A majority of the businesses have adopted cloud technology by ditching their old on-premise software. When it comes to using an accounting software, you should understand what cloud has to offer. Eventually, that will help you to decide when to dump your old accounting software. Here are some drawbacks of a traditional accounting software that can hurt your business, and keep you away from many opportunities.
1) No Modification:
Old accounting software are stubborn. They won’t let you modify the system on many levels. For example, traditional on-premise systems won’t let you change your chart of accounts. Now, the chart of accounts is an important aspect of any business because it carries information regarding assets, liabilities, equities, revenues, expenses and much more. If you’re expanding your business, the chart of account is definitely going to change. But the old systems aren't flexible enough to accommodate these changes. Well, that’s not the case with a cloud-based accounting software! It is quite adaptable when it comes to the core features.
2) Lack of Features:
Solid accounting features are the reason why you adopted an accounting software in the first place. There is a noticeable difference when it comes to comparing online and offline accounting system. Let’s take an example of QuickBooks - one of the leading accounting software providers. Apparently, if you’re choosing an offline version of QuickBooks, you have to pay extra bucks for these features:
- Automatically schedule and send invoices
- Working remotely
- Automatically download your bank transactions
- Phone support
- Automatic backup with high security
- Access for up to 5 users
On the other hand, these features are covered in one of the plans if you choose to go with the cloud version of QuickBooks. The decision is quite simple! Cloud wins the race here. Online QuickBooks is packed with more features, it’s more convenient, and offers mobility!
When you’re expanding your business, you cannot stick with your desktop for accounting purposes. An ideal accounting software should set you free, not hold you back. If your system is a big rock in your way to success, it’s time to ditch the old one and go for the new one.
3) The Maintenance:
The offline software can give you a hard time when you’re thinking about maintenance. There are two kinds of maintenance we are talking about:
- The Asset Maintenance
- The Software Maintenance
We all know that after few months of usage, you have to give your system some upkeep. You have to make sure there is no viruses or malware in your system. In the maintenance process, you have to manually take backups of all accounting data. That is indeed a big pain!
On the other hand, downloading software updates is a time consuming task. You have to stop your work and manually download the updates or reinstall the entire software. That takes a valuable time of an employee, and company’s productivity is compromised.
When you face multiple issues during maintenance, it’s a hint for you to drop the old system and adopt a new one.
Cloud systems, on the other hand, updates automatically. So, you don’t have to go about wasting your precious time. Also, you can provide tension-free maintenance to your device because all the data is backed up on the cloud.
So, we have seen some solid points to know when to dump your old accounting software. Now, let’s have a look at the solution to these problems - Cloud. Have a look at some of the outstanding benefits of cloud
A. Great Team Collaboration:
Yes! Suppose you have 4 team players for the accounting. But one of the members is pretty good at generating detailed invoices and one is very good at sending quotation so on… Cloud accounting software can be accessed by multiple users at the same time. So, you can actually set a workflow. One will send quotation, one will send the pro forma, one will generate the invoices, and so on. And one can actually monitor the entire process.
In a business, multiple transactions are performed at a given time period. As an accounting admin, you can manage the whole department by distributing work and giving relevant accesses.
B. 24 x 7 Access to the Data:
This is one of the well-known benefits of using a cloud system. Many employees work even outside their working hours. Cloud systems have given the idea of “Work from Home” a new direction, and slowly many businesses are adopting this change. The amount of time wasted traveling back and forth can be now well utilized.
C. Cost Saving:
A cloud software saves costs in many ways. One such cost saving is the cost of buying software licenses. Buying a license costs a lot, hence it largely affects on your “incoming invoice sum”. Cloud software are on a subscription basis, so you don’t have to bang your head in buying licenses all the time. You can buy according to your needs, according to a number of users, and according to your future needs.
In many offline software, you have to pay to upgrade the version. But, that’s not the case with the cloud. You will be using the best version all the time, as the vendors will constantly try to provide you a bug-free platform.
D. More Security:
Last, but certainly not the least - the security. With the cloud saving all the data on a server, businesses can take a breath of relief. In offline software, you have to keep a check on your data as it is saved on the device itself. There is a fair chance of losing the data due to some virus or malware attack.
On-premise software had been a great help in the past few years. But, for the sake of a business’s development, cloud software are rising with great pace. And that is a smart choice you can make by dumping the old accounting system.
Guest Blogger, Sanjay Darji, SoftwareSuggest
Sanjay Darji works as a software analyst at SoftwareSuggest and