How Cloud-Based Accounting Software Benefits Businesses?

If you want your business to work smarter and faster, cloud accounting software is a wise investment. Working in the cloud will provide you with a more straightforward overview of your finances and enhance collaboration with your team.

Someone rightly quoted – "Your Business is your Baby." You need to take care of it in a similar way to how you nurture your child. As an entrepreneur, you need focus, dedication, passion to achieve your dreams, and an understanding of the latest tech developments and how they are shaping the biz world.

One domain or industry that has undergone a significant shift over the years is the accounting and bookkeeping sector. The emergence of various cloud-based accounting software has brought considerable improvements, revolutionizing the way businesses perceive accounting.

However, despite the cultural shift, a significant number of business owners remain skeptical of the benefits of cloud-based accounting and continue to rely on traditional computing.

In this blog post, we will examine the numerous advantages of cloud accounting software. Before listing the merits, let's first understand some key nuances of cloud accounting.

To find out more, keep scrolling!

What Is Cloud Based Accounting Software

Cloud accounting software is like having your financial records stored in a virtual safe. It's an online platform that allows businesses to manage their financial transactions, data, and documents over the internet.

Unlike traditional accounting software that stores data on local servers, cloud accounting software stores financial data on remote servers, making it accessible from any device with an internet connection.

This means you can access and manage your accounting records in real time, from anywhere, without worrying about hardware, software updates, or data security.

One of the significant benefits of cloud-based accounting software is that you can access the data from anywhere, on any device, without physical location posing a hindrance. You need your login credentials to access the online software or sign up if you're registering as a new user.

Most businesses are transitioning to online cloud accounting software, and for good reason. It streamlines business operations and financial information management, enabling more efficient and productive workdays.

If you haven't yet made the switch, the benefits of cloud accounting software are certainly worth considering.

Speed

Cloud accounting automates daily tasks, accelerates data processing, and reduces manual effort for invoicing and tracking payments.

• Lightning-fast operations with automation
• Auto-generation of invoices
• Fewer errors and duplications
• Real-time debtor tracking and reminders

Security

Built-in protection safeguards data from threats, while controlled access ensures only authorized personnel manage sensitive financial information.

• Data is secured on offline cloud servers.
• Protection from viruses, theft, and accidental loss
• Custom access controls for users
• Eliminates duplicate backup issues

Centralized Access Enables collaboration by letting teams access and work on the same real-time data across devices and locations.

• One version of the truth across departments
• Easy user login and permission setup
• Access from anywhere, on any device
• Reduces clutter and version confusion

Scalability The software grows with your business, offering flexible plans and features tailored to your evolving financial needs.

• Adapts to small and large businesses
• Easily upgrade or downgrade plans
• Supports high transaction volumes
• Expandable with integrations and tools

Updated Data Cloud accounting software provides real-time updates across your financial records, giving you access to the latest figures and enabling you to make informed decisions with live insights.

• Real-time updates to balance sheets
• Automatically generated financial reports
• Enables smarter, faster financial decisions

Accuracy

Automation reduces manual intervention, minimizing human errors and boosting the accuracy of your accounting processes.

• Fewer duplicate or incorrect entries
• Reliable calculations and reporting
• Improved operational efficiency with automation

Efficiency Online cloud accounting software streamlines financial workflows and enhances employee productivity by automating manual tasks and freeing up time for core responsibilities.

• Streamlines finance operations
• Enhances employee productivity
• Optimizes time and task management

Integrations Cloud-based accounting systems can easily integrate with CRMs, payroll, and other business tools, offering a unified platform for managing end-to-end operations.

• Seamless integration with third-party apps
• Centralized control over various functions
• Scalable for expanding operations

Savings Cloud-based accounting software eliminates the need for costly infrastructure, licenses, and large IT teams, making it a cost-effective solution for businesses of all sizes.

• No investment in physical servers
• Lower IT maintenance and support costs
• The pay-as-you-grow model saves long-term expenses.

Issues with Offline Traditional Accounting Software

• Neither the software nor the data is up-to-date.
• The software works only on one computer and transfers data from one place to another, such as on a USB drive. It is not reliable or secure.
• User access is only for one person. Other vital personnel cannot access customer or financial details.
• It is complicated and costly to maintain backups of information.
• Upgrading software can be time-consuming, complex, and expensive.
• Customer support is slow and costly.

Financial Data Loss: How Cloud Accounting Works To Prevent It?

Many reasons could compromise your financial data. Here are some of them.
Computers are vulnerable to attacks, as new viruses are created daily, and they remain susceptible to these threats.

