Financial accounting is complex: Accuracy is paramount, but accounting software is expensive. You shouldn’t be forced to choose between profitability and precise calculations. You need a solution that’s cost-effective so you’re getting the most accurate data, the best reporting and the smartest analysis without breaking your business budget.
Getting the most out of your financial accounting software is easier than you think: It all starts with a transition to the cloud. More and more businesses are opting for cloud migration, welcoming the enhanced functionality and flexibility the cloud offers. But it’s the significant cost decrease that makes cloud migration a lucrative strategy for small and mid-sized businesses worldwide. Let’s investigate the reasons why cloud accounting software makes “cents.”
- Cloud-based accounting solutions require little or no upfront investment.
On-premise financial accounting software requires significant front-end cost: First, you need to buy the software (or pay for the licensing); then, you must find server space to house the software system; finally, you need to build a technological infrastructure that’s capable of supporting the software. System implementation and configuration adds more charges to the total, and the downtime you suffer during setup ends up costing your business even more in productivity and time.
- Cloud accounting takes the stress of system maintenance off of your plate.
Updates, upgrades and bug fixes are recurrent tasks when it comes to software maintenance. Because of the breakneck pace of technological development, updated versions become available before you’ve even gotten used to the original! These fast-paced updates may seem like overkill, but they’re important for enhancing the functionality of your software – or even keeping it running at all. The problem is, they’re also expensive.
On-premise accounting solutions force you to make a difficult choice: Either you pay exorbitant upgrade costs (and deal with the complication of implementing them) or you’re stuck with old, outdated software. If you’re like most small and mid-sized business owners, neither option is particularly attractive.
With cloud accounting software, your cloud provider maintains and updates the system for you. You don’t bother with installing updates, and you don’t need to pay extra to have access to newer versions of software.
- In the cloud, accounting solutions require no IT overhead.
The more employees you have on your payroll, the higher your overhead costs become. When you have on-premise financial accounting software, you need to staff a department of IT specialists who are equipped to handle the system. This team may be responsible for setting up the system, keeping the equipment in good shape and monitoring the network – and you need to provide them with adequate salaries to do so.
Cloud accounting software eliminates your need for IT staff altogether. Any services, fixes or support you need should come directly from your cloud provider. By simply eliminating the need for a fully staffed IT department, you lift a huge burden off of your business’s bottom line.
- The cloud isn’t vulnerable to break-ins or natural disasters.
The equipment and hardware required to run on-premise accounting software is finicky. It needs to be kept cool, dry and dust-free or the system malfunctions. This is of particular concern in areas with extreme heat or humidity, but it’s also worrisome during inclement weather. Heavy rains in flood-prone areas or strong winds in Tornado Alley could wipe out an entire server room, leaving devastating consequences for businesses.
On-premise solutions are also vulnerable to break-ins. Your accounting software is full of private information about your clients and your business. In the wrong hands, this information causes devastation en masse – the recovery from which is long and arduous.
In the cloud, financial accounting software is protected from harm. Floods, hurricanes and tornadoes don’t affect your system, and you don’t have equipment to protect. Hackers are the bandits of the cloud, but security systems are highly developed and cloud providers are constantly keeping an eye out for threats. The cloud is the safest place to house your financial accounting software.
Most small and mid-sized businesses are constantly engaged in a balancing act, trying to minimize cost and maximize performance. While the balance is not always easy to strike, cloud accounting offers some much-needed relief. You no longer need to endure the frustrations of on-premise financial accounting software or pay unbearable costs to achieve high functionality. If you haven’t considered cloud migration for your business, you don’t know what you’re missing.
Is your business due for an upgrade? Learn more about SMB Suite’s Financials packages or investigate the comprehensive cloud-based ERP software that unites all of your business applications into one superior interface.