Desktop accounting software is a software that lets a person manage the business transactions, handle finances, et al, but only on the system on which the accounting software is installed. In the present world of competition where online accounting is generally preferred, desktop accounting software might prove to be disadvantageous for a business.
Few major drawbacks of using desktop accounting software include:
1. Need for every time upgradation
One of the major drawbacks of using desktop accounting software is that it is needed to be upgraded every time a new feature is introduced. Online accounting software on the contrary gets upgraded on its own and keeps the user free from the trouble of upgrading it frequently.
2. Does not have additional benefits
With desktop accounting software, a user cannot enjoy additional benefits like ability to track debtors and creditors, audit trail and generation of accounting reports, auto data entry option, etc, which is only possible with online accounting which has limitless advantages to offer to the users.
3. Data can be lost
As a business grows, its financial transactions also grow in number. At such times if the business sticks to desktop accounting software alone, then there is a huge risk of data getting lost since the data is only restricted to the desktop accounting software.
4. Unable to access from different locations
Another disadvantage of desktop accounting software is that one cannot access it from different locations since the accounting data is restricted to only the desktop on which the accounting transactions are recorded and saved.
5. Online access to the data is not possible
Assuming that you are traveling and you are in a different city than you are actually located. If any accounting discrepancy arises at that time and you wish to access your data online then it won’t be possible since your desktop accounting software is restricted to the system alone on which the data has been saved.
So, is cloud the right choice for your business?
More and more businesses have been investing in cloud accounting in recent years and for good reason. Shifting towards cloud-based programs from desktop software offers better business accessibility, increased security and peace of mind.
Businesses are going mobile today. Therefore, it is essential to consider upgrading the systems and processes from on-premise to cloud systems. Accounting software that is not on the cloud makes it unnecessarily tough for businesses to operate. Besides, the time and effort that desktop accounting software take isn’t worth the value they offer in return. Opting for a cloud-based accounting software saves your business time, money and efforts.
When the accounting processes are managed online, business owners can stay connected to both their data and accountants. Cloud-based software also comes with several add-on options which can be integrated to make your business more efficient. Furthermore, whenever a new add-on is rolled out, it can be directly integrated with the software. There is no need to install and run applications like on desktop software and the limitations of manual accounting system can be eliminated. All you need to do is use the software and pay for it on a monthly subscription basis.
Cloud accounting software can be the most important asset for businesses that prioritize flexibility and a remote work environment. Even if the nature of work doesn’t support remote working, the security concerns associated with desktop accounting is making businesses shift to the cloud. Besides, cloud accounting software can be invaluable as it allows firms to keep a track of their business performance, cash flow and tasks at all times.
Last but not the least, with cloud, it is possible to customize your software to suit your unique requirements. No two businesses are similar, so, sharing the same desktop software doesn’t make any sense. All it takes is a small investment of time to learn how to automate, streamline and optimize your business according to your tasks and processes.