Businesses these days rely heavily on cloud technology to manage different aspects of their day-day activities. These virtual financial management services are constantly evolving providing ever more useful features. However, many business owners are wary of this technology owing to numerous myths surrounding it. A seasoned and growing business will have to handle complex transactions, something which cloud technology can help with as it can provide the infrastructure for accurate, fast and smooth management.
As expert cloud bookkeepers, we are going to shed light on the top myths associated with this service in this blog post.
“The cloud is not secure’
It is understandable that some business owners may be anxious about the safety of their financial data. As an owner, you are responsible for the data security of the on-premise system and if it is compromised, it can cost you a lot. With virtual storage, security experts protect the data around the clock through their secure data centres. Moreover, the data is encrypted as it travels through your browser to the application. This means cloud storage is safer for your financial management compared to physical paper storage thanks to the encryption.
‘On-premise solutions are cheaper than cloud bookkeeping’
On-premise solutions need constant maintenance and updates to ensure continued access. You will need very responsive customer service to fix any glitches and install add-ons. Cloud-based bookkeeping software automates these functions, which saves time and resources. The savings, consequently, get reflected in the reduced amount the customer pays.
‘Small businesses do not require cloud services’
Cloud accounting is a technology that is here to stay and in the near future, it has the potential to become the primary solution for all finance-related services. If you are a part of a growing business, this is the time to switch to cloud-based applications. This will help to enhance the operations and business efficiency. With cloud bookkeeping, the account is always updated and accessible from anywhere and the various features are highly customizable.
‘Switching software requires a long time’
To many entrepreneurs, moving the data from one server to another and setting up new software takes a significant amount of time. This leads to a misconception that using these services will be harder or at least time-consuming. In reality, you can get the most out of these solutions by working with a skilled cloud bookkeeper. This software has time-saving templates and importing options that can help you save time. The experts will consult you and evaluate your servers to come up with the best plan for cloud migration as quickly as possible.
‘Hosting and cloud services are the same thing’
Not true. A hosted solution is an accessible hosted application similar to on-premise solutions that are delivered through online delivery. The software is operated by an expert third-party hosting provider and kept at a remote data centre. It is accessed over the internet, eliminating the need to maintain hardware infrastructure which would be significantly expensive otherwise.
Cloud services, on the other hand, function through cloud-based financial applications that are direct and always accessible to the user. They are paid for on a subscription basis per user/per month. There are no upfront fees, capital investments or commitment in the long run. You do not have to buy or obtain a license or manage the basic hardware, software or networking infrastructure.
Hence, there is a basic difference based on the infrastructure and functioning of hosting and cloud services which set them apart.
‘All cloud accounting software is same’
Many small and medium-scale business owners believe that all cloud accounting software are created the same. This is not the case. Every software has multiple functions and tools to fulfil different purposes. Depending on the goals and requirements of your company, your virtual bookkeepers can suggest which software will work best for your situation.
‘Everyone can access my data on the cloud’
It is true that a single source of resources, application and infrastructure provide the cloud services to multiple tenants but when you’re subscribed, you get numerous privacy protections that ensure your data is safe. The data belonging to your company can only be accessed by you and those who are authorized to access it. The Internet-based application lets you segment the accessibility of the data such that specific people associated with the organization have access to the specific dashboard. The extent of accessibility and authority to modify or download data can be controlled through such applications.
‘Cloud software is generally unpredictable’
While some believe cloud-based software is unpredictable, this is far from the case. In fact, it can offer your team more control over company finances. Since the technology is accessible from anywhere (provided you have an internet connection), it can make it easy to complete work and look after the business. This is also possible regardless of illnesses, weather or other external factors. Cloud-based bookkeeping solutions offer added stability, allowing bookkeepers to keep pace with workers around the world. This allows them to be less dependent on traditional office spaces and operate remotely. So, hiring cloud bookkeepers means you don’t have to worry about their location as they can work from anywhere.
‘Cloud bookkeeping software is difficult to use’
On the contrary, cloud bookkeeping software for business is generally easy to use. It typically leverages robotic process automation, human-assisted artificial intelligence and machine learning to make a company’s bookkeeping effective and efficient.
‘My clients may not want to integrate cloud bookkeeping’
With the entire world-embracing digitization, you risk missing out on a large market segment if you ignore cloud-based bookkeeping solutions. So, bookkeeping firms should be ready to explain to their clients how transitioning to cloud bookkeeping can benefit them in the long run. For instance, cloud bookkeeping saves space and time and generates financial reports quickly.
‘Cloud bookkeeping software requires constant updates’
This is true, but automatic updates to programming or security features generally take place outside of business hours or behind the scenes. Updates that make substantial changes to the user interface are uncommon, so there’s no need to worry about having to learn an entirely new system.
‘The more software costs, the better it will be’
When shopping for cloud-based bookkeeping software, don’t focus on price. Instead, invest in bookkeeping software that saves you time. If you pay slightly more to get your bookkeeping done in less time, that’s a better solution to a cheaper alternative. That’s because going cheap means there’s a good chance you’ll end up paying for additional features. Alternatively, purchasing expensive software may mean you buy features you won’t use frequently.
Cloud bookkeeping allows businesses to monitor and manage their accounts on the go. The freedom and flexibility you enjoy with virtual services make them a popular choice. When you understand these applications and how they function, your concerns will likely vanish and you’ll be free to embrace the advantages they can provide your operations.