What is cloud accounting? Cloud accounting or traditional off-the-shelf (or desktop) accounting software is more suitable for your business?
Having the right-chosen accounting resources greatly assist a corporation to fulfill its accounting purposes and objectives in a timely manner. With the constant improvements in technology, businesses have options to select, namely Cloud accounting or Off-the-Shelf computerized software. Today, let’s discuss about the benefits of Cloud Accounting compared to Off-the-Shelf software accounting.
Cloud Accounting Software
Cloud accounting software is largely similar to the traditional accounting software. But cloud accounting software is hosted on remote servers instead. Users access software applications through a cloud application service provider over their network in order to access real-time information and make changes instantly. Beside other overheads, cloud accounting services are changed on a monthly basis, rather than one-off costs. The monthly service fees are PIC claimable.
Cloud accounting services are getting more popular due to its many benefits, which include automatic version updates and initial installation, maintenance or backup are not required. Businesses can switch to from the existing traditional system to cloud accounting without costly additions to the existing infrastructure.
With cloud accounting, users are able to access the same versions of software and data, even when they are located in different departments or branches. Achieving real-time reporting and visibility as well as greater collaboration capabilities even in remote areas through other means like tablets are also made easier.
Off-The-Shelf (or Desktop) Software
Off-the-Shelf softwares, on the other hand, are affordable to most SMEs and start-ups as they can be acquired and fully implemented at a low one-off cost. These softwares also come with a full range of features that every accountant requires to handle a simple or complicated set of accounts. Peace of mind and security can also be attained because support and maintenance contracts are provided. Users can locate the closest service provider to resolve errors or problems, without the need of an internal IT team. However, the maintenance costs are not claimable under PIC scheme. Additionally, off-the-shelf softwares are slow to adapt to industry needs cannot be discounted. Extra fees are chargeable for a newer version or slight customization to better suit your needs.
Both cloud accounting software and off-the-shelf software have their respective benefits as well as detriments. The surge of companies switching to cloud accounting in recent dates however, reveals a trend to users still deciding between the two. When it comes to easy access, there is no deny that cloud accounting takes the lead.