Cloud accounting software is online accounting software is hosted on a remote server. This is different from traditional desktop-based accounting software. In this article, we are going to be talking about what cloud accounting software is, the benefits, the negatives, popular cloud accounting solutions, and how to decide if cloud accounting software is right for your business.
What is Cloud Accounting Software?
As mentioned above, cloud accounting software is online accounting software that is hosted on a remote server. This means that you can access your account from any device that has an internet connection. Cloud accounting software can be used by businesses of all sizes and it offers many benefits outlined below.
Cloud Accounting Software Benefits
- Reduced Costs: Cloud accounting software eliminates the need for businesses to purchase and maintain expensive hardware and software.
- Increased Efficiency: Cloud accounting software allows businesses to access their account from any device with an internet connection, which increases efficiency by allowing employees to work from anywhere.
- Real-Time Updates: As the software updates, you’re also provided with the update. This can make you receive updates faster than if you use desktop-based accounting software.
- Additional Resources: With cloud accounting, you can hire a virtual accountant to help manage all of your accounting needs. You need to only source a local accountant that comes into your office.
However, there are also some negatives to using cloud accounting software.
Cloud Accounting Software Negatives
- Data Loss: If your internet connection goes down or the remote server hosting your cloud accounting software fails, you could lose access to your data.
- Dependence On The Internet: In order to use cloud accounting software, you must have a reliable internet connection. Cloud accounting software is not a good option for businesses that are located in areas with poor internet connectivity.
- Security Concerns: Cloud accounting software data is hosted on a remote server, which means it’s possible for it to not be as secure as traditional desktop-based accounting software would be if your computer were stolen or hacked. When deciding on a cloud accounting solution, review their security policies to make sure they are adequate.
When deciding if cloud accounting software is right for your business, you should consider:
- The Size of Your Business: Cloud accounting software has a lot of options for businesses of just about all sizes. Different solutions will be best suited based on your business size, industry, and a variety of factors.
- The Nature Of Your Business: If your business relies on internet connectivity, then cloud accounting software is a good option. If your business does not rely on the internet, then traditional desktop-based accounting software may be a better option.
- Your Budget: Cloud accounting software can save businesses money by eliminating the need for expensive hardware and software.
- Your Accountant: Is your accountant virtual or in the office? If they are virtual, you may need to use a cloud-based accounting solution.
Cloud Accounting Software Options
If you are considering using cloud accounting software for your business, it is important to do your research and weigh the pros and cons of each software before making a decision.
Here are a few popular solutions:
- Quickbooks Online (this is our favorite and what we recommend to our clients)
- Xero
- Freshbooks
- Sage Intacct
In conclusion, cloud accounting software is online accounting software that is hosted on a remote server. This means that you can access your account from any device with an internet connection, which increases efficiency by allowing employees to work from anywhere. Cloud accounting software also offers many benefits such as reduced costs and additional access to accounting talent. However, there are some negatives to using cloud accounting software, such as dependence on the internet. When deciding if cloud accounting software is right for your business, you should consider the nature of your business and what you ultimately desire from your software. You should also consider your budget when making a decision.
We can help you figure out which software is right for your business. Click here to schedule a call with us today.
