acct-limits-benefits

The Benefits and Limitations of Cloud Accounting

2023/01/24

Most of us are availing of the amazing services of cloud technology and have enjoyed every bit of the convenience it provides without even knowing it. What is this thing called the cloud anyway? The cloud has transformed the way businesses and consumers interact with the internet, data storage, and even software, especially cloud accounting software

Over 90% of businesses already use cloud accounting software and some are already deciding to do so. Are you still weighing your options?  Before delving deep into the nitty-gritty of cloud accounting software, both its benefits and limitations, it is important to take note that cloud accounting software has three main areas. These are:

  • IaaS – Infrastructure as a service
  • PaaS – Platform as a service
  • SaaS – Software as a service

The cloud computing benefits and limitations tend to be applicable across all three areas, and just differ on what particular area you are more focused on. But in general, it spans through all. Now let’s take a closer look first into the benefits of cloud-based accounting.


Benefits:

1. Security 

Is in-house on-premise accounting software safer than cloud accounting in the Philippines? Apparently, the use of cloud accounting is becoming popular — it’s almost the sought-after option. Why? Because data held in the cloud is protected from employee theft.  Employees with bad intentions and unscrupulous ways find it easier to steal information when there is physical access to the data storage like a hard drive or a local network server. There is always that temptation to get something from that which is locked and restricted. 

Cloud accounting software is secure. It puts some distance between your protected data and any potentially dishonest employee. In-house on-premise accounting is unsafe because it is open to fire hazards, water-damage during superstorms and other calamities under “acts of god.”

It is interesting to note that those cloud storage providers will make it their main goal to keep security protocols in place and maintain constant software updates, of course, because their business entirely depends on it. Most cloud providers have full-time digital security specialists to focus on network security. 

2. Cost Reduction

Why are you in business? Profit. The basic financial principle is that if you make more money than what you spend in the business, then you are profitable. Everything that has got to do with computers and technology is expensive. Getting cloud accounting software is way cheaper than having to install hardware that will require specialized maintenance, updates, and software license renewals. Reliable hardware servers are expensive and would need to be secure. If you don’t have one already, you’ll need to get one built on-site. Servers also need constant cooling to work properly, so be ready with some outrageous air conditioning costs. Worse, a company can go broke buying software licenses for high-end programs. So why go through this ordeal?

Cloud-based accounting ph solves all of these problems for a business. The cloud service provider takes over all the intricacies that have got to do with infrastructure, management, and upgrades. And the cost? It is very affordable given the service it provides. It is usually priced at a fraction of the cost of locally installed software.

Best of all, there are subscriptions that allow you to pay only for the period you use it. If you are unhappy with the service, you can just opt out and stop paying.

EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!
EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

3. Reliability

If you want reliability, get cloud accounting software. A server with a hard drive is a risk that you should not be willing to take. What happens if there’s a hard drive failure? All of your data and server-based applications gone.  It is a catastrophe no one can afford! On the other hand, cloud service providers store your pertinent data and applications across multiple servers in multiple locations.


Limitations:

1. Downtime (Internet Connectivity)

This is perhaps the most obvious disadvantage of cloud accounting software – you need the internet to connect to the cloud. And you have an internet connection only if you have electricity. Nothing happens when there is no internet connection. And when there’s no power. But of course, when there is no power you probably have bigger problems than just simply accessing your cloud provider.

2. Cloud Service Closes Shop

There are many cloud providers offering the same services and vying to grow their clientele. Because some are still starting out, there is a possibility that your cloud provider might not be able to cope with the demands and may close the shop. Now imagine how difficult things would get if you lost access to the cloud provider because it has closed shop.

3. Security

At one level, security is a benefit. But in this case, it can also be a limitation. The whole setup of the cloud-based accounting ph to be safe and stay secure is already there. But the one that is prone to making it unsafe is the user. The user is the weak link in almost all security systems. If you don’t employ basic digital security protocols, then you are open to external risks.


When weighing cloud accounting software’s benefits and limitations, it is critical to keep both in mind. 

While it is true that cloud providers have no control over internet connectivity, they can always have backups for mobile data. And please look for a cloud provider with an established track record so you do not have to worry about them closing shop. 

Here in the Philippines, consider one that is Bureau Of Internal Revenue (BIR) Compliant. Take, for instance, EasyFS.  It is  BIR Computerized Accounting System (CAS) compliant. 

EasyFS is a homegrown software from the Philippines, so it currently adapts to its business practices, particularly the Taxation Regulation and Guidelines of the Bureau of Internal Revenue (BIR). EasyFS is compliant and ready for Computerized Accounting System (CAS) so it will be easy for your business to apply with the BIR for accreditation. It is safe, it is secure, it is reliable, and comes with free demos before the final decision.

Book for a free demo today: https://human-incubator.com/easy-fis/

EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!
EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

Easy Series

EasyFIS Logo

EasyFIS is a Software-as-a-service (SAAS) sales, inventory and Accounting system designed for Micro, Small and Medium (MSME) Enterprises.

If you want to manage your business in real-time and in a WFH Work from Home Setup, EasyFIS can provide a turn-key solution to your most common business problems to effectively monitor your sales, checking your LIVE inventory stock quantity and most importantly the status of your business’ financial health.

On top of that EasyFIS is CAS (Computerized Accounting System) compliant ready for government taxation in the Philippines.

EasyHR Logo

EasyHR is a Software-as-a-service (SAAS) web application that helps to manage your Payroll and Human Resource Tasks easily and effectively.

Whether you are handling less than ten (10) employees or up to more than ten thousand (10,000) employees, EasyHR can do the job for you and saves you a lot of time in computing your Payroll and managing your Employee 201 Records anytime and anywhere.

But not only that, EasyHR further has an Employee Portal that allows your employees to access it online and check their own Payslips, Overtime, Leaves and Time Records. It saves a lot of time and money in printing these Payslips and paper wastage.

EasyPOS Logo

EasyPOS is a standalone Sales and Inventory system designed for businesses with Physical Stores and does not necessarily need an Internet or cloud solution.

The software is very easy to use yet already fully loaded with the necessary daily functions in running a store.

It already has a complete Sales and Inventory system with Item components.

Barcode and Touchscreen Interface that can be used for both groceries and restaurant setup respectively. Plus it is already BIR Accredited to legally issue Sales Invoice (SI) and Official Receipts (OR).

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