The world of accounting has its own lingo and most accountants have their way of understanding each other, a language they share together.
However, these days, there seems to be a buzzword in the accounting industry which is quite familiar not just for accountants but for everyone – Cloud Accounting.
What is cloud accounting in a nutshell?
Your accounting team’s software is no longer hosted on any desktop in the office, rather it is now accessed on servers from an entirely different location.
This would mean that you can just stay in a coffee shop or at home to access important data from the cloud for as long as there is internet connection.
More and more businesses have realized the importance of what it is to be in the cloud and how successfully they have worked conveniently and have accessed data remotely from just about any part of the globe.
Because of what cloud accounting provides and the power that a cloud based accounting management software can bring to the business there is no stopping its eventual boom in leaps and bounds.
Not only will it benefit the business but also streamline processes intended for the customers.
This is especially proven true, tried and tested during precarious situations like the Covid19 pandemic.
But is it for everyone?
A coin always has two sides, right? Though cloud accounting offers many advantages to businesses, one cannot also ignore its disadvantages.
As cloud accounting and cloud software solutions are looming ahead and you are considering getting your accounting into the cloud, make sure it is the wisest decision by looking into the pros and cons of cloud accounting.
First the pros:
Convenient, quick, simple and efficient
Accounting and bookkeeping work is made easy with cloud accounting.
All you need is a browser, an internet connection and of course, the cloud based accounting software that you will deploy.
As compared to traditional on-premise software that will require setup, installation and all the work while a cloud based accounting management software is easy to install and works in a jiffy.
Reliable high security
The security features that cloud accounting provides covers access control, user authentication, storage data encryption and protection of the network primarily in saving critical data and information from unscrupulous individuals.
It does not matter if your accountant is in the office, at home or on a vacation in Australia.
He or she can access information and files from wherever.
This means that there is productivity even when not physically present in the office by being proactive in analyzing financial status and providing invaluable financial advice.
High and Improved Accuracy
Cloud accounting uses only one version of the data and information which spells out a more accurate one.
There is a slim chance of mistakes in information storage when it doesn’t have to be moved from one party to another in various formats.
Affordable and Cost Effective
Cloud accounting is being handled by service providers that do not really charge staggering fees.
Some even offer trial runs for better understanding.
A cloud based management software is a cost-effective way to store your company’s crucial data safe and secure.
With cloud accounting, you only have to pay for the subscription which admittedly works out a lot cheaper than the other software options.
Real-time and Up-to-date accounting
Because cloud based accounting software is operating online, all the stored data is also online.
You can access and interact with your accountant also in real-time without lapses providing a more efficient and pleasant experience.
Cloud accounting software is also constantly updated by the vendor to make sure the process will be seamless, smooth and accurate.
After much discussion on the pros, here are the cons:
Although there is high security there is still a potential risk to data theft, hacking of data and some unforeseen security breach.
Many have been victims to state of the art hacking so security should be reinforced all the time.
When there is no internet connection there is no access to the cloud.
This can cause a major blow in your operations so make sure to have a reliable connection and have a back up connection in case one fails.
Cloud accounting cannot work without online connectivity.
Not all vendors of cloud based accounting software are reliable.
Do not fall easily into one vendor that comes.
Do some research first so you can have the best cloud accounting provider with a good track record and reliable service.
Lack of other special services and tools
Cloud accounting is good for small to medium sized businesses and now large ones are utilizing it because of its accuracy, efficiency and convenience.
Look for a cloud based accounting management software that provides specialized tools and series to cater to your growing needs.
As for all technologically-based products technical issues and problems are the nemesis.
There are times that you may not be able to access your account or perhaps you encounter difficulty in using the software correctly.
Whenever there are concerns, it is best to have easy access to support from the service provider or account manager assigned.
Not highly customizable
Most cloud accounting software is often limited to customization.
There are specific needs that may not be met so do not demand too much.
So you see, there are both pros and cons to using cloud-based accounting software.
It is vital to take into consideration the pros and cons before making a final decision.
If you have made up your mind that cloud-based accounting software is the best for you, make certain to scout for different providers to find the one that suitably meets your needs.
For additional vendor information that you may want to consider, you can check out https://human-incubator.com/ for their cloud based accounting management system for your business.