Cloud Accounting

Switching to cloud accounting and payroll offers numerous benefits that can significantly improve the efficiency and effectiveness of managing your financial data. You can access, review and update your financial data in real-time from any device with an internet connection. Pay for what you need with flexible subscription plans and benefit from advanced security measures, regular backups and secure data centres to protect your financial information. Ensure your data is safe and recoverable in case of hardware failures, natural disasters or other emergencies.

Cloud Accounting versus Traditional Accounting

The distinctions between cloud accounting and traditional accounting contain several core areas of financial management. It affects everything from how data is stored to how it’s accessed and protected.

Accessibility:

• Cloud accounting: Cloud accounting is a web-based software tool hosted on a remote server. Accountants can access the financial data using a relevant device with an internet connection. The data is remotely accessible. This flexibility and easy accessibility make cloud accounting a better option.
• Traditional accounting: A traditional accounting system is installed on local computers and on-premises servers. Access to financial data is often restricted to devices. Employees who work remotely can’t access the data without visiting the office.

Collaboration and Real-Time Data:

• Cloud accounting: Cloud accounting allows collaboration amongst team members. The accessibility option allows team members to work on a similar financial document simultaneously. If you are an SME (small to medium enterprise), using a cloud accounting system can enhance collaboration and provide real-time updates and availability of processed data.
• Traditional accounting: Collaboration in traditional accounting could be difficult, especially when multiple users want to access a specific file. Real-time updates may be challenging in this setup, as it takes some time to update the interface.

Data Security:

• Cloud accounting: Cloud accounting offers numerous security protocols to keep your data safe and secure from cyber-attacks. Putting your sensitive financial data on the cloud is perhaps the safest route to go. Only authorized personnel can access and edit data. It is advisable to migrate to a cloud-based system to ensure high-end security for your accounting data.
• Traditional accounting: Data security measures in traditional accounting are not as equipped. Data security depends on individual business security efforts and protocols. Moreover, backups are manually inserted and are vulnerable to human negligence and shortcomings.

Automatic Updates:

• Cloud accounting: The seamless and automatic updates in cloud accounting makes it the perfect choice for a small and medium-sized business. Users have uninterrupted access to the latest technology and business tools.
• Traditional accounting: There is no concept of automatic updates in traditional accounting. It requires manual insertion to update your current traditional accounting system or spreadsheet. Your accounting system may encounter downtime issues during the updates. The accounting team are responsible for the maintenance and improvement of the traditional accounting system.