Technology February 24, 2020 Last updated March 13th, 2020 89 Reads share

The Beginners Guide to Navigating Cloud Accounting Software

Image Credit: DepositPhotos

Wilhelmine Rosa Smith and Ramon Rosa Smith are the owners of a small enterprise. They struggle with the bookkeeping because they are not professional bookkeepers. They would like to outsource their bookkeeping but service is expensive and they cannot afford it at this stage of their company’s growth. They have been hearing the latest buzz words Cloud accounting software in their circuit. They have also heard that Cloud accounting is safe. Their files will never get lost or destroyed. They can access their files from anywhere in the world.

Along with them let us find out what Cloud accounting is and what are its advantages and how will it benefit in new business?

What is Cloud Accounting Software? 

In today’s world, everyone uses computers. All the data you key in is stored as a file either in your external or internal hard disk. You are aware that all your data can be lost in case of theft, accidentally deleting the files or in case of natural calamity. The stolen data can be easily used against you and your business interests. In a matter of seconds, your business can have a major setback in terms of accounting and starting from scratch is an arduous task.

Cloud Accounting software clears all these obstacles. All your data is stored away from your computer, online in a server which could be situated many miles away from your computer. In case of harm to your personal system, it does not affect your stored data at all. The software also safeguards your data from viruses. The benefit of cloud accounting software is that you can access it from anywhere.

Many business accounting software products are user-friendly. They are designed for non-professional business owners to help them for efficient bookkeeping, making it easier for them to understand and operate it.

How Does Cloud Accounting Software Operate?

Cloud Accounting software can perform all the basic bookkeeping and accounting functions both manually and automatically.

The most important aspect of Cloud Accounting software is that it does not require, “installation,” unlike the systems you are used to. The answer to your question as to, “How will I operate it if it is not installed?” is: You would have to open a Web browser and go to the official website of the provider. Then would have to log in with the password and user name of your company. In a short while, the information that has been stored in your account can be accessed, updated and stored in Cloud.

Advantage #1: Unlike before when the work could only be performed from a particular computer, data will now be available, accessed and updated from anywhere. There is no cap on the amount, the technical or the manufacturing aspect of the data that can be stored.

Advantage #2: HostBooks offers the best cloud accounting software by the name of HostBooks. The software has the capacity to protect the data from being spied on, stolen, damaged or destroyed. All data is encrypted for total safety.

Advantage# 3: This kind of software is really SaaS (software as a service). The services of a human bookkeeper are expensive, with the scope of human error, delayed working and data being lost in transit apart from being stolen or destroyed. This software is not vulnerable to human error, delay, loss, or destruction. It is safe and reliable.

Advantage #4: Cloud-based accounting systems are capable of performing all the basic functions such as financial reporting, cash credits and debits, monetary inflows and outflow, bill and receipt management, preparation of the invoice, tracking amounts receivable and amounts payable. It can also take care of vendor and customer profiling. Some accounting software can manage inventory quotations and the company’s payroll. There some other add-on services in select packages and some companies also give you additional features such as bank reconciliation and synchronization and cash flow snapshots.

Advantage #5: Business accounting software takes care of all the tedious work of data entry and manual reporting. There is no need to worry about maintaining and updating systems. It is easy to recover data that can be lost due to accidental deleting or misplacing.

All these advantages help in saving time and effort which results in better productivity.

Other important aspects that a business owner should know about the business are stated below.

  1. What amount should be spent on accounting software?
  2. What is the monthly turnover of the business?
  3. Are you planning the expansion of the business?
  4. Who all from the staff will operate this software?
  5. What percentage of the software should be customized?
  6. Does the software need to generate reports and payrolls?
  7. Do you want to include inventory and invoice generation?
  8. Do you want integration of the present and new software?

It Requires a Little Effort to Achieve the Right Results

HostBooks gives the option to install the whole software at once or on an “as per needed” basis.  During the installation period, the company guides the client through the first few months, 24X6, so that the client gets accustomed to handling a new software.

HostBooks offers a monthly subscription, to help built trust of the client so they can feel confident and satisfied with the product.

All options are available in the market. The pricing modules vary from company to company and from feature to feature. Not all models are suitable for every business. You need to survey and study the model carefully and take expert advice before opting for any Cloud accounting software. You can ask for a trial period and test whether the software is suitable for your business requirements. You can also customize the software and ask for changes and tweaks in the software to suit your needs perfectly. There is no formula like one size fits all in the Cloud accounting software, so there are many options available for you to select from along with the availability of customization.

cloud computing – DepositPhotos

Kapil RANA

Kapil RANA

An entrepreneur, Kapil is a qualified CPA and Fellow Chartered Accountant, a first class management and law graduate, advance qualification in information systems. He is a kind of personality who keep on kindling and challenging the fire of knowledge, so that it does never vanish. Pursuing the same trait, Mr. Rana is all set for his new venture, ‘Doctorate in Business Administration. He is the founder of HostBooks, along with experience on strategic management, corporate development & structuring of multinational organizations. He resides in California (Bay Area) and spends his time off playing squash and debating service innovation, politics, sports and of course, corporate.

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