Cloud accounting refers to the delivery of accounting services via the internet. These services may be in the form of storage, data analysis, or accounting. Cloud accounting is a type of accounting that uses a computing system that can be accessed over the internet. It performs similar functions to desktop accounting software, but it goes above and beyond by offering a slew of additional features.
With the growth of cloud computing and the ease of online working, having cloud accounting software that works with an online database is essentially seamless for any business big or small.
If your company needs to provide invoices or receive statements in electronic form, then cloud accounting will be essential for the success of your company.
Whether you're a small business or big business, just starting out, or are already seasoned, when you consider using cloud accounting software, these 5 questions are what you should be asking yourself.
How is online accounting beneficial for my business?
An intelligent cloud accounting software will help your business scale to new heights and expansion to new markets. There are many benefits to using cloud-based accounting solutions over traditional accounts such as paper or computerized bookkeeping, including:
It helps auto-sync data in real-time. This helps save a lot of time by eliminating unnecessary steps.
It creates a paperless environment which would definitely help your business to establish a green initiative.
Cloud-based accounting has a central database where you can keep records and master accounts.
You don't have to worry about the hardware or operating system of the computer you use because cloud accounting software is available from various platforms.
You can access cloud-based accounting software from any computer, tablet, or smartphone in the world at any time.
If these benefits suit your business needs then don't miss out on checking today's innovative accounting apps on the cloud. These are easy-to-use software as a services applications providing dynamic solutions for general accounting, inventory, and payroll.
Will my data be secure on an online server?
Contrary to the prejudiced notion that it might not ensure 100% safety, a cloud server tends to be the safest option. Some feel that cloud accounting software are vulnerable to hacking and virus, but it's false. They guarantee maximum safety.
It is crucial for businesses to check the automated backups, user access authentications, and other security controls while saving data in an encrypted disk.
Most cloud accounting software uses high-end Amazon Web Services as a host to ensure data security. It is regularly upgraded and undertakes multi-level back-ups and replications and other protective measures.
And even though, it has unlimited users access, it has features that give restricted access to each user to maintain authenticity and avoid unauthorized file transfers.
Will it incur a lot of expense?
The best thing about cloud accounting software is that it doesn't require any infrastructure. It is totally on the internet.
The cost of data/ internet in India happens to be the cheapest in the world. It only costs around $0.09 for 1 GB of internet in India.
Cloud accounting software happens to be cost-effective as it doesn't require any hardware costs like server set up, IT Teams, installation charges.
The upfront costs are also very low making it an economical choice.
Also, costs related to paper and postal services go down, since everything is done online, including e-invoicing.
Does the accounting software provide a collaborative workspace?
A collaborative space, especially in 2021 when everyone is working from home, is essential. It should be a must-have for any software you buy for your business.
The inter-departmental, as well as inter-branch operations, become smooth and increase business efficiency.
These are some of the essential capabilities that an accounting software normally provides, from creating invoices to tracking spending to compiling financial statements to stock movements.
And it's understandable that when you're looking for cloud accounting software, you'd anticipate such features by default.
You should be able to access your business reports and have total visibility of your business data whether you are traveling or at home.
Advanced online accounting software has a collaborative space that provides consolidated reports for all branches, auto-posting for inter-branch entries, and defines permissions for users in various branches.
Does it simplify tax compliance?
This is a very important question when you're planning to invest in online accounting software.
In India, while choosing accounting software, many considerations have to be made for GST calculations alongside other taxes like VAT.
For instance, most accounting applications today come under the umbrella of the cloud and hence these provide cloud-based GST and VAT compliant accounting-inventory payroll software.
The software also provides direct integration with the GST portal which is helpful in staying up-to-date with changing compliances, set up the automatic computation of GST and TDS, and generate and view reports for GST and TDS payments and returns.
And you get all this done simply at just a click.
To Conclude:
Investing in cloud accounting is the right step today and the pros definitely outweigh its cons.
By now, you have a fair idea of what you should be asking for while selecting the right app for your business.
We know all businesses aren't the same, but according to your business needs, you also have a lot of options to choose from.
While you browse through many such options available don't forget to get a free trial.
A free trial will help you to analyze any accounting software for required tax compliances.
Biplob is a marketing executive for SaaS & IT Solutions. He has invested his time and energy with industries and businesses to resell and implement online accounting software and systems and to transform their vision at large about moving online. He occasionally writes and loves to contribute to blogs.