Earlier, accounting records needed the data to be entered manually and then stored on a desktop. The accounting data was available to only a few authorized personnel who had the right to access the accounting desktop.
Although the data could be shared limitedly through the intranet, this made sharing and keeping accounting records a chore for the accountants.
In addition, there were several risks with conventional bookkeeping methods, such as a human error in entering the data or information incorrectly, having to postpone entering accounting data into the system to the end of the month, and even rushing to straighten the accounting records when the fiscal year ended.
However, with the advancement in cloud technology and the introduction of cloud-based accounting software, business bookkeeping has become extremely efficient, easy, and secure in many ways. Cloud accounting software is the perfect combination of technology and efficiency.
Cloud-based accounting software allows access to detailed bookkeeping information and data from any internet-enabled device.
The online accounting systems are especially beneficial for small business owners to have accounting details handy at all times because it is scalable, flexible, cost-efficient and comes loaded with features that make accounting an easier and more accurate task.
What makes cloud accounting software a better choice for businesses?
As a business owner, you are often concerned about a cloud service provider storing your important data on an off-site server. However, with cloud-based software, the information and data are stored with excellent security protocols.
For instance, cloud-based software can be easily accessed, even when you are not at work. The secure login technique to access the software account also protects your bookkeeping data safe from prying eyes.
Cloud accounting systems are also safe from downtime, which means that your business productivity is not affected in the event of natural disasters or mishaps at your workplace. As long as you have an internet-enabled laptop, desktop, or mobile phone, you can access your stored account information from anywhere and at any time.
Off-site accounting software allows administrators to control the level of access authorized to employees and auditors. Online banking and cloud-based accounting software are a perfect match for your business.
Some of the major positive aspects of the cloud-based accounting system are:
- Providing a comprehensive and clear view of the current financial position and past performance.
- Allowing access to multiple users for easy collaboration through the internet with the rest of the team and other relevant departments.
- Automatically updating bookkeeping records so business owners can focus on daily operations.
- As all accounting information and data are stored online, there’s no need to install software, train employee to use software, and all data is automatically backed up.
- Reducing operations cost drastically in terms of upgrading, maintenance, cost of assigning system administrators, and risk of server failures are also reduced noticeably. The cloud service provider will handle the maintenance and management of software.
What are the features to look for in an ideal cloud accounting software?
Leading cloud-based service providers, such as Giddh, offer the best cloud accounting software with immensely useful features, such as:
Easy Inventory recording
The cloud-based accounting system allows users to easily create an inventory and keep track of inventory expenses too. This makes inventory management an easier task for business owners.
Efficient invoice generation
The cloud-based bookkeeping software allows users to generate professional-quality invoices almost instantly and also sends the invoice to the relevant customer or vendor automatically. This saves the time and effort of accountants and the accounting department immensely.
Ease of access
The cloud-centric accounting system allows users to access their accounting details and information from anywhere and at any time. This makes accounting management a breeze for business owners.
Best bank reconciliation
Using cloud accounting systems, the otherwise complicated task of synchronizing with the bank reconciliation process becomes simpler and easier. This is an efficient way to monitor and analyze your current cash performance.
Made for multiple currencies
Online accounting systems also offer multi-currency solutions. This makes it easier to do deals with international clients and customers.
Easily import data
Business owners can easily add important financial data from multiple Excel files into the cloud-based accounting system.
Great for GST compliance
Compliance with the complicated terms and regulations of GST becomes extremely easy with the help of online accounting software. The software lets you create GST-compliant invoices, and file GST returns easily and efficiently.
Swift data sharing
The online accounting systems allow users to enhance team collaboration by easily sharing comprehensive financial data between different departments.
Financial experts and experienced accountants are of the opinion that small and large businesses can benefit greatly by integrating online accounting software into their operational systems.