Rewards and short-comings of software’s used for accounting purposes and their impact on CPA firms

If you pay attention to trends taking place in the IT world, you should be familiar with the idea of cloud-based services. This software’s have different features and functions and can be used on subscription. When you are working on the host servers, you are saving time and resources that would have been otherwise spent in developing your own infrastructure and you can also make use of latest software’s that are more reliable than others. This is how IT is becoming more and more virtual and more and more like a utility. Only part of the cloud that has gained fame is the accounting. What does this change mean for clients and accounting and CPA firms themselves? What are advantages and disadvantages of relying on service as a software accounting?

Benefits:

1. Better managing

The accounting applications such as QuickBooks have helped the small businessmen in developing control over their accounting functions, which was found wanting in them in the past. Instead of outsourcing bookkeeping, invoicing or payroll services to a third party, they can largely automate it while keeping tabs on what is going on in their company. These applications are highly user friendly as they can be used by people who have no know-how of basic accounting as well.

2. Effortless entry

In the cloud accounting system that is basically online, the owner can view his financial position at any point of time without having to worry for the interface and this is not the case with CPA firm accounting. If you have an internet connection and device such as a mobile, laptop or a tablet, you can view all you need from your accounts. Having the know-how of your business is going to help you in undertaking secure decisions for your organization.

3. Investments

The costs involved in online accounting are lesser than those required for hiring a professional accountant. As you are purchasing them on a subscription, you don’t need to worry for the huge license fee that is involved for the buying the software. Furthermore, you don’t need to worry about the updates as the version that is available for the online accounting is the most recent.

Drawbacks

1. Meeting perfection

If you are undertaking CPA accounting firms, you have better chances of evading taxes as your taxing will be monitored by the experts. Professionals who look into your assets and liabilities are more likely to see such options than inexperienced users of accounting programs. You might ask your uneducated taxman to learn the taxing theories but it will come at a cost and that cost is usually higher than it is expected to earn.

2. Security

Are you happy with another company (the service provider or the server provider) storing your financial information. This is something you have to answer for yourself, but some business people are very careful in this respect.

3. Freeze-time + Complete-shutdown

Usually reliable, cloud-based apps can freeze. Complete failure of these projects is also not out of question, which – compared to timeless CPA firms – is a major drawback.