Your Accounting Software Takes Your Majority Time
With no facility of linking your banking accounts to your traditional accounting software, you are entering all the financial data manually. Likewise, you are sending customer invoices and processing payroll manually which consumes time that you can probably invest in core business activities.
Lack of Support For Multi-Currency Transactions
You are losing serious business to your competitors if your accounting software does not support the multi-currency feature. This is because due to the lack of this feature, you would be unable to bill your vendors and customers, denote price in foreign currency, undertake banking transactions, manage credit card accounts, etc thereby making you give up on the business opportunity.
Less Or No Automation
Accounting software should be such that it automates your accounting process so that you get time on your side for core business activities. If with your current accounting software, you are still:
- Preparing and sending invoices manually to the customers whom you give the same service month after month
- Manually entering the data and spending good time on reconciling the bank statements
- Using physical copies of expense receipts and entering data manually
Then it’s time to shift to accounting software.
With companies increasingly shifting towards remote working, it is important that your accounting software allows you to manage your books of accounts on-the-go. If your accounting software requires you to be desk-bound, it is certainly an indication that you need to switch to cloud-based accounting.
No Software Updates
Your accounting data is subject to serious security issues if it is not regularly updated for advanced security. Similarly, if the accounting boards release certain changes in accounting rules or tax reforms are released by the government that is not updated into your software, you lose out on the latest features that can make your accounting process effortless.
Restricted Third-Party Integrations
If your current accounting software is not integrated with a good number of third-party integrations, you would be required to switch between various apps for different tasks. This would mean less automation and increased complexity for you will have to move between different apps for various tasks.
Cloud Security Is World Class
The local storage on your desktop is not a safe place to store your valuable accounting data. Lack of software updates in traditional accounting software for security and regular generating of data backups in external hard drives or USB devices subject your accounting data to viruses and ransomware.
Further, storing valuable information in the servers at your office is something that may seem easy or convenient, but it is certainly vulnerable to data loss if there is a natural disaster, a simple coffee spill, or your server crashing.
Thus, accounting data stored on a single computer on your office premises can put you in a risky situation. This is where cloud security outshines your office servers for it keeps your valuable information safe in various ways.
The data on the cloud is stored on multiple physical servers. These servers are genuinely placed in large rooms or warehouses and are connected to the internet.
The accounting services providers have servers in various locations just to ensure that your valuable financial data is not just located in one place but at multiple locations in order to build redundancy.
This means that the multiple copies of your accounting data are backed-up and stored in different servers at various geographical locations. Such redundancy reduces the risk of your information being destroyed completely as a result of fire, natural disaster, crashing of a server, etc.
Therefore, accounting services providers ensure that you continue to have access to your financial data just in case there is any mishap.
Another feature that makes accounting software security outstanding is the encryption of data. In computing accounting, you upload the financial data on the cloud where it is stored.
Since you are transferring the financial data to the cloud, you would certainly want such transmission to be encrypted. Encryption rewrites your accounting information into a code.
Thus, understanding this code is out of the question for hackers or unauthorized entities who try to access your accounting information. There are different types of encryption used by accounting services providers.
Secure Sockets Layer (SSL) is the most commonly used encryption method which allows for the safe transferring of data from websites and browsers. accounting services providers generally use 128-bit encryption which is the same security measure used by financial institutions and banks worldwide.
With accounting software, you do not need to be worried about not saving the business snapshot reports or copies of your invoices. This is because such an accounting software provides an automatic backup facility that takes the backup of your accounting data after every few minutes.
This allows you as a user to restore the previous versions of your accounting reports or anything that you do from a particular point in time. And with cloud-based accounting software providing for redundancy, your accounting information does not get lost for there are multiple copies of your financial data stored at various locations.