A Computerized Accounting System, On the Ground and On the Cloud

MAKATI CITY, Philippines - Nov. 26, 2013 - PRLog -- The advantages of having a computerized accounting system are many. Having accounting system software for any business is known to help do away with human error. It makes operations more efficient. It enables managers to make better business decisions, as they are based on accurate information. It also makes possible comparisons across time.

Over the decades, improvements have been made on the accounting system software that may be used by companies across various industries. In the beginning, the systems were developed from within the company, taking into consideration its unique processes and nature. This process however proved to be very costly as one had to hire experts who were adept at both computers and finance. There was also the problem of educating the would-be end users of this in-house technology. Whatever the benefits of having in place a computerized accounting system was set off by the cost and the difficulty it posted when it came to staff training and data migration.

Eventually, there came off-the-shelf computerized accounting systems which can be purchased from any store. This variety was cheaper – just a one-time expense – and easier to install in the company, especially when a company is small or medium size. Developers have also made it relatively easier for company employees to be familiar with the system even when they are not very tech-savvy. Indeed, computerized accounting systems have done wonders for businesses of whatever industry and whatever size.

However, further technological developments and rapid globalization has presented new opportunities so that businesses can take their accounting system to the next level. We refer to cloud accounting system which builds on the advantages provided by the Internet. An online accounting software has all the benefits of your usual accounting system, but the information this time is stored not in some physical server/ location but "in the cloud." This online accounting system thus magnifies the benefits of the traditional system because it makes the operations of a business enterprise across various locations and even across various countries possible.

Cloud computing is definitely the next wave in business solutions. A research firm, Forrester Research, estimated that the cloud accounting system was a $160-billion market in 2011 – imagine how much it has grown further to this day. The advantages of having an online accounting system are exponentially greater than the traditional system, because the Internet holds an indefinite amount of information and is safe so long as appropriate security is established. Also, a cloud accounting system, being more user-friendly, virtually eliminates the need for a middleman to access and print the information needed to the decision maker. Instead, an executive who wants to view company financials at whatever time of day, from whatever location, can do so. Such flexibility and accessibility tremendously increases the enabling factor of the cloud accounting system in boosting overall performance of the company.