What You Need to Know About Online Accounting

If you’re already using computer-based accounting software and are okay with how it gets the job done, you’re probably wondering why online accounting creates so much hype in today’s Singapore business industry. To find out whether it’s worth shifting from computer-based to online accounting, here’s what you should know about online-based programs.

Online Vs. Computer-Based

The most obvious difference between computer-based and online software is their location. Computer-based software runs on your desktop or laptop while online software can run on several computers and other Internet enabled devices. This makes a significant difference and frees up the user a number of responsibilities, including the following:

    • Software Updating

    Computer-Based: The SIngapore trusted bookkeeping software user is the one responsible for keeping the software version updated. Any patches or upgrades to the accounting software must be downloaded and installed by the user himself. And if you’re using the same software on all of your office computers and devices, you need to manually update each of them as well.

    Online-Based: The accounting software company is the one in-charge of updating the software. This could even happen discreetly and invisibly—no need to pause operations. All computers and devices are also automatically updated to the latest version.

    • Ensuring Security

    Computer-Based: The user will have to seek for his own ways to secure the accounting software and the data in it. Physical security such as locking the office doors, as well as backing up of data, are among the ways a user must execute to ensure data security.

    Online-Based: The software provider handles the security procedures needed. The company performs regular backups of the software from all your computers and devices and restores them right away in the event of major system failure.

    • System Compatibility

    Computer-Based: The user must ensure that the computer is powerful enough to run the software. This requires the user to regularly update the system to keep up with the software’s requirements as it constantly upgrades as well.

    Online-Based: It is the software company’s responsibility to ensure that they can afford to efficiently run the business software. The user only needs to have enough power to run a browser. This is the reason why it’s possible for you to use accounting software programs through smart phones, though as mentioned earlier Internet connection is necessary.

Collaborative Work

It is easier for two or more people to do collaborative works in an online-based program. Instead of emailing or physically send files to partners, you can extend invitations to other users to view the exact same file you’re working on. You can invite, say, your accountant to check your file through the Internet in the convenience of his own office. This speeds up the time needed to explain or advise on your financial data.

No More Double-Handling

An accountant who uses computer-based accounting software will have to recreate your company’s financial data in their own accounting system. If he uses online-based accounting program, this procedure is no longer necessary as your accountant will be working on the same file you have in your system. This is often called “single ledger” or “common ledger”. This saves you time and greatly reduces the possibility of data errors due to recreation of files.

Continuous Improvement

Singapore businesses that use online-based accounting software no longer need to keep multiple versions of a program. This frees up computer space, providing more room for more useful programs. Moreover, the pace of development is much faster than computer-based programs. Rather than annual updates, online-based programs are updated several times in a year, which means bugs and system glitches are dealt with more quickly.

The benefits of online accounting are endless and are just hard to ignore. If you want your business to enjoy all these wonderful benefits, online-based accounting software would be a smart choice to take.