Cloud Accounting Software: Your catch for the futuristic accounting

The concept of doing accounting online is as simple as performing regular accounting functions on a remote server. Your data is sent to the server via internet and it is accessible 24*7 via the internet. With the invent of online business accounting the need for installing and maintaining ordinary desktop-based software has vanished. The move from desktop bookkeeping software to cloud accounting solution could be compared to move from Symbian phone to an Android OS based smartphone. I mean the change is so drastic that It will increase the efficiency of accounting manifold and will enable the organization to function better.

What is an online accounting software?

With the development of cloud computing, computer software’s have become more like a service. With the SaaS model, the software’s are hosted on a secured cloud server and its usage is permitted for a small license fee. You can buy the best of the best business tools including accounting solutions like QuickBooks, ZohoBooks, ERPNext, or other on SaaS model.

What are the choices you have while choosing online accounting software?

There are plenty options available for accounting and business reporting requirements. Briefly, the choice really depends on the availability of local customisation (country-specific regulations coverage), professional help in migration and training, and it’s should be extendable or customisable for growing business needs. The cloud solution being modern age tool, must give access to powerful management reports including KPIs and drivers of the business. To know more about online accounting software types and choices, you could read our previous post on this link.

Benefits of cloud accounting solution:

• Safety of data : When it comes to the safety of your financial data, you can remain sure that it’s being well taken care of. The most secure way of keeping a data in today’s time is backing up online. By doing this you will have complete peace of mind and full safety of your accounting records. Data on the cloud server does not get easily leaked or destroyed unless there is a malicious attempt. But in nutshell, the safety of data on the cloud is much more than a local server-based.
• Data Sync is easy: Synchronization has become much easier with the cloud online accounting software, you update data from one place and it becomes available anywhere. With this, one is not required to manually do duplication or worry about maintaining copies to make a decision at different locations. You can cut up to 50% delay in business operation by running synchronized via a server-side business accounting application. Recovery from the cloud server is as easy, also you don’t have to worry about the server failures anymore, everything will be taken care by the hosting provider at a small cost.
• Multiple access: Provide a secured access to your employees, managers, auditor through multiple user logins. The feature can be fruitful when your business expands, this eradicates delay and lack of coordination within the organization. It allows your employees to access financial records seamlessly all the time and collaborate more effectively with your auditor as well.
• Reduced costs: The SaaS model software reduces the cost significantly. In case of an ordinary desktop-based accounting software, a user is required to pay for a heavy license fee, maintenance cost, and upgrades. But, when we do move to cloud solution over the internet, we can have an array of lucid solutions to the accounting needs or business needs and they are regularly being upgraded for more features at a monthly fee per user per month basis. It’s more like pay-as-you-go basis, so it makes it more affordable to use the best of breed in the accounting.
• Mobile access: Cloud accounting means accounting over the internet, which is accessible via the browser. And now with the increased popularity of smartphones, everyone prefers to use apps for their various needs. Same could also be leveraged for accounting tools by accessing and doing the financial transaction using the device in your pocket. This also gives one the flexibility to work from any location. This could not have been thought of a few years back when the desktop based accounting software like Tally or Busy would force you to work using PC or Laptop and from the limited It is interesting to note that these popular tools have not been transformed to meet modern needs and no mobile access is yet available.

Popularity of Tally in India-explained

Tally is 30-year-old accounting solution evolved over the year. It has incorporated many non-standard, flexible and control-less features to suit the Indian mindset. Before the cloud became easily accessible, it was one of the tools everyone was using and hence large fraternity of accountants prefer to use it and learn it. Educational institutes also started teaching Tally as part of commerce education or as part of basic computer crash course, which made it even more popular. Tally does cost huge on buying the license, but it has no maintenance cost unless there is a major upgrade needed due to change in regulations.

Another reason for why Tally accounting software is so popular is because of Indian mindset of outsourcing accounting functions within the organization. So, accounting and reporting are considered as a headache for an accountant. Entrepreneur or businessman is more concerned with cash flow than financial statements. However, time is changing now. Nowadays businessman wants to leverage the accounting records for making better decisions and also reduce dependency on accounting staff.