Removing these viruses can be so challenging that you may need to wipe out your entire hard drive to eliminate them.

Weak or No Access Control

Lack of proper access control puts your financial data at risk of unauthorized access, accidental deletions, or data theft. Without visibility into who accessed what, it becomes impossible to track malicious activity.

Cloud-based accounting provides user-specific access and robust control features, ensuring that only authorized personnel can view or edit sensitive data. Since nothing is stored locally, the data remains secure even if devices are compromised.

• Prevents unauthorized access to financial data
• Eliminates the risk of accidental deletions
• Enables activity tracking and audit trails
• Provides role-based permissions for data access
• Secures access via encrypted credentials

Not Backing Up Your Data

Failing to back up financial data can result in irreversible losses. Even if backups are created, improper organization or insecure storage can lead to delays or failures during the recovery process.

Cloud accounting automates secure data backups, ensuring that all files are stored safely and can be quickly restored in case of loss or system failure.

• Automates regular data backups
• Organizes and secures archived data
• Reduces the risk of data loss
• Enables quick recovery of critical files
• Eliminates the need for manual backup routines

Unanticipated Incidents

Natural disasters, hardware failures, or cyberattacks can strike unexpectedly, causing significant damage to locally stored data. Traditional systems are vulnerable in such scenarios, often lacking off-site protection.

Cloud-based accounting software stores data in secure, remote servers, ensuring business continuity even in the event of unforeseen disruptions.

• Protects data from disasters and outages
• Reduces the risk of permanent data loss
• Ensures continuous access from remote locations
• Minimizes downtime with off-site storage
• Strengthens disaster recovery planning

Why Choose Giddh: Powerful Cloud Accounting for Growing Businesses

Giddh is a comprehensive cloud accounting solution designed to simplify business operations and streamline financial management.

With features tailored to meet the needs of growing businesses, Giddh offers cloud accounting software in India a unique set of features that cater to companies of all sizes.

Key Features include:

• Ledger-based "type & save" entry with no voucher navigation for ease of use.
• A single subscription for up to 100 companies, making it a cost-effective solution for managing multiple businesses.
• Built-in branch accounting and warehouse split for detailed financial oversight.
• Global search across ledgers, items, and commands for quick access to vital data.
• Public API for seamless integrations.
• Hourly Tally sync and one-click import to facilitate smooth data transfers.
• White-label option with a mobile app for customized branding.
• Custom units and customer-level price lists for tailored pricing.
• Integrated Manufacturing BOM and inventory management within the core product.
• Per-invoice pricing for firms with low volume but many entities, offering flexibility.

What is cloud accounting software's role in securing your data?

One of the significant features of cloud-based accounting software is the high level of security it offers for your financial information. Although traditional accounting software can offer some protection, cloud-based accounting software employs more secure methods, ensuring there's no data breach whatsoever.

A secure cloud accounting system India also ensures that no traces of financial data are left when different computers are used to access the application. All data stored in the cloud is secured and encrypted.

Another significant benefit of implementing cloud-based accounting software is that sharing data becomes easier and less cumbersome. Unlike traditional methods, where data transfer is done through flash drives, cloud accounting software enables you to grant access rights to data with unique passwords.

It will ensure that the data is viewed only by those who have been given access to it and is protected against theft or loss. Secure your business from data loss with Giddh and protect your financial information today!

What Are The Benefits Of Using Cloud Based Accounting Software

Online accounting offers multiple benefits for business owners, enabling them to connect with their accountants and access their financial data. The software can integrate with a complete system of add-ons. It is easy to use, cost-effective, and scalable.

In the case of cloud-based accounting, there is no need to install and run applications on a desktop computer. In its place, you only have to pay a monthly or annual subscription fee for the online software.

Here are some benefits of accounting software:

1) Unified and Simplified

Because accounting information is stored in the cloud, it can be accessed or updated from anywhere. Team members can collaborate, even when they are based in different physical locations.

It is beneficial when a business owner wants to check the financial health of their business while their accountant is generating an invoice or reconciling a bank statement, all at the same time.

1. In traditional accounting software, multiple data files are typically required; however, the best cloud-based accounting software utilizes a centralized database.

2. Cloud-based software is growing in popularity because it's accessed through the internet, allowing users to be more flexible and not be bound to their office desks.

3. When you use cloud-based accounting software, you will be able to check on your company's financial data either from home or the office, through your tablet or smartphone.

One of the primary benefits of cloud-based accounting software is that it is accessible from anywhere, allowing users to access their data from any location.

