Increasing productivity and making profits are any business’s two most important objectives. To fulfill them, you must manage the finances systematically and accurately. Using QuickBooks is an excellent way to achieve this. The software helps you make accounting and tax preparation processes simple while enabling you to keep track of the financial health of your business.
While SMBs embrace QuickBooks unlike any other accounting application, some limitations of the desktop version of the software restrict them from accomplishing critical objectives. These include the inability to access the software remotely, lack of disaster recovery features, data security, and more. This is where cloud-based QuickBooks comes in handy.
Read on to explore the various factors that make cloud-based QuickBooks among the leading choices of many SMBs.
QuickBooks Desktop and Cloud-Based QuickBooks – An Understanding
QuickBooks desktop refers to the on-premise setup of the accounting application where users can access the software on dedicated computer systems. It includes installation of the software on computers and setting up an IT infrastructure to maintain the server’s upkeep. In this setup, users must be physically available in the office or dedicated space.
On the other hand, cloud-based QuickBooks refers to running the application on secure servers located in multiple data centers worldwide. You need a compatible internet-enabled device and the correct login credentials to access the application. You can run the software on web browsers like Chrome, Safari, Firefox, etc. Here, you get the option of accessing the software remotely. Besides, you can store all your data on the cloud, protected with a password.
Why Cloud-Based QuickBooks for SMBs?
While businesses of all sizes benefit from cloud-based QuickBooks, some features of the cloud-based software hold significant importance, especially for SMBs. Let’s have a look at them:
1. Global Access
Cloud-based QuickBooks enables you to access QuickBooks files from any location and device. As such, you remain independent of the local network and don’t need to be physically present in the office. It means you can ask your employees to use their preferred devices and work either from the comfort of their homes or while on the move.
In addition to the above, cloud-based QuickBooks ensures speedy online response of the application. This is because cloud-based QuickBooks is installed on highly optimized servers. If you are an SMB with outsourced employees located in various geographical regions, remote access to QuickBooks can be extremely useful in ensuring increased productivity.
2. Cost-Efficient Solution
One of the most critical objectives of SMBs is to cut costs. Using QuickBooks on cloud, they can attain this objective with ease. Since cloud-based QuickBooks is accessible through the internet, businesses don’t need a dedicated system to use the accounting application. Neither do they need to invest in IT infrastructure or rent physical space for offices.
Moreover, with features like remote upgrades and support, you don’t need to hire any in-house IT professional, thus saving a significant amount of money. Such advantages of cloud-based QuickBooks give you an excellent opportunity to improve the financial health of your business.
3. Security of Data
Instances like stolen or lost devices are often inevitable. However, if you store all your QB data on devices like laptops, smartphones, iPad, tablets, etc., any unauthorized person can easily access that data on your device.
However, if you use cloud-based QuickBooks, your data is very secure. This is because when you use QuickBooks on the cloud, you need a user ID and password to access the data. Besides, the cloud version of the accounting application is backed with multiple security mechanisms, such as:
- End-to-end data encryption
- Multi-level firewall
- Multi-factor authentication
- DDoS Protection
4. Multi-User Collaboration
With QuickBooks on the cloud, collaboration with your team members, accountants, or clients gets more manageable. You can set up multiple users, share, and collaborate on your books in real-time. As such, everyone remains on the same page and gets real-time updates for any changes to a file. Besides, easy collaboration amongst everyone reduces the chance of errors while working and improves productivity to a vast extent.
Further, if you want your books to be reviewed or audited by someone else, you can create a user account for them. It is possible as you’re always in complete control of the access rights to the cloud-based application.
5. Nil Maintenance
Not every SMB can afford in-house professionals to support their IT needs. Cloud-based QuickBooks eliminates the hassle of maintaining the software your business needs to operate. You don’t need to pay someone to install the software, upgrade it, or ensure compatibility with your operating system. The cloud-based QuickBooks solution runs on multiple web browsers, and the cloud provider offering the software takes care of regular updates. As a result, you always have access to the software’s latest features.
6. Scalability of Resources
Businesses, primarily SMBs, need resources and their requirements change significantly over time. For example, your business requirements during the busy tax season might increase and decrease once it is over. In such cases, many businesses experience wastage of resources. But, if you use cloud-based QuickBooks, you can scale your resources up and down according to your requirements. You can scale resources like RAM, the number of QB users, storage space, and more. Once your needs are met, you can contact your cloud service provider to scale down the resources, and they will do the rest.
7. IT Support
Hiring in-house IT staff to maintain servers or IT infrastructure can be challenging for some SMBs. Using QuickBooks on the cloud, they get complete support for all their queries and concerns. Yes, if you encounter any challenges or have questions about your cloud-based QuickBooks, you can contact the customer support team of your cloud hosting provider. You can contact them via various mediums like phone, chat, email, etc.
By now, you must have realized how cloud-based QuickBooks can help you transform your accounting workflow. Features like global access, data security, easy collaboration, etc., are unlike in the case of QuickBooks Desktop. In addition, cloud accounting with QuickBooks promotes paperless accounting, ensuring a clutter-free work environment. So, switching to cloud-based QuickBooks is the way to go if you want to maintain an edge over your competitors while ensuring a cost-efficient accounting process.