Since the inception of the cloud, many users have been pulled towards the advantages it has and it is no longer regarded as a magic place where data lives. You need to have a good idea of cloud accounting software while considering the same. This can be helpful for you in determining the upsides and downsides of cloud accounting. Here is what you need to know about cloud storage as well as accounting software.
What is “Cloud” Storage?
Cloud storage is a general term that is used to describe data living on servers connected to the internet. This enables the users in accessing their files and data from many computers, to see the same data.
What is Cloud Accounting Software?
Cloud accounting software is similar to the other accounting software and the only difference is that data is stored on external servers. The data in cloud accounting software is processed and stored immediately when users interact with it. The major difference between traditional storage and cloud storage is where the data lives – internally or externally. There are several upsides and downsides for cloud storage that should be considered before deciding whether a cloud accounting software is right for your business.
Accessibility of Software
Accessibility can sometimes be an advantage and disadvantage as well.
Users have access to the data from anywhere while using cloud accounting software. The main upside of the software is that helps users to work from anywhere and is no longer tied to their computer as the world becomes more mobile. Teams from any part of the world would have access to the information and data. The sharing of data has also become easier with the advancement of cloud accounting.
The major disadvantage of cloud storage, when compared to the traditional on-site storage is that, it needs an internet connection to work. We know that many of the situations in life and work often provide access to the internet, however, there are times and places when this cannot be made possible. This way, there can be a risk of not all parties being able to work on a single project simultaneously, which can make it difficult to manage.
Security of Software
Data security is always a concern of big importance and there are a lot of upsides and downsides for it.
Cloud accounting mainly offers a secure way to store data like traditional accounting software, but this is more accessible and secure. Many a time it is an even more secure option as remote servers usually have robust security protocols. Having remote storage than storages on the devices, in a situation where your laptop or tablet is been stolen would help in keeping the data safe from a breach. Even now, stolen laptops are one of the major causes of breaches in multiple scenarios that occur regularly. Stealing a laptop that has the spreadsheet of data is always easier than hacking a server.
Cloud accounting is effective in removing such threats since users will need to log into the cloud accounting software for accessing the data. No data will then be retained in the device once you log out as in the case of traditional storage.
Even though the servers for cloud storage mostly have best-in-class security, they don’t need to be unbeatable. During the year 2016, a popular service for file sharing called Dropbox was been hacked which exposed nearly sixty million logins. Even though no data was breached during this hack, the passwords became available on the dark web for sale.
Software that is used for cloud accounting mainly contains sensitive information as well as personal data thus making it very crucial to keep it safe.
Cost of the Software
Some various upsides and downsides are related to the cost of cloud storage. Though the real cost savings can often be achieved, there is always a cost that is associated with using the cloud.
Organizations that use software for cloud accounting usually benefit from various upfront cost savings.
Also, the use of cloud accounting software will only need your less IT staff since there would not be in-house servers that need to be maintained. This way, fewer labor costs can bring significant savings for your business.
Savings on equipment and savings often provide a bulk of savings. You would also have the option to consider the total cost of running your company. You should be using less energy without having servers on sites.
The price of cloud accounting software is not always fixed and can often change depending on the number of users, functionality and data storage. Try to compare the features and pricings for determining the exact cost and your requirements. In addition, always take into account the fact that when your organization grows, it can also increase the cost of the accounting software.