Home » The Truth About Cloud Bookkeeping: Busting Common Misconceptions

The Truth About Cloud Bookkeeping: Busting Common Misconceptions

Rahul Maingi

By admin, August 21, 2023

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In today’s business world, cloud technology plays an important role in helping organizations streamline their operations. Cloud-based services offer a wide range of benefits, including enhanced efficiency, accessibility, and scalability. 

Despite these advantages, there are still big things that need to be clarified about cloud technology, including cloud bookkeeping services. 

As a leading online bookkeeping company, we aim to dispel these myths and shed light on the true value and potential of cloud bookkeeping. 

Let’s get started.

Busting Cloud Bookkeeping Myths: Separating Fact from Fiction

Here are a few common myths about cloud bookkeeping as well as the reality.

1. Cloud Bookkeeping Costs More Than an In-House Bookkeeper

There is a misconception that in-house bookkeeping services are more cost-effective than cloud-based ones. However, the former requires ongoing maintenance and updates to address issues and install add-ons. By contrast, cloud-based bookkeeping software automates these functions, resulting in time and resource savings for the customer. These savings are then reflected in reduced costs for the cloud bookkeeping service.

2. The Cloud Is Not a Secure Option

Business owners naturally have concerns about the security of their financial data. With on-premise systems, the responsibility for data security lies with the owner, and any compromise can lead to significant costs. 

However, with cloud storage, your data is safeguarded 24/7 by security experts in secure data centres. Additionally, data encryption during transmission from your browser to the application ensures that cloud storage offers safer financial management than paper storage.

3. Adopting Software Takes a Lot of Time

For many business owners, transferring data from one server to another and installing new software can take a lot of time. This can also lead to the misunderstanding that utilizing these services may be difficult or time-consuming. On the contrary, collaborating with a proficient cloud bookkeeper allows you to maximize the benefits offered by these solutions.

In fact, cloud software features time-saving templates as well as importing options that may allow you to save time. Their experts may consult you as well as assess your servers in order to make the most effective and fast plan for successful cloud migration. 

4. Small Businesses Do Not Need Cloud Bookkeeping Services

Is your business growing? Then it is time to switch to cloud-based bookkeeping. This will improve your operations and efficiency. With cloud bookkeeping, your books are always up to date and accessible from anywhere, and you can customize the features to meet your needs.

Cloud Bookkeeping Services

5. Anybody Can Access Data on the Cloud

While it is true that cloud services cater to multiple tenants through a shared resource pool, it is important to note that subscribing to these services comes with robust privacy protections. 

Your company’s data is safeguarded, and only authorized individuals can access it. Through internet-based applications, you can segment data accessibility, ensuring that specific individuals within your organization only have access to designated dashboards. 

Furthermore, you control the extent of accessibility and authority to modify or download data through these applications.

6. Cloud-Based Bookkeeping Software Is Not Easy to Use 

In reality cloud bookkeeping software for business is generally easy to use. It leverages machine learning, robotic process automation, and artificial intelligence to make a company’s bookkeeping effective and efficient.

7. Cloud Software Needs Constant Updates

This is true, but automatic updates to your software or security features usually happen behind the scenes or outside of business hours. Major changes to the user interface are rare, so there is no need to worry about learning a completely new system.

8. Better Cloud Bookkeeping Software Is Costly 

When searching for cloud-based bookkeeping software, don’t prioritize price alone. Instead, consider investing in software that offers time-saving benefits. Opting for a slightly higher cost that allows for faster bookkeeping is better than choosing a cheaper option. These often result in additional costs for necessary features, while purchasing expensive software may lead to paying for features that are not frequently used. 

Therefore, it is important to strike a balance and select software that aligns with your specific bookkeeping needs.

9. Your Clients May Not Agree to Adopt Cloud Bookkeeping

In today’s digital world, it is important not to overlook cloud-based bookkeeping solutions. Bookkeeping firms should explain to their clients how transitioning to cloud bookkeeping can bring long-term benefits. For example, cloud bookkeeping saves space and time. It also enables quick generation of invoices and helps in payroll processing.

10. All Cloud Bookkeeping Software Is the Same

There is a common misconception among owners of small and medium-sized businesses that all cloud accounting software is identical. However, this is not true. Each program offers a variety of functions and tools tailored to specific purposes. Based on the goals and needs of your company, your virtual bookkeepers can recommend the most suitable software for your situation.

 

By addressing these misconceptions, businesses can confidently adopt cloud bookkeeping. It is important to recognize its ability to provide a secure, efficient, and adaptable solution for their bookkeeping needs. As cloud technology continues to advance, cloud bookkeeping is poised to become even more essential to businesses worldwide. This empowers them to make informed financial decisions and thrive. For the best online bookkeeping and accounting services at competitive rates, contact Virtuous Accounting & Bookkeeping. Our team is comprised of highly-skilled accounting professionals, including account managers, bookkeepers, reviewers, and CGA accountants with over 30 years of combined industry experience. We specialize in various online accounting programs like Xero, Wave, Sage and FreshBooks.

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