Cloud Accounting VS Traditional Accounting -Which is Better?
In Thomas Friedman’s book, The World is Flat, he discusses how the world, even though it is vast and spread throughout the globe, is becoming more connected every day with the use of technology. Technology is one of the major causes of “flattening” the world. As a result, the normal way of doing things is now becoming a thing of the past.
The business world has been drastically transformed through the years with new technology and the introduction of the cloud. These advancements have luckily spanned into accounting technology too!
There are multiple ways you can approach accounting for your small business. At Redmond, we utilize cloud accounting technology. Some businesses still use traditional accounting.
So what’s the difference between the two, and what’s the best to use for your business?
Traditional Accounting
QuickBooks Desktop is often referred to as the prehistoric dinosaur of accounting software. Traditional accountingsoftware solutions are desktop based, which means the software is installed directly onto a computer. While this has worked for many years and for many businesses, it poses some risks.
For example, having the software directly on your computer means that you are responsible for keeping the software up to date and backing up the data. Failing to do so could mean losing months or even years of data – ouch!
Couple this with the fact that you don’t have remote access, have fewer automations, and you may wonder if there is a better way.
And there is!
Introducing Cloud Accounting.
Cloud Accounting
Cloud accounting, also known as virtual accounting and online accounting, is based on the same idea of Desktop Accounting; however, everything is in the cloud.
When you use cloud-based accounting software, you don’t have to have a designated computer. You can access your accounting information from anywhere, anytime. Yes, this means even from your smartphone! Our clients love being able to see how their business is doing at all times, regardless of their location.
The most popular cloud-based accounting software today is QuickBooks. Over 75% of small and mid-sized businesses who use cloud-based accounting software use QuickBooks Online (QBO). QuickBooks Software is the ultimate accounting software. It allows its users to easily integrate their bank accounts, credit cards, Bill.com, Expensify, and multiple other accounting based softwares so that they can work more productively and efficiently.
One great advantage that cloud-based accounting has is the ability to hire virtual accounting experts.
Virtual Accounting Experts
Because you no longer have a need for a dedicated computer in your office, you don’t have to worry about hiring an in-house bookkeeper. This can save you money on overhead costs, payroll costs, and free up space in your office (if you have one).
Even if you want an in-house bookkeeper, you can utilize cloud accounting and be able to access your information anywhere at any time. Our previous article Virtual Bookkeeping Vs. Traditional Bookkeeping goes into further detail about the benefits of hiring a virtual bookkeeper.
Virtual accounting experts are also great to have on your team for support and guidance. They know the ins and outs of the accounting technology world and can be hired on an as-needed basis.
Need a Virtual Accounting Pro?
At the end of the day, whatever type of accounting works best for your business is the right way to go. If you’re looking to switch or upgrade to a cloud based accounting system, connect with us today.
Our team at Redmond Accounting is dedicated to helping you run your business efficiently, reduce accounting errors and help you reach ultimate success in your goals. We have authored certification courses for major accounting software on the market, and we can help you bring your accounting online.
Connect with us today to learn more about what we do and how we can help you grow and thrive! We always offer free consultations. Take the first step and schedule a time to speak with one of our professionals here.
