CLOUD BASED ACCOUNTING SOFTWARE: AN OVERVIEW OF THE PROS AND CONS

The following article is an excerpt from our September 2017 newsletter:

PROS

  • Mobile cloud accounting – Access to your data anywhere in the world.
  • Cashflow – A ‘real-time’ view of your financial position which you can access at any time.
  • Team access and collaboration – Everyone in your team can access the same data at the same time, no matter where they are based.
  • Tracking – It’s easy to invoice and track inventory and you can schedule and make batch payments to suppliers.
  • Updates – For most cloud-based packages updates are automatic, giving less downtime.
  • Get paid faster –You can track when invoices have been opened or not, so non-payment of invoices can be actioned quicker.
  • Disaster recovery & fraud reduction – Your data is backed-up automatically in the cloud and in the event of any foreseen or unforeseen disasters.
  • Easily integrated – Easily integrated into your existing systems and in the most cases will improve your processes.
  • Fraud reduction – Automated processes increase the accuracy of financial reporting, giving more control over data and access to data.
  • Cloud accounting add-ons – There are hundreds of add-on apps for cloud accounting software which could potentially streamline more of your processes.
  • Informed decision making – With the financial information that will now be at your fingertips, you will be able to make more informed decisions regarding the performance of your business.

CONS

  • Internet access – You are dependent on the internet to access your accounting data.
  • Training – You will have to invest in some training for you and your staff.
  • Research – You will have to do some research to find the right package for you.
  • Monthly Packages – It’s worth noting that there is a tipping point between monthly cloud options. As your company grows, you will need to upgrade your package meaning a higher cost.
  • Additional costs – The more you download, the more your internet bill will amount to.
  • Cyber-attacks and data breaches – There have been some recent high-profile cyber-attacks and data breaches of large global businesses, which means that cloud accounting providers are not immune to such attacks.
  • It’s only as good as the information you put in – While many of the data input and collection functions can be automated, if this data is out of date or incorrectly posted, you may not be any better off than you are currently.

While there clearly are cons to moving to the cloud, it would appear the pros far outweigh the cons. By linking your cloud accounting to online shopping (depending on your product), you could easily make your products available globally.

If you are thinking of going online don’t hesitate to consult us for professional advice in this regard.

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