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Is The Old Accounting System Taking Your Business Hostage?

Are you finding it difficult to get time to sit in front of the one computer that can handle the accounting for your small business? Overrun with licensing costs for your accounting services software every month? You’re not alone in this, but you are able to do something about it and stop being held hostage by your traditional accounting system.

Cloud accounting has been quickly overtaking the traditional accounting services for small businesses in recent years. Small business owners are finding the many benefits of it versus traditional accounting systems allow them to focus more on what matters; their customers and growing their business.

Today, we wanted to lay out some of the benefits of cloud accounting when used as the accounting service for your small business.

First, what is cloud accounting?

You may find yourself wondering, isn’t online accounting the same as cloud accounting? Think of it like this, when you make a purchase from a store online, that vendor stores the purchase information on their servers.

But in working with cloud accounting, as in all clouds, the information, data, and software for the cloud accounting service are all stored on multiple servers in many different locations. This prevents data loss from power outages, hardware failures, etc.

This allows for your small businesses proprietary data and accounting to be kept safe at all times from data loss. As well as cloud computing is more secure than storing all proprietary data on a single hard drive in your home office.

So, what are the ways in which cloud accounting can benefit your small business?

Availability and Access

 In the traditional accounting services you’ve been using for your small business, there is only one place you can access the accounting software. Which also means there is only one device and / or computer that you’re able to do cost tracking, payroll, budget management, and overall accounting services for your small business. You are essentially wired to that computer or device for any needs without the ability for access at any time you may actually need it.

Now, with cloud accounting any authorized user with the secure and user-specific login can access the cloud accounting software. This means they’re able to handle remotely, any accounting need you may have no matter where in the world you are. As long as you have an internet or cell connection, your small business’ accounting data is within reach at all times. No more feeling tied down to the one computer to handle your accounting needs.

Costs and Savings

With traditional accounting services, as we’ve discussed, you’re tied to one computer that’s storing all your accounting data along with the accounting software. This is costly for many reasons; between the IT person to maintain the computer to prevent any crashes or data loss, the cost of the software program license every year or update, and the overall wear and tear of the computer itself. These costs quickly add up as offline accounting software needs to be constantly updated every year which means another license purchase for the upgrade. And when the computer you’re running everything on cannot handle the software capabilities anymore, a new one is needed.

By using cloud accounting you’re removing so many of these variables that can jeopardize the security of your proprietary accounting data. There is no specific hardware in cloud accounting other than either an app for your smart device or a web browser on any computer. The software you’re using to handle your accounting services needs are hosted in the cloud which means they’re accessible always and anywhere! There are even some free cloud accounting software services, but most come with a monthly subscription costs that’s in most cases less than what you pay every year for one traditional accounting software license. You’re cutting out the costs of maintaining an IT person to give support when needed for your computer as well the dedicated computer.

Data Security

 Traditional accounting’s biggest vulnerability is its inability to store the data anywhere but in one single location. Should there be a fire, theft, or other catastrophe at your small businesses location, everything is gone.

With cloud accounting, you could lose everything in the physical location of your business and yet still have every piece of data and access to it through your cloud accounting service.

There are many more benefits to using cloud accounting versus traditional accounting services. Our team at Numetrica can walk you through how your small business can benefit and grow through cloud accounting.

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Monday, 22 April 2024

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