Cloud Based Accounting vs Traditional Accounting Services

Cloud accounting might seem all new-fangled to the uninitiated, but it is closer to traditional on site accounting than you might think.
Cloud Accounting is delivered via the Software as a Service, abbreviated to SaaS, model where software instead of being installed on a system permanently at a one-time cost is provided as a service via a subscription. Cloud accounting utilises web applications accessed through an internet browser such as Google Chrome rather than specialised software. Your data is sent to the remote server where it is processed and the results are returned back to you.
Advantages of Cloud Services
One of the biggest advantages of cloud accounting services is maintenance. Traditional software is installed on a system at a one-time cost. However, that software then exists only on that particular system. The software cannot be accessed from another computer. Additionally, if the developer introduces new features in subsequent versions of the software, it is highly unlikely that those features will be introduced into older versions. This incentivises you to upgrade your software everywhere.
Cloud software solves all of these issues. Because the accounting software and tools themselves exist on the remote server and has to be accessed via the internet, there is no need to install anything. Also, software can be accessed from any computer with an internet connection, thereby allowing multiple people to collaborate and use the same tool simultaneously from any system that is convenient. Because cloud software works on a subscription model where you pay every month to use the software, you get immediate access to the latest features that the developer has added; in other words, the software never gets outdated.
Because cloud accounting services have been developed with a global audience in mind, they support multi-currency transactions better than their traditional desktop counterparts. Cloud accounting tools also typically offer greater flexibility in terms of parameters that need to be considered. Data is updated in real time and accessible to all collaborators and clients instantly. This increases productivity and efficiency.
Because the data is always backed up in the cloud, you are guaranteed data security and reliability at all times. This also means that without proper authorisation, sensitive data is not accessible even from computer systems at the workplace. Because the data is not physically stored on the local computers, unauthorised access is prevented.
Finally, cloud accounting is often more economically feasible. Subscription models tend to cost lesser than their traditional counterparts especially if you are used to upgrading your old software every product cycle, typically once or twice in a year. With financial products, it is imperative that the software always takes into account the latest laws and guidelines. Therefore, accounting software must be frequently updated. With cloud accounting, your software never gets out of date.
For more information, speak to our friendly consultant @ 012-5128863 and we will be able to assist you.