Cloud computing is a concept that has been commonly used over the last few years. With its exponential growth in data use, it has transformed society into the digital 21st century. Now maintaining all of the sensitive information, systems, and running on in-house database servers is becoming more and more difficult for individuals and organizations.
The solution to this dilemma is 'cloud' that has been around for almost as long as the internet but only recently it has become crucial for business use.
Cloud-based accounting software has all the features of desktop accounting system along with plenty other new advantages that only online technology can provide you with.
Dell’s second annual Global Technology Adoption Index (GTAI) reveals that companies investing in cloud, mobility, big data, and security are enjoying up to 53 percent faster growth in revenue than their competitors.
What is Cloud?
Cloud accounting is online accounting, in simple words. Instead of accessing the software from the hard disk of your computer, you use the internet to access it. Just as in your day to day lives you use internet banking or any email services such as Gmail, Hotmail or Yahoo; you've already experienced cloud computing power.
In the same way with cloud accounting, you can just open your favorite browser and start monitoring your financial transactions instead of downloading the accounting program from a disk to your computer. There are many advantages of cloud accounting, let's look at it from the data protection viewpoint.
Issues with the traditional accounting software
- Neither the technology nor the data is up to date.
- The program only runs on one device and data frisks while transferring from one location to another, such as on a USB drive.
- It is available only for a single user. Other important individuals can't access customer or finance details.
- Maintaining backups is difficult as well as expensive.
- It is time-consuming, difficult and expensive to upgrade software with the traditional accounting software
- Customer support is slow and not available in all cases.
Reasons why your business needs cloud accounting software
If your business is looking for a more efficient way to manage its financial affairs, here are 5 reasons to consider a move to cloud accounting seriously.
Reason#1: Data Security
We know that the best antivirus solutions are available but virus makers are also getting smarter every day. Your machines are just one USB infected away from having the deadly virus. If not USB, then it's the internet where most viruses come from. These viruses are hard to remove and the only option is sometimes to wipe the entire hard disk.
RapidScale reports that 94 percent of businesses saw an increase in security after switching to the cloud.
As there is nothing to install in the case of an online device, even though your computer is infected by a virus, your data is secure in the cloud (virtual servers). You can access the data anytime while using other devices.
Reason#2: Automation saves your time
Most cloud-based accounting software will connect and synchronize your business bank accounts with your portable devices, helping you monitor and track your sales, inventories, and costs. All you have to do is make sure much of your data is up-to-date, consistent; this way, you are confident that you are displaying data in real-time.
Reason#3: No Installation required
Cloud-based software works online, meaning you don't need to install a program directly on your computer. In the past, accounting programs had to be implemented within the accounting department on all applications. You can now access cloud-based software by simply logging in to the address bar and logging in to the required information.
Reason#4: Regular Backups
We all know that daily data backups are critical but are not diligent when it comes to protecting our data effectively. Even the backed up needs to be secured and arranged in such a way that when needed it can be quickly restored. Most business owners realize this but do not yet take steps required to back up their financial data.
Cloud accounting service providers take backups regularly and have a structured mechanism to get backups when needed.
Reason#5: Reduces your IT cost
Desktop-based systems require an investment in IT infrastructure, plus infrastructure maintenance. You need a server to house the program and related data for the application. And you'll have to pay an IT specialist to maintain both the server and the office network – that can be costly.
Working online saves time and reduces your IT costs by keeping you continuously linked to the company.
According to a new study, 43 percent of IT executives said they invest or develop disaster recovery strategies in the cloud.
If you are currently using a desktop-based accounting system and wish to see how your company can transform using cloud accounting software, reach us for a one-on-one demo session. Our highly trained CAs and accounting professionals have your back round the clock, 24/6.
Make the big switch to cloud