Many firms are now slowly shifting to cloud-based accounting software due its reliability and security. Although transitioning to more advanced and automated processing of data has not been an easy task, many businesses and individuals are realizing that the issues and concerns with server-based accounting systems can be solved by cloud-based counterparts.
Reliability and Security
A reputable cloud-based solution can protect your data a lot safer than office servers, which are more susceptible to loss of data during emergency situations. In-house servers also have no guaranteed uptime or recovery time. Whereas, cloud-based accounting systems have failsafe recovery in just a short time. They can back-up and restore information at any time using any computer, laptop or other mobile device. This will minimize occurrence of data loss.
According to the 2018 Year Ahead survey done by Accounting Today, almost 53% of businesses are already operating on a cloud-based accounting system. The same survey indicated that another 13% are likely to shift this year to cloud. This outcome isn’t really surprising. Businesses that are now using cloud-based accounting solutions are already enjoying the benefit of more efficient data processing and wider scope of services that can be offered to clients.
Speaking of clients, many of them are shifting their preference to cloud-based systems as well. One good example is the Texas-based, James Management Group. The firm has been using cloud computing for three years. Their services, which was once limited to bookkeeping and tax preparation, has since expanded to anti-money laundering compliance and forensics. Christopher James, a General Counsel at James Management Group said, “It has just expanded our bandwidth to where we can take on more and take on more effectively. Now, we use cloud-based technology for those [AML compliance and forensics] engagements too, and instead of being able to only take one at a time, now we can take two or three. It has allowed us to scale ourselves as individuals.”
Cloud-Based Accounting Software
Firms that are yet to recognize the benefits of new technologies like cloud-based accounting software are likely to miss out on the organizational and financial progress that many businesses are experiencing now. However, if your business or firm is switching to cloud accounting, you must do the proper research and choose the vendor that will give the best services to help protect your client data. Thomson Reuters lists a set of questions that need to be asked before choosing a vendor:
- Does the cloud provider have a strong history of cloud management?
- Does the cloud provider have a privacy statement explaining how data is handled in the cloud?
- Do they have any other documentation on how they protect customer data?
- Has the cloud provider undergone internal and/or external auditing on their cloud security?
- Does the cloud provider have a clear strategy for their future operations in the cloud, including managing growth, usage spikes (like tax season), redundancy to ensure up-time, etc.?
Remember that cloud-based software is the future of accounting for firms. It solves reliability and security concerns both for the company and the clients. You must choose your services provider well to enjoy the great benefits of cloud-based accounting system.