Cloud accounting solutions offer varied benefits to the accountants, CPAs, and SMBs. Solutions like QuickBooks hosting allow easy collaboration, anytime anywhere access and automated updates to suitably run the businesses and expand the business reach while thumbing tasks efficiently.
But before just theoretically reading the necessities, you must be a hundred percent sure about the authenticity of the software as well as cloud accounting solutions.
If you think you have any doubts or raised questions regarding the boons and bane of the cloud accounting solutions, here is a complete list of questions you might ask when moving your clients or firm to the cloud.
- Concept of Cloud
- Cloud Data Benefits and Safety
- Reasons to Choose Cloud Accounting Software
- General Queries Regarding Cloud Accounting
Concept of Cloud
1 What is the Cloud?
The term cloud refers to the servers accessed over the internet and the software that functions on that server. The accessed servers are located in data centers that are physical spaces to store relevant files and data.
Basically, when a user goes for the cloud on cloud computing, it means the user does not need to:
- Manage those servers themselves
- Run their software applications
- Access their data irrespective of time or place, that too, on the internet
2 What does ‘Accounting on the Internet’ mean?
Accounting on the internet or online accounting is the usage of technology and the internet for business accounting solutions. It basically means to use desktop accounting software or cloud accounting software to perform accounting functions, account-based research, and training.
3 Where does the Cloud Data exactly Exist?
When you know the basics of cloud computing, you must know where the cloud data exactly exist. It is a necessity that the data and applications reside at someplace either on a device or on a tangible space as all the data cannot just float around cyberspace.
The cloud data is stored on individual servers found at data centers and several data farms. The cloud providers provide space for cloud computing and storage of all the data and files to their users.
4 What is Cloud Accounting?
Cloud accounting is the process of performing accounting tasks on the cloud rather than the desktop hard drive. The accounting data is sent to the cloud where it is processed and returned to the users.
Also, cloud accounting allows better reporting and visibility, that too. with greater collaboration and mobile accessibility. This is another reason why most businesses use cloud accounting.
Before you are forced just with the sayings, here are some stats explaining the reliability of businesses on the cloud.
- Intuit the developer of QuickBooks and numerous other taxes and accounting software predicts that 78% of the small businesses will be running on the cloud by 2020.
- According to Gartner’s forecast, the public cloud service market is expected to reach up to $623.3 billion by the end of 2023.
- Cisco says that the cloud data centers will process 94% of the total workload by the year 2021.
Cloud Data Benefits and Safety
5 Can I trust the Cloud to Secure all my Data and Information?
Yes, you can trust the cloud to secure all your data. Most of us only know the way to protect data is via keeping a strong password but cloud secures data using other means as well. It offers advanced options like:
- Intrusion detection
- Advanced firewalls
- Internal firewalls
- Event logging
- Physical security
It is an undeniable fact that the cloud offers robust security with amazing benefits.
6 What are the Major Benefits of Managing Accounts on the Internet?
Managing accounts on the internet are one of the greatest options when it comes to handling multiple accounts. Here are some of the major benefits of cloud accounting:
- All-time and quick access to the financial data anytime, anywhere
- Reduced time on manual data entry
- Integration with other accounting tools
- Connecting online with bank accounts
- Automatic update, backup, and better security
- Accurate overview of the company’s financial progress in real-time
A recent statistic shared by the Chartered Institute of Management Accounts highlighted these benefits, which helps decide people shift their accounts on the internet with better data security:
7 Can I do Anything to Maintain Data Security?
Data security is one of the essential points to consider when moving to the cloud. Although the cloud offers excellent security, you should also try your best to avoid mishappenings and insider threats.
Some of the steps you can take to ensure data security is via-
- Making sure to have a local backup
- Avoiding storing sensitive data on the cloud
- Trying to apply a reliable and robust password
- Keeping a check on the security of your account once in a while
- Using methods like encryption to avoid any data, info loss
Other data security measure worth the price that we ensure are these:
8 Will Cloud Accounting Save the Firm’s Money?
Most businesses go for cloud accounting because it helps them save expenses that do not happen in traditional accounting. Cloud accounting helps in saving the extra expense on the processes with the help of:
- Automatic repetitive tasks
- Electronic invoicing
- Credit control
- Less maintenance of IT tools
The money-saving process is also assisted via these additional aspects
Reasons to Choose Cloud Accounting Software
9 What is the Major difference between Desktop Accounting Software and Cloud Accounting Software?
The major difference between desktop and cloud software lies in their accessibility. The cloud accounting software provides the flexibility to the users to work from home.
