These new cloud-based tools have started their services in India at very completive rates and offer deep discounts (up to 70% of the listed prices) – they normally charge anywhere from 2000 INR to 4000 INR / annually - which is pretty reasonable considering the features and functionality offered. Few of the key features offered by these tools are as follows:
- Ease of Doing accounting and Accessing the MIS – These tools are not designed only for accountants for also keeping in mind the Management, most of the management team I have met are interested in reviewing the progress and they want MIS to analyze their progress and plan ahead – which was only possible on excels (which also required accountant to extract data and change formats etc) this approach never allowed management to review the information real time brought lots of frustration. With quick-books, Zoho, Xero, and similar tools – this is provided off the shelf and can also be customized to some extent.
- Availability of access of books and records from across the globe – which means that key management persons can review – view its books and MIS from anywhere any time – which is a big benefit for people on the move and for the new age promoters.
- Automated Bank Integration and Reconciliation - being on cloud allows them to connect with the bank online and pull the transaction data directly into your accounting books – this saves time and errors – also this allows the tools to do automated bank reconciliation as well – According to me this one feature itself is worth moving from your traditions tools
- User Rights Management - This function allows the team to create user-specific rights and give access to the team according to there needs – why do we need to give access to of sales to a person who is just managing purchase – this help preventing data thefts and losses
- Audit trail – for review of work and details of any changes done in accounting (current or historically) these tools provide reasonable amount to audit trail – which help management and auditors to review accounts and find issue – once the team is aware that their efforts / Changes can be traced, they become more disciplined and try to do things correctly in the first go itself.
How Accounting is changing on Cloud-Based Tools
The new tools in the market are changing the way the accounting industry is getting shaped and is also providing fresh thought to historically accepted practices in India.
There are various new tools available in the market now, various global companies have ventured into this like quick books – one of the biggest accounting tools in the world for SME, the beautiful accounting tool Xero – and Zoho Accounting - just to name a few.