Cloud Accounting: Are Accountants Ready to Embrace the Cloud?

cloud accountingCloud computing transforms how companies do business. All – if not most – business functions can be migrated to the cloud. Accounting is one of the business functions that can benefit from the cloud. The question is, are accountants ready to go cloud?

According to Software Advice‘s new article, while the cloud benefits accounting firms, many accountants are still being skeptical about the integration of their legacy system (existing, on-premise IT system) with cloud computing, via the use of cloud-based financial applications.

As I mentioned in my previous blog post, there are huge demand from businesses looking for hybrid cloud computing solutions – those that get cloud technologies and the legacy technologies to be integrated seamlessly.

Indeed, integration is a critical issue – but there is a bigger issue: Cloud security and privacy. The security and privacy worries by getting the whole accounting operations to the cloud, plus the risks of getting cloud system investment jeopardized are major turn-offs not only for accounting firms, but also for any other businesses.

I’ve mentioned that I have heard real cases of cloud computing woes. In this article, I mentioned that there is a case of cloud computing goes wrong in Accounting/Finance Department, resulting in a loss and/or leak of financial information.

Sure, if you partner with a reliable cloud business solution, you will always have your information stored redundantly in many data centers. However, the real question here is: Do you have a backup? Do you have a Plan B that can be executed when the cloud fails you?

Nevertheless, we must understand that the cloud is still in its infancy stage. Changes are rapid, while cloud business solution providers are learning on daily basis. We should expect some downtime and glitch as force majeure.

Here’s a simple math for you; most cloud vendors can guarantee you 99.9% uptime, but that means 0.1% is allocated for failures. That’s equal to 8 hours 45 minutes of service outage a year. Are you ready to tackle things during the downtime?

Are you working with an accounting firm? Have you been recommended with the benefits of cloud computing by your accountants? Please share your story by commenting on this article. I also recommend you to take this survey from regarding the readiness of cloud accounting.

Image: Thinkstock

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  • The biggest benefit I see in using the Cloud for accounting applications is the anytime anywhere access it provides. No more worries about snow days or anything else that might keep you housebound. Another nice benefit is the ability to walk clients through the applications when they have specific questions on how to do something – we both login and the client can see what I’m doing – a great teaching tool.

  • It matters not which organization you are employed by at sometime you will become caught up with the accounts division they’re the people who make up and send out the invoices that keep the business organization running. Accounts do a lot more than merely that, it should be realized. Unless you’re operating your own business and acting as your own accounts controller, you’d have no way of knowing just whether or not your business enterprise is making a profit or a loss without an accounts department.