Uploaded on November 21, 2016
“VALDOSTA – Many small business owners know the importance of accurately maintaining their financial records. In today’s fast-paced, ever-changing business world, having access to financial statements and other financial data is crucial when making business decisions. Traditional accounting programs continue to offer many benefits, but in recent years cloud-based platforms have moved to the forefront and have gained the attention of small business owners and CFO’s across the board. The single factor of being able to access your company’s data from anywhere you have internet access is extremely appealing. If your company is considering making a change to the cloud, you should consider these differences before making a decision.
Costs
Initial costs to purchase an online option are typically lower than traditional software options; however, online options usually require a monthly fee or a contractual obligation which ends up costing more in the long run.
Security
Online options may provide more security at a lower cost than you can provide yourself, thereby eliminating the cost to maintain and troubleshoot in-house systems when there is a malfunction. At the same time, your business is dependent on the provider to maintain the level of security desired. Back-ups occur regularly which enhances security.
Traditional systems require purchasing the right equipment and enough storage to maintain company files. Additionally, back –up solutions must also be established and maintained. Many business owners feel a higher sense or level of control with this option.
Accessibility
One of the most appealing attributes of online cloud accounting is the ability to access your books anywhere, any time, as long as you have Internet access. Whether you’re in your own office, in a meeting across town, or even on vacation, you can access your company file. This also allows for a more mobile workforce giving flexibility to employees to work from home or traveling for business. Most online solutions are compatible across many platforms including mobile devices such tablets and Smart phones.
Many salespersons desire online applications because they are able to enter orders immediately as opposed to having to come back to the office which decreases the wait time for customers to receive products.
Anywhere access comes with risk in that Wi-Fi connections must be secure. If your company is located in an area that does not have reliable internet service and good bandwidth, you run the risk of not being able to access your data and this will bring productivity to a standstill.
Updates
Online services are always up to date, and are managed by the service provider. The need to purchase new hardware is eliminated and provides a cost savings to many small businesses that have difficulty keeping up with technology changes.
Traditional software may require your IT manager to download updates and software patches which can be expensive, but allows for more control in determining when you upgrade. You will also need to budget for new equipment purchases when necessary to eliminate compatibility issues.
Functionality
Cloud-based platforms may not have the same capabilities as their desktop counterparts which limits the capability to run detailed reports used to make financial decisions. Also cloud-based applications can take longer to load and may run slower than desktop versions.
Traditional software provides more functionality and customized reporting options allowing for better
financial information which can be used to make more informed financial decisions. Run-time may be faster on your own server than cloud applications.
There are many pros and cons to accounting in the cloud. Whether you are a brand new business seeking the best option for your business accounting, or a seasoned business looking to upgrade your accounting software, the best advice is to research your options carefully and check out your potential online accounting service provider to make sure their option is secure and you understand all of the costs involved. Taking the time to investigate your options up front and get all the facts will make for sunny skies in your future…otherwise thunderstorms can be expected.”