Accounting is central to any organization. It is the most basic and practical of functions. Any business must be able to reckon, at the end of any period, how much funds came in, and how much came out. Between and after these, there are entire processes that are impossible to track especially when the business is big or dynamic, or both. Accounting tells us, plainly, if our business is doing well or not, why, and how we can do better.
This is the reason for the popularity of accounting systems in the past decade. Businesses of whatever size have recognized that technology can do wonders in terms of improving efficiency. Indeed it is not a luxury or a nice-to-have item. It is a necessity. If you don’t have it, you will be left behind.
Then again, an accounting system – whether self-developed, bought from a vendor or off the shelf — also presents some constraints. It is limited by location; the server is fixed in one area and is susceptible to flooding, fires, and many other risks. Employees’ access to the system is limited by their proximity to the office. This did not bode well for those who had to travel on business and still view company figures in their most recent form.
And then, every few years or so, new versions of the software are introduced and the organizations which already have the software have to, not only get the new version but make sure that its internal systems and hardware. Remember that the mere decision to purchase the software already entails a significant investment.
Internet technology and the globalization of businesses and business trends, however, have changed the nature of demand for accounting solutions. All of a sudden, on-premise solutions become limiting and inadequate, and purchasable software products become obsolete much too faster.
Cloud accounting systems have since stepped up to the plate. The NetSuite Accounting Systemis one such example. It provides all the benefits of an accounting system – the central function it performs in the organization in relation to all other business units – without the accompanying constraints and big investment outlay. Because it is hinged on the Internet, anybody in the organization, so long as he or she has an internet connection and security permissions, can log in and view the company’s finances wherever he or she may be.
There is no need for a server and for upgrades arising from new versions. A company instead pays a fixed monthly amount for this cloud computing system that gives its customers more options and greater flexibility.