From old age Bahi-Khata we have come to computerized accounting system. Computers have helped human race in many ways one being cost cutting and faster execution.
In India computerized accounting saw the golden period in 90s and more and more people have adopted it. Technology is changing at a faster pace, from desktop we have seen cloud based applications and mobile applications.
There was a time when you had to install a software on your computer, but now most of the companies are moving to cloud based applications.
Why cloud based applications are better than traditional desktop based software?
Advantages of using a cloud based application are:
- Lower cost of computerized processing: A standalone desktop software costs more than an application hosted on cloud. Applications hosted on cloud are cheaper.
- No installation required: You do not have to install any software on your computer. Cloud based applications can be accessed through your browser from anywhere.
- Lower risk and higher availability: Cloud applications are more secured than your desktop application. Applications are hosted on secured data servers and data is exchanged using SSL certificates. Even if your computer crash, your data will be safe. Data is not saved on your system but at the application server.
- Low learning curve: Most of the cloud based applications are really easy to use. Learning time is very minimum. If you are trying to migrate from an existing software to a cloud based application, it will not much time or efforts.
- 24/7 availability from every device with internet connection: Cloud based applications are available 24/7 from every place and on every device with internet. You do not have to travel to your computer for doing your work. You can work from you home, hotel or holiday trip.
- Group error or functionality reporting: Every user who has subscribed the application will be using same code, so if you are facing any issue, it should be faced by everyone. It means, you do not have to update your software, application will be automatically updated upon error fixation.
- Free updates and maintenance: Most of the cloud based application are updated for free. You do not have to pay for updates and maintenance.
These were some of the benefits, you will be getting by using cloud based applications. You will witness more benefits, once you start using them.
Why you should a cloud based accounting application?
Accounting is blood line of any business. Relevant and accurate data is demand of every business to take timely and efficient business decisions.
Major problem with a desktop accounting application is that, the system on which accounting application is installed should be available to get data. Software becomes slow with more entries, and if accountant is not present, it become an impossible task to retrieve reports.
As I have already mentioned, that cloud based accounting applications are available 24/7, you are not required to a single system to account or generate reports. Even if accountant is not present, a person with internet knowledge can generate reports.
This was just one simple example.
Cloud based accounting software comes with lot of features and are not limited to only accounting part. With a single subscription, you can manage payroll, Documents, team etc. It is very easy to include a function in cloud based application than in desktop software.
You do not have to worry about computer crash, presence of accountant, data management, accounting reports, updates, or slow performance. Cloud accounting applications are really fast, secure and easy to use.
My data is safe on cloud based accounting application?
This is the most frequently asked question about cloud based applications. Everyone care about their data and do not want to lose it or allow others to misuse it.
Believe me your data is very safe and secure on cloud servers.
If we talk of security, how many times you user internet banking? Every time you use internet banking you are accessing data residing at a distant data server.
If banks can manage such a huge and highly confidential data, you should be very confident about your accounting data.
Your data is very secure and accessible only by you. However you need to keep a strong password, and never disclose it to anyone.
A person who has your login id and password can only view the data. It is a good practice to timely change your password.
How cloud based accounting software benefits accountants?
I am a chartered accountant, and believe me auditing a client who maintains his accounts on cloud accounting application is much easier. I do not have to take backup of clients data and save it on my laptop.
I can access clients data from any where using my web browser.
I have accounting clients, I do not have to send a person or visit clients place for accounting. Neither client has to visit my office for getting reports. Even presence at office is not a requirement, accounting can be done from any place.
Cloud based accounting application, that I use has helped me to make a paperless office. Time wastage on mails has reduced, follow ups with client has reduced and I am able to effectively manage office and clients.
If you too are an accountant, cloud based accounting applications can help you in following ways:
- You save time, you do not have to visit clients place for accounting or report generation.
- Your efficiency will increase. Most of the tasks can be automated.
- You can work from home or any place with a laptop and internet.
- You do not have to follow up with clients for data required to file monthly returns. You can access their accounting data from your office and file the returns.
- Data available on cloud based accounting software is up to date compared to a desktop based accounting software.
- Clients can check their reports online, they do not have to call you every time for a report. Many accountants are always depressed and find that they are always busy in giving customers balance to their clients instead of working on their revenue generation services, your clients can directly check the balances instead of calling you each time.
- You cut cost in providing services. You do not have to take frequent print outs.
- You save time in generating reports. Cloud based applications come loaded with multiple reports and if you require a report frequently, you can request the report to application provider and it will be made available for future use.
- Data backup, different versions of data and up to date data problems are solved with use of online accounting applications. The data available will be up to date and you do not have to worry about different versions of data.
- Audit trail is added benefits. Most of the online accounting applications keeps a track of users posting the entries. You will be aware of, who has posted the entry.
These were some common benefits, with my experience I will always recommend to use an online accounting application than a traditional old fashioned desktop based accounting application.
How online cloud based accounting application can help entrepreneurs and is best for startups?
Online accounting applications come with powerful dashboard to give you most frequently required information about your business.
Startups and entrepreneurs needs to keep their costs low. Expenditure of accounting department is avoidable or at least can be minimized with help of online accounting applications.
You can reduce the costs and also improve reporting with online accounting applications. Here are the few thoughts I have in my mind.
- You don't have to keep a separate computer for only accounting job. Your accounting application can be accessed from any system and by anyone who has a valid login id and password.
- If you are at a very initial stage, you don't even need an accountant. These applications, at least Tiktant can be used without accounting knowledge.
- You can save your documents such as expense bills and thus avoiding searching physical documents every time.
- You can access from anywhere. As a startup founder, I hardly sit at office. I can check my reports from any place and can generate invoices at clients place without bothering team members sitting at office.
Top online accounting applications in India and why I recommend Tiktant
There are many online accounting application, a simple google search will give you the list of top online accounting software in India.
I recommend Tiktant, because I coded it!!! Yes Tiktant is an online business management application with accounting at core. Tiktant is my dream project to change the life of accountants and business owner. Tiktant is latest offering in its segment. I recommend you Tiktant because:
- Tiktant is made in India. It understand Indian accounting better.
- Logic to coding is done by me, a Chartered Accountant.
- It helps you manage documents.
- Team management and task scheduling is a bonus.
I hope you will migrate to cloud sooner, already a large number of businesses have migrated to cloud based systems in developed countries. Normally developing countries catch the bus later, even in India large number of business owners are migrating to cloud application.
You can contact me for any help in migrating your business accounting to cloud based applications.
Posted 3 years, 2 months ago by CA Pulkit Sharma
I am also using online accounting software for my clients. I find them really good compared to desktop based accounting software.
I can check reports on mobile, tablet and don't have to worry about going to a particular laptop or computer for accounting.
Life is really easy.
I hope more and more people will start using online accounting software and make their life wonderful.
Posted 3 years, 2 months ago by Rahul Rai
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