2) Secure and easy sharing

Cloud software enables the sharing of data with all stakeholders, from your accountant to your bank manager. No longer do you need to send separate emails or exchange USB sticks to transmit data easily and securely.

3) Automatic backup

Never will you have to create backups for files containing crucial data. It was a need in the past, as very often, backed-up data was prone to getting lost due to poor management.

4) Works both offline and online

One can enjoy the advantages of centralized data in an online mode. Better still, you can even work with data in offline mode, as your data will sync automatically the next time you link to the internet. It's a great bonus when you're faced with an internet outage.

5) GST compliance made easy

If you manage a small business, then make the filing process of your GST as easy as possible. To do this, you have to consider making use of GST-enabled accounting software, as it will automatically apply the appropriate GST to your invoices and allow you to extract critical financial documents quickly so that you're always ready to file your returns.

Your cloud accounting software India can also serve as a reminder to help you stay on top of filing your tax returns on time. You need to schedule the time and annual dates for your returns.

6) Automation will help you save time

Most cloud-based accounting software will connect your business bank accounts and sync them with your portable devices, and this will help you monitor and track your sales, inventory, and costs.

All you have to do is ensure that most of your data is consistently up to date; this way, you can be assured that you're viewing real-time data.

7) Easy collaboration

You can make use of web-based accounting software if you don't like compiling financial reports for your accountant, because all your financial information is hosted in the cloud.

With the help of accounting software, and can be accessed from any location with a stable internet connection.

You can also set up easy access for your accountants, allowing them to log into the software as needed. You can also control employee access.

This means the company can grant employees access to payroll information without providing them access to your official bank accounts.

8) Cloud-based accounting software improves accuracy

Once you have your financial information in one place and consistently enter the necessary data into the system, you will reduce the risk of accounting errors that can cost you a significant amount of money.

Cloud-based accounting software is typically easy to use, allowing you to enter income and expenses as needed.

Instead of using an Excel sheet, you can utilize accounting software, which eliminates the need to know various formulas, shortcuts, or accounting practices.

You will have to enter the correct expense and income information consistently, and you will receive accurate reports.

9) Doesn't need installation

Cloud-based software is programmed online, which means that you don't have to purchase or install a program directly into your computer.

In the past, accounting programs had to be installed on all systems within the accounting department.

Now, you can access cloud-based software by simply logging in with the required information, entering the address in the address bar, and logging into your account.

Since you aren't using any software that's installed on the office server, you won't need a dedicated IT team to update the software.

10) Tech support is available

One of the many advantages of an accounting information system is the amount of technical support available to the clients.

You will be provided with various ways to contact the tech support department of the cloud software company, including chat, phone, and forum support.

If you hate the idea of bookkeeping and dwelling on paperwork raises your stress levels, then you should look at switching to cloud accounting software because it will make your job much easier.

Conclusion

The right tool can supercharge the conventional benefits of business accounting. With cloud accounting for small business India, your finances will be continually up-to-date, and your data will always reflect the current, real-time information.

Switching to cloud-based accounting software, such as Giddh, ensures that your finances are always up-to-date and your business runs efficiently. All set to streamline your business accounting? Sign up for Giddh today and get started with a free trial!

FAQs

1. What Are the Key Benefits of Using Cloud Accounting Software?

Cloud accounting software offers real-time data access, automated invoicing, secure backups, multi-device access, and easy integrations. It improves accuracy, enhances collaboration, and reduces IT costs.

2. How Does Cloud-Based Accounting Software Help Small Businesses?

It streamlines bookkeeping, automates tax calculations, and reduces manual errors. Small businesses benefit from low upfront costs, scalability, and remote access for managing finances on the go.

3. Which is the best Cloud-Based Accounting Software for Businesses?

Top cloud accounting solutions include Giddh, Zoho Books, QuickBooks, and TallyPrime. The best option depends on your business size, compliance needs, and integration requirements.

4. How Does Cloud Accounting Improve Financial Reporting?

It offers real-time reporting, automated data syncing, and customizable dashboards. Reports are accurate, current, and readily accessible at any time, enabling faster and more informed decision-making.

5. How Much Does Cloud Accounting Software Cost?

The cost of cloud accounting software varies depending on the provider and the features offered. Giddh offers a free plan and paid annual plans:

• Oak – ₹4,000/year
• Vine – ₹10,000/year
• Sequoia – ₹15,000/year

Each plan includes unlimited users, increasing transaction limits, and consultant support. Additional ₹1 per extra transaction.