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Some Major Cloud Accounting Myths Troubling Accountants

Going for Cloud accounting may though be a wise decision for many accountants; it has still raised few concerns for some. Undoubtedly, with provision for multiple layers of security & backup, a Cloud based accounting solution has to be the most sensible choice. Still there are myths still persist.

In this blog post, we will consider some of the most common myths associated with Cloud accounting. Following are the three most typical myths revolving around Cloud accounting –

Myth 1 – Desktop-based Methods are Much Safer

In case you’re still keeping your paper accounts in a more conventional bookkeeping fashion, whenever there’s a calamity like flood, fire or burglary, all your accounts data are completely gone. This leads to further trouble.

By having all your accounts in digital form, you can avoid most of these issues. However, you may be prone to accidental data loss in case your system crashes or if your onsite backup simply becomes corrupted.

With Cloud accounting, you can stay assured of better shielding against data destruction & theft. You can also gain from enhanced flexibility of access.

Typically, you would want a suitable lock on a desk drawer in case you want to store physical accounts or a security software on a computer that houses your accounts. In the same manner, security, oversight and full transparency are the key requirements when it comes to going for a hosted solution.

It must be mentioned here that trust plays a key role in reference to hosting , and that further comes down to diligence.

As far as key diligence criteria is concerned, following checks and controls need to be well in place –

  • Ensuring that security & privacy measures are fully implemented by effectively encrypting data. Data encryption transforms information in a manner (without changing the meaning) that prevents it from being understood by unauthorized people
  • Ensuring that the provider is well-established and financially stable. This further ensures that there’s no such concern about the service provider going out of business while leaving you midway.
  • Ensuring availability of geographically distributed data centers. This further ensures that your mission-critical data is still safe in case any disaster occurs in one location

In case all of the above listed criteria are addressed, going for a hosted solution may be much safer than sticking to the traditional local desktop based methods.

Myth 2 – Data Placed On Cloud is No Longer Private

Just like online banking has effectively revolutionized your ability to easily remotely access your bank accounts; Cloud accounting has given you the flexibility to straight away your software from just anywhere using a network connection.

As per requirement, you can authorize your coworkers like your fellow accountants to have access to your software as well. Definitely, this is a strength and not a disadvantage of any Cloud based accounting software package, as it’s totally up to you having the access.

If you are a QuickBooks user, QuickBooks Cloud hosting can help you gain from such unrestricted access to the software. Especially, with a host of QuickBooks Cloud hosting services providers available these days, hiring a service provider should not be an issue.

So, in that sense, no difference really appears in trust terms between a Cloud based accounting system and the one that you simply lock away on your desktop.

Further, there’s the privacy issue as it relates to your critical data content being on a server at some other location.

Here’s where it becomes highly critical to use a trusted name having a strong interest in your confidentiality. Such a service provider will also have an open attitude to disclosing to you where your data is actually stored and the manner in which it’s encrypted.

Myth 3 – It’s Hard to Locate My Data in the Cloud 

It’s very much wise to know the location where your hosting services provider is hosting your software and data. In some jurisdictions, it’s even a legal obligation too for the service provider to mention this information in the Service Level Agreement.

A secure hosting services provider is quite specific and pretty transparent about where your data is stored. Choosing a reputed Cloud hosting company can thus help you rest easy in regard to your data’s precise location and security.

These are some common myths accounting businesses have in regard to Cloud accounting. We hope the actuality of the situation presented against each myth will help you make a better decision.

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