5 Benefits of Using a Decentralized Computerized Accounting System
Until recently, Filipino-run organizations have often been criticized as slow to change. While this is no longer accurate, it is true that many businesses still heavily rely on computerized accounting systems that are at least a decade old, if not more.
One critical feature many older systems lack is the redundancy and decentralization offered by new cloud-capable systems. Older systems often rely on on-site computers or servers, which tend to have high maintenance costs and frequent downtime. Organizations using older software often cite the cost of acquiring a new accounting system in the Philippines as well as the associated risks in transferring important data as reasons for not upgrading.
On the other hand, staying with older centralized accounting systems has several drawbacks as well. Here are some reasons you may want to simply bite the bullet and start upgrading to a new decentralized accounting system.
1.) New systems comply with current BIR requirements
That isn’t to say that you can’t use older systems. There are usually some workarounds to make most old accounting systems BIR compliant. The problem, however, is that these workarounds will tend to introduce an increasing chance of accounting errors, which you don’t want to be scrutinized at your next audit. These workarounds also become increasingly impractical as more people familiar with your outdated accounting systems retire or move on to different careers.
Newer cloud-based systems intended for the Philippine market, on the other hand, are going to have these compliance features built-in, which greatly reduces the chances of human error.
2.) New accounting systems are less at risk from serious data loss
By system, we don’t just refer to the software, but also the hardware it’s hosted on. In older systems, everything is often contained within just one computer or local server. Even if the older software is hosted a modern machine, all it takes is one power outage or one careless employee to severely damage your hardware and possibly corrupt your files.
This isn’t just hypothetical either. Catastrophic typhoons and floods in the Philippines have damaged important computer systems and caused irretrievable data loss for thousands of businesses. This could all be avoided simply by switching over to a decentralized accounting system that stores data on the cloud.
3.) Easier access for key employees
The main premise of any decentralized or cloud-based accounting system is that data could be accessed and changes made from virtually anywhere. This means employees who need access to your system don’t need to be right on your office premises to work with it. This also makes it much easier for employees who need to work from home or perform fieldwork.
4.) Less downtime
The remote servers hosting your data are maintained by specialized IT professionals rather than just whoever it is in your office has the time to check on the system. This means that downtime due to maintenance tends to be minimal, which allows you to work with your accounting system whenever and wherever you need to.
5.) Better security
While many business owners are paranoid about how decentralized cloud-based accounting software can expose their data to malware, the risks are, in fact, much reduced. Cloud servers tend to have multiple levels of redundancy and are normally backed up and given security updates far more frequently than most local servers. This means that data on the cloud is going to be better protected from both hackers and most unforeseen catastrophes.
The advantages of upgrading to a new decentralized accounting system with cloud-based features far outweigh the benefits of staying with an older system. As time goes on, the risks of not switching to a decentralized accounting system become more and more unacceptable, and it’s only a matter of time before a business incurs catastrophic data loss.