Many business owners are turning to cloud accounting to streamline their bookkeeping matters. We’ve listed down the frequently asked questions about cloud accounting for you to deliberate the equation of cloud accounting vs traditional accounting.
What is cloud accounting?
Cloud accounting is a new method to manage your business accounts online. Using simple cloud software, you get a consolidated view of business accounts, payroll, and other financial functions
How does cloud accounting work?
Cloud accounting stores your business’ financial information on the cloud, meaning online. It allows you to access this consolidated information from anywhere and anytime. Just ensure that you have a stable internet connection and a remote device.
What devices can I use to access the application?
Cloud accounting applications have been designed to be used on devices other than computers. These devices include iOS and Android-based tablets and smartphones as well as laptop computers.
What are the benefits of using cloud accounting?
In the duel of cloud accounting vs traditional accounting, the former trumps the latter. Traditional accounting requires you to have a central office-based computer, while cloud accounting provides access to real-time data in your remote device.
Real-time data in a consolidated fashion allows you to better understand your financial position and enables more effective business decisions.
Cloud accounting also eliminates the need for a dedicated headcount for bookkeeping, allowing you to focus business resources on other areas that matter.
What’s the main difference in the equation of cloud accounting vs traditional accounting?
Traditional accounting requires you to install software on your desktop computer. Just like all software on a computer, it will need to be updated from time to time. Certain versions of this software also require data backup, which can incur a cost. Cloud accounting simply runs on the internet without any of the requirements of traditional accounting.
What can I do with cloud accounting?
Cloud accounting consolidates the following aspects to give you better visibility of your business’s financial position:
Do I need to have the accounting expertise to use the application?
Most cloud accounting applications are designed for non-accounting users. To make the most out of the application, it would be good to have basic accounting knowledge. This would help you better understand the numbers to make effective business decisions.
Will training on the software be provided?
Training of the cloud accounting software will be provided depending on which package you opt for with your cloud accounting provider. After a 3-month period, you may raise questions or issues with your provider and they will assist you accordingly. Should you opt for no training, you may self-learn the software by watching online videos. One of our most loved online video sources for self-learn cloud accounting software is Xero and you can find a comprehensive library of using Xero for your business here.
Is it safe to use cloud accounting on the internet?
Most cloud accounting applications have been engineered to match modern standards of cybersecurity. However, you can be susceptible to data leaks if you fail to adhere to security basics such as using a strong password, never saving your password on foreign devices, and setting up multi-factor authentication.
There is a clear winner in the battle of cloud accounting vs traditional accounting, which most business owners are aware of. You too can elevate your business position in the market by adopting cutting-edge cloud accounting solutions to provide a sense of financial clarity.
Engage a cloud accounting provider today to make your big business leap.
Frequently Asked Questions About Cloud Accounting, CloudBasedAccounting. Accessed on Oct 13, 2021, from Frequently asked Questions about cloud accounting | Cloud Based Accounting Ltd.
Having Questions About Cloud Accounting Solutions? Get The Answers Here, Cogneesol. Accessed on Oct 13, 2021, from Having Questions about Cloud Accounting Solutions? Get The Answers Here (cogneesol.com)