Innovative cloud computing is evolving like never before. And it’s accounting’s time for disruption. While using the cloud is certainly an advantage for mid-size to larger companies, it does have its downsides, particularly for smaller businesses.
Here are some pros and cons of cloud and desktop accounting software to help you determine if what’s best for your business needs.
Cloud Advantages
If used correctly and the way it’s intended, there’s little doubt that the cloud can greatly benefit your business. Here are the advantages of the cloud.
Virtually Unlimited Storage
Using the cloud to store vast amounts of information gives your business an almost virtually unlimited storage capacity. Therefore, you’ll never have to worry about running short on space or needing to increase your existing database storage.
Easy Access to Data
Once you’re on the cloud, you can access the most recent version of your important data from literally anywhere an Internet connection exists. This ultra-convenient feature transcends any time zone or geographic location. This alone is reason enough to move to the cloud for many. What this translates to in the real world is simple. Say you are self-employed and using an online accounting tool to manage your business and personal account. You could manage both in one place. In fact, you could go and apply online for a new bank account, add it to the tool, and track expenditure through it too. The scope is broad and setting it all up is ridiculously easy with tools like FreeAgent and Money Dashboard.
Cost Effective
Regarding saving money, the cloud is likely the most cost-effective tool available today along with upgrading and maintaining data vs. traditional desktop software. Conventional desktop software costs businesses a great deal of money over time due to things like multiple licensing fees for users and other ongoing support costs. On the other hand, the cloud is generally available at a much cheaper price point per seat and can therefore substantially decrease the overall IT expenses of a company.
Automatically Integrates Software
With cloud computing, software integration typically happens automatically, which means users can save both time and effort to integrate certain applications. Also, the cloud enables users to customise their options with great ease.
Recovery and Backup
Because all your information is stored in the cloud, restoring it and backing it up is easier than storing the same data on a physical device, making the whole process of recovery and backup much simpler than a more conventional approach to storing vast amounts of information.
Swift Deployment
Cloud computing offers swift and easy deployment, and all the benefits that flow out of that, some of which are less obvious. Once you’re in the cloud, your entire system is up and running in just a matter of minutes.
Cloud Disadvantages
Despite its many advantages, the cloud also has a few downsides to it as well. Businesses, particularly smaller ones, should be fully aware of the cons before using the technology. Here are some of the key risks about using the cloud:
Questionable Security
One major issue with the cloud is the question of integrity and overall security. As a business, you should understand that by submitting all your data to the cloud, you’re surrendering all your sensitive data to a third-party service, which could potentially pose a great risk to the livelihood of your business. Recent high profile hacks haven’t helped build confidence much either.
Technical Problems
Even though it’s true that all data stored in the cloud can be accessed from virtually anywhere at any time, there are times when the system can and does experience technical difficulties. Be aware that even this superb, innovative technology isn’t totally 100% error-free and is subject to power outages and technical issues just like any other technology. Even the most high-quality cloud service providers run into trouble every so often, regardless of 24/7 maintenance.
In the end, like everything else, cloud technology has both pros and cons. While cloud technology can be an enormous asset in how you run your business, it also needs to be used