Cloud Accounting has been significantly grown over a period of time. Most of the business has moved to cloud accounting. However, few of the businesses are still using desktop versions for accounting. Does Cloud Accounting have different names like online accounting software, web-based accounting or cloud computing? There are definitely pros and cons of using cloud accounting.
Benefits of Cloud-Based Accounting
- You can access your business finances from everywhere. All you need is a reliable Internet connection. Previously, you need to download and install desktop accounting software before accessing your finances. This has made one important change in the organization that you or your employees can go out to meet potential clients and make some good business deals rather than wasting their important time at the office on non-productive tasks.
- You will reduce your cost by using cloud accounting. You don’t need to spend your funds to pay upfront for the software or pay for updates. You usually pay for cloud accounting on a monthly basis. By paying on a monthly basis, you decrease the stress on the cash flow and pay as you go. With the monthly payment, you get updates without paying for updates. This also eliminates the cost of maintaining servers & buying any hardware for storage.
- With the online regular upgrade, you save the cost of IT professionals at your business by making suppliers responsible for all the faults. All you need to do is maintain your computer & have a reliable Internet connection.
- You will daily bank feed by using cloud accounting. Your bank will transmit your bank account transaction directly to your accounting software.
Cons Cloud-Based Accounting
- Having your financial information on the cloud means that you don’t have physical control over the data & potentially your data is exposed to anyone. We believe hackers will not be interested in the dollar figures, but they would like to get confidential information about your employee such as Date of Birth, TFN, etc.
- Also, the Government can force a third party to disclose your data without even notifying you.
Reliable Bookkeeping Services still believe that the advantages of cloud accounting over-weigh the disadvantages because of the flexibility and mobility of the cloud-based system.
Contact us on 03 9310 7871, if you would like to make a move to cloud accounting or need a bookkeeper for your business.