Accounting

The 6 Key Reasons for the Small Businesses to Prefer Cloud Accounting Software

By | 4 Min Read

cloud accounting software

As a small business owner, you constantly face the challenge of becoming more efficient and gain a competitive edge. Technology helps in automation and supports your business growth. When it comes to accounting for an organization, most businesses prefer Cloud-based technology due to its flexibility and low cost implementation. Cloud accounting solutions store and allow access of your data over the internet instead of your hard drive or own servers. Below stated are the six key reasons for small businesses to prefer cloud accounting software.

Cost Factor

Cloud accounting software save small businesses from incurring high upfront cost and spread the cost by paying monthly instalment rather than paying huge initial payment. Software can be purchased on a subscription basis to save a business owner from dealing with cost of desktop installations, software licensing agreements or system administrator costs that come inherent with an on-premises software.

Anytime Access

A cloud accounting software can be accessed at anytime from anywhere through an internet connection, even from your tablets and smartphones. It doesn’t matter whether you are in your office or have gone to visit your client or are traveling around the world. All your accounting data resides in the Cloud. It is available whenever you need it from any place. Cloud accounting solutions give freedom to access data and carry on business from anywhere at any time. Business owners can be ensured of having a clear picture of their financial data all the time.

Real-Time Access

Since all your accounting information is maintained and organized in the Cloud, you can retrieve the data and be updated in real-time. By doing a simple search you can come to know about your receivables and payables and the amount due from clients. No need to go through the piles of records. This will also reduce the chances of human errors as the Cloud accounting software is updated continuously. You can even find discrepancies or errors if any within seconds.

Collaboration

Cloud accounting solutions encourage collaboration as data is stored in the Cloud and can be accessed, edited, updated and used by any person who has the right to access the information. This also promises BYOD in an organization, where employees can work from anywhere, from any device. Teams in different parts of the world can collaborate and work together. Your accounting data can be accessed from any part of the world in the Cloud till the time you are connected to the internet.

Data Backup

Cloud accounting software has the functionality of having backups of the data in case of any disaster or data loss. Cloud ensures automatic backup of your data at regular intervals to save you from the consequence of complete loss of accounting data which would stop your business to function. In case of theft or occurrence of disaster your accounting data is safe and backed up as it is store in the Cloud.

IT Infrastructure

Cloud accounting software has all the financial and accounting data stored in the Cloud. Businesses thus don’t require having IT infrastructure including the servers, hardware and the IT staff. Your software is accessible from the browser and the only thing you have to take care of is your accounting work. No IT support is required with Cloud accounting software. There’s no need to constantly worry about installations and maintenance of your software and you can spend more time on carrying out your accounting activities.

Conclusion

The following were some of the advantages which have made the businesses prefer Cloud accounting software. The data stored on the Cloud infrastructure is more sophisticated and way more powerful and secure then office systems. Employees can work remotely and carry on with their work with convenience. Cloud accounting software is especially suitable for startups and for people who are new to the accounting. It also enables entrepreneurs to work closely with their accountants to better understand business performance and improve business processes.

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The 6 Key Reasons for the Small Businesses to Prefer Cloud Accounting Software

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