8 Reasons Why It Is Time For You To Shift To Cloud Accounting Software

Cloud accounting software has transformed the way most businesses conduct their accounting process today. Accounting software had changed a lot from the first spreadsheet software way back in 1978 to late 1990 when NetSuite introduced cloud-based accounting. Cloud accounting software is also commonly known as online accounting software or web-based accounting software. With the help of online accounting software, your accounting data is hosted on a remote server. A simple overview will reveal that cloud accounting software is no different from desktop accounting software. They both have the same functionality and serve one primary purpose: to make the accounting process seamless for businesses. However, cloud accounting is far beneficial for businesses. Let us talk briefly about few aspects where cloud accounting fares better than desktop accounting software.

Setup Process and the Cost Involve in Installation:

You no longer have to install heavy accounting software in your system. This implies that you no longer have to buy multiple licenses for different computers, eliminating the need for installing high-tech system infrastructure as most cloud accounting software can be accessed from a web browser or mobile app with the help of the internet. This feature enables you and your team to work remotely.

Additionally, you no longer have to upgrade the accounting software regularly, which can disrupt your work.

Enhanced accuracy and efficient accounting

An accounting department may consist of many team members, so multiple team members upload the accounting data. In such cases, traditional accounting software will face inaccuracy as there is always a chance of replication or omission of data. With cloud accounting software, you no longer face these issues as the data is uploaded in one place, and you always get up-to-date data on the cloud software. Any changes in the accounting standard or local taxation norms are reflected in the software instantly. This helps improve the overall accuracy of your accounting data while enhancing your accounting process.

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Your data at your fingertip anytime and anywhere

Imagine a time when you need critical financial information, and you have to call your accountant to ask for the information, and your accountant is unreachable. What do you do in such a case? You do not want to be in such a condition. With cloud accounting software, you are no longer dependent on your accountant to provide you with financial data. You can log in to your accounting software as far as you have internet access and pull out the information you need even when you are on the go.

Up-to-date Financial Information

When we say you have your financial information on the go, we mean your up-to-date financial data. Your data is constantly synced from every device, so you never miss out on crucial financial information. A real-time financial report is a great way to make informed financial decisions.

Easing Your Data Entry Process

When your business grows, you will also experience that your business transactions have increased to multifold and are no longer manageable by a human. Any accounting software can help with the data entry process; however, most cloud accounting software allows you to automate your data entry process. For example, many transactions happen through your bank account. With cloud accounting software’s automatic bank feed feature, these transactions are automatically fed into your software as and when the transaction takes place, eliminating the need to record these data manually on the software.

Data Sharing with Multiple Users:

A business’s accounting department might have multiple users, including the business owners themselves. And in some cases, the business outsources its accounting process to an accounting service provider. Cloud accounting software, in particular, can easily allow multiple users to work on a business’s accounting data and will enable you to assign roles to each individual. This helps you to share your data without losing control of your business data.

Environment Friendly

Cloud accounting software helps you collaborate and share data with ease, but it also contributes to a better environment. While conducting the accounting process on a traditional desktop, accounting software relies heavily on hard copies for almost everything, including invoicing work, approvals, or data entry work. With cloud accounting software, you can go paperless. We won’t go to an extreme and say 100% paperless, but you will witness a high drop in paper usage.

Backup Of your Precious Data

When using traditional desktop accounting software, you have to regularly back up all your data to avoid data loss. It is your responsibility to ensure your data is backed up regularly. Additionally, with the data that is in your hard drive, there could be numerous issues. This is not the case with cloud-based accounting software, and your data is automatically updated and backed up on the server.

Some people know the benefits of cloud accounting software but still are reluctant to shift to a better way of accounting. There are two main reasons behind this – fear of losing control of data and inconvenience caused by the loss of internet connection. If you are one of the people who fear shifting to cloud accounting software, allow us to bust some of the myths for you.

The data in cloud accounting software is not safe, and there is a chance of loss of control

This is one of the biggest misconceptions about cloud accounting software. The data in cloud accounting software, in reality, is safer than desktop accounting software as it uses encryption and allows you to impose different verification methods to enable access to data to only assigned people.

The unavailability of an internet connection can hamper the accounting process

First and foremost, it is rare cases where you might not have access to the internet. You can always access and update the data online through your mobile device and tablets, which in most cases is always connected to the internet. Also, think about this, what has more probability – you sitting in front of the desktop/laptop or you not having access to the internet.

Shifting from traditional accounting software to cloud accounting software can be a daunting task if you are used to your traditional accounting software. However, we can tell from our experience that doing so will enable you to improve your accounting process and enhance your overall productivity. Additionally, you can always take the assistance of a cloud accounting service provider. Shift to cloud accounting software today!