Aug 4, 2020 Author: Accounts Junction
What is cloud accounting?
Cloud-based accounting software is comparable to traditional accounting software, only it is hosted on remote servers. Data is directed into “the cloud,” where it is managed and returned to the handler. All application purposes are completed off-site, not on the worker’s desktop. In cloud computing, workers access software applications distantly through the Internet via a cloud application service supplier. Using cloud accounting software releases the business from installing and maintaining software on individual desktop and laptops.
Which is the best- Cloud or traditional?
Cloud-based accounting software offers all the functionality and dependability of your traditional accounting system, but with additional benefits that only online technology can supply. If your business is seeking an effective way to manage its economic affairs, here are some reasons for considering cloud accounting over traditional accounting systems.
Benefits of cloud accounting
Here we have listed the benefits of cloud accounting software.
(a) Portable access at any time
With cloud accounting software, you can access your financial figures at any time, from anywhere. When you use a desktop-based system, you are tied to the office. Your data and accounts are all on a local drive. Cloud-based accounting software releases you up from this limit. Your data are safely stored on a cloud server, and you log in wherever you have an Internet connection.
(b) A cost and time-saving solution
Traditional systems require an investment in IT hardware, plus the maintenance you will need to pay an IT expert to maintain. Cloud-based accounting is carried out completely from the cloud. There is no expensive IT infrastructure for you to maintain. You can directly approve payments, or send out invoices, saving time and making financial procedures more effective.
(c) Unassailable security and time saving back-ups
Your accounts are saved and backed up with military levels of encryption. Your data is no longer in the office or languishing on the hard drive. All information is encrypted at the source to the cloud.
If you use desktop accounting, you need to back-up your work each day. And you will also know about the need for updates each time your provider brings out a new version of the software. On a cloud platform, you’re always up-to-date with all the latest tax rates and returns. Also, your work is saved spontaneously, so you save both time and money
(d) Share and cooperate with comfort
Using the desktop approach collaboration with associates and consultants is difficult.
With a system like Xero (accountants best choice) Working with associates, and distribution of information with your consultants is an extremely direct process.
(e) Decreases paperwork
With traditional accounting, dealing with paperwork in hard copy is slow, ineffective for the situation. Using cloud accounting can deliver a paperless office. With an online accounting system, you can considerably reduce paperwork. Invoices can be emailed to clients, eliminating the costs of printing and Incoming bills can be saved directly in your accounting software saving on storage space.
(f) Improved control of your business procedures
The proficiencies of cloud-based accounting software give you improved control of financial procedures giving you a view of expected revenue, outstanding debts and what each client owes you.
