These days, everything is on-the-go. You want to order groceries, you want to call for a cab, you want a new phone, you want to read books, everything can be done while you’re on the go. You want any kind of information, everything is available within seconds.
With the fast-moving world, businesses need an upgrade too. No matter how small a business is, it needs to keep itself updated with the ever-changing times to avoid the risk of becoming outdated. In the process of focusing on their businesses, small enterprises often neglect using latest software that can help run their businesses efficiently.
Have you thought –
How can your business become more accessible?
How can you make a better analysis of sales of your business?
How can you make work from home a possibility for all your employees if you’re a CA in practice?
How can you monitor your retail outlets without being physically present all the time?
Ever since the lockdown was imposed, several small businesses and professionals have had no access to their records. Most of the small businesses rely on traditional software that is centric to one computer. While the entire world is expecting information on-the-go, why should small businesses lag behind?
There are a lot of myths, like software is very expensive, the data will not be secure, the transition will cost a lot and so on. But let me bust these myths. Let’s look at the top 5 reasons why a cloud-based software have become a necessity.
1. Accessible anywhere and anytime
Most of the companies that provide cloud-based software have applications that can be accessed through mobile phones. No matter in which part of the world you’re in, all you need is a decent internet connection and a smartphone to access your records on cloud. All your records will not be centric to one desktop. It can be accessed anytime and anywhere.
For tax filing or maintaining records, physical files need not be sent to Chartered Accountants (CA). Separate login credentials can be given to CAs to access these records.
2. Analysis and reports can be obtained easily
A cloud-based software provides options to download reports and analysis. On the click of a button, reports can be downloaded for making informed decisions. For instance, a lot of marketing strategies of companies are implemented on the basis geographies. Such sales reports can be obtained easily on a cloud-based software.
Inventory reports can be downloaded on a click. Such reports will give detailed information on slow-moving inventory, fast-moving inventory and reorder levels can also be determined.
Expense reports can also be obtained to analyse the various heads of expenses.
Even a traditional software might provide these reports. However, the benefits of accessing these reports anytime and anywhere are only available on a cloud-based software.
3. Work from home is a possibility (even for small businesses)
With a cloud-based software, work from home is a possibility specially for the accounts team of any business. Payroll processing, budgeting, determining stock reorder levels, analyzing data to take strategic decisions, analysing cash flows are just a few examples of activities that can be covered under ‘work from home’.
4. Cost effective
The basic version of a cloud-based software is available at extremely affordable prices. For example, the standard plan of Zoho books is available at Rs. 2500 for a year and the premium plan for Rs. 10,000 a year. Quickbooks, Wave Accounting, ProfitBooks, HostBooks are a few other affordable cloud-based solutions that be explored on the basis of business requirements.
For chartered accountants, software like Cleartax, CompuTax, HostBooks are available for GST filings, TDS filings and income tax filings at approximately Rs. 6000 to 10,000 per annum.
5. Data is better protected
A cloud-based software provides better protection in terms of loss of data due to a virus attack. Virus attacks are common and if the data is stored on the same computer on which a traditional software is loaded, then a virus attack will wipe off all the data. Often, a traditional software company does not provide backup facility on cloud and small enterprises on their own fail to maintain regular backups thereby increasing the risk of losing data.
On a cloud-based software, data is protected on the cloud of the company from whom the software is purchased. So, even if there’s a virus attack on a computer, data is not lost. It is saved on the cloud and can be restored easily.
Once the decision is taken, implementation is a one-time activity. It might sound cumbersome but the benefits are too many to outweigh the efforts and the cost involved. This is a good time for businesses to think about moving to cloud-based software and access their businesses on the go.
About the author
Nikita is a practicing Chartered Accountant. Since the advent of the Goods and Services Tax (GST) law in India, she has served as a trainer of the law, as a consultant and has also conducted seminars. She has helped clients in implementing cloud-based software for their businesses. In her free time, she loves reading, public speaking and running.