Cloud technology is here to stay, not only is it changing the face of IT but it is also redefining the accounting software landscape. With 48% of UK SME’s set to increase their spending on cloud this year, we explore the reasons why you should consider moving your accounting software to the cloud.
Ageing software can have many implications for businesses, however many continue to ‘make do’ with legacy software due to the time and cost implications of upgrading. However, cloud accounting software overcomes the challenges of ‘traditional’ accounting software by providing the means to access the latest accounting software functionality without the barriers of on premise solutions.
Top five reasons businesses are choosing cloud accounting applications over on premise
It’s more affordable
Just as Tom Jones wrote on LinkedIn, “Many CFOs are sick of the constant costs of licenses, annual maintenance and upgrades. And when you move to a pay-as-you-go model, your business can turn huge upfront CapEx into affordable OpEx. This preserves your budget while allowing you to get what you need, when you need it.”
Investing in on premise software usually requires a large upfront financial commitment for software and the hardware to support it. With cloud accounting software the upfront costs are removed, you benefit from a subscription pricing model with predictable costs. This makes the latest functionality more accessible to businesses of all sizes and is understandably increasing the rate of adoption.
Enables instant access to real-time data
Typically, when businesses are using out of date systems there is a need for manual work around and the manipulation of data in Excel to get the output required. This can mean that when reports are finalised and published the data is out of date. When you move to a cloud accounting application, you can capitalise on the latest business intelligence and reporting capabilities where the data you need is only a click away. What’s more, you can access up-to-the-minute data anytime, anywhere, and on any device. This enables you to monitor and present accurate information, no matter where you are.
Sensitive financial data is more secure in the cloud
A survey by the Cloud Security Alliance (CSA) found that 73% of businesses hold back from adopting cloud due to data security concerns. However, Microsoft explained these security fears may be unfounded since, “94% of businesses reported they saw an improvement in security after switching to cloud computing…”
Cloud is the more secure than any on-premise, in-house option. Those who provide cloud services and host software on the cloud have better digital and physical security than most businesses could ever afford. When you move your accounting software to the cloud you benefit from security measures that identify, intercept and prevent malicious attacks and threats to your data before they take effect. What’s more, when you enable staff to access data from anywhere, on any device, you can rest assured that no data is stored on that device. So, even if a mobile device used to access your data is lost or stolen, your data remains secure.
Your data is backed-up automatically
Backup routines are often complex and difficult to manage – potentially leaving you open to data loss with risks of human error. However, when you move your accounting software to the cloud, back-ups are automated, removing the associated headache.
Always on the latest version
Not only are software upgrades cost-prohibitive, but they can be labour intensive and disruptive too. With cloud accounting software you can be up and running quickly, and future updates and upgrades are rolled out automatically at no extra cost. This means you no longer have to worry about ensuring you have the available time and funds available to ensure your software is up to date. Added to this, the flexible nature of cloud based software means you don’t have to purchase the resources or licenses you think you’ll need in five years time, it’s scalable, so you can scale up or down as your needs require.
Still sceptical? Find out more at our Cloud Solutions.