When using software solutions for your business, the first decision you'll need to make is whether to store your data on the cloud. Major accounting platforms are often available in both local, on-premise versions and cloud-based, online versions. Online versions are accessed just like a website and are extremely affordable -- while offline versions tend to be more robust and expensive.
Pro: Cloud-Based Solutions Are Accessible from Anywhere
The nature of the cloud makes an accounting suite incredibly easy to access. An online version of an accounting solution can be used through a simple web browser, on virtually any device. This frees up the organization to utilize workers who may not be in the office. For small business owners, it makes it easier to work from home and on-the-go. Comparatively, offline versions of an accounting suite will need to be synced with online data and will often only be accessible through a single computer or network.
Con: The Cloud May Not Be As Secure
Because the online version of an accounting suite can be accessed from anywhere, it can also present some security issues. Employees need to be especially conscientious about not giving out their login information and not using public computers or personal devices. Accounting software stores a great deal of personally identifiable information and financial information -- which could be disastrous if exposed. But that doesn't mean that the system is inherently not secure; it just means that additional measures need to be taken.
Pro: Cloud Solutions Can Be Maintained Remotely
Cloud-based solutions are managed and maintained by the hosting service. Rather than having to invest in internal IT staff, businesses are able to leverage the hosting service for troubleshooting, backups, maintenance, and upgrades. For smaller businesses, this can appreciably reduce their bottom line. For larger businesses, this can enable scaling and expansion with greater ease.
Con: Cloud-Based Services Often Don't Have the Same Features
Because cloud-based solutions have to be intuitive and easy to use, they often don't have the same features as offline systems. The most robust, complex services are generally on-premise, networked accounting solutions that are customized and hard-coded for the business. Online versions of accounting suites tend to be "light" versions of the software systems that have mostly the essentials. There are some rare examples of higher complexity cloud-based suites, but they also tend to be significantly more expensive.
Cloud-based solutions are becoming more popular for virtually every industry, and it's easy to see why. Not only are they easy to use, but they're also cost-effective and accessible. However, in some ways cloud-based solutions are still gaining some of the functionality that on-premise solutions already have. To find the best solution for your business, you may want to consult with a CPA, such as those at Carmines Robbins & Company PLC.Share
29 November 2016
I have always dreamed of opening my own beauty salon, but never seemed to have the money to make that dream come true. I decided that it was time for me to hire an accountant to help me create a savings plan and to assist me in calculating how much money I would need to open my salon. I found out all about what it takes to start a business and a lot of great advice about what I can do to save the money I need to make it happen. If owning your own business is something you are dreaming of, my blog can help.