“What are the benefits of accounting in the cloud vs accounting using PC software?” Encountering this or similar questions has become common. Business owners and CPA firms are always looking for systems that will improve their bookkeeping and accountability and will adopt the best solution. So, how beneficial is cloud accounting compared to the traditional use of desktop PC software?
Cloud Accounting Lowers Costs
Cloud accounting is more effective in reducing the cost of accounting. PC accounting requires a firm to invest in hardware such as desktop PC, servers, cabling, and other computing peripherals. There is also need to regularly purchase accounting software. However, in cloud computing a user simply needs to pay annual or monthly subscription and will have access to any accounting solution.
Cloud Solutions Improve Security
Cloud accounting is more secure than PC accounting considering that it is located off-site. This makes it impossible for unscrupulous individuals to access the accounts. Power outage or interruption can lead to lose vital data thus negatively affecting the business. Such risks are unlikely to occur when using the cloud.
Cloud accounting limits the use of paper files and records since everything is hosted off-site. All the information is updated and stored in the cloud backup in real-time. Accounting via cloud makes the transition from paper to paperless office easy leading to a more eco-friendly office.
There Is Reduced Downtime in Accounting in The Cloud vs Accounting Using PC Software
Unlike PC software, cloud accounting has reduced the time needed to record, update or store information. An authorized person simply needs to login from a secure portal and doesn’t have to visit the physical location. The fear of losing precious time due to incompetent or sick employees has been eliminated thus improving uptime.
Increased Data Security
The traditional use of PC software came with the following risks:
- The PC, software devices, and servers could easily be destroyed by natural disasters such as earthquakes, floods, or fires.
- An employee could be compromised and give out sensitive information
- Third parties could hack into the system
- Employees can easily forget to lock their computers or misplace their passwords.
Such risks don’t exist in cloud computing since a trusted third party hosts everything. In fact, a business or CPA firm uses hardware devices as access points only.
Cloud accounting has made it easy to work from anywhere. All that is needed to carry out the activity is good internet connection and any internet-enabled device. Authorized employees can access data from anywhere and at any time using laptops, tablets, smartphones and other devices. Easy access helps boast their morale and keep them motivated.
One-stop-shop For All Accounting Solutions
PC accounting requires a user to purchase separate software and programs over time. In some instances, the user will discard a system after realizing its ineffective meaning money has been lost. However, in cloud accounting a user has the option verifying packages prior to purchasing. The accounting programs are contained on a dashboard and include:
- Accounting software
- Microsoft Office Suite
- Shared Directories/Files
- Email Applications
- Third-Party Applications
Easy To Adopt New Technology
Changing from an aging technology to a newer and better solution is as easy as accessing it from the providers site. A good host will also keep tabs on the latest developments and update the clients. Days of purchasing latest software, patches or fixes are long gone.
Accounting via cloud lowers cost of operation, improves uptime, leads to paperless office, and provides a range of solution. It also reduces the risk of losing data through natural disasters, misplaced passwords, and makes it easy to adopt new technology. Comparing accounting in the cloud vs accounting using PC software it is clear that any business or CPA firm has more to gain by accounting through the cloud.
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Here’s a review of how it works: