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5 Cloud Accounting Myths Busted

Before dismissing cloud accounting as a viable solution for your firm, consider these myths and misconceptions.

There are many small business owners planning to adopt cloud accounting. But before you do, know that there are many misconceptions around the term. There are many firms who already are on ‘the cloud’ and they have seen good changes in their firms. Trust me, cloud accounting is the most revolutionary change the accounting industry has ever seen.

In this article, I have listed out various myths or misconceptions that are common in the minds of skeptical business owners. who are considering the switch.

1. Safety First

There is no doubt that data security is the first thing business owners deciding about utilizing the capabilities of the cloud think about. One of the biggest misconceptions is that the data on the cloud can be easily stolen or hacked – which is not true. Data is hosted in various parts of the world at high-security data centres. 24/7 physical and digital security is used, look at banks for example.  Additionally, all of the data is backed up in multiple locations around the globe.

2. Speed

Another misconception about using cloud based services is that they are slow.  If you are experiencing a lagging system, it is most likely your connection to the server and not the service.

3. Cost

When we compare a cloud based accounting solution to regular software stored on a firms computer, you may think that the cloud based storage will be much more expensive.  However, when you price out all of the IT infrastructure that will be needed to maintain in-house processing, you are going to have to include expenses for hardware, software licenses, maintenance fees, storage, and even your energy bill (something you definitely do not want to overlook). While on the cloud, you only pay for subscription fees based on the features and the number of users for the billing period.  Let the service providers pay for all of the behind the scenes operations costs.

4. Cloud accounting is just a phase

Have you gone to a BlockBuster recently? Probably not.  That is because the management team of this now ancient video rental service probably thought that internet based video streaming was also just a phase.

In today’s economy, with the fierce competition as well as the increasing capabilities of technology, you need to look to the future (which is cloud computing services) if you want your business to thrive and be successful.  Cloud based accounting services have a lot to offer, especially more than the antiquated software that many firms are still using.

5. Transition to the cloud is time-consuming

It would be misleading to suggest that changing your on-premise system does not take time, but the consequent savings of these services have to be considered.  Cloud based accounting services speed up mundane processes such as data entry.  How are you going to grow your business economically if half of your employees time is spent doing data entry?

Consider cloud based accounting solutions for your firm as the benefits are numerous.  Yes, there may be a some frustration during the transition phase, but it will be well worth it.  What are your thoughts on cloud accounting? Do you have any personal experience with it?

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