- Various Advantages of Using Online Accounting Software
- 1. Automate Process & Saves Time
- 2. Accessible 24*7 On The Go
- 3. Nominal Subscription Making it Worthy for Trial
- 4. Updated Data Everywhere With 0% Redundancy
- 5. Safe Data Till Eternity
- 6. Easy Tracking & Recording of Expenses
- 7. Easy to comply with Taxation Policies
- 8. Simple to Collaborate & Analyse
Various Advantages of Using Online Accounting Software
Records of the monetary transactions play an important role in a business, and this is the area where one needs to keep records systematically. The majority of small-scale businesses rely on themselves for such tasks and utilize the manual approach or sometimes basic worksheet to note down their incomes and expenses. The problem arises when the analysis of profits or professional financial services is required. According to experts, manual way of bookkeeping can lead to the misconduct of compliances of taxation and lead to difficulty in figuring the financial position of the organization.
This is where the concept of accountancy software is suggested and applied. People enjoy its privileges and maintain their books of accounts precisely without putting in much effort. But as the scope of traditional accounting software is limited to one machine, a large number of professionals prefer online accounting software. Cloud software can help in reducing the efforts by 50%, and online accounting software provides better flexibility to professionals. There are many reasons why one should switch to cloud accounting software. Let’s discuss them in detail.
1. Automate Process & Saves Time
One of the most adored benefits of cloud accounting software is time-saving. You don’t need to worry about matching the invoices or putting up the reminders with such tools. When an invoice is generated, this software sets the reminder accordingly and saves your time in tracking the debtors and promised payment dates of the creditors.
2. Accessible 24*7 On The Go
You must have tried a cloud email client or similar solution. The foundational advantage of cloud technology is cloud storage that enables the user to access the data from anywhere globally without any dependency on a machine or area. So you can grab such benefits of online accounting software with integrated cloud storage. It helps in monitoring the data 24/7 and updating it anytime through any compatible device.
3. Nominal Subscription Making it Worthy for Trial
Online software is also called SaaS (software as a service), and due to its distributed architecture, you don’t have to pay a huge upfront fee for the accounting software. It will not pose a huge expense and keeps the fund flow in check. You also have the chance to pay upfront, but it is optional and available with huge discounts
4. Updated Data Everywhere With 0% Redundancy
One of the online accounting software benefits is automated updation that happens as soon as you log into the account to access information. Every update is synchronized with the original copy and hence remains in a consistent and updated form. For instance, the head of the finance department is not available in the town, and his team is updating information in the office. After that, he will be able to audit the information in a different town without worrying about missing or incomplete information. In the end, tracking the financial record and position becomes easier without any doubt.
5. Safe Data Till Eternity
The cloud server is not centralized and has shadow copies on several different physical servers. It means that crashing of any server will not affect your data due to automated backups in other servers. This architecture of storage is one of the most valuable online accounting software benefits. Also, to ensure no data leakage, the records of accounting are only accessed after successful authentication of the user.
6. Easy Tracking & Recording of Expenses
Recording direct expenses is easier when choosing a manual approach, but when it comes to indirect expenses and recording things like depreciation, manual methods seem ineffective. At the end of the financial year, the business owner is left with piled-up work. Moreover, tracking them is much more difficult because there may be some miscellaneous expenses that you may miss. Even if you have bills payable of all the expenses, tracing the financial event can be cumbersome, especially when the business is on the verge of growth. Any mistake in the manual process, like date or amount, can affect the entire financial report or statement. So one of the side benefits of cloud accounting software is bridging this gap mismatch records and recording expenses.
7. Easy to comply with Taxation Policies
The tax system is always complex to understand, and thus staying compliant with it not an easy nut to crack. When it comes to India, Indians spend around 241 hours on average in preparing statements and filing taxes (as per the survey of 2016 in the World Bank Survey). After the introduction of taxation policy known as GST, the picture became more complex. Many businesses faced penalties due to this change, and earlier options for accounting seemed to be outdated and useless. The prime benefit of online accounting software is that such tools are dynamic. That means it gets auto-update as per the latest guidelines. You don’t have to install the updated version like others. Being updated means that you can save yourself from penalties and make preparations for filing taxes on time.
8. Simple to Collaborate & Analyze
The purpose of financial statements (profit & loss statement, balance sheet, cash flow statement, etc.) is not limited to filing taxes, but also analyzing the business’s performance and taking managerial steps accordingly. Cloud accounting software allows the user to share the reports with multiple accounts with limited permission. So if you want to share your record with your accountant, but do not want them to modify the entries, you can set the permission. Also, the reports are prepared automatically as per the entries, which makes the entire process simpler and easier. In the dashboard, one can see the summary of all the bills, receivables, and payables.
These were the top 8 benefits of online accounting software, and thus switching to such an option is a better option for the organization. Moreover, cloud technology is the future, and opting for the futuristic approach will surely help you stay ahead of your competitors in some or another way.