What’s The Difference Between Cloud Accounting Software And Traditional Accounting Software?
Accounting software is essential to managing a homeowner association (HOA) or condominium association (COA) for clients. In general, there are two types of accounting software for HOA/COA management: the first is known as traditional accounting software, while the second is called cloud accounting software. Traditional accounting software refers to accounting programs that need to be installed on your computer. They’re self-contained systems, meaning all your accounting data is stored on the computer’s hard drive.
Cloud accounting software stores your entire HOA/COA accounting system on remote servers, also known as “the cloud.” This method has a number of advantages over traditional accounting software. Whether you’re managing a large HOA, a smaller COA, or a mixed portfolio of clients, using cloud-based accounting software like CINC Systems will drastically improve the running of your association management business.
Cloud accounting software for HOA/COAs will save time and help you manage your clients’ finances much more efficiently. Cloud software makes it easy to share financial reports and other data with your clients. It also allows other members of your management company to access this data remotely any time, any place. Here are some key differences between cloud accounting software and traditional accounting software. Learning more about cloud accounting software will allow you to see how applications can optimize client management services.
Best Uses for HOA/COA Cloud Accounting Software
HOA/COA cloud accounting software such as CINC Systems will make your job even easier. HOA/COA Cloud accounting software can help you streamline tasks such as:
- Paying Bills: use HOA/COA accounting software such as CINC Systems to automate billpay for your clients’ utilities and other regular expenses.
- Collecting Resident Fees: enable a payment web portal where residents can pay their association fees online.
- General Ledger Accounting: get a live snapshot of your clients’ finances and track expenditures in real time.
- Reconciling Outstanding Invoices: pay invoices for third-party services and vendors online with the click of a button.
- Create Financial Reports: automatically generate financial reports to share with clients, including custom data sets for specific time periods or financial categories.
HOA/COA accounting software also enables your business to go paperless. With accounting software like CINC Systems, everything is done online. This includes deposits, so you can eliminate unnecessary trips to the bank.
Cloud Accounting vs. Traditional Accounting
Using accounting systems of any kind will give your HOA/COA management company many advantages. However, cloud accounting differs from traditional software in many ways. With traditional accounting software, added data remains stored on a specific computer. It can only be accessed from that account. If you need to share accounting data with coworkers or clients, you’ll have to export it and share the data manually.
With cloud accounting software, there’s no need to install a large application on your business’ computers. Simply create an account and log in to access the software. That way, any data you enter for your HOA/COA clients will be stored remotely in the cloud. You can access their accounts from any computer or tablet with an internet connection. This also makes sharing data much easier because other users can also log in remotely.
Cloud Accounting Software Has Fewer Software Requirements
Because cloud accounting software doesn’t need to be installed on your computer, the system requirements tend to be much lower compared to traditional accounting software. There’s no need to worry about whether your computer has enough hard drive space or a fast enough processor.
In general, as long as your computer can access the internet, you can use cloud accounting software for HOA/COA management. Many HOA/COA cloud accounting software applications can also be used on a tablet. This offers greater convenience than a stationary desktop.
Share Data with Coworkers and Clients Easier
Cloud accounting software also allows you to share data with coworkers and clients more easily than traditional accounting software. If your HOA/COA management company has multiple members working on the same accounts, each team member can access their accounting dashboard from their own individual computers. Simply create unique logins for each person who needs access. Team members can also work collaboratively with one another in real time from remote locations.
Additionally, cloud accounting software makes it easier to share accounting data with clients. When you’re managing an HOA/COA, you’ll need to provide financial reports to the board. These reports help the client understand their budget and expenditures, offering a snapshot of the HOA/COA’s financial health.
With traditional accounting software, you often need to generate these reports by hand, then print, scan and email them as separate file attachments. Cloud accounting software, on the other hand, allows you to share financial reports by inviting the client to the software dashboard or by using an automated email functionality.
Go Mobile with Cloud Accounting Software
Most cloud accounting software for HOA/COA management, such as CINC Systems, offers full mobile integration. This means you’ll be able to access your clients’ financial accounts from your tablet or smartphone. When you’re managing HOA/COAs, you may find yourself traveling to different locations on a regular basis. Cloud accounting software gives you the freedom to work from anywhere. You can manage one client while being on-site for another.
Data Security for Your HOA/COA Clients
Using HOA/COA accounting software that’s cloud based offers greater security than traditional accounting software. Although your client’s data is stored remotely, it’s spread out across multiple servers using secure encryption technology. Companies that offer cloud-based software take many cyber security precautions to ensure data is always protected.
Additionally, cloud accounting software backs-up automatically. This eliminates the risk of crashed hard drives, stored tapes and broken computers.
Try CINC Systems Cloud Accounting Software
Related Frequently Asked Questions
- How Can Association Management Companies Working with HOA/COAs Benefit from Association Management Software?
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