Cloud accounting vs. normal accounting

Why you should switch to cloud accounting

We already know that cloud-based technology has taken the world by storm, allowing us to get things done in less than half the time that traditional methods allow. Cloud-based tech has revolutionised industries around the world in more ways than one; when it comes to accounting, it’s completely evolved the way accountants do business and has added a level of value for businesses that is quite unprecedented.

If you’re still curious about exactly what cloud accounting is and why you should use it, you can catch up by reading this blog post. Otherwise, keep on reading for a gist and to find out how cloud accounting compares to traditional accounting.

Traditional bookkeeping vs the cloud

Today, cloud accounting is one of the most reliable accounting systems and practices in the market. Traditional and cloud accounting differ on two important factors, one of them being that traditional accounting is done with a bookkeeping system while cloud accounting uses technology. Both accounting methods have their own pros and cons, but you will find that cloud accounting has more advantages than disadvantages.

Time, costs and convenience

Bookkeeping involves manual processes of keeping track of financial transactions. It is a tedious task and can also be somewhat unpredictable and costly. The expenses can be difficult to control because the data can be scattered and misleading. But with cloud accounting, you need not worry about money being lost or misused.

Traditional accounting also requires you to take part in the decision-making process which can lead to many problems. You are required to keep track of changes before submitting any financial information to the bank or other accounting firm. With cloud accounting, everything is automated, and you can get a true account of your company’s activities.

Methodologies

A traditional accounting system is primarily based on manual methodologies which are easily prone to errors. The costs and expenses can be mismanaged because the data does not match the calculations.

Traditional accounting requires you to pay a large amount of money to the bookkeeper who can refuse to handle certain tasks if it does not fit into their schedules. With cloud accounting, you can delegate or sign up other companies like ours to handle certain tasks that you want to get done. You can now enjoy complete control of your accounting system as your outsourcing company will handle all the tasks that you want to have handled.

Ease of use

Traditional accounting can sometimes be complicated because you do not have the capability to access it from the comfort of your home. The information is stored in a centralized server, so it is hard to find the data that you want. Traditional accounting also needs an accountant who will handle the books for you and help you make sound decisions. With cloud accounting, all these factors become a struggle of the past.

The biggest advantage of cloud accounting is that you can access it from anywhere. You can create reports anytime you want to, and they will automatically be sent to your email inbox. You can also audit your bookkeeping practices at any time you please to the satisfaction of your business’s stakeholders.

What are you waiting for? Cloud accounting is here to stay, get in touch with us today!