Cloud technology has revolutionized the world in a small-time. Many businesses all over the world are managing their transactions and other financing chores through cloud-based accounting platforms.
It’s an intelligent decision as cloud-based accounting applications help a business to function with increased productivity and pace. They furnish insights into the financial condition of a business and help your business to grow faster.
The good news is that you don’t even have to spend a penny to enjoy all these perks. Digi Khata, a free cloud-based bookkeeping app can help you to manage your accounts online. Your data is encrypted and only someone who has your login information can access the data.
If you wish to know more about the drawbacks of conventional accounting platforms, then we have compiled a list of some major drawbacks.
Drawbacks of Conventional accounting platforms
- Users have to update accounts and other information manually and if not updated on time, the data can be lost
- A conventional accounting platform use up a lot of time, energy, and money to update while cloud accounting applications get upgraded automatically
- Conventional accounting platforms usually don’t have an option to keep backups and if there is an option, it takes a lot of money and effort to keep backups
- It only functions on one device and users have to transfer data from one location to another via a USB drive which risks security and reliability.
- They allow only one user to access the account while other important team members can’t manage the accounts
Benefits of Cloud-Based Accounting Platforms
Here are some of the benefits of cloud-based accounting platforms.
High Security
Your accounting data is a valuable asset to your business and your hard drive is not a secure place to store it. A cloud-based platform offers top-class security to your data by saving it in on secure servers.
With conventional accounting platforms, your financial data lives on one computer. In case of a disaster, your business operations will come to a halt. On the other hand, cloud technology enables you to store your accounts securely on a remote site.
It means that a disaster will not impact your business operations if you and your team have any device with an internet connection.
What’s more, cloud-based accounting applications let you keep the level of access as per your choice if you allow other people to access your information. It’s safer than the traditional way of sending data via email or giving people a USB drive containing your information.
At Digi Khata, we prioritize your data security over anything else. If you use our app to maintain your ledger accounts, you can rest assured that the safety of your accounting information is air-tight.
Accessibility From Anywhere Anytime
The most valuable advantage of a cloud accounting mobile app is that it enables multiple users to access the accounts from anywhere, anytime, and from any device.
Busy entrepreneurs can create and submit invoices while commuting or waiting anywhere. Previously, employees need to go to a physical office and sit in front of their devices to maintain their accounts.
As we carry our smartphones with us everywhere, it means that your accounts information is also with you, safely stored in the cloud.
Seamless Invoicing
Cash management is vital for running a successful business. Many small business owners use the tedious traditional invoicing methods which means that they either manage their invoices manually or on a software that is not integrated with their bookkeeping software.
An integrated billing system rids you and your employees from the hassle of copying invoices into the bookkeeping system. Moreover, you will not be able to monitor your books receivable carefully which directly influences cash flow.
Cloud accounting apps also allow you to collect your receivables via automated invoice reminders. Plus, it allows you to automate billing for repeated transactions which saves you time as you can put some of your invoices on autopilot.
Digitalized Accounting
In today’s digital era, even micro-businesses like grocery shops and small general stores should say goodbye to paper bookkeeping. The reason is the easy access to digitalized accounting.
With free bookkeeping apps featuring cloud technology, everyone can go paperless and manage their business and even personal ledgers electronically.
Accounting diaries can get stolen, lost, missing, or damaged, which may result in great destruction for your business. On the contrary, accounts saved in a cloud-based platform are not only secure but also can be accessed at all times with a few taps.
With such ease available, who would want to shuffle through documents and search for endless hours for business reports. Businesses owners have realized this and are switching to cloud-based platforms rapidly.
If you are thinking to start a business, using a cloud-based accounting application will also help you to reduce costs during the initial thrifty time. It will save the cash used up on ink, paper, and document cabinets that you can spend on other important resources to flourish your business.
A Neat Information Panel
When you maintain your ledger in a paper diary or spreadsheet software, everything is messy and confusing, and making it neat and clean is a tedious and time-consuming task.
A cloud-based platform shows you a panel displaying valuable business data such as accounts payable, accounts receivable, and the overall cash flow in a neat and clean interface. The cash register, suppliers and buyers list, and financial reports, everything is organized with a few clicks.
Conclusion
With changing times, businesses need to adapt and use all the resources available to make their business successful. A small business needs a cloud-based accounting app more than a large corporation because they have smaller budgets and teams.
A cloud-based accounting app will help you to increase your small business’ revenue as you will be able to manage your finances and monitor the cash flow closely and easily.
Switch to cloud-based accounting today and get an edge over your competitors!