It also allows the utility on any device, which is not the case in desktop accounting software. There are other differences which are explained in the below image, giving a good idea of why cloud accounting is better on the go solution.
10 What do I Need the Accounting Software for?
Many firms or individuals require accounting software for different purposes. Some require managing the technical skills of their business while others need accounting software to overlook their financial status.
You might need one to reduce the time you spend on creating invoices or to manage the never-ending, high cost IT infrastructure. But the cloud accounting software is capable of solving all such problems without any difficulty.
11 How Difficult is the Accounting Software to Use?
It is not difficult to use accounting software as they are extremely easy to use. Some of the desktop accounting software like QuickBooks is so easy to use that even beginners can practice with ease.
They have features that can be understood by the novices and do not require any expertise. In fact, the cloud hosting option is way more efficient than the desktop version and is adept in fulfilling an organization’s requirements.
12 Will Accounting Software Fulfill my Firm’s Requirements?
Yes, your firm will be benefited from the accounting software as it provides multiple help with lesser time consumption and more productivity. To fulfill your firm’s requirements, you can expect these benefits from accounting software-
- It keeps your work up-to-date
- It is easy and quick to use
- It keeps your accounts and other information secure
- It saves money and time
13 Will Accounting Software Save Time?
Since the accounting software allows automatic completion of most of the tasks, you can save time using them. The software automatically generates invoices, generates payslips, and prepares reports which surely saves time for the firms without any problem.
14 Who would help me while I face an Issue using the Software?
It is obvious to face issues while using accounting software. You can face issues in:
- Organizing your accounting files
- Projecting cash flow
- Coming head first to multiple errors
The best help you can get is from the FAQ section of the software or you can host your software. Hosting solves most of the problems and you have benefits of both the traditional software and the cloud.
15 What would be the Benefits of Switching to Cloud Computing?
Cloud computing allows users to access the same applications through the internet. Switching to cloud computing ensures better scalability, efficiency, security, and mobility to businesses. Apart from all this, you can grow your accounting practice using the cloud, thereby, developing your business.
General Queries Regarding Cloud Accounting
16 Will Cloud Accounting help with Tax Issues?
Yes, cloud accounting helps tax professionals to complete various tax processes. It helps in the proper functioning of the taxes and eases up filing taxes at the arrival of tax season.
Cloud accounting creates:
- Accurate tax estimates
- Audit-proof tax reports
- Ensures compliant information returns at tax times
Here is a confirmed statistic answering your query.
17 Which Accounting Software Should I Use and What’s its cost?
Accounting software completely depends on your needs. Here is a list showing the top three accounting software along with their prices.
QuickBooks ProYou can choose QuickBooks as it is one of the most preferred accounting software and comes in various editions and versions matching your business needs. You have a number of affordable options in the QuickBooks versions like:
- QuickBooks Premier
- QuickBooks Enterprise
You can get QuickBooks for accountants, starting just at Rs223/month ($2.97/ month).
18 Does Cloud Accounting Software need Accounting Expertise for its Usage?
Cloud accounting software is scalable, cost-effective, and extremely easy to use. You don’t need any accounting expertise to use the software and it can be accessed on any device with an internet connection.
19 Will I be able to Access my Accounts on Smartphones and Tablets with cloud accounting software?
One of the major advantages of cloud accounting software is that it can be used on any device with an internet connection. So, yes you can access all your accounts and information on smartphones and tablets with cloud accounting software.
20 In case I Discontinue the Service, how would I get my Data and Files?
When you have a QuickBooks service, your data is available on the view-only mode for a year before you delete the data. But if you decide to discontinue the service, you can export all your data and files to a QuickBooks desktop file.
Another option is that you can export the general ledger and other reports to an Excel format. Even if you are using another software, you can still get all your files and data. If you want to retrieve your file, you can easily create and save the file backup, which can then be downloaded on your computer.
21 What if I don’t go for Cloud Accounting Technologies?
If you don’t go for cloud technology, you will be stuck with the same work for hours or even days. Traditional accounting is laborious, time-consuming and you have to spend a huge sum on maintaining the hardware, software, and other IT essentials. But with cloud accounting, your work will be:
- Demand less cost
- More productive
The above-mentioned queries are some of the most important questions people ask before choosing cloud computing and cloud accounting solutions. In case you are still wondering if the cloud accounting solution is a beneficial deal for you or not, leave a query in the comment section or give us a call on +1-855-922-7243. We promise to answer with facts and honesty.