added you normally gain access without having to do anything from your side.
One of the most attractive parts of cloud accounting is the automation of tasks. For instance, rules can be created to allocate bank transactions automatically, bank feeds can be pulled into the system directly from banking platforms, invoices can be sent out automatically from the accounting system. Even 3rd party information, such as supplier invoices, can be processed automatically.
Monthly subscription and no huge up from expenses
Desktop versions normally require a substantial capital investment upfront as a server and network is normally required. However, with cloud accounting, there is normally very little upfront cost. With cloud-based accounting software, you only need a workstation (laptop, tablet or phone) and an internet connection. In addition, it’s not a requirement to be on the same network to use cloud-based accounting software. It is very easy to deploy cloud accounting software compared to desktop software. Only grant access and the person can log in from any device, no installation needed.
Only pay for what you use
There is no need to purchase bloated software you will never use to the full extent because you can buy just the basics and subscribe to ad-on modules if and when you really need them. There is a vast variety of ad-on that integrates seamlessly with cloud accounting systems and normally you only pay for the user licenses in use. Therefore, no need to buy licenses that you will not use.
Cloud-based accounting allows you to move closer to a paperless office because client invoices can be sent directly from the system, supplier invoices can be processed into the system automatically. This can be done without the printing of the documents. No more manual capturing. In addition, reports can also be sent out directly from the system or exported to excel and distributed.
With cloud accounting business will become more scalable. Adding multiple warehouses and or users at different locations can be done easily. Consequently, this can be deployed very easily compared to the desktop versions.
I hope this helps you understand the advantage of cloud accounting versus desktop accounting software.