Cloud Accounting – Why is it Highly Beneficial for Businesses?
While considering many alternatives to get accounting done for your company, you might have heard about cloud accounting. Are you wondering what it is? Well, cloud accounting is software similar to the traditional self-install or on-premises accounting software. But the difference is that it is hosted on remote servers, like the SaaS (Software as a Service) business model. User can send the data to the ‘cloud’ for processing and then can get it back. All application functions are done off-site and not on the desktop of the user.
In cloud computing, software applications are accessed by users remotely through the internet or other network through a cloud application service provider. When you use cloud accounting software like cloud accounting Singapore, your business is freed from having to install and maintain software on your individual desktop computers. It also enables employees far from you in other departments or remote branch offices to access the same data with the same version of the software.
Cloud accounting makes real-time reporting and visibility across your company possible with higher collaboration and mobile capabilities. Cloud accounting providers popularly use subscription-based models and mostly these subscriptions are usage-based. Organizations that pay a cloud accounting subscription get updates to the software right upon their advent, with no additional purchase needed.
Difference between Cloud Accounting and Traditional Accounting Software
There are many key differences between cloud and traditional accounting.
Firstly, cloud accounting offers more flexibility as accounting data can be accessed from anywhere with an internet connection instead of only a few selected on-premise computers.
Secondly, unlike traditional software, cloud software automatically updates financial information and offers financial reporting immediately. This means there is a guarantee of accuracy in account balances and occurrence of fewer errors that take place because of manual data entry. Cloud accounting software can also handle multi-company and multi-currency transactions with more efficiency.
In the world of on-premises, each time a company grows, they need greater software license and maintenance expenses as well as new licenses and charges for system management, database and other software. The company even needs to make costly capital purchases of new hardware like servers. Cloud accounting eliminates the need of sticking to the expensive permanent equipment and licenses when your business contract is up and likewise, no big spikes occur when there is a little increase in costs.
Cloud accounting even needs far less maintenance than traditional software. The cloud provider completes the backup and automatic updates and there is no need of installation or download on any of your computer.
Considering these benefits, you should consider getting cloud accounting at the earliest, if you haven’t yet. So, get it and enjoy fast and efficient accounting.