With every new technology, it is common for some people to be reluctant to jump on board. With the rise of smartphones and advancing file-sharing technology, cloud networks are the way of the future. They allow for data to be shared anywhere, at any time, and on any device. The chances are that you already use cloud technology, whether it’s Apple’s iCloud to store your phones’ music or it is your company’s use of Google Docs to share documents.
So, if this is the way of the future, why are people hesitant, or even afraid, to jump aboard cloud accounting?
Here are 6 reasons why some companies and individuals are hesitant to adopt this new cloud accounting software – and why they do not need to worry.
Security Risks
We understand that this involves your business’ finance and protecting that data and information is of the utmost importance. For many people, the fear is that cloud accounting is not as secure as accessing and storing the data on a single or limited physical device in a protected location. The logic behind it is easy to understand. You cannot see cloud technology the way you can other technical equipment. Something about tangible objects always seems more real and safe compared the invisible and intangible.
Small business owners should not worry though, as cloud accounting is in fact more secure than storing the data on a single physical device. Access to the cloud is always encrypted and password protected – only those with approved access can see the data. Most traditional accounting software is stored in select devices and only shared by physically moving the data from one person (or device) to another through a flash drive; either of which can easily be stolen, damaged or lost. Simply look at any spy, superhero, or action movie; the company data is always stolen by breaking into and hacking the physical equipment that houses the data – yes, this is an analogy referencing movies; however, it can just as easily become reality for your business.
Fad Fears
Technology fads come and go as quickly as fashion ones do. Some technologies like Google Glasses or Pokémon Go burned out almost as soon as they launched. It is easy to understand why a company might not want to jump on the cloud train only for that train to stop and disappear shortly thereafter.
However, it is clear that cloud technology is here to stay. Apple and Google have been using it for years and as it becomes more ingrained and used in everyday practices the more likely it is to stay in other sectors. Amazon Web Services, their cloud service, is responsible for storing some of the world’s most sensitive data. Cloud accounting has been around for several years now and only continues to grow. The possibilities it offers only continue to expand. More companies and small business are adopting it and more software companies are producing it. Cloud technology is here to stay, at least for a good while, so the fears of it being yet another fad technology should not be a deterrent for businesses considering a change.
Expenses
Cloud accounting offers a lot for businesses. As some people read the long list of benefits and services that cloud software offers they hear dollar signs. Surely the large amount of services is reflected in a high price? Think again. Cloud accounting is actually cheaper than traditional accounting software. With it there is no need for expensive updates, IT costs, or purchasing exclusive devices. Replacing servers and equipment can be costly and it binds businesses and companies to long-term commitments. Say goodbye to that with cloud accounting and say hello to inexpensive, flexible bookkeeping and accounting software.
Time Constraints
With every new system or software, there is a period of learning – or relearning. It takes time to figure out what does what and how everything works. This reluctance to take time to learn new software is one reason why people do not want to adopt cloud accounting. If it’s not broken, why fix it – right? Well, traditional software might not be broken, but it’s still not working quite right. It requires manual entry of data and there is a time lapse between the data changing, imputing those changes, getting feedback from an accountant and finally receiving the reports.
Traditional accounting software is like taking the long route whereas cloud accounting is taking the shortcut. The destinations are the same, and both ways are safe, but why take more time doing something if you don’t have to? Adopting cloud accounting might take some time to adapt to the initial learning curve but overall, you’ll be saving time. Data inputs and account updates all happen real time meaning you’ll spend less time bookkeeping and more time running your business.
Loss of Control
Some people correlate proximity with control – the closer something is, the more control one has over it. This gets extended when it comes to financial data. When the bookkeeping is done on the in-house computer, one has more control over it. By extent then, this means that these people think that using cloud accounting means they have less control over their data, which isn’t true. If anything, one has more control. The data might no longer physically be stored in a location near you but it now can be accessed anywhere you are. Cloud accounting gives businesses more control over sharing data, which people get to see what, and when data gets updated. Simply because the data is no longer physically tied down, does not mean it is hovering out of your grasp, out of your control. Cloud accounting gives more control to businesses about the ‘where, when, who and what’ of their data.
Generation Gap
For some people, the hesitation and fears over cloud technology simply comes down to their age and the generation in which they were born. There is a sharp divide between those that had to adopt the Internet and digital technology and those that were born into it. Those that were born into it accept each new technology with ease. For others, each new technology is a new fear. “Can I use this? Can I understand this? Is this necessary? Will this technology replace me?” All these fears are valid but they shouldn’t stop one from taking the plunge into the future. Cloud accounting is just like traditional accounting software except that it is more flexible and dynamic. There is nothing to fear from it.
Having questions and doubts about new technologies before adopting them for a business or company is smart. Curiosity and inquiry are smart practices but once the information is gathered, do not let fears stop you from accepting the technologies of the future – or risk being stuck in the past. It is time to join cloud accounting and see your business fly into the future.