Jeremy wants to know more about cloud or online accounting software, if they are truly a cost-effective solution for a small business. We spell out six clear benefits of goodhosted accounting software.
“I read a lot of excitement about cloud accounting especially for companies with limited budgets. But at the same time wouldn’t it be costlier in the long run considering that you need to pay a monthly fee forever? What is the best alternative, then?” – Jeremy, TN
Hi, Jeremy. That’s right. One of the main advantages of hosted accounting software is also its main drawback. The monthly subscription fee will surely add up to a total cost that’s much higher than an on-premise accounting software over a five- to ten-year period. But that’s only true when you look at cloud accounting from a cost perspective. You should also review it at a cash flow point of view; that is, it can be one of the best solutions for a small business that is perennially short in cash simply because you can afford it month in and month out.
If you’re in the process of deciding which system is best for you, see how the best accounting software stack up against each other. In this list you’ll find many systems that offer a hosted cloud-based solution. You might also want to learn about the bottom line for selecting accounting software. The criteria presented will be of great help in your decision-making process.
Whether you’re entertaining doubts over a cloud-based accounting solution or are seriously considering one, this article from Forbes, “Are Cloud Based Accounting Apps Ready For Prime Time? 5 Things You Should Know,” should help you make up your mind.
Once you’re done reading the resources provided, consider these. Aside from being cheap (some vendors even offer free trial for a month or more), hosted accounting software can make running your financials simple and easy with these other benefits—
Since the system is hosted online, you can enter data and access reports anywhere there is Internet connectivity. Furthermore, most hosted accounting softwareservices provide a mobile app add-on so you can access data via your smartphone or tablet. This flexibility works best if you’re always outside the office, at home, or on location, but you need your data to make informed decisions. It also helps your sales team to update their reports real-time while on the road.
Somehosted accounting software services allow unlimited multiple users at once. This is handy for companies with sales team or inventory units that need to access data everyday as part of their routine work. That means many of your staff will be using the same system at once, a benefit that even professional on-premise software program cannot match.
Most online accounting software vendors provide top-of-the-line security and backup systems. The monthly subscription fee includes these features. This bodes well for small companies that cannot afford their own top-level security and backup hardware.
There’s a misconception that putting your data on the cloud with these vendors is risky; but hosting your data on your own is even riskier if you cannot match the robust security infrastructure that top and popular cloud accounting vendors enjoy.
Cloud accounting vendors have a suite of add-ons that you can easily integrate once your business grows bigger and your accounting needs get more complex. Thanks to its flexible modules, many cloud accounting systems can serve the simple needs of a small business, as well as the complex processing of a large enterprise. With this flexibility, your cost is also scalable. You only pay for what you need NOW.
Cloud accounting services are regularly updated so you’re guaranteed to be using the latest features. This also protects your data from malwares and viruses. Regular updates put hackers and viruses that are starting to learn the system’s backend infrastructure off the track.
Cloud accounting is still the better solution for small and medium businesses. It’s the future of accounting software. Rather than look at its long-term costs, look at the benefit of managing your cash flow every month.
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