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Blog » Cloud Accounting Services – 4 Myths Debunked for Businesses

Cloud Accounting Services – 4 Myths Debunked for Businesses

Last updated: 18 Jan, 2024 By | 6 Minutes Read

Cloud Accounting Services

Large numbers of small and mid-sized businesses find themselves “in the cloud” whether they understand it or not. From the streaming of music to internet banking, people’s lives are being managed by cloud technology. Nevertheless, if confronted with the choice to switch to outsource cloud accounting services, not every entrepreneur is excited.

A lot of them may be hesitant to adapt to immediate change, or a few may be doubtful of the promises made by the cloud accounting software providers. There are also a few business owners who find their confidential data or information to be vulnerable when in the cloud.

How Does Cloud-Based Accounting Affect Business?

Cloud-based accounting services have revolutionized the way businesses manage their finances. Outsourcing cloud accounting services offers unparalleled flexibility, accessibility, and efficiency. The cloud allows real-time access to financial data from anywhere, enabling seamless collaboration among team members and accountants. This accessibility promotes faster decision-making and enhances productivity.

Furthermore, cloud accounting significantly reduces the need for extensive in-house IT infrastructure, saving businesses both time and money. It ensures data security, as reputable cloud service providers implement robust security measures, often surpassing what many small to mid-sized businesses can afford on their own.

In essence, outsourced cloud accounting services not only streamline financial processes but also provide a secure, convenient, and cost-effective solution for businesses to manage their accounting needs.

Nevertheless, there are some of the most prevalent myths regarding cloud accounting services that business owners need to be aware of when planning to switch to the cloud:

Myth 1: The cloud accounting is nothing more than a technology fad

Truth: Business owners may not be aware of this, however technologists have been growing, innovating and make use of cloud-based systems since the 90s. Yes, you heard it, right! Cloud accounting came into use some 25 years ago.

Nevertheless, during the past decade, it has become a trend and is impacting various businesses in a lot of ways. Most essentially, cloud accounting services has replaced the desktop-based software applications. This implies that there are a few software application vendors who do not provide service or support for their desktop applications, anymore.

In the coming time, they’ll become redundant. Over a period of time, everything will be on the cloud. Even companies providing outsourced accounting services have adopted cloud to carry out both basic as well as complex accounting tasks.

Myth 2: Small-scale businesses do not require cloud accounting

Truth: Don’t be surprised if we tell you that there are already a lot of your competitors who have switched to account even earlier than a few larger-sized businesses. In case you are doubtful, you must think about applications these businesses make use of to manage their operations – Gmail, LinkedIn, Skype, OneDrive etc.

All of these are cloud-based services. Are these services helping the business or creating a mess for them? It is essential for business owners to understand that the cloud is an ideal option to enhance operations and support.

Myth 3: Cloud accounting can be expensive for businesses

Truth: A lot of cloud accounting software companies are aware of the fact that one size does not fit all. Therefore, when addressing this myth, these kinds of companies provide a number of pricing packages to suit business particular requirements.

A full-service plan offered by cloud accounting service providers includes updates, backups, extra hardware, bug fixes, scheduled maintenance, and IT tech support. This implies no problems, headaches or additional costs on your head.

Myth 4: Financial data is not safe in the cloud

Truth: It’s normal if a business owner is anxious about sharing their data or financial information in the cloud. A lot of large-scale businesses may also have similar concerns. However, security and data protection is essential for the success of all cloud accounting software providers.

In case, business owners choose to opt for accounts outsourcing services, these companies also have strong security measures in-house to handle their accounting in the cloud. These business outsourcing companies have innovative procedures to make sure they comply with both domestic as well as international industry standards.

To conclude, cloud accounting services provide businesses more strength by enabling them to manage their book of accounts from any place, any device, and at any time. One does not need to stick to their table or desk at their workplace. Complete freedom is what you get when you choose cloud-based accounting software and services.

Contact Cogneesol experts at [email protected] or via +1 833-313-3143 for further assistance.

What are the risks of cloud accounting?

Risks in cloud accounting include data breaches, potential downtime, and reliance on internet connectivity. At Cogneesol, our secure systems and proactive monitoring minimize these risks, ensuring data safety and continuous accessibility.

Is cloud-based accounting safe?

Cloud accounting is generally safe when supported by robust security measures. At Cogneesol, we prioritize data security through encryption, regular backups, and stringent access controls, ensuring a safe accounting environment for our clients.

What percentage of companies use cloud accounting?

Approximately 67% of businesses use cloud accounting services. At Cogneesol, we offer outsourced cloud accounting services to streamline financial operations, enhance efficiency, and keep up with this modern accounting trend.

What is the future of cloud accounting?

The future of cloud accounting is promising, with an increasing number of businesses adopting this convenient and efficient solution. Cogneesol’s cloud accounting services are designed to adapt and evolve with the changing landscape, offering innovative solutions for seamless financial management.