Are you troubled by your traditional accounting software? Want to switch to a web-based accounting system? SaaS accounting software will provide a perfectly tailor-made solution for your accounting needs.
Like its name, Software for Service, a SaaS company hosts Subscription-based applications on its server to provide remote online access to its users. The software could be accessed through a web browser without the need to install it on desktop and mobile phones.
There are no upfront costs, no need for a license; only the users pay a subscription fee monthly and annually. In addition, the charges depend upon how much data needs to be stored, the number of users accessing it, and the degree of technical support the software may require.
Some perfect examples of SaaS companies include:
- Netflix,
- Spotify,
- Gmail,
- Slack,
- DropBox.
What is Saas accounting software?
Like other SaaS applications, SaaS company allows users to access the cloud-based accounting application on the internet while it remains on their server. The company takes care of the maintenance and software updates, while the users only pay a monthly rent for accounting software.
SaaS applications were created to handle the workload of e-commerce businesses that wish to save on cost and time. SaaS companies themselves feel the necessity of getting a special featured accounting software to meet their ever-growing needs.
These companies are scalable, thus expanding, and also have extensive businesses. So they need a customized solution that would include pre-built ARR reporting, subscription billing, multi-channel cash flow management, payment & CRM integrations, uncapped transactions volume, and cloud-based software.
SaaS companies need software that would combine all multi-channels to form one entity and provide automated reports on one click.
Keeping tabs on Monthly Recurring Revenue is quite challenging for them. Still, some automated accounting for SaaS companies like Synder can save them from the hassle of manually entering data in traditional accounting software, which is time-consuming.
Benefits of using SaaS accounting software:
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Saves cost on hardware:
Because of its automated features, SaaS companies don’t need to hire skilled persons to operate the system. Furthermore, as another company hosts it, there is no spending on equipment which saves the cost of buying or replacing the hardware. The most salient feature of SaaS accounting software is that it can control your budget and knows what time an ARR can be used.
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Time-saving:
Several payment systems could be settled by adding them to the software at once, with no need to open multiple pages or add the bookkeeping information manually into the software. This automated functionality of the SaaS software saves the processing time on financial statements.
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Automated processes:
The most significant benefit of this software is that it sends automatic payment due date reminders and sends marketing emails to the customers. Furthermore, there is no need for manual invoice management. Once the payment is received, it will automatically reassemble with the invoice in the SaaS account.
The beauty of cloud computing software is that it is accessible from every device globally. In contrast, traditional software needs to be installed on a computer before and cannot be accessed remotely without using third-party software. Having more accessibility that SaaS offers improves customer service & communication.
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Upgrades:
There is no need to upgrade SaaS accounting software because the host company provides this service. IT professionals don’t need to upgrade, nor do they need to learn how to do it. Furthermore, adding user accounts to the software is also easy.
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User-friendly:
The best feature of SaaS accounts software is its interactive interface. It is easy to navigate and simple to use. A person need not have any accounting knowledge to use its automated features, which can generate profit & loss statements, with one click of the button.
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Provides security:
With traditional accounting software, it is essential to back up after the end of each day and keep it updated as soon as the new version is launched. But SaaS accounting software is cloud-based, so the work is saved automatically; no need to make any amendments. Also, the data is encrypted on the cloud, so there is no fear of the hard disk getting corrupted.
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Easily adaptable:
SaaS companies have a far reach, and their roots are generally spread worldwide. So, they need flexible software that is already optimized and can adapt to changes as the company expands. SaaS accounting software is created by keeping these pointers in mind, and in the future, many features can be added easily by the host company. It saves the hassle of redownloading the software.
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Multi-currency support:
As they sell their services worldwide, there can be currency conversion issues with SaaS companies. Still, SaaS accounting software offers multi-currency support so that the customer can pay in their preferred currency quickly. This feature will have a good impact on the company’s customer base and contribute to its growth.