Tally accounting software does have powerful features for manufacturing accounting and job costing, but it has old style user-interface which many business houses do not prefer anymore. Simplicity is also what Tally has been thriving upon since beginning. It is said that Tally was created for a common man and not for the experts, but actually, the reality is opposite. Accountants know it well but businessman or entrepreneur does not. Most of the business user feel it is being outdated and difficult to comprehend.

Who is the best fit for using Tally?

• Non-conventional accounting structure: if you prefer non-conventional accounting structure to have more flexibility and no controls, the Tally could be an option. The Chart of accountant and masters could be easily grouped or manipulated, but this is not acceptable from auditor’s perspective.
• Outsourced mentality within departments: You as a Business owner do not have interest in accounting records or hygiene of financial records, the entire accounting function could be outsourced in-house to a full-time accountant and everything is left to him/her to record. Accountant becomes like a north-star and all the information is dependent on him.
• Accountants do not like controls: If you have an accountant who does not prefer business controls or financial controls to prevent fraud, misappropriation or errors in accounting records, then Tally is a control-less It is flexible and allows maintaining accounting records as per the will of an accountant, irrespective of whether it meets standard accounting convention or not.
• An accountant is Tally trained and do not want to learn: Accountant fraternity is generally resistant to change. They prefer to keep using same tools over the years, even though better options have emerged. And you have an accountant who is comfortable in tally and resistant to change to new technology.
• You are not ready to change with time: Unlike accountant, you might prefer using same tools over the years and not ready to adopt modern technology.
• You are afraid of cloud/technology: There are enormous reasons available on the cloud being safe and more reliable, but you still prefer local machine based software’s and want to continue taking backup on USB drive or DVDs.

Why is QuickBooks better than Tally?

QuickBooks Online is one the most popular accounting solution. It is GST compliant and GST ready, fully localized to income tax provisions and reporting requirements as per accounting standards. QuickBooks is a powerful tool available at small cost and it has more than 40 plus reports for allowing management to make a better decision.

QuickBooks Online is designed for the end user, business user, and entrepreneur in mind, hence it is intuitive and user-friendly compared to other accounting solutions. Migration from Tally to QuickBooks is possible and you could look for professional help on that. Even though official resources at QuickBooks do not support migration, it is very much possible. QuickBooks has an Apps store featuring a lot of powerful application to take your business information to next level. Data upload tool in QuickBooks is also available to automate accounting data entry and reduce the time taken in maintaining books of accounts. QuickBooks and some integrated apps designed configured well could give a strong back office to run your entire organization efficiently.

One must choose the software which has the potential to provide your business with a better growth and agility. If a software is providing you with much-needed speed, just get it. Well, we can all agree on the fact that SaaS accounting solutions are more powerful and modern user interface, the challenge of adoption is training. But, it could be easily learned or adopted by hiring a QuickBooks training providers. Also, if you want to outsourced bookkeeping or accounting, fully or partly, it will be a great experience when you work with any QuickBooks online accounting services.

Well, QuickBooks can be your perfect pick for the purpose of performing online accounting, the software can be the deserving Tally accounting software alternative. The array of features is proficient enough to boost the business’s growth and it can manage the accounting information with added ease. QuickBooks online has a feature like bank transactions sync, scheduled invoicing, auto tax calculation and many more. In the race of functionality and power between Tally Vs QuickBooks, without a doubt, QuickBooks is the winner and better choice. If QuickBooks does not fulfill your business need with growth or in case of manufacturing companies, Open Source alternative for Tally could be ERPNext which is a feature-rich Small business ERP on the cloud.

How FinForce aids your cloud accounting journey?

Understanding the business challenges and especially bottlenecks in accounting function is a core focus at FinForce Consulting. We could help you with tailored solutions for your business growth, help you in migrating to cloud accounting solutions like QuickBooks, ZohoBooks or even a powerful ERPNext. As a pro-advisor with QuickBooks online, we have witnessed the transformation in the accounting function, cost saving and better performance of organization moving from the desktop software’s to QuickBooks with ease.

To know more about FinForce, Contact us now. We will help you run your business more efficiently and achieve greater business goals.