These times many of the Startups are switching their Traditional Accounting to Cloud Accounting. Cloud Accounting is nothing but a Method of Accounting wherein Books are maintained on the Cloud Server rather than Physical Books of Accounts.
There are some Wide reasons why Cloud Computing is very essential for the Startups who have initially invested their money in the Startup Business.
Let us have a discussion about why Cloud Accounting existence nowadays is necessary:-
1.Confidentiality of Data:-
It is a very serious concern for any business to have proper Accounting and Maintaining of Data because data is so sensitive that if Confidentiality breaches then it will lead to loose of trust of various stakeholders of the Company. A data can be Confidential when it is kept in controls of Information Technology, otherwise, it will lead to Threats to the Confidential data. Cloud Accounting has emerged as a great solution for protecting the security of the Client Data (herein Start-Up) data.
Cloud Computing ensures the relevant data of the Business will be in the Authorized Hands i.e, Certified Vendors who initially make an agreement with the Client along with the Terms and Conditions as may be applicable to the relevant client.
Trust plays an important role in the Confidentiality of data that is assured by the Cloud Accounting Service provider.
It is only about the sensitivity of the data that require some Controls depending upon the sensitivity of the data that must be ensured to the Startups as this is their initial phase that requires much effort in establishing each resource.
There are several techniques like password protection, firewalls, encryption, and antivirus and even Physical security as well along with the Application Security. They are already inbuilt in the Cloud Accounting Server storing the data of the Startups at the back end.
2. Availability of Accounting Services:-
Cloud Accounting service provider gives the access of the data to the Authorized users only on a real-time basis with a facility of the Remote access service anywhere and at any time, Not only this, Cloud Accounting is such a Facility that understands the need of the User’s Collaboration that is, Multi-User Collaboration. It means that For accessing the particular data, many users can reach their data anywhere and at any time with flexibility in the work of accounting.
These features of the cloud Accounting made the system easier and Fine to fulfill the requirements of the Particular Startup needs. Cloud Accounting provides the features of Multi sharing of the Data maintained on the cloud server using the Internet facility on the single Platform that is, Cloud Server.
It not only makes the User of Accounting flexible and at ease to their work but also leads them to concentrate on their important task in hand that is of prior importance.
3. Economical Cloud Accounting:-
Apart from the features of the above discussed Cloud Accounting, there is the most important and required feature that not only any Startup but also every Business wants who starts their work at an initial stage.
If we about its features regarding economics, it is Cost saving as it does not require any Hardware to store the Accounting of the Startup or any other IT – staff to create, control and maintain the data. As now it is quite clear for the Startup that they will not be required any Hardware as all the Amenities are provided by the Cloud Server itself. The only thing a Startup has to do is to pay as per use basis of the Accounting services determined in the Contract at the initial stage.
It is to be noted that these all features are not provided by the Traditional Accounting that required a Huge amount initially to invest. Not only this, a Dedicated professional Accountant needs to maintain the Books Of Accounts to understand and adhere to all the Compliances applicable to the Relevant Startup.
For the purpose of selection of the appropriate vendor for the Cloud Accounting service, quotation and Research and analysis need to be done as there are many vendors on the online platform as a particular vendor as per the Startup requirement are necessary need to be ascertained.
4. Automation:-
Cloud Accounting has emerged as the feature that doesn’t let the Startups to do the updating in the system of Accounting. This is the Integrated feature of Cloud Accounting that saves many efforts of the Startup from the manually updating of the inherent features of the Accounting. This all leads to the System Accounting more easier and Flexible so that important task for the start-up can be achieved while focusing on it.
Nothing is worked if the Accounting software is Outdated or require some Add-on Features of the Accounting. Accounting Service tasks like invoicing and accounts receivable and so on making these all tasks to the Startups as they don’t require much effort to incorporate all these features at their end.
As in the Traditional Accounting Software, neither it can be said that the Software has the feature of the Auto-Update feature nor No economical cost from the point of the Startups that need many funds to establish their Software. No task can be performed with the outdated version with the important feature of the Accounting Software.
Apart from the feature of the expensive, difficult, and time-consuming.
Installed Accounting Software needs more Maintenance and updating of software along with the appropriate security demands in this time for the software to be linked with the users’ requirements.
Conclusion
It is clearly visible from the aforesaid discussion regarding the Cloud Accounting, its features can be seen clearly about Cloud Accounting that it is much quite easy maintained and updated Cloud Accounting Facility that is not inherited in the System.
It is the need of the hour that the Accounting Adoption method must be improvised so the make the particular trading Business more Profitable to meet the needs of the required business.