This article will explore the differences between traditional accounting software and cloud accounting. Traditional accounting software has been the status quo since the onset of computers and is very effective in managing a company’s accounting transactions.
However, with the growth of technology, cloud accounting is a strong alternative to traditional accounting software. It has many benefits that ultimately can increase efficiencies within your business operations.
What is Cloud Accounting?
Cloud accounting refers to accounting software that lives on the internet (opposed to your computer). As the accounting system is hosted online, business owners and staff can access the information remotely, anytime. Also, any upgrades to the software is handled automatically by the cloud software developer, so you do not need to worry about constantly updating your software. There are many wonderful benefits of introducing cloud accounting to your business.
Why should I consider Cloud Accounting?
1) Remote Access
The accounting system can be accessed remotely through a username and password. As a business owner, this is beneficial as you can see real time financial data no matter where you are located. Further, your staff and accountant can monitor your company's financials wherever this is an internet connection.
2) Real Time Financials
You will have real time access to your company's financial information, which provides you with relevant and helpful data. The result is that decisions can be made with the most relevant and accurate information.
3) App Integration
Third party cloud software (apps) can easily integrate with your cloud accounting software. These apps will help automate and streamline many of the manual processes that are common within a traditional accounting system. For example, instead of entering receipts/invoices manually as typically done in a manual accounting system, with a cloud based system, you can simply scan, take a photo or upload receipts/invoices through the app. The app can then automatically code and post these transactions to your cloud accounting system. This will greatly reduce the time spent on manually entering data.
4) Affordability & Ease
The cost to implement and use a cloud based system is affordable. Further, the amount of time and resources you will save once implemented will be significant.
For a demo of how cloud accounting works or to learn about how it can help your business, feel free to get in touch.