Cloud-based accounting software or web-based accounting software is similar to traditional or self-installed accounting software. The only difference between them is that cloud accounting software is hosted on a remote server, data is sent into the cloud where it is returned to the user after it is processed.
It allows the user to access their accounting data from anywhere – mobile, desktop, or laptop and avoid the hassle of setting up an individual desktop with software. It also allows other team members from another location or branch to access the same data. Another important benefit of having cloud-based accounting software is data backup and data recovery.
However, selecting the correct cloud-based accounting software can solve all your business problems but doing so is a tedious and time-consuming task.
Below are some tips for finding accounting software that’s ideal for your business.
- Going online or offline
The very first question that you need to ask while selecting your accounting software is whether you want online software or offline software (desktop-based software). The answer to this question mostly depends upon the industry you work in. Most of the organizations nowadays operate in cloud-based software. There are still some industries like retail that operate in desktop-based software.
- Matching your needs with the software
Analyzing your needs and accounting skills is an important factor while selecting accounting software. Conducting research is important. This will allow you to understand your accounting needs and help you in finding accounting software matching those needs. You also need to consider that even though accounting software can make your task easier, it still requires a certain amount of financial knowledge.
- Looking at the features of cloud software
The next stage in your quest for finding an ideal accounting software is creating a checklist of features you want in your ideal software. This will allow you to compare different cloud-based accounting software available in the market. Moreover, every cloud software or application comes with some similar features which include accessing the data via strong internet, installation of upgrades on severs end, and securing the data in a remote physical location.
- Matching the software with your budget
There is cloud-based accounting software available that can suit all budgets. However, the more specialized your software, the more expensive it gets. If the user wants something more industry-specific or customized to suit your business, you need to be ready to pay for this premium service.
- Add-on features
To have better functionality for the accounting software, you can pay for these add-ons. These may allow you to accept payments online and integrate the software with e-commerce software. There are also some add-ons available that can make your accounting software compatible with your present tax software.
- Consulting with your accountant
Before making any final decision, consult your accountant because he/she will ultimately deal with the software daily. Since every business is different, your accountant will know best what type suits you more. In short, you can start from a basic package and then shift to a premium package as your organization grows. But you also need to conduct proper research so that you invest your time and money in ideal cloud-based accounting software.