Why All Accounting Should be Moved to the Cloud

Why All Accounting Should be Moved to the Cloud

Cloud accounting has increasingly popular in India and also in the global world. Cloud accounting is online software by which you can access your accounting software using the internet and also can be maintained and stored your data through the internet. Traditionally, the businesses installed the accounting software into their computer system. The computer system in which the accounting software is installed is the only hub for the financial information of the business or can access the copied file through USB or email. If the data once lost from the system then, it can not be recovered again easily.

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In today’s scenario, the cloud accounting provided by many companies including Xero, Quick Books, and MYOB offers superior efficiency, reliability, and security compared with the antiquated approach. When the business stored the data in the cloud, then he will be free from the updation of the software, the backup problems, and expenses of the program to keep it up to date and storing the data locally. The security provided by cloud accounting is more reliable than traditional software and if the data in traditional software is locked that means if the password cannot be remembered then, lots of hurdles shall be faced by the business, it can be locked by only contacting the software company but in the case of cloud accounting it will verify all the details and the data shall be unlocked.

Benefits of Cloud Accounting:-

There are numerous benefits of cloud accounting software which are as follows:-

1.Access at any time and from anywhere:-

A business can access its cloud accounting by using the internet only so, now the internet is now available at almost all places in India therefore, he can access accounting from any place he need not be in his business place to access the accounting information. During the COVID-19 pandemic, almost all the office work is done from home they cannot go to the place of business so, they are doing their accounting work from home by using cloud accounting software.

2. Multiple users can work:-

A huge benefit of cloud accounting is that there is just only one Master Data file. This means that at any one time everyone is working from the same financial information. In large companies, several employees are responsible for updating the financial information which can lead to the problem of version control where two people can update the file with different information. If the accounting data is on the cloud then, multiple users can work on the financial accounts at the same time.

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3. An accountant can access the file:-

Through cloud accounting software both the business and their accountant can see the financial accounts at a glance in real-time. By contacting over the phone you can collaborate with the accountant with the same financial information in front of them. It is better to use this method instead of using sent the huge files by email or USB and then, wait for your accountant to get up to speed with the information. Several cloud-based accounting companies provide this facility like Quick Books or Xero where the accountant will have live access up to the minute data of your business.

4. Cloud accounting offers greater security:-

Many business owners are worried about the security of the data of the business financial information but it must be said that cloud-based accounting is actually one of the most secure ways to secure the information. As per the traditional based accounting businesses store their data in their PCs or laptops where the local employees can easily access the data or steal the laptop which as a result they can misuse or manipulate it which can result in a loss for the business entity. While in the case of cloud-based accounting, the business data is not stored in the computer system and also protected with special advanced encryption and password protection.

5.Cost-effective than traditional programs:-

In the traditional method of accounting, there are various costs associated with maintaining financial data like maintenance costs, user licenses, and costly hardware such as servers as the business entity grows. While when your data is on the cloud, there is no need for your business to create costly and cumbersome data management and storage solutions. You only need a standard internet connection to operate the cloud-based accounting software from a single computer system and in addition to this, your software will be kept up to date by the provider. 

6.Access to fully integrated value-added services:-

The most popular accounting services provide their users access to hundreds of complementary apps which helps in the growth of the business entity. Programs like MYOB, Quick Books and Xero provide you to connect with the seamless purpose-built apps that allow you to improve the efficiency of the business entity. Managing the client appointments, conversion of physical receipts and invoices into the form of accounting data, and coordinate point of sale, inventory, and fulfillment at the click of a button. 

7.Unlimited storage:-

A business entity using a traditional form of accounting, at one point storage issues will be found this will create hurdles in the working of the business entity while in the cloud base accounting there is not any problem of any storage you can upload the as much as you want and can also buy the cloud storage at a very minimal cost. In other words, your provider of cloud-based accounting will upgrade your package within minutes as long as you meet the additional cost.

8.No need for backup:-

Traditional accounting software requires back up plans, especially for data storage. A disaster can lead to permanent loss of the whole data if no backup plan takes place. On cloud-based accounting, there is no need for back up of the data. The data shall be available as long as you have an internet connection. Some business entities use cloud accounting services as a backup and plan for recovery from disaster. 

9. Free Capital expenditure:-

By using cloud accounting software there is cost-cutting of the capital expenditures like hardware. You can simply go and enjoy the subscription-based model that is the kind of cash flow.

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10. Automated Bookkeeping  

If you are using accounting cloud services on the server, when u pass entries on the server then automatically the bookkeeping shall be maintained by using the accounting software. Bookkeeping includes passing entries, posting to ledgers, then the balances of ledgers to the trial balances.

11.Provide gateway with Online Payment

 By using various payment banks like Paytm wallet, BHIM app, and online net banking, RTGS or NEFT you can receive the payments and make payments on the server by using the internet at any time and at any hour.

12.Upgraded Accounting Platform

Herein, the Cloud Service provider itself updates the latest Software version wherein Accounting data will be maintained. 

So here the user doesn’t take care of the Software updation and no cost will be levied from the user point of view when the user uses the system.

You can improve your efficiency, increase productivity, and save costs by moving your traditional accounting to the cloud-based accounting software. The best approach is to shift the operations to avoid data corruption and business of the financial data. 

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