In the year 2020, businesses are moving away from conventional business models, and are embracing modern concepts like blockchain, data digitalization, and virtual reality. At the same time, businesses are also adapting to modern accounting solutions to overcome the everyday challenges that their accounting department faces. For most of the accounting challenges, switching to cloud-based accounting software might work as a viable option.
Here are some of the accounting challenges that most businesses face:
A lot of small businesses hire unqualified accountants to save up on costs. However, this comes up a cost because these accountants don’t always have the required skill set. They might not have the expertise to deal with a huge amount of accounting data, troubleshoot problems, deal with business tax planning, or give business advice. Most of the time, this happens because they’re either not aware of the accounting standard or don’t have the knowledge to put them into practice.
As a result, your business may deal with issues like discrepancies, cash flow inconsistency, and non-compliance with the laws. This is where accounting solutions like QuickBooks comes in. You don’t necessarily need to hire a team of top notch accountants. The software doesn’t rely on the accountant’s expertise. It needs little external help. As a business owner, you can use QuickBooks to get by most of your accounting tasks on your own.
Changes in technology
Accounting is no longer being carried out the way it did twenty years ago. Heaps of files and hours of manual processes are no longer a thing. Accounting software have replaced manual bookkeeping. Cloud computing has taken over physical data centers. Businesses are slowly and gradually transitioning from manual accounting to digitalized accounting. Even machine learning and artificial intelligence and being increasingly incorporated in everyday business activities.
One of the top success factors for any business is to stay abreast of the changes in technology. Any business that fails to do so will eventually lose out to competition. In 2020, clients have a myriad of options. If another business caters to their needs faster and better, they’ll switch! The same applies to how you carry out your accounting activities. Your client will always prefer a business that does computerized invoices.
If your business is relying on manual accounting even in 2020, you’ll find yourself incurring higher payroll and administrative costs as well.
On the other hand, with accounting software like QuickBooks, you need not worry about falling behind on your deadlines. With a few clicks, the software enables you to generate detailed financial statements. If you’re new to digitalized accounting, your QuickBooks cloud hosting provider will help you deploy the software and get accustomed to using it effectively.
Security of data
Accounting data is one of the most critical data sets for a company. This is the data that comprises details of the business’s financial health, breakeven point, sales data, profitability, and cash flows. This is sensitive information that shouldn’t fall in the hands of an unauthorized person.
In the case of manual accounting, securing accounting data is somewhat of a challenge. You need high-security locks and security cameras in the office facility to keep unauthorized individuals at bay. Despite all of the precautions, your office can still be broken into and, therefore, the data remains at risk of being stolen and misused.
In the case of accounting software like QuickBooks, most of these possibilities can be ruled out. QuickBooks relies on the principles of cloud computing. This means that all of the data is saved on the cloud, and the servers are maintained by the third-party service provider. The data is also encrypted when it’s saved on the cloud, making it virtually impossible to break into. The service provider will also deploy preventive measures to better secure the data against any threats.
If your business is tackling any of the above-mentioned accounting challenges, we recommend switching to QuickBooks hosting. gotomyerp will make the process easier for you! We are a renowned QuickBooks cloud hosting service provider and we offer different versions of QuickBooks according to your business needs.
Before buying your subscription, you can also sign up for a thirty days long free trial! Once your trial period is over, our representatives will help you transition to the actual software.