You can’t succeed as an entrepreneur without understanding the language of business, accounting.
You don’t have to become a professional accountant, but you have to be comfortable with the financial aspect of your business.
The good news is that small business owners can easily keep track of their invoices and bills with cloud accounting software like Freshbooks. Cloud-based accounting software offers the same features as old-school desktop accounting software with many more benefits.
Desktop accounting software is widely replaced by more convenient cloud-based solutions.
Entrepreneurs love cloud-based accounting software for the following reasons.
Cloud-based accounting software is location independent. As long as you have access to the Internet you can send invoices, check your financial reports, or catch up on your books. All you need is a browser and you are in business.
Forget About Updates
One of the biggest drawbacks of desktop software is updates. Most desktop software requires constant updating. Even if you are happy with the software, the software developer requires you to buy an update.
The updates are inconvenient for several reasons:
- They take time away from running your business.
- The updates cost money.
- There are times when updates cause problems with other programs running on the same computer.
No Individual Desktop License
When you buy desktop software you can only use it on one computer. Cloud-based software does not have such limitations. You can log in from any number of computers as long as they are connected to the web.
Save on Infrastructure
Many accounting software solutions require an expensive IT infrastructure. With cloud-based software, you don’t have to build an expensive computer network. In the old days, you would have to invest in an expensive client-server infrastructure. With cloud-based software, the infrastructure is not your responsibility.
Since there is no IT infrastructure required, you don’t need to have in-house IT support. There is no internal server to maintain. There is not high-end network infrastructure required. You don’t need to worry about managing your accounting software. All of that is handled in the cloud.
As your business grows you don’t have to worry about installing a more powerful accounting solutions. Cloud accounting software scales to meet the needs of your growing business.
You hear about security breaches every day. When your business is using a cloud-based software you know that you don’t have to worry about security.
In the case of a natural disaster, your data is secure. Your company’s information is safely kept in the cloud. As soon as you have access to the web, you can log in to your account and get access to your data.
Because you don’t have to build your own software infrastructure, you are saving money in startup costs. You save as you continue to use the software because there is no maintenance required.
With cloud-based accounting software, many tasks can be automated. Your account automatically connects to your bank account. Your invoices can be automatically sent to your customers.
Cloud accounting software gives you instant access to your financials. You can make better decisions because you know exactly where your business stands. You can generate reports on the fly to get a snapshot of your current financials.
A computer virus on your server or desktop computers could mean thousands of dollars in loss of productivity. Removing viruses require time and expertise. You don’t need to worry about a virus destroying your accounting software installation. If your desktop or laptop computer is infected by a virus there is no downtime. You can use another computer to take care of your accounting needs.
No Backups Required
With a desktop accounting software, you are responsible to backup your data. With a cloud accounting solution, you don’t need to make backups. It is done for you.
Cloud-based software requires a lot less energy than traditional client/server solutions. Virtualization which is the technology behind cloud-based software allows a single server to serve thousands of customers. The consolidation of computer resources reduces energy requirements.
Most cloud-based accounting software companies offer free trials. You can try before you make a decision. The free trial is a great way to decide which cloud accounting solution is right for your business.
photo credit: stevendepolo Madcap Coffee Company Local First Shoot January 24, 20119 via photopin (license)