If you are not keeping a close check on the financial health of your business then definitely you are driving blindfolded.
For every business, keeping accurate financial records is very important and for it, you should have the right tools.
Entrepreneurs rely on the desktop accounting software to manage the financial records of their business. One backdrop of desktop accounting software is that its programs are restricted to a single computer. If you don’t have the access to your laptop or computer than it is more difficult to manage things.
Following are some of the challenges that people who use desktop accounting software face:
- The access to the financial records of the business is only by the computer owner. To work on and to manage the financial position of the business, the accountant has to make on-site visits.
- When it comes to data entry, all the numbers have to be inputted manually which is only a wastage of time and also leads to a lot of errors and mistakes.
- If you want to transfer the data, then you cannot send it directly from one PC to another. You need to use an email or USB drive which have security and consistency drawbacks.
- In case your computer broke down, fails or is stolen then you have to pay a heavy price for it if you don’t have the back up of your data. Backups are considered complex and costly.
- Software updates are also very costly. Whenever it becomes dated over time then you must purchase a new version of it and install it every few years.
Hindrances like these cannot be afforded by all the business owners.
Here cloud-based accounting software starts to play its role.
Cloud-based accounting software can be accessed through a browser or mobile app. It is a better way of managing financial records of your business.
Cloud accounting eliminates the problems faced by business owners while using desktop accounting software in the following ways:
- With the help of login credentials, financial data is made available to anyone that the business owner wants. The accountant of the company need not make on-site visits to handle financial records.
- With the help of APIs, cloud accounting software can be connected to your bank account which makes the data to flow automatically between the systems.
- Data stored in cloud accounting software can be accessed directly through internet which eliminates the need for transferring the data.
- The risk of losing the data is zero.
- In the cloud, updates are done automatically. You need not pay anything extra as the most recent version of the software is always there.
Cloud accounting helps in checking the account balances, invoices and many more. To find out where you stand and what is the financial position of your business, you don’t have to do too much work as the data flows into your accounting system automatically.