Businesses need to persistently update their financial statements in order to analyze the performance of the business. With new age business models based on e-commerce and social media sales, tracking performance in real time is critical for startups and SMEs. This renders traditional accounting not feasible for digital entrepreneurs.
Modern-day accounting has evolved to a great extent and extensively involves the use of accounting software to synchronize transactions and automate a significant part of the process. Accounting now is not restricted to small business bookkeeping but is also helpful for preparing budgets.
Cloud computing is a notch above the traditional accounting software; it ideally works on remote servers and stores all the data on a platform that can be accessed by the entitled users.
What exactly is a cloud?
Cloud refers to the shared pool of configurable system resources that can be provisioned over the internet. In layman language, your software and even hardware is now accessible over the internet and you do not need to store software or data on your system. Nor do you need mega servers or processing power for running advanced software.
Cloud accounting covers all traditional accounting services like:
=> Maintenance of General Ledger.
=> Bank Reconciliation Statement.
=> Balance Sheet Generation.
=> Account Payable and Receivable activities.
Why is it better than Traditional Accounting?
Incur Lower costs: Cloud computing involves lower costs of software installation. There is no individual maintenance cost involved as the data is processed through a cloud system.
Easily Outsourced: Cloud accounting services can be easily outsourced and do not require a dedicated in-house team to handle the services. DNAGrowth offers accounting solutions that can be easily accessed through its online platform. Small businesses can easily outsource accounting services and save time as well as money.
Wide Access: Unlike traditional accounting which is restricted to the finance teams only, Cloud accounting software can be accessed from any device with a working internet connection. The software can be integrated with multiple computing and mobile ecosystem.
CONCLUSION: Cloud Accounting has made managing financial statements easier for startups and small businesses. You do not have to spend massively on getting accounts managed by a local bookkeeper. Save time, money and resources by embracing cloud accounting services.
Also published on Medium.