“Cloud Computing” is a term more and more accountants are turning to today. It eliminates the need for in-house staff and cloud services revenue keeps sky rocketing in the billions. There is no sign of it slowing down anytime soon. Cloud technology makes accounting applications easily accessible, time-saving, and less expensive.
What is Cloud Computing?
Cloud computing software is accounting software that is hosted on remote servers. It provides accounting capabilities to businesses in a fashion similar to the SaaS (Software as a Service) business model. Data is sent into “the cloud,” where it is processed and returned to the user. Cloud accounting apps run on remote servers and are accessed via a web browser. Cloud computing for accountants has many benefits and just few risks.
What are the benefits of Cloud Computing?
Scalability: Cloud computing for small businesses gives them the flexibility to help their customers as thier business grows, and allows them to keep costs under control.
Cost and time effective: Working in the cloud keeps you connected to the business constantly. When you work online, you also reduce your IT costs. Sometimes businesses need to hire an IT team to maintain desktop hardware and the cloud eliminates the extra overhead expense.
Platform friendly: Cloud accounting applications are delivered via a web browser and typically support all popular platforms. Firefox, Chrome, Windows, or Mac. Which ever platform you prefer.
Reduces paperwork: As a small business owner, your time is valuable. Instead of spending time doing paperwork, data entry and other admin duties that can be ineffective and take up much of your precious time, the cloud can significantly reduce your paperwork time.
What are the risks?
To determine if cloud computing is the right solution for you business, there are a couple things to consider.
Privacy and Security Breach: Although there are many safety measures in place, this is a web-based accounting software. There is always a risk cyber criminals can gain access to your data.
Internet Failure: When you depend on the cloud, you are counting on your ISP and the cloud vendor. If your internet access goes down, the cloud goes with it. If you need the cloud service to process customer payments or access important data, you have to wait until the internet goes back up.
Whether or not cloud computing for accountants is necessary, that is a decision you need to make carefully. You can minimize the risk by performing due diligence when researching a cloud service provider.
When you partner with Accounting District, we make sure your data is protected at all costs. We understand the cloud security concerns. We implement critical protections which prohibit the sharing of account credentials between users and utilize strong two-factor authentication. We are also transparent and will disclose our security history and references.
Schedule your free business consultation and see if cloud computing is right for your business. We will happily go over the benefits and risks so you can make the best informed decision.