5 Things to Know About Cloud Accounting Software
By 2020, it is predicted that 78 percent of small businesses will rely on cloud technology. Accountants and bookkeepers are generally happy to convert accounting processes to the cloud, as they are well acquainted with the process and know how helpful it can be. However, some business owners, on the other hand, are at times more reluctant to start such a transition. This is likely because of the misconceptions regarding the security and efficiency of this new approach to accounting.
No matter your role in the business world, It’s important to keep up with the newest business trends in order to remain competitive. Cloud accounting software is just the latest in the movement towards cloud-based software management for business operations.
What is cloud accounting?
Cloud accounting is just like traditional accounting, except that data is stored in the “cloud” and accessed through the internet. This allows users to access the information from anywhere.
Why would I want my accounting to be based online?
Cloud-based accounting software eliminates the need to purchase expensive software programs that are often outdated before they are even downloaded to your computer. Although many cloud accounting software programs cost money (typically a monthly fee), they are usually cheaper than the old programs that needed to be downloaded.
Cloud-based programs are updated frequently, ensuring the best operating experience possible. Additionally, these programs can be used from almost any computer with an internet connection. In the past, one had to go into work to access their accounting software on the computer or bring the computer home. With cloud-based programs, you can access your information from any computer in any location.
Lastly, cloud-based programs accommodate your bookkeepers. You will likely be able to pay them less because they are able to work from the location of their choice when it is convenient for them.
How secure is the information stored in the cloud?
One of the greatest misconceptions about the cloud is that it is not secure. On the contrary, storing information in the cloud could be more secure than storing it on a computer in your office. Every cloud accounting software program has its own policy to address security concerns, so be sure to conduct thorough research for each software program’s policy before you entrust them with your information.
How much should I pay for cloud accounting software?
Bill Blanton, chairman and founder of CINC Systems, recommends that business owners leave room for positive growth. Most accounting software uses the Software as a Service (SaaS) subscription model. This means that you can choose what you want, and only pay for the services you use.
Be sure to choose a plan that offers varied pricing plans and allows you to move between plans as needed. This way, you will be able to increase your plan as your business grows without the need to switch software services or to pay onerous switching or disconnection fees.
Customer support can make or break a software program
Before committing to a service, ask about their customer support. What avenues are available to contact them? How long is the average wait time before you can actually reach someone? Is their customer support available 24/7, or are they only open during certain hours of the day? If you are choosing between two service providers and one charges a bit more for stellar customer service, the extra expense will likely pay off in the future.