Having emerged as something of a gamechanger for a wide variety of businesses in recent decades, while cloud accounting is an undeniably beneficial tech innovation in many respects, it does have a number of downsides that it’s important to be aware of before choosing it for your accounting firm.
Let’s look firstly at the advantages of cloud accounting, which when combined with offshore bookkeeping, could help your accounting firm in numerous ways:
Its accessible and flexible
With users able to access financial data from just about anywhere in the world with nothing more than an internet connection, the accessibility and flexibility of cloud accounting are difficult to ignore. For firms with staff who work remotely, it supports collaborative work with no geographic boundaries.
It’s cost efficient
Accounting software in the traditional form, often requires a significant initial investment from firms, not to mention maintenance costs that are ongoing. When it comes to cloud accounting, however, a subscription model is often used, which eliminates the costs associated with installation and regular updates, and provides smaller and medium-sized businesses with an affordable method of storing data.
It gives automatic updates
With providers of cloud accounting software constantly updating it, your accounting firm is guaranteed to have access to all of the latest features and improvements to security, cutting out the need to carry out manual upgrades, and enabling businesses to shift their focus to their core activities.
You can collaborate in real time
Employees and external stakeholders are encouraged to work together in real time with cloud accounting, as multiple users can access and work on exactly the same data, at exactly the same time. Such collaboration helps to improve communication, reduce the risk of errors that can happen when data is transferred manually, and promote processes for making decisions that are much more effective.
It’s scalable
As the needs of your accounting firm change, cloud accounting can be scaled up or down accordingly, and with ease. Whether you need to update your subscription plan quickly, or start introducing new services without the need for lengthy and costly upgrades to your IT infrastructure, the scalability of cloud accounting can be extremely beneficial for business that are rapidly expanding, or start-ups.
Now let’s take a look at some of the disadvantages associated with cloud accounting:
Reliable internet connectivity is a must
If your accounting firm happens to operate in an area in which internet access isn’t consistently reliable, it may suffer issues related to the obtaining of financial data when using cloud accounting.
Concerns surrounding data security
Providers of cloud accounting are typically extremely diligent with security and have robust procedures in place to protect sensitive data. However, some firms still have concerns related to breaches of data and illegal access, which can deter them from implementing such a system.
Cost of subscriptions
There may be long-term costs associated with cloud accounting, such as recurring subscription fees, that outweigh the initial cost-saving potential of subscription model accounting software.
Limited customization options
If your accounting firm has unusual or particularly sophisticated obligations, the capabilities of cloud accounting software may not meet your specific requirements.
As you have just read, there are many more positives associated with cloud accounting than there are negative, but nonetheless, it’s important to be aware of any potential disadvantages before signing up for a subscription as an accounting firm.
