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Cloud-based accounting software: A beneficial but challenging system

Nowadays, companies have started giving preference to cloud-based accounting systems rather than using any costly software provided by the IT firms which need the maintenance every now and then. They use the online accounting software available by paying the charges and free themselves from the problems arising in the traditional accounting software. In this way, they make their financial operations hassle free.
In countries like Australia and New Zealand smaller organisations are moved towards cloud-based accounting systems. They even have the organisations training these types of software

Few details about cloud-based accounting systems:

  • Cloud-based accounting systems are the most used software in Australian continent.
  • These are the systems which supports smaller organisations to accomplish their day-to-day accounting tasks, financial matters regarding their workforce and cash.
  • Use of this software is beneficial as compared to the manual systems which are time consuming and full of many errors.

The cloud-based accounting systems have numerous benefits over the traditional IT systems or manual systems. Let’s discuss few of them here.

  1. Work for your company from anywhere- A cloud-based accounting system comes with a benefit of accessing your work from any location using any device. This increases the productivity of the employee as he or she can work while travelling or while on site or after returning home or on the holidays also. One can spend time with their dear ones; can have meetings with the clients without losing connection to the office.  Also, there are support systems like MYOB assignment help to assist you on your queries online. This makes the employee stress free.
  2. They are time saving software- The manual accounting systems work very slowly and hence are time consuming. We need to enter the same data again and again which in turn wastes too much time and sometimes money also.

On the other hand, cloud-based systems systemize many processes like sales and purchase orders, payroll system, etc. and information is synchronised in such a way that it need not to be entered repeatedly. It saves the time.

  • Makes business analysis easy- Cloud-based systems generate important reports like account statements, balance sheets, income and expenditure reports, etc. with ease which helps in monitoring the proceedings of the organization.  Due to this, management can have an idea about financial problems, growth and many other things in order to make future plans.
  • Accuracy- When an organisation uses the manual accounting system, it is obvious that accuracy will not be 100% because human tend to make errors. It is also possible that, the data they are using is not updated. But, with modern cloud-based systems these problems do not occur because they automatically operate the processes and also have facility to spot and delete duplicate information and correct the errors.

They also keep information updated, hence there is no danger of working with out-dated data. This gives clear and accurate picture of the economic condition of the company and helps to gain financial strength.

  • Less expensive- If an organisation uses IT infrastructure for accounting, they need to invest on hardware, software and accounting charges. While if they opt for any cloud-based system, they just need to pay the monthly charges and use it online. This reduces the cost for maintenance, updates, etc.

Although cloud-based accounting systems are very beneficial, one can face some challenges also while using them. Let’s have a look at them also.

  1. Data Security- Cloud-based accounting systems are online systems and hence data entered in them can be accessed by hackers or other threats. Although, they are spending much on the safety, it is almost unaffordable to some small organisations to invest to have safe user access and agreement procedures.
  2. They are complicated to handle- Many cloud-based systems are not that easy to be used. Employees need to be trained properly to use it fluently. Even the accounting students, who learn this type of software, find it complicated while learning and hence many of them reach out to someone helping to solve their assignments like MYOB assignment help.

So, few are finding cloud-based accounting challenging, many are considering it beneficial but surely it is becoming a popular choice.