Is Cloud Accounting Safe?
Kieren Connolly from our London Accounting Solutions team looks at some of the concerns clients have around implementing Cloud Accounting Services.
Is Cloud Accounting Safe?
In short, yes – cloud accounting is very safe. We use cloud-based solutions in our everyday lives without giving it much thought — we check our emails on our mobiles while we are on the move, we pay household bills via online banking, we update a status via social media — it makes sense to use the cloud for our business too. Cloud accounting is simply the practice of using an accounting system that’s accessed through the internet. Just as we see the benefits of using the cloud in our personal lives, there is no doubt that the benefits of using cloud accounting are numerous:
✔ Improved control of your financial processes
✔ Reduces paperwork — more sustainable
✔ Reduces costs (less IT hardware, infrastructure)
✔ Saves time (faster financial processes)
✔ Easy to share and collaborate
✔ Access your accounts at any time, from anywhere
Cloud accounting is highly advisable for a modern approach to accounting — and it’s quickly becoming a business standard. Gartner forecasts that by 2022, 90% of organisations will be using cloud services.
However, some businesses remain hesitant, so we have addressed six of the most common concerns about cloud accounting, providing our reassurance and professional recommendations.
Security issues/trust issues
A bank feed is a digital link between your bank account and the accounting software, automatically importing bank transactions into your accounting software on a daily basis.
Some of our clients were worried that their confidential data might not be safe and that other people might be able to view the data.
Bank feeds keep your data safe with industry-leading security. The third-party platform stores your login credentials to allow access to your bank, through a highly secure system. The systems all use encryptions and two-step authorisation. They also offer different levels of user authorisation (some clients don’t want their staff to see certain items, such as bank details or payroll).
Lack of expertise/experience or knowledge
Many of our clients have not used cloud accounting software before so they are put off, thinking it is unsafe, and difficult and time-consuming to learn to use. They are concerned that they do not have the knowledge to be able to manage it.
Cloud accounting software has been designed to save time, so it is very user friendly and straightforward to use. We provide training on the basic uses of the software to get our clients started and then supply ongoing help with any issues or questions they might have. Like with any new system, you just have to get stuck in and use it daily — it will quickly become second nature.
Dependent on service providers — possible downtime (inaccessible if the internet goes down)
Some clients are worried about the reliability of their own internet connection and therefore the reliability of cloud accounting.
Rather than a cloud-based issue, this is an internet connection issue. For most companies, an internet connection going down for a long period is a rarity, but anyhow, cloud accounting is available on a smartphone for easy access on the move.
Recovery of lost data
Clients are worried about who would be responsible for the recovery of lost data. They think the cloud is more likely to suffer data loss than traditional accounting services.
The software providers are responsible, but they have multiple sites and servers so they are not likely to lose any data — in fact, traditional accounting is more likely to lose data!
Transparency of data storage
Clients have voiced concerns about not knowing how or where the data is stored.
The software providers have multiple data storage points and servers for the safety of your data.
What support is available? Is it just from the software provider?
The software providers do provide support, but for a rapid response from experts who know your specific business, you can also contact us. We tend to be a client’s first port of call. We have a team of experts who will set you up with a bespoke package, provide training and continue to support you, answering any queries you may have once you have started to use cloud accounting. Our experts also keep abreast of the latest cloud accounting developments so that they can offer you new features, ensuring that your business is always up to date, no matter how fast technology advances.
Speak to us about cloud accounting today
To find out more about our cloud accounting software packages, speak to Claire Barringer or Nicola Scofield in St Albans, or Roman Pathak in London. Discover how simple and effective cloud accounting can be. Alternatively fill out the form below and we will get back to you.