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How COVID-19 Impacts Bookkeeping?

Global economic crisis triggered by COVID-19 causes a heavy burden for all businesses. To stay operational, employees are working from home. 

But, if we ask the bookkeeper to work from home then:

  • You can't leave invoices or receipts simply on their table.
  • Bookkeepers don't have access for a long time.
  • Also, they can't chase payments.

As luck would have it, the software for cloud accounting resolves the accessibility issues. In most instances, bookkeeping software has been moved to the cloud. The global spread of Coronavirus has contributed a lot for the businesses moving over to the software for the cloud-based bookkeeping. It's one of the industries which is overgrowing, but the changes are necessary for continuous functioning.

You have this doubt "What's the difference between traditional accounting and cloud-based accounting software?"

There are three significant differences between them.

  1. Accessing bookkeeping during this lockdown
  2. Growing the bookkeeping with business
  3. Reduce expenses

Accessing bookkeeping during this lockdown:

Essentially, in cloud-based bookkeeping software, the data is accessed through a secure online interface and stored on a remote server. Unlike traditional accounting, the cloud-based software doesn't restrict the users to a single machine. Therefore the data will not store locally, instead of providing multiple authorized users. Although the Accountants, managers, bookkeepers, and clients are in different time zones, they continue to monitor the business's financial health.

Growing the bookkeeping with business:

It's become very expensive for the users to grow the business by depending on the traditional accounting software.

Want to hire an additional bookkeeper?

But, they often think "it's better to buy more computer storage and increase the bandwidth access." If it doesn't happen, then it's better to speed up the performance which is more financially flexible.

Reduce Expenses:

In this uncertain time, one of the best ways to reduce the expenses is to use a few local servers with a footprint of the larger property. The software of cloud-based accounting offers access based on an annual subscription fee. The software updates itself and installs on the machines. 

Conclusion:

At this pandemic time, businesses tend to shrink rapidly. Instead of this uncertain time, there's a relief for the accounting firms to have the bookkeeping software. Hope you have understood how Covid-19 impacts Bookkeeping. Happy Learning!

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Author Bio:

Anji Velagana is the Content Strategist at Simandhar Education and has 2 years of experience in content writing and blogging. He loves pursuing excellence through writing and has a passion for technology & educational content. Contact him on LinkedIn.

 

Comments

  1. Ashutosh

    Nice blog. Thanks for sharing

  2. suma

    Useful Information....

  3. Rama Krishna

    Thank you for the detailed analysis. Helpful for bookkeepers in this pandemic time.

  4. Anju Rathore

    Very Insightful!!

  5. Swadesh Semwal

    Informative!! thanks for sharing

  6. Shubham Manapure

    Resourceful!!! You can also read the following article: How do CPAs adjust their Business Operations in this Corona Crisis?: https://bit.ly/2zLS1lM

  7. GAURAV YADAV

    very nice… i really like your blog…

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