Both small and large businesses have increasingly been shifting to the cloud accounting software to help in the management of their accounts, bookkeeping, payroll and VAT. Cloud computing is becoming popular since it streamlines processes for both customers and vendors. Using this technology in your business has both advantages and disadvantages. Before looking at its pros and cons, it is essential to know what it is and how it works. Cloud computing allows individuals to access data and software through the internet instead of accessing them on their remote machines.
In the past few years, if you created a file on your device, to get it again you had to use the same machine, and when USB flash drives came into existence, transferring data was a bit easier, but still, you had to access a physical device. Currently, there are many data storage options, but the traditional ones are always risky. This is where the application of cloud computing comes in.
If you store your information or data in the sky, it is stored on a server that is connected to the internet. With this technology your data is secure, and you can easily retrieve it. Cloud accounting functions in the same way, but it is only limited to the accounting software.
Benefits of Cloud Accounting Software
You can use the cloud accounting software from any machine that has an internet connection. The term online accounting means that business owners can access their data and the accountants any time they wish. The application can also integrate with the entire ecosystem and add-ons. Also, it is cost effective, scalable and easy to use. Additionally, you will not need to install and run software on your devices, all you need is to pay for monthly subscriptions.
Disadvantages of Cloud Computing
Though its security is advanced, and most individuals claim that it is safer compared to other options, there are still various security concerns. Since your data travels between your computer and server, it means good encryption is needed. Also, you should check the track record of the company you are doing business with since not all firms are equal. Another problem with this technology is that you will always require an internet connection for you to access your data. Since the technology has a few disadvantages, it is the best option for storing your data.