To help organizations streamline their operations, cloud technology has come into the scenario. Cloud technology is playing a vital role in contemporary times. Cloud-based services come with a wide range of advantages that include accessibility, scalability and enhanced efficiency. 67% of accountants prefer cloud accounting rather than locally installed software solutions. Despite these benefits that come along with cloud-based services a few things still need to be clarified about cloud technology, especially when it’s about cloud bookkeeping.
In this write-up, we have decided to dispel some of the common misconceptions about cloud bookkeeping and shed some light on the true potential and value of such services. So, let’s get started.
Separating fact from fiction – Busting the myths about cloud bookkeeping
Let us shed some light and bust the common myths about cloud-based services like bookkeeping.
It’s an expensive affair – Not really!
The most common myth of all is that cloud bookkeeping is expensive and will cost you more than an in-house bookkeeper. However, in-house services need ongoing maintenance and also require regular updating for addressing issues and installing add-ons. On the other hand, cloud-based bookkeeping has software tools that help to automate the functions that help you save time and resources in the long run. These savings might look negligible at first, but in the long run, it’s reflected as reduced costs.
Cloud is not secure – Again a myth that should be busted
Businesses are quite concerned about the security of their data, especially the financial data. However, with on-site premise systems such responsibilities for financial data rests with the owner and any kind of neglect and compromise might lead to significant costs.
On the other hand, when you opt for cloud storage, the financial data is secured and safeguarded 24×7 in the secure data centers. Adding to it, the data encryption during the transmission process from the browser towards the application makes sure that the cloud storage provides safer management of the finances than paper storage.
Adopting a software requires more time – Not at all
Business owners are of the opinion that the transfer of data from one server to the other and the installation of new software requires lots of time. However, this is a wrong concept and a major myth that cloud-based services are time-consuming. The real truth is that collaborating with an experienced cloud bookkeeper will allow you to maximize the advantages provided by these solutions. The cloud software helps feature time-saving templates and importing options which might allow one to save time. The experts consult the owners and also assess the servers to make the most impactful plan that’s fast to execute and offers successful cloud migration.
Small businesses don’t require cloud bookkeeping – We beg to differ!
If you have a small business that’s fast developing, then it’s time to switch to cloud bookkeeping. This improves efficiency and operations. By embracing cloud bookkeeping the books are always updated and accessible from any place and additionally, you can customize the features to meet with your requirements.
Anyone can access financial data on the cloud – No never!
Cloud services can cater to multiple people via a shared resource pool, but that doesn’t mean there is any breach of privacy. A good cloud bookkeeper ensures robust privacy protections and your company’s data is safeguarded 100%. Only authorized individuals are allowed to access the data. There are internet-based applications that can segment data accessibility and ensure that only specific people within the company can have access to the particular dashboard. Moreover, you get to control the extent of accessibility and authority for modifying and downloading financial data via these applications.
The bookkeeping software isn’t easy to use – Try it to believe it!
The real truth is that cloud bookkeeping software that’s designed for businesses is extremely user-friendly. The software tool leverages machine learning, artificial intelligence and robotic process automation to make the organization’s bookkeeping efficient and effective.
Software tools need constant updates – Increased efficiency is what you want, so why not update the software?
This is true that cloud software requires constant updates but you can automate the updates and security features outside business hours. The good news is that even after the updates user interface changes are rare which means there isn’t any need to get anxious and worry about learning an entire new system.
Software systems are costly – why prioritize price alone?
If you want efficient and robust cloud bookkeeping software, then it would be wrong to only look at the cost. You should rather invest in software that offers time-saving advantages. Opting for software with a slightly higher cost will ensure faster bookkeeping which is better than opting for a cheap option. However, on the other side, you might have to pay for additional features during the purchase of expensive software which leads to paying for extra features that you don’t need to use.
That’s why it’s important to select software that aligns with your requirements and strikes the perfect balance.
Some are reluctant to adopt cloud bookkeeping – refusing to upgrade
In contemporary times when everything has gone digital and remote working is the new trend in the corporate workplace – overlooking cloud-based bookkeeping can be a sin. If you are the owner of a bookkeeping firm, then you need to motivate your clients to transition towards cloud bookkeeping as they bring long-term advantages to the table. For example, by embracing cloud bookkeeping you can quickly generate invoices and payroll processing which indirectly saves space and time.
All cloud-based bookkeeping software are similar to one another – the most common misconception of all time
Small and medium business owners are of the opinion that all cloud-based bookkeeping software are identical to one another. Well, such isn’t the case and each program comes with a variety of tools and functions customized to meet specific needs. Based on your requirements and goals, a virtual bookkeeper can recommend a software tool that will meet your needs in the present situation.
We have busted the most common myths to help you adapt to cloud bookkeeping services. Cloud technology is rapidly advancing and cloud bookkeeping is the next most essential element for businesses worldwide. This will empower businesses to make an informed decision about finances helping them to thrive in the long run.