Cloud-based accounting can streamline and revolutionise your existing accounting process with several accessible and time-efficient systems. Whereas traditional accountancy has been a staple of the industry for many years, with the emergence of new cloud accounting solutions, many accountancy firms are switching over to online systems.
What is traditional accounting?
Traditional accounting involves using paper records or downloading traditional accounting software onto a computer. The financial data is typically stored on a physical hard drive, and can only be accessed through a single computer.
What is cloud-based accounting?
Cloud-based accounting involves using online systems which can be accessed through web browsers on any device from any location. The data is uploaded to the cloud and stored in remote third-party servers so any person accessing the system can instantly see updates or changes.
Why use cloud-based accounting?
Traditional accounting typically involves a one-time purchase for the software and hard drive which is not upgraded or scalable. Updates need to be implemented manually, or new software needs to be bought. If the computer is damaged, lost or stolen, you risk losing all the stored date if it hasn’t been backed up.
However, with cloud-based software you can pay a monthly fee and alter your package to align with your current business needs. It is also updated and improved automatically.
Cloud-based accountancy is more convenient for collaboration and remote working. The software can be accessed on any device and multiple users can work simultaneously, saving time and avoiding needless file-sharing. Your data also tends to be more secure on online systems, as all files are backed up automatically to the cloud and the third-party company will have a team of cybersecurity experts constantly monitoring and managing potential threats. Otherwise, your internal team will be responsible for installing protections, firewalls and taking necessary precautions.
With traditional accounting, you typically have to rely on manual data entry, which can be time-consuming and liable to errors. It also does not have integration with other software you may be using, such as customer relationship management (CRM), inventory management systems, and payment gateways so you will need to manually transfer this information over.
By using cloud-based software, you can sync your data to other systems to easily manage your cash flow. Furthermore, cloud-based software has the capability to automate simple processes, reducing manual tasks and time spent on repetitive jobs.
Cloud-based systems are the future for the accounting industry, providing accountants with convenience, practicality and security. At J Sweeney Accountants, we offer accountancy services with a fully integrated cloud system. To learn more, get in touch with our team by calling 01604 950034 or emailing [email protected].
