Cloud Accounting v Traditional Accounting

Introduction

The popularity of cloud accounting is at an all-time high. Accounting itself has been around since well before paper money; with the invention of calculators the process became quicker, and with computers and now the cloud it has continued to improve. Cloud accounting means using internet services and storing the data on an online server that can be accessed from anywhere, much like an email account.

Benefits of cloud accounting

1. Cost. Cloud computing is generally lower in cost than traditional on-premise computing. You avoid large local files, the cost of software upgrades and separate arrangements for data backup, and you can work from anywhere.
2. Backup. The work of taking backups regularly, having adequate resources to do so, and labelling backup data systematically is avoided altogether.
3. Multiple users. Several people can access the same data simultaneously, whereas a traditional on-premise file typically allows single-user access and has to be carried with you.
4. Real-time update. Cloud accounting reflects data as it is entered. In traditional on-premise accounting an update is only visible once the user synchronises the local data with the main system.
5. Time savings. A cloud system can automate recurring entries once a template is created, whereas a traditional on-premise system requires each entry to be keyed in manually, even when it recurs.

Is cloud accounting the right choice for you?

It depends on your requirements and how you prioritise them. If you want to give access to multiple users from anywhere, want real-time updates, and want to avoid the work of system upgrades, scheduled backups and log file maintenance, then cloud accounting is likely to suit you.

What if you are not comfortable with cloud accounting?

If you move to cloud accounting and are not comfortable with it, you can export your data to a spreadsheet or another format offered by the software. If you stop paying the subscription the software may not permit you to access the data, but the data itself remains subject to the provider’s security obligations.

Wrapping up

If you need a view on your own situation, or want accounting services on either a cloud or on-premise system, feel free to contact us at cs@bkcprohub.com.