Many companies prefer to use Traditional Accounting methods to manage financial reports. They may either have an Accounting department where people are employed to handle the reports or hire third party accountants to make the reports. While this works pretty well for small businesses, for larger ones this may not be the best method, especially those that have multiple branches.

When a company is dependent on traditional methods for accounting, there will be a delay in the transmission of data. If you have multiple branches, then they would need to compile their data , send it to the main accounting department in the head office and then the data will be compiled and the reports will be made. After this the reports will need to be sent to the relevant parties. All of this takes time and can crate unnecessary delays. There is also an increased risk for errors to be made due to the way the data is sent. Then there is the cost of renewing software and ensuring everything’s operating smoothly. Simply put, unknowingly the process of accounting is a hassle.

So what is the solution? The answer is Cloud Accounting.

Cloud Accounting is similar to traditional methods of accounting where software is used to create the reports and handle the data however this software is hosted on a remote server. Therefore Data is uploaded into the remote software also known as a ‘Cloud’ and then the software calculates what you want and sends it back to you. All the functions and calculations are done on the remote server and not on your computer therefore it brings a lot of advantages to the company.

The most important one is that there will be no delays in compiling data and sending them back and forth. All the ones who are involved can easily use their internet and access the software therefore there is no delay in sending files, etc. Thus the information can be easily accessed by the authorized personnel regardless of their location and which branch they are working in.

Furthermore the costs of installing, maintaining, updating and renewing software are entirely eliminated. To install software across multiple devices and then updating them when required and renewing them every year can be very expensive in the long run. When you use ‘Cloud accounting’ on the other hand, the software is kept up to date by the company responsible for the service. Therefore you only need to pay them for using the service and nothing else.

To use ‘Cloud Accounting’ you need to be trained to an extent however there are many places that provide you with training such as xero training singapore and these are very affordable. So you do not have to be worried about costs. In the end the future is in Cloud Accounting so go ahead and embrace the technology.