The cloud and its impact are spreading rapidly across many industries. It has a strong presence in the accounting industry, as evidenced by the fact that the Big Four accounting firms (KPMG, PwC, Deloitte, and Ernst & Young) have dedicated their businesses to cloud computing strategies several users and companies have already transitioned to cloud accounting. (Learn about the benefits of Online Bookkeeping Services in India)
As accounting clients, many users and companies have already implemented cloud accounting or are in the process of doing so. Moving to the cloud is not just a blind trend; it is a well-thought-out business plan with many benefits.
If you’re still not sure why you should choose cloud accounting, here are the reasons:
Top Reasons to switch to Online Bookkeeping Services in India
1. Better integration
From estimating expenses to managing revenue and orders, almost all accounting tasks are handled by accounting apps. Sage 50, QuickBooks, Zoho Books, Kashoo, etc., are some of the most popular commercial accounting software that can facilitate accounting operations.
Therefore, the features and integration of an accounting application are crucial for its performance. Since your application’s version depends on your hardware, the cloud is the way to get optimal performance. (Get Online Bookkeeping Services in India)
Working in the cloud nullifies local hardware limitations because you can match server resources to your needs. You can also modify them as your needs change. Since software updates also come automatically, you can work with the best accounting software without updating your local computer.
For corporate accounting structures where accounting software is not enough and must be integrated with multiple tools (CRM, ERP, Office Suite, QB add-ons, etc.), the cloud is indispensable. A cloud hosting solution can also allow you to integrate an unlimited number of programs and applications, keeping your accounting in good shape at all times.
2. Collaboration with different users
Let’s assume that an individual work with a CPA on their taxes using office accounting software. To keep the accounting data current and correct, both parties (the individual and the CPA) add information to a file and exchange files via email. This also creates several copies of the same file for both, resulting in chaos and possible tax return errors.
The same situation for businesses is even more delicate due to the large number of parties involved in updating and exchanging accounting files. Also, the complexity of data management is much greater. The redundancy of accounting files on a local server can pose a severe threat to a business, not only from a regulatory perspective but also from a self-declaration perspective.
The cloud brings a very reliable solution to this chaos with a real-time collaboration feature. Any number of users can connect to work on the same file. The administrator can change users’ access rights, and the changes made by users can be tracked to ensure data security.
3. Never lose data
Accounting data is irreplaceable and may not be recoverable on local devices. Computers are also prone to various events that can lead to data loss. Naturally, such events sound the alarm without warning. Backing up data to independent drives is a commonly practiced method to avoid data loss.
This practice is “old school” and has some limitations. Creating regular backups or updating drives to the latest technology is a difficult task and takes valuable time.
Data backup and cloud backup requires no effort on your part. It is automated, instantaneous, and stored in a separate location. Therefore, the cloud can recover data in case of accidental deletion and if a disaster has struck the data center.
What makes the cloud even more unique is the ease of restoring backups. With just a few clicks and authenticated access, you can convert and install a backup of your data. The hosting provider’s support services can also reduce the click effort.
4. No device limitation
Today, handheld cell phones are capable of processing instructions faster than what was considered a supercomputer a few decades ago. The point is that we’ve seen a massive evolution with hardware technology that has allowed you to be more productive even when you’re on the go.
Without the cloud, you have to install an accounting app on each device you want to work on and then transfer the data to them. And don’t forget hardware specs and OS compatibility. More productivity features, it sounds like a hassle.
Switch to the cloud, and all those annoyances are gone. Because the cloud stores your data and runs your application on a remote server, you can access it through a web browser from any Internet-connected device without worrying about hardware or OS specifications. Just log into your account, and all your statements are available through the service, whether you’re using a smartphone, tablet, desktop, or laptop.
5. Save money
When it comes to online bookkeeping services, you can never ignore the costs. Local machine accounting expenses are machines and servers, dedicated space, IT maintenance, software licenses, etc. For small as well as medium-sized companies with limited budgets, these expenses can be a big problem.
Outsourcing accounting services can be a solution, but it comes with the risk of delays and lack of data protection.
Cloud accounting offers a solution in both cases – it allows you to control your internal accounting costs and gives you more control over the outsourced accounting. Since no dedicated hardware is required, hardware costs can be reduced by adopting a BYOD culture. These hosting service providers usually offer free support, which also saves you maintenance costs.
When outsourcing accounting, the cloud offers you the best opportunity to monitor accounting operations at all times and collaborate with your accountant. So, going with offshore accounting is always on the cards.
Summary
Cloud accounting or online accounting brings several features that can easily make traditional computerized accounting seem redundant. The fact that it costs less underpins its claim to be the mainstream option for the future of accounting. As more and more accountants move to the cloud with online bookkeeping services in India, you shouldn’t hesitate.