What You Need to Know before Switching to Cloud-based Accounting

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For accountants and bookkeepers, the days of dealing with massive amounts of paperwork were over with the advent of on-premise accounting software. Ledgers and invoices are now replaced with a tool that makes updating financial records fast and easy. However, with the proliferation of cloud computing in recent years, more and more accountants and bookkeepers are switching to cloud-based accounting applications. As of late, there are several cloud-based accounting software such as Xilch that are readily available for accountants to use. One of the many advantages of cloud-based accounting is the fact that users can access the software through any device – from desktop to mobile. But before delving into the world of cloud-based accounting, there are several factors you need to consider. Business Needs Choosing the right cloud-based accounting software will depend largely on the type and size of your business. By knowing what your business needs are in terms of financial reporting and bookkeeping, you can determine which accounting software is right for you. Some software vendors offer various accounting packages for small and large businesses including flexible solutions. So be sure that you make a wise decision when selecting accounting software. Budget Along with determining your business needs, you also have to factor in your budget for the software. While there are free software that you can use, it doesn’t necessarily mean that they can meet all your accounting and bookkeeping needs. Choose a software that not only fits your budget but also offers the best accounting solution for your business. Investing in the right software guarantees that you get your money’s worth. Security Security of sensitive information is always a concern for everyone. While most cloud accounting vendors offer data security, you need to know what kind of security they have in place to ensure that your financial records are safe. Check on the vendor’s system infrastructure and the people who will handle your sensitive data. Understand how their system works so that you have certainty that your business’ sensitive data are well-protected. Reliability Reliability on the software means that access to the financial information you need is fast and easy. Ensure that the cloud accounting software you choose guarantees speed and ease of access even when using mobile devices such as smartphones and tablets. Opt for a vendor that guarantees very minimal downtime and can provide backup solutions. It helps to do some research first before you commit to a cloud accounting provider. Shop around, compare and see what’s best for your business. By switching to a cloud-based accounting solution, you will be able to better manage your financial records.