12 Why you should use online accounting systems

12 Why you should use online accounting systems

March 10, 2022 Off By Rohan

Are you still using manual records or a desktop accounting system to manage your business? Well, small and medium-sized businesses can no longer rely on manual records, spreadsheets, and desktop accounts software. More importantly due to recent technological developments, there is no need to rely on manual processes.

Some of the most common problems associated with manual storage include:

  • Storing accounting data manually or on desktop applications means that access is limited to a single computer. What happens if you are at home or out of the office and need to check some transactions? What if you want to run reports when you are away from your office? This usually means physically taking your laptop with you, which can be inconvenient and risky.
  • If you use manual systems or store your data on your computer’s hard drive, what happens if the system or hard drive fails? You could lose all of your valuable business records.
  • Another problem with storing data on a single computer is that it is harder to share information with colleagues. They might not be able to access the information they need when they need it. If you work in a team, this can cause huge issues for productivity. For instance if you are not able to share a list of your company’s sundry debtors it could potentially stop production which could lead to a lot of losses.
  • If your business grows, will your manual systems scale up easily? For example, if you take on more staff and need extra computers, will this make it difficult for them to access their systems?

This is why many business owners are now turning to cloud-based accounting software to handle their bookkeeping needs. Manual bookkeeping is a necessity for many small and medium-sized businesses, but the traditional solutions leave much to be desired.

What is cloud accounting software?

When services are offered through the internet and cloud servers it is referred to as cloud computing. For instance many GST late fee calculator work on cloud servers.  Cloud computing services are of three types:

  • Infrastructure-as-a-Service (IaaS)
  • Platform-as-a-Service (PaaS)
  • Software-as-a-Service (SaaS).

Cloud accounting software falls into the SaaS category, which means that you use a web browser to access it.

It works by storing your business’s accounts and financial information on remote servers rather than on an individual PC or local server. This information is accessible via the internet, which means you can open your books from any location with a secure Wi-Fi or 4G connection. 

What are the advantages of online accounting systems and cloud accounting software?

There are several reasons why businesses are choosing to move their accounts and bookkeeping into the cloud:

  1. Anytime, anywhere access 

You can view and amend your records wherever you are as long as you have an internet connection. This is particularly useful if you need to make quick updates whilst travelling or from multiple locations.

  1. Cost-efficient 

You don’t need to invest in in-house servers or additional hardware, such as PCs and printers, for each member of your team. Instead, you simply sign up for an online subscription service and pay a monthly fee to use the software. There’s no upfront cost for installing software and hiring IT professionals to maintain it, so it’s more affordable

  1. Improving efficiency

The chance of human-induced error is significantly reduced hence you can get more accurate work with this software.

  1. Scalability

For the small business owner, there’s an advantage to keeping your accounting in-house. You can keep up with the details of your business and you can easily access your records. But if you want to grow your business, you need a scalable solution that is accessible to everyone in your company, not just the people in accounting.