Is handling your accounts taking too much of your time?
With cloud accounting, you may no longer have to deal with these tumultuous tasks manually.
In this article, we will share the difference between traditional and cloud accounting software with you.
We will compare the cloud accounting software packages offered by Osome, Financio, Quickbooks and Xero, and list the available government grants you can apply for.
Typically, traditional accounting software is installed into a hard drive on your computer. You may access and store your data in the accounting application on your computer.
Conversely, cloud accounting software allows you to keep your business books remotely on the cloud. You may access your data from any location with a laptop or mobile device.
We list some of the differences between traditional accounting software and cloud accounting software below:
Disclaimer: The information presented in the above table is based on our common understanding and is not definitive. For more accurate information, please refer directly to the software provider.
a. Understand your business needs
When choosing a cloud accounting solution, be clear about the features that your business needs.
Your needs may differ depending on the industry you are in, the size of your organization, or other factors such as the number of transactions you have per month.
For instance, if you adopt milestone payments for your business, you may want to subscribe to a platform that has a progressive billing option.
Other additional features that you may find useful would be the bank feeds and integrations.
Cloud accounting software such as Financio and Xero not only keep your books in check, but also allow you to sync with your business bank account so that transactions are recorded as they occur.
Some software also provide application integration so that you can consolidate your business data in one place.
b. Software data security and reliability
When you store your data on the cloud, you may run the risk of a data security breach.
Hence, it is important to take note of the security procedures that the software provider implements.
You may check if the software provider puts in place anti-malware, encryption, firewalls or even conducts security monitoring.
Also, find out if the software keeps a constant backup of your data so that you can retrieve it if it is misplaced.
c. Costs and additional charges
When it comes to costs, be aware of the limitations of each package.
For instance, Osome’s mini package only provides up to 60 transactions a year.
Take note of the additional costs that you may need to bear, such as the multi-currency feature (if your business transacts in foreign currencies).
Sometimes, these costs may not be apparent to you and negligence may result in additional charges. That being said, you may want to set up a meeting with the sales executive so he can work out a package and highlight these costs to you.
To encourage businesses to digitalise, IMDA and ESG joined hands to set up The Start Digital Pack.
SMEs can take up a cloud accounting solution and one other digital solution of their choice to form a Start Digital Pack. This is offered in partnership with DBS, Maybank, OCBC and UOB.
Check out The Start Digital Initiative article to get insights on these packs.
You may also visit the SMP Centre for other grants that are available for cloud accounting software.
Lendingpot.sg operates a Business Loan Marketplace that allows an SME to connect to multiple lenders with just one application, allowing the SME to know who its prospective lenders are and the rates that they offer, in a very short time.
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Jennifer loves helping SMEs in their business growth journey. She is also an epicurean and has perpetual wanderlust. During the weekend, she weaves poems out of thin air and buries herself in books.
