Cloud Accounting Software – what the issues could be & why you do not have to be afraid

SECURITY

Some people think the cloud is just somewhere their information is sent to ready to be hacked.  Be under no illusions, being hacked is a possibility whether your data is held in the cloud or on a computer.  As long as you have internet and are plugged into a wall you could be a target.

The advantage you have with cloud software providers is that security is so important to their business, they use some of the worlds most advanced encryption to protect your files.  In some instances this could be more protective than your own security for your computer which a desktop product sits on.

DO NOT FULLY UNDERSTAND HOW IT WORKS 

People know more about the cloud then they think eg: Most businesses use Online Banking and social media.

COST

Monthly subscriptions Vs One off payment.  First of all, the one off payment will get you the software.  You still need to pay for any additional support (yearly) and will need to purchase updates when new features are added.

Monthly subscriptions may appear more costly in the long run but you get free support and free updates when new and improved functions are added.  Also you need to factor in one of the biggest costs – YOUR TIME AND THE TIME OF YOUR STAFF.

NO INTERNET 

Without internet the cloud product will not work.  When was the last time you could not get online?  Businesses rely on the internet for their day to day essential tasks (emails, ordering etc…) so a good internet connection is vital not just for your accounting needs.