Is Cloud Based Accounting Software the Answer for Your Company?

If you’re considering switching from traditional accounting software packages to the cloud, you’re in good company. Thousands of organizations worldwide are using the power of the cloud to give them new levels of visibility and accessibility to their financial details. The surge in cloud based accounting software is due, in part, to the enhancements vendors are making in terms of cloud security. Yet even in a more secure cloud environment, make sure your decision to move to cloud based accounting software is truly right for your organization.

Why Cloud Based Accounting Software?

Simply stated, you may end up paying less for cloud based accounting software than for traditional or on-premise versions. No matter if you’re a large organization or have only a few employees who will access the software, you only pay for what modules or users you actually implement on the system.
Updates and maintenance may be cheaper also, because they will often be included in your vendor agreement, allowing you to see reduction in IT service. Additionally, your need to invest in expensive hardware or infrastructure may be less than with on-premise accounting software models.

Cloud Based Accounting Software Boasts New Features

New features in cloud based accounting software are also impacting many organizational decision-makers. For example, if you need to organize, analyze and manage multiple accounting systems for more than one organization or across multiple currencies, cloud based accounting software solutions can give you the customizations you’re looking for without sacrificing real-time visibility across your divisions.

Also, many top vendors offer features like a procurement to pay process, a comprehensive model for financial consolidation. Plus with cloud based accounting software you get the convenience of completing expense reporting from anywhere you roam.

Is it Secure? Cloud Based Accounting Software Vendors Stepping Up

Nothing is more critical in the security arena than your organization’s financial data, passwords and other features associated with your business processes. Vendors are taking more proactive steps than ever before to secure your data in a cloud based accounting software environment. To prohibit attacks on your data, look for a version with advanced firewalls. To prevent damage from a data disaster, more vendors are implementing data systems with second-level system back-ups, making recovery even faster.

Many cloud based accounting software vendors are offering new levels of security certification that have not only been verified, but also analyzed and tested to make sure they can perform their intended purpose. In terms of encryption for preventing hacking into your precious financial data, cloud based accounting software vendors are answering organizational concerns through the use of private cloud computing or offering a mix of both private and public cloud based accounting software.

Cloud Based Accounting Software Isn’t for Everyone

Cloud based accounting software can offer distinct levels of cost savings, visibility and accessibility. However, it’s not for everyone. In some cases, if the cloud connection goes awry, you’ll lose access to your data for critical minutes or sometimes hours which can have a tremendous impact, especially on larger organizations. As you grow, you may find that implementing new tiers of users or new modules equates to a price that’s similar to on-premise or traditional solutions.

You may need to prepare a time-consuming exit procedure to transition from your current system to a new one, especially if you have multiple divisions. You may also need to take the time to map out a well-planned integration procedures which will allow your team to reap the benefits of your cloud based accounting software system and learn to use the various modules.

Cloud based accounting software has come far, and still has room to grow such as new standards for security and implementation. Is it the answer for your company? You may not have to decide all at once. You may want to consider a hybrid strategy, or utilize the cloud for your other business operations first before transitioning your accounting data to a cloud based accounting software system.