Accounting
5 Myths About Cloud Accounting
One challenge for accounting firms is the tendency to keep using legacy softwares that their clients previously used. After all, it isn’t broken, why fix it? The problem with that logic, however, is that it keeps many companies obsolete when there are ...
Dec. 30, 2020
Today, there are cloud computing solutions for everything, even for CPA firm management. Using the latest technologies and streamlining your workflows are now essential to remain competitive and keep your clients well looked after.
One challenge for accounting firms is the tendency to keep using legacy softwares that their clients previously used. After all, it isn’t broken, why fix it? The problem with that logic, however, is that it keeps many companies obsolete when there are plenty of innovative new softwares that make CPA practice management much more efficient. As such, we have created this list to debunk the most common misconceptions and myths about cloud accounting. With no further ado, here they are:
Myth #1: Cloud accounting workflow solutions are more expensive than on-premises operations.
On-premise programs require updates, maintenance, and upgrades to stay current. More often than not, you need a consultant and add-ons for best results. Failing to keep your system up-to-date might also risk non-compliance with current standards.
With cloud-based solutions, on the other hand, software updates and maintenance are fully automatic and worked into your expected costs. You will find that they are often more cost-effective than on-premise systems.
Myth #2: New software won’t integrate with older systems.
Believe it or not, but modern cloud accounting software solutions have taken older systems into account. You would no longer have to worry about porting all your data manually into another system, as it is fully possible to automate this procedure once your new cloud-based CPA firm management software is in place.
Myth #3: Data is more vulnerable in the cloud.
On-premise storage is susceptible to physical damage, natural disasters, and other various forms of data loss. Cloud solutions, on the other hand, often come with protective measures designed by cybersecurity experts who understand that financial data is highly sensitive.
Beyond criminal activity, however, data on the cloud is also regularly backed up. Should one of your computers and devices in your office fail, the information would remain safe. Plenty of redundancies are also in place to prevent data loss.