I’ve recently discovered the world of cloud accounting and I want to spread the word. Too many SMEs are continuing to use desktop accounting software inefficiently and paying too much as well. An efficient accounting system will help small business owners to reduce their fixed cost base and improve financial management.
So, what are the joys of cloud accounting software?
- Ease of access is the prime advantage of cloud accounting, as all you need is an internet connection for you and your employees to access your businesses financial data from anywhere worldwide, at any time without having to download and install anything on their desktop. No longer are you stuck to your office to gain access to important financial information. You can also give your accountant real time access to your financial data.
- Price is another advantage of cloud accounting, as it is often the cheapest way to go. There are no upfront costs, you can pay monthly and the updates are automatically included in the price.
- Low total cost of ownership – cloud accounting applications are mainly subscription based and can scale up depending on your business’ needs. Businesses can often reduce their IT maintenance costs as well.
- Real time financial information– when managed properly cloud accounting will give you and your business up-to-date and current financial information. No longer does a business owner have to rely on an accounting expert to gain access to key financial information.
- Backup and data security are much more easily managed -Generally your cloud accounting provider offers data security which is compliant with the Payment Card Industry Data Security Standard. The PCI standard can be too costly to achieve for a small firm, especially if it is to have its on-site application certified. The level of availability and security, backup and disaster recovery offered by a software-as-a-service supplier greatly exceeds the level which a company can provide if the application is housed on-site. You don’t need to pay extra for online backups because they are done for you and you don’t need any special servers or desktop configurations – just an internet enable device to use it.
So, what are the disadvantages of cloud accounting?
- Having your information in the cloud means that you don’t have control over where in the world it is. It could be on a server in the UK, in Asia, America…pretty much anywhere! This is a real problem for some businesses, for others less so. If this is a concern, the business should ask more about the cloud server, who has control of it and where in the world it is.
- There will be things the cloud accounting package won’t do, but this is a common issue for all accounting packages.
Sharron Fletcher – please contact me on 07587 709008 or firstname.lastname@example.org if you want to find out more about how cloud accounting can save you time and money