Cloud Accounting: The Pros and Cons

Cloud accounting is the accounting of the future, but you still have the ability to choose just how integrated you want your business to be with the cloud. The cloud is essentially a place to both store and manipulate data, and although it’s accessible from a wide variety of hardware, you don’t need much expensive hardware to use it. There are both pros and cons to consider, so before deciding, it’s important to take a look at each.

First, the cloud is incredibly convenient. It allows you to work from the office, out of the office and on the go with ease. For example, if you incorporate some mobile accounting apps into your business, you can take care of most accounting tasks while you’re waiting in line for coffee or are on the bus. As long as you have reliable internet connection, you can do just about anything.

Cloud accounting also doesn’t demand much cost up front. In the past, businesses had to invest in IT departments and extensive servers, storage space and more. Now, all of that is easily accessible in the cloud, making the process of using technology to streamline your business’ operations so cost efficient.

On a similar note, a lot of hardware and software demands the time and expertise to stay finely tuned and up to date. However, cloud technology is always up to date. Any time you log in, you’re using the newest version and don’t have to worry about losing time to a surprise update.

Since cloud accounting services generally charge monthly subscriptions instead of flat fees, it’s easier to adjust how much size or functionality you need. If you don’t use the cloud, you would have to upgrade or downsize your IT department as your company fluctuated, which is a far more difficult and unstable task.

Lastly, accounting in the cloud allows for much easier collaboration. Employees can work on the same documents simultaneously, making them extraordinarily efficient.

There are a few downsides to cloud accounting, but with the right research and planning, you can avoid them. The main issue is security. Your valuable company information would be in the cloud, not housed in your office. This means that hackers could potentially steal your information. However, take the time to research and choose a cloud company with a long history of security and reliability. As long as you take this precautionary step, you should be well protected in the future, and you can look forward to a much more efficient and streamlined accounting process.

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