There are many small business owners planning to adopt cloud accounting - which is great because that is the future! However, like everything else there are many misconceptions around the term. Firms across industries who are already on the cloud have benefitted greatly from this technology and still continue to reap the benefits.
Trust me, cloud accounting is the biggest invention in the history of the accounting industry.
In this article, I have listed out various myths or misconceptions those are common in the minds of the business owners.
There is no doubt that any business owner who decides to put his financial details online would consider the security in the first place. One of the biggest misconceptions is that the data on cloud can be easily stolen or hacked.
But that is not true. The data is hosted in various parts of the world at a high-security data center. 24/7 physical and digital security is used by banks and there is a full backup of the data center, stored in different locations in different countries.
Another misconception is that that working on cloud is slow. Now here if you want to blame something, then blame the system not the internet connection. If your systems are fine then the cloud works fine as well.
When we compare a cloud accounting solution to an on-premise software, the latter comes with the expenses for hardware, software licenses, energy, maintenance fees, storage and much more. While with cloud, you only pay for subscription fee based on the features and the number of users for the billing period.
Fortunately, this phase will never go away because in the history of the accounting industry, the cloud is the greatest invention ever.
It would be misleading to suggest that changing your on-premise system does not take time but with this, the consequent savings have to be considered. If you are spending 60% of your time per client solely on data entry, you will cut your bookkeeping time in half with cloud.
Do you still think cloud accounting is not your cup of tea? What are your thoughts?