Cloud Accounting-Myth vs Reality

Cloud Accounting-Myth vs Reality

Nowadays people are switching to Cloud Technology without knowing the actual usage and actual fact behind this technology. This leads to underutilization of the Cloud Accounting features. Yes, Working on the cloud always found to be more user-friendly with the least cost and time-saving. However, as people are not much aware of this technology, they found themselves in a dilemma in utilizing it at an appropriate level. 

Cloud Accounting Myth vs Reality

Let’s have a look over the Cloud Accounting Myth and its reality from the below-mentioned points:-

1. Myth:- Working on the cloud is Time Consumed Process:

Those who are the user of Cloud Accounting, the question is raised in their mind that whether Cloud Accounting leads to a Time-consuming process and sometimes they believe that yes it is the actual time-consuming nature activity.

Truth

 It is absolutely untrue about the Cloud Accounting that it is a time-consuming process. Because this is such a platform wherein the User has to just required Internet connection on their device and merely Login required while beginning the Activity on Cloud Accounting.

Information is wealth and this fact is well proven by the service provided by the Cloud Service provider wherein they understand the importance of the information of the Client. Keeping in mind this fact Cloud Accounting provides a solution to the problems in a more timely manner leads to the Time-saving of the User.

On this platform, user can upload their data on the Cloud server without having the use of the Traditional Accounting software wherein Installation, Hardware, and Software acquisition takes much cost and also time-consuming as well.

cloud based accounting system

2. Myth:- Cloud Accounting is Big Business oriented

In general, a business owner thinks Cloud Accounting is mainly for high scale business-oriented and made for the Small business. This is not a cup of tea for a Small Businessman.

In all, Cloud Accounting was developed keeping in mind the big scale requirement of business, this is the actual myth of the User of Accounting.

Truth

This is the biggest myth from the point of view of the Business owner as Cloud Accounting is based upon the User-Oriented irrespective of the fact that the user’s Business operates on the Macro level or Micro level.

Even a small business is more inclining towards the more User-friendly Accounting platform so why should they not move to the Cloud Accounting Service wherein all in-built service is given to the User in a more friendly manner. Unlike, Traditional Accounting Software wherein either the big or small user, both have to ponder all requirements that the user needs in their developed system. As the scalable feature inherent in the Cloud Accounting platform, this thing must be considered while opting for the appropriate Accounting platform while switching or move.

3.Myth :- Non- Economical(Cost Ineffective)

Unlike the traditional offline software, wherein Business users have to put the effort into all the terms of Infrastructure cost, hardware Cost, or Software Installation cost, this leads to Inefficient working and mismanagement while maintaining the software and other IT related cost thereof.

Truth

Cloud Accounting is very effective not in the manner of services but also in terms of cost as well. As cloud Accounting work on the Sever requiring the user only Internet so as to login from his device and can function on his data. No cost is required to be spent on Hardware and Software Installation that is a major cost involved in the Traditional System of Accounting.

Cloud Accounting work on the basis of “Pay per Use Basis”.It implies that Business users have to just pay the buck for his volume of use and nothing will be charged for the other infrastructure cost like Hardware or software or the Maintenance as well. So quite simple and user friendly with the customized working in all the areas of Accounting as per the objective of the particular business strategy.

4.Myth:- Insecure system for Relevant Accounting Information

It is said that Cloud Accounting is no more secured as working on it less secured due to the involvement of the

Third-Party as third party handling the data on the server, herein the third party is called Cloud Service Provider providing all relevant information regarding the Accounting system thereof.

True

Cloud Accounting is such a platform wherein the Accounting data of the user is stored on the online system (Server) with the certified Cloud service provider who ensures that data will be protected at their end and no unauthorized access will be there without the Business user permission of access or modify the data stored on the cloud accounting. Security and data protection go hand in hand when the data is maintained at the server platform and Moreover integrity and reliability are given at the user end very well.

5. Myth: Non-Capable of handling Financial data 

Yes, it is the tendency in thinking of people that the Cloud Accounting server is not capable of handling Financial figures effectively.

Truth

With the advancement of technology, Technology is now working at a peak in maintaining the reliability and consistency of the data at their end effectively and efficiently with no more efforts of the user at their end. With great multitasking work, the reliability of the data is increased when things are going in the right direction. Control and maintenance is the core of Cloud Accounting technology that go simultaneously hand in hand when the data is taken on the cloud.

Small Business

6.Myth:- Non Integration of the software with the cloud Accounting 

It is the myth that Cloud Accounting can not maintain integrity when the other software is also in the operation mode.

Truth

The accounting department works on the different accounting software wherein they also require software integration while working and maintaining the data on the cloud server. It is the best platform where the user can get reliance on their accounting data and can be familiar with the system so as to know more updates of Cloud Server. Cloud Server working on the principle of Reliability and Availability, this is actually the core of Cloud server accounting. For Example, ERP software integrates all the software in it wherein all the department operations is functioned in the ERP itself. Similarly, the Cloud Accounting server gets integrates with the Other software that the User wants on an easing basis.

7. Myth:- Getting service of Cloud Accounting is the time-Consuming Process

In the business user mind, there is the thing that getting the service of Cloud Accounting is a time-consuming process and Business personal have no time to get involved with this Cloud-based Accounting as their business grows on a large scale, can’t spend much time on this to procure this service.

Truth

Keeping in mind the Macro level business, requirement, and need of the user is increased so automation and delegation of the work are required at each level. Maintenance and Control of the data from the risk require technical skills so as to keep the data maintained effectively and efficiently.

8. Myth:- Cloud server is not Scalable:-

A cloud server is not scalable as it is upon the cloud Accounting  service provider and how he can maintain the data of every user 

Truth

This is the actual fact that Cloud Accounting is more scalable so as to maintain the data of any volume at the cloud server end. Now it’s upon you how you want to switch your relevant data either on a Traditional based or Cloud Accounting server.

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