While modern accounting software is undoubtedly leagues ahead of traditional pen-and-paper solutions of the past, it’s not without its drawbacks. Offline accounting software lacks security and is prone to data redundancy. Changes made on one device usually don’t reflect on another, resulting in a lot of additional admin work.
Offline accounting software is also expensive and complicated. It often requires constant updates to stay ahead of potential security flaws and functionality improvements in different software. Cloud accounting, on the other hand, is free from all of these problems, making it a must-have solution for small businesses of today.
To better understand the benefits that come with investing in cloud technology, let’s take a deeper look into how it’s enhancing small business accounting.
When it comes to security, cloud accounting is akin to that of your online bank. Unless someone has your login details and can bypass strong measures such as two-factor authentication, there’s no way anyone can access your data. The software is located on your provider’s servers instead of your hard drive.
This means that if anyone were to physically steal a device from your business, they wouldn’t be able to access your accounting information. This also translates to user error and natural disasters. If a device breaks or crashes, nothing is lost. Finally, you can control user access levels to keep certain information private for additional peace of mind.
With traditional accounting software, updates are a frequent issue that can be costly in both time and money. Cloud accounting software never needs to be updated, as this process happens on the provider’s servers. This ensures that you always have the latest and most secure version of your accounting software without putting any effort into getting it.
Since cloud accounting software can be accessed by a simple login, you don’t need to go through the time-consuming process of downloading it onto your devices. The best cloud accounting software can be accessed on a wide variety of devices that traditional software isn’t made for, such as your smartphone and tablet.
This allows you to access, edit and share information on the go. Integration is another important factor. Good accounting software can integrate with your reporting tools, email marketing tools, time trackers and countless other apps.
However, this largely depends on the service provider you choose. For a comparison between QuickBooks Online and another popular cloud accounting software, Xero, head over to PieSync who’ve written up an in-depth review of the two.
Instead of paying a massive one-off fee or monthly subscription, cloud accounting software allows you to choose a package that suits your needs. This can be a spread monthly cost or a discounted upfront fee. What makes it great for smaller businesses is that numerous pricing tiers are usually available to make the software more affordable.
Investing in cloud accounting software is a great idea. Improved security, efficiency, affordability and a variety of additional benefits make it well worth considering.