This remote lifestyle is fast becoming the new norm and has enforced new standards. Given below is an account of the various disadvantages associated with offline accounting software
The recent pandemic has infiltrated our lives in multiple ways. The effect has been so severe that it has spared nothing, not even businesses, and business processes. The result is the rise of the new normal. This abrupt change has impacted all departments and spheres of organizations, especially the finance and accounting department. As a result, they have been compelled to adopt online options, for example, hosting webinars to deliver services remotely and digitally, which otherwise was being delivered traditionally.
This remote lifestyle is fast becoming the new norm and has enforced new standards. As a result, the way now leads to establishing different and new processes and systems and has encouraged the rise of tech-enabled platforms driven by the Internet. Apart from that, there have been quite a few disadvantages that businesses had been dealing with related to the offline or desktop version of accounting software. Given below is an account of the various disadvantages associated with offline accounting software:
Constant Need for Upgrade:
One of the prominent drawbacks of offline accounting software is that it requires to be frequently upgraded. It is a typical operation that needs to be mandatorily done every time there is a need to include any new feature. In many cases, users might need to purchase extra licenses for using the application if the program has been installed on other systems and is being used by others.
Suppose the existing system does not match the basic requirements necessary for running the software or installing an update. In that case, an offline upgrade will be necessary to restore the normal functioning of the program. On the other hand, most of the top accounting software is online and is free of such hassles since it can upgrade on its own, thereby avoiding the need to upgrade the system frequently.
Does Not Offer Any Prominent Additional Benefits:
The desktop version of the accounting software does not come with additional benefits that a user might enjoy, like the facility to keep track of creditors or debtors, generate account reports, audit trail, option for auto data entry, etc. Such functions are possible only in the vase of online applications that can offer limitless benefits.
Offline accounting software requires additional provisions of security. It is easy for a user to embezzle or alter any data, especially if multiple users access the system. As a result, several security layers are required to limit access to sensitive data and information within an organization. Also, the users' needs need to be monitored continuously to audit the software or the tool for any inaccuracy of data.
Loss of Data:
As a business expands, the rate and volume of the financial transactions also increase in number. If a business decided to stick with only the desktop accounting version, there might be a huge risk of data loss. It can happen since the desktops would be the only point where the data is kept.
Inability To Access Data from Multiple Locations:
Another prominent disadvantage of the desktop happens to be the inability to access it from multiple locations. Such an account management system is restricted to only desktops used for recording and storing information, so access from different areas is not possible.
Not Possible to Access Data While On The Go:
By any chance, if a user is traveling to a different location away from where the system is located, it will not be possible for the person to access data at that time in case any discrepancy arises. Since offline accounting software is limited to the system having the data, there is no way to get to it even if there is access to the Internet.
Therefore, it brings us to a point where we need to think whether the cloud is a better choice as compared to the offline system or not? Based on the various drawbacks, it can be easily said there is enough reason for organizations to move away from desktop accounting applications and opt for cloud-enabled systems for managing their individual financial needs.
A cloud-based application offers far more flexibility. More and more businesses are gradually inclining towards this approach since it offers better business accessibility, peace of mind, and enhanced security. Those business entities who want to overcome accounting limitations are left with no other option other than cloud application.
Unlike what happened in the past, there is no need to install and run an application or a program using the software. A stable internet connection is more than enough to have access to everything.
The popularity of cloud accounting has further increased since it does not involve much capital expense. There is no high hardware cost or anything involved. The majority of the applications are based on the 'pay as you go' model or as per the subscription model or a combination of both.
Age of Automation
The recent technological developments have reshaped the accounting system landscape. Most of the account management system is now being equipped with features by keeping in mind the demands of various business processes, significantly automated workflows that can save valuable time. Functions like tracking payments, forwarding invoices, and making common invoicing mistakes are no longer a concern. They can be quickly executed with a customized program that can be accessed from anywhere, anytime.