Traditional Accounting VS Cloud Accounting. Which one is better?
Whether it is a small business or large business, managing accounts is one of the most monotonous tasks. There are two methods when it comes to handling the accountancy. They are the traditional method and the latest cloud accounting.
Before we get into which one is better for you, let’s know what is a difference between traditional accounting and cloud accounting.
What is the Traditional accounting?
Traditional accounting means where you will have a dedicated hard drive. Inside which software is installed, in that the financial data is stored. The user is allowed to access the data via a desktop application that cannot be used by any other user and computer.
What is Cloud Accounting?
Cloud accounting software uses the same utility as traditional accounting. Except, it is much more secure and connects to the remote server through internet access. The user can view and access the data from any part of the world, as long as he or she has access to the internet.
Traditional Accounting VS Cloud Accounting
- Traditional accounting uses the method where the chances are more of human errors during data entry. Whereas in cloud accounting the scope of such mistakes is very less as the data entry is automated.
- The only single user can use the traditional accounting on the individual network. One cannot use it from another system. In cloud accounting, multiple users can use and work on the same file even being miles apart.
- For businesses who wish to have strict access to the data can opt for traditional accounting. While companies who do not have the skilled knowledge to tackle IT related problems should go for cloud accounting.
- In conventional accounting, you will need to maintain servers, increase storage capacity, upgrade to latest software and so much more is required. Since cloud accounting preserves your data on the remote server, you’ll probably have one-time investment. Either monthly or annual subscription will consist of server storage. Moreover, the software updates automatically.
Which one is better?
Although security is the primary concern with cloud accounting, you can opt for tools that provide privacy to the data. Our suggestion is to go for cloud accounting, as it is affordable and efficient for the business.