Accounting in the Cloud

Accounting in the Cloud

Recently, traditional software packages have increasingly evolved into cloud applications. Accounting software has followed. Established companies are developing online versions of their packaged software, and other companies are dedicated to an online solution.

Does it make sense for you to migrate your accounting data to the cloud? Some of the advantages include:

Flexible pricing – Most cloud solutions are subscription based – you pay a monthly fee per user. You can purchase or cancel licences as needed, immediately. For small companies with few transactions, the application may even be available for free.

Automatic updates – With cloud solutions, you no longer need to download or install updates – you will always have the latest version.

Remote access – If your accounting data is in the cloud, you will have access to it wherever you go. This can be especially helpful if you are outsourcing the bookkeeping function.

However, there are also potential obstacles to consider:

Internet availability – In order for a cloud solution to work, you need to have a solid Internet connection. Although this is less of an issue than in the past, it should still be considered.

Security of data – Since your accounting data is no longer being kept directly under your control, you must be vigilant about its security. In particular, you will want to be aware that the data may be hosted on servers not located in Canada. Government access to the data may be dependent on the laws of the country where it is located. It is vitally important to read the terms of service before signing on.

Scalability – As with any accounting software, you will want to ensure that the solution can handle both your present needs and your future growth. This becomes particularly important with a cloud solution, as the conversion costs can be expensive.

Moving to the cloud is not for everybody. However, for some, such as start-ups or companies looking for a mobile solution, this may be an ideal solution.

For more information, please contact Mark Jackson at mjackson@welchllp.com.

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