Cloud or not to cloud – the big question has been pertaining to the various business streams for a while now. While most industries have got the answer in support of cloud, others, like – accounting, are still with the dilemma. Accounting is a very delicate segment for businesses. Entrepreneurs and accounting professionals mostly shy away from experimenting with the traditional accounting methods. They rely on tested and trusted solutions.
So, the cloud accounting had to wait. Now that the cloud accounting has earned the enough of merits and proved them too, it is high time you pick cloud accounting your choice. Here are the top 5 reasons to choose cloud accounting over traditional accounting:
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1. Convenient Collaboration
Accounting is not one-man army sort of arena. It requires a complete detailing of all the financial transactions taking place in the entire business. So, multiple users come into action to keep the accounting data error-free and updated. As the traditional methods of accounting involve humongous restrictions with locations and user-accessibility, the cloud brings a simple solution.
You can add any number of users and work with them in the real-time to pace up the operations. What’s more beneficial is controlling the user permissions, which simply take a few clicks. So, you can define which files are meant for which users.
2. Tailor-made Accounting for You
The size of your business largely determines the accounting needs for you. As per the futuristic developments of the business, such needs may change as well. With cloud accounting, you have plans available to suit the requirement of your business. When the requirements change, you can switch between the plans. With traditional accounting, most of us are aware of the local system restrictions.
Accounting requirements for the different businesses vary significantly. A logistic business has different accounting needs than a bookstore. Therefore, generalized accounting software may help a number of operations. But complete automation with the accounting comes with additional solutions, such as – ease of printing, barcode scanning, inventory management, etc. Cloud accounting ensures that all requisite solutions can easily be integrated together without demanding specifications of the local device.
3. Easy on the Pocket
Managing the finances demands some expenses. Cloud makes its best effort at keeping such expenses. First and foremost importance of the cloud computing is that it does not demand any local infrastructure other than a user-end device. So, a chunk of on-time investment of hardware purchase is saved.
The cost of maintenance of hardware that would have been required with the traditional methods is also escaped. Moreover, most of the cloud vendors provide reliable support, so you can cut cost on the IT team expenses. Another pocket-friendly benefit of the cloud is pay-as-you, which allows the user to pay precisely for the resources used; no money wastage.
4. Data Remains in Safe Hands
No matter how convenient accounting is in the cloud, if it is not secure you cannot agree on keeping your accounting data there. After all accounting data is most crucial information of your business. Most novices with the cloud computing consider that they are storing the data on servers of a third-party that can access their data willing. However, cloud computing is not that straightforward.
Reliable hosting providers follow proper encryption technology to ensure only the authentic user is able to access the data. With the automatic data backup features in effect, even a disastrous event and unwanted change will not be able to take the data away from you.
5. Get Latest & Best Features
Technology is an ever-improving concept. Software updates, hardware renovations, etc. are part and parcels of the technology. With them arrives more innovative, secure and simplified ways of accounting. This is the reason for which experts recommend keeping the updated technology. With the traditional accounting, upgrading software is not always possible as the limitations of local machine do not go well with the updates.
Cloud, being independent of the local machine, offers the latest and most upgraded features for accounting. Not only it carries all the features of the desktop software, but it also adds more features to it. It adds more of security, productivity, accessibility, convenience, and independence to do more with accounting.
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Courtney6 years ago
Aditi, great article on why cloud accounting wins every time against traditional accounting. We recently wrote a blog post similar to this on how traditional bookkeeping can be perceived as boring, but when you make the switch to cloud accounting technology you can start making smarter business decisions.
Dustyn6 years ago
Cloud definitely has better features but most of the cloud applications do not offer as much accounting functions as traditional software offer, for example Qb desktop vs Qb Online.
Aditi Tyagi6 years ago
There are certain accounting applications with better functions in desktop version. If you want to use such applications, you avail all those functions over cloud by choosing application hosting on cloud. Talking about QuickBooks, you can go for QuickBooks hosting to enjoy benefits of the cloud and desktop both.
Schmit6 years ago
Desktop versions are eventually going to die.
Sharon6 years ago
Obsession about the data security has grown in the recent year, which has somewhat restricted users from going to cloud. Most users are not sure their local devices are strong or cloud.
Aditi Tyagi6 years ago
We didn’t have that much of digital data earlier. As the digital data started to carry the crucial information, the concern grew. Talking about security in cloud, you will always find it mentioned in both sections – advantages and disadvantages. Depends on the technologies that cloud service provider adopts.
Altenburg6 years ago
Being on cloud offers the latest versions which is not always possible with software installed on the local machine. So, you get the best – security, features, everything for accounting.
Schmit6 years ago
All providers are not offering tailor-made plan. Though most of them are. So, you got to be careful while choosing the service providers.