What are Desktop based accounting softwares – A software which is installed on your single PC and whenever you want to any transaction or want to see the reports, you will have to be near to your computer. Bank transactions either need to be entered manually in the form of a JV or thru manually transaction uploads. GST transaction Reports have to be downloaded and uploaded manually to GST portal. Above all there is no payroll integration with most desktop based softwares, therefore you run your payroll manually in excel and create manually JV to enter the transaction in your accounting system.
Cloud based accounting application are accessible anywhere, all you need is internet connectivity or data plan on your mobile. There are options for secured bank and credit cards integration whereby system will pull all the transactions into your accounting app, you just need to categorize them or setup rules for auto categorization. Payments received from customers can be matched with due/overdue invoices instantly, supplier payments can be matched with Bills to mark paid, payment towards expenses can be charged to respective heads. Most Cloud based apps have multiple apps including that of Payroll which can be well integrated with you accounting and the entire process is smooth. Zoho Payroll, for example, offer a direct payout to employees thru ICICI Bank Integration and accounting entries are automatically taken care.
Your P&L, Balance Sheet and Receivables ageing etc are all updated on real time basis throughout the period. You aren’t waiting for the month to end.
You must be wondering how is the subscription cost difference? Are Cloud apps too expensive compared to Desktop applications? The answer is – Not always it depends on features you want to use, your volume and number of users. Cloud applications are monthly/annual subscription based and vary based on the number of apps, volume and number of users.
If you do a cost-benefit analysis of both, the verdict always goes in favor of Cloud apps.
You want a free consultation, do let us know we will provide you every bit of detail for you to take an informed and right decision.
