Why Cloud Based Accounting? Why Now?
Accounting software has changed!
So why - despite significant improvements and advances in technology over the past few years - have many organisations not changed their accounting system?
These Cloud Based, Web Based, Online or “Software-as-a-Service” (SaaS) Accounting applications allow businesses to use the latest software developed on a subscription basis, removing the need for upfront capital investment in terms of hardware and software, as well as upgrade costs. It also means that businesses, no matter what their size, no longer need to manage and support accounting applications in-house, as that is taken care of by the company supplying the service. Three of the key reasons people are considering cloud or web-based accounting solutions are:
- COMMERCIALLY - it makes sense and will save money. The traditional model for buying accounting software was to pay an upfront licence fee and then on-going maintenance or upgrade charges. This often involved a large initial capital outlay – both in terms of purchasing the software itself and the hardware to run it. As software has became more complex, it also means companies require specialists in particular types of software to configure, manage and offer support on an on-going basis.
- TECHNICALLY - it is much simpler. You no longer need to purchase, configure or maintain your own in house servers running dedicated database applications. You can access your data 24 x 7 from anywhere where you can connect to the internet. Affordable access to technology and regular system updates means little or no interruption to business, allowing organisations to focus on core business competencies. On demand accounting systems are very easy to use, so the need to recruit and retain new staff is dramatically reduced offering further improvements in cost and performance. Straightforward plug and play accounting solutions also mean hugely expensive accounting consultancy bills become a thing of the past.
- SECURITY - Operating your critical business systems in a secure, reliable and well managed UK data centre, providing automatic backup and disaster recovery protection is proven to be more reliable than traditional in house client-server based configurations. It is worth noting the bigger risk to many is the possibility of unhappy or unprofessional employees exposing or losing critical data - this is something that could happen with or without a Cloud solution. Effective security and managed workflow as implemented in Aqilla can significantly mitigate such a risk.
Seeking some further advice?
Request our free whitepaper: "Dispelling the Myths of Accounting in the Cloud" here. This paper examines some of the common myths associated with using web-based accounting software and provides a checklist of things to consider when looking at this type of application. You can also speak to one of our solution specialists.