Over the years, business owners and accountants have used a lot of different accounting systems that resided on desktops or network systems, and the data is stored on hard drives. Many business owners and accountants even prefer to store their data locally, on a laptop or other device. However, with current development in technology, many users have made the shift from “hard drive” accounting to a “cloud” accounting system, where the use of a particular physical computer is not essential as all the information are stored in the “cloud”.

So how does this revolutionary system work and is it reliable? Let’s read more below.

Watch our video below or read the article underneath to understand more!

Reasons which led Businesses to opt for Cloud Accounting:

1. Cost: Accounting requires maintaining a number of files that are much bigger in size. Hence ultimately the user needs to upgrade his hardware from time-to-time which states to be costlier as compared to the cloud service.
2. Backup: Keeping the backup for the data adds to the problem of getting the hardware upgraded and upgraded much frequently, hence adding to the cost further.
3. Collaboration: With desktop accounting software, only one user can log in at a time, demanding you to carry your laptops and computer everywhere you go.
4. Business Decisions: In this era, businesses require up-to-date and real-time information about their business accounts to make better business decisions. Desktop accounting requires a lot of manual work and doesn’t provide accounting information in real-time.

What does Cloud Accounting offer Over Desktop Accounting?

1. Multi-User Collaboration: Cloud accounting allows multiple accesses at a time since all the data is stored on the servers online so that more than one user at a time can access/modify the data with their authorized access.
2. Remote Access: It provides remote access to its authorized users i.e. all you need to have is internet connectivity and authentic authorization.
3. Anywhere, Anytime Access: Cloud accounting makes it possible to access the data on the go. Most of the Cloud service providers offer its clients with the luxury of an application for the cell phones which works, pretty much, in a similar manner and requires connectivity to the internet.
4. 24×7 Backup: Accounting on cloud has a data backup plan where data is backed-up by the cloud service provider, so the user needs not be worried about creating a backup at several places.
5. No, IT Hassles: User is free from installing or updating the accounting software since everything is managed by the cloud service provider.
6. Cost and Time Saving: Cloud accounting reduces lots of manual work that has to be done in accounting such as manual data entry, manual upgrades, and data backups. Everything is automatic in Cloud, thus you don’t need to waste your time and money.

However, some argue that Cloud services are not safe to use as your data is vulnerable to theft. But, as a matter of fact, since the world is going online with most of the services being made available online, the companies are leaving no stone unturned to get the data as secure as possible.

Whether to go for the Cloud or remain at the Desktop is the question?

It all depends on how you perceive things and prioritize as per your needs. Making data accessible at any time, from anywhere along with working with the software that has much bigger and better improvements over the desktop version, then it better to go for “Cloud accounting”.

However, there are certain cons of Cloud accounting as compared to desktop accounting which includes, paying on a monthly basis, loss of control on data, and security and privacy issues. But these are of least importance when compared to the benefits “the Cloud” has to offer.

– Deepanshu Gahlaut