Basically, cloud based accounting software is not that different from conventional accounting systems or accounting software that you are used to. It’s just that, the performance of cloud accounting applies the Software as a Service (SaaS) business model . All accounting data that you enter in cloud accounting is sent to “the cloud”, where it will be processed and returned to the user. In cloud computing, you as a user can access software applications via the internet by using certain cloud application service providers .
Using cloud-based accounting software as a business accounting system makes you no longer need to install and manage software on each employee’s computer individually. Cloud accounting software enables employees in various departments and even other branch offices to access the same accounting data through a uniform version of the software . Not only that, cloud accounting also makes it easy for you to get real-time accounting reports with collaboration capabilities.
What is the difference between cloud accounting and conventional accounting software?
Of course there are several things that differentiate cloud accounting from conventional accounting software . Cloud -based accounting software tends to be more flexible because it can be accessed from anywhere via any device as long as there is an adequate internet connection. Then, unlike conventional accounting software , cloud based accounting software regularly updates financial information automatically. This means that the data in it will always be accurate and errors can be minimized.
In addition, cloud based accounting software also does not require complicated handling when compared to conventional accounting software . Provider of cloud accounting, such as goalkeeper, will supplement the data with backups and updates are done automatically. You also don’t need to download or install certain software on your computer or device.
How is Accounting Data Security in Cloud Accounting?
No need to worry about the security of your accounting data. Cloud based accounting software provides a level of security that is at least equivalent to data storage in conventional software . For example, your computer or laptop that contains important accounting information could be lost or stolen. This can create a risk of data leakage. Meanwhile, cloud based accounting software will not leave a trail of these important data on your computer or device. Access to cloud accounting data has also been protected using a password and encryption system.
Data sharing also tends to be safer. Through cloud based accounting software, you and other employees can access the same data only by using certain passwords . This is certainly different from conventional methods which often require you to use flash drives when you want to transfer data, which has the risk of being lost or stolen.
In addition, most cloud accounting providers have backup servers in two or more specific locations. If something goes wrong so that one of the server networks goes down, you can still access your accounting data through another server . Compare it with data in conventional software that can be lost because the device is damaged or other bad things happen.
Interestingly, cloud accounting can save on company expenses because you don’t need too much server infrastructure to store data. You also don’t have to hire IT employees to manage or update a cloud accounting system . So, for business continuity, make sure your accounting system is well integrated through cloud accounting.