The tools that accounting professionals used to crunch numbers has seem much changes from the days of adding machines, then calculators, Excel spreadsheets and accounting software.
Now, cloud-based accounting system has revolutionizes the industry. This new technology boasts of offering business flexibility and easy access to necessary financial information. Given the hype, should your business make the switch?
Cloud vs. Traditional Accounting
Below shows the comparison on how cloud accounting technology performs against traditional accounting.
With traditional accounting, investing in both hardware and software are a necessity. You also need to allot a budget for maintenance of the hardware. As time passes and more financial data is stored, you may even need to invest in a new computer.
With cloud accounting technology, however, there is no need to purchase expensive hardware as you can even use mobile devices. Just pay for the software monthly subscription. In addition, you will receive full assistance from the software provider.
Ease of Access
In traditional accounting, access to real-time financial information can only be accessed by one individual in the company. If you use cloud accounting, everyone who needs to see the financial data can readily access the information with an internet connection.
If you use traditional accounting methods, meetings and discussions on financial matters can only be done when all concerned parties are in the same room together. With cloud accounting, collaboration among peers is enhanced. Discussion about accounting records can be done in the office or elsewhere for as long as the team has internet access.
Safety and Security
You can have total peace of mind if you will use cloud accounting technology since your data will always be available and accessible. Your building can collapse completely burying everything and it would not matter. With traditional accounting, however, financial data will be completely lost if the hardware becomes damaged or stolen.
Distributing financial information can be tedious in traditional accounting considering the many processes involved. The opposite is true with cloud accounting solution since authorized persons can immediately retrieve the accounting reports on their own.
When using the traditional accounting method, you need to regularly update and manage the system yourself to ensure its responsiveness to your requirements. The cloud accounting solution, on the other hand, automatically updates to fit your changing demand.
Cloud accounting software trumps traditional accounting in environmental friendliness considering you can go paperless. With this technology, all you need is a mobile device and internet access to retrieve financial information. This is not the case with the traditional method since printing on paper is necessary for distribution.
Cloud Accounting Software or Traditional Accounting?
Users of cloud-based accounting technology swear that this software is the future of finance. But before making decision, make sure that this accounting solution can meet your business needs. Here are some indicators that will tell you if it’s time to migrate to cloud accounting:
Accessing your financial data is problematic.
Your financial data should be readily available whenever you need them. If you often find yourself having difficulty accessing them especially when you are out of the office, shifting to cloud accounting may help.
You are worried about losing your financial data.
Is the thought of your old computer crashing and losing all your financial records keeping you up at night? Are you or your finance team using a lot of time backing up your files in case of break down? If you answered yes to both questions, you will benefit from using cloud accounting. This solution automatically creates back-up so your records are always accessible even if all your devices malfunction.
You want to go paperless.
If your company is spending a lot on making copies of financial reports for distribution, cloud accounting can address this issue. Everyone can simply access the information on their mobile device when there is a need. Meetings and discussion about finances will also be clutter-free.
Finding the Right Partner for Your Accounting Needs in Singapore
Whether your firm will stick with traditional accounting process or shift to cloud technology, one thing is certain – somebody still needs to oversee the system. Without proper oversight, you may find your financial records inaccurate and unreliable. When this happens, more troubles like missing deadlines and paying penalties will arise.
Instead of worrying about accounting matters yourself and to avoid serious accounting issues, leave the work to highly-skilled professionals. Let Corporate Services Singapore serve as your own “accounting department” while you focus on developing your business.