Improvements in technology have meant that businesses can now upgrade from spreadsheets to online based systems (cloud based accounting software) to manage their finances.
How does online accounting software work?
explains that being cloud based means that your accounting software is available 24/7, anywhere that there is an internet connection (as well as through applications for smartphones).
'Your online system can also be linked to bank feeds for up-to-date and accurate syncing with your accounts, which makes for super easy reconciling. The data itself is backed-up off-site, so safer than storing on your own computer system.'
Sounds simple?
Well not quite. You must consider these four things if you want cloud based accounting software to work for you.
Three things to consider when moving to cloud accounting
#1: Desktop or cloud?
You need to consider your accessibility preferences.
'Desktop software sits on your computer whereas cloud software can be accessed from anywhere, of course if you don't have an internet connection then you also won't have access to your software,' says .
The site goes on to explain that cloud software generally has an on-going monthly fee whereas desktop software will have a set purchase price.
Don't forget though, that you'll need to buy updates for desktop software regularly.
If sending backups to your accountant is a pain, you'll be glad to know that with cloud based accounting you can simply grant your bookkeeper or accountant access so they can log in and work.
#2: Is it scalable for my business?
Cloud accounting software such as Xero, Quickbooks and MYOB have various packages to suit sole traders and large businesses. This means your accounting system can grow as your business does.
#3: Integration with other software and applications
Functionality for your business is key; so integration with other software is important.
explains that the beauty of cloud computing is that you can tailor-make a streamlined system to suit the functions and processes of your company through the integration of other software.
When choosing the software, check that you're going to be able to integrate your accounting software with other third-party systems, or other software you may come to require, such as inventory management.
'You don't want to have to take information from one system and enter it into another. Make sure the systems you're going to use can talk to one another.'
Usability and customer support are also important considerations to make. You'll also be glad to know that most providers offer a free trial.
This'll help ensure you give the software a try before you buy it and decide if it'll work for your business.
If you're not sure where to start when selecting cloud based accounting software, try
Sage Pastel, they're one of the reputable companies in South Africa. They develop accounting, payroll and business software for the small, medium and large enterprise market.
Taking all these factors into account will help ensure you choose cloud based accounting software that's suitable for your company's needs.
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