5 Cloud Accounting Myths Debunked: Separating Facts From Rumors

Due to increasing customer demands and changing markets, businesses need to adapt to modern technology more quickly than before. Cloud Accounting has become one of the most important practices for business to enhance their efficiency and productivity. Likewise, cloud services can provide state of the art all-in-one solution to manage accounts and invoices and derive insights from data. Furthermore, you can leverage the power of Machine Learning and Artificial Intelligence to optimize your business processes and reduce costs.

Despite the fact that cloud accounting can help businesses save time and costs, there is significant inertia in adopting these technologies. The cloud accounting myths that have been circulating in both the online and offline space have been a major cause of this.

Here are the five most common cloud accounting myths going around the business world. This guide will help you learn and separate the facts from the rumours.

Myth 1: Cloud Accounting is Expensive

One of the primary cloud accounting myths is that it is expensive. However, the truth is that it is very much cost-effective in comparison to other solutions such as on-premise software.

With on-premise software, you must frequently buy and install new editions and upgrades. Likewise, you might need an IT professional to manage and maintain it repeatedly. Similarly, this type of software may not be compatible with all hardware.

On the other hand, cloud accounting services are accessible from most modern computers including tablet devices. All you need is a good Internet connection and a subscription to these services. All the updates and upgrades are integrated directly and hence they are quick and easy to integrate into the existing edition. Moreover, you can save a lot of money on paper and printing costs. Furthermore, with electronic accounting, you can outsource most of your works and save labour costs.

Myth 2: Cloud Accounting Means Your Data is Insecure

This is also one of the most common cloud accounting myths. However, storing data in the cloud means you are free from the responsibility of securing your data. Cloud accounting services have robust information security technologies integrated into their system. On the other hand, storing critical data in personal or workplace computers is comparatively unsafe. Additionally, you might have to buy and use antivirus and antimalware software. Likewise, you might have to employ an expert in security systems.

Myth 3: Switching to Cloud Accounting Will Take Much Time and Put You Behind in the Competition

This is one of the most popular cloud accounting myths that keep business owners from adopting the technology. The prominent thinking is that they will get behind in the competition as switching to software will be time-consuming and costly. However, adopting this technology will save time in the long run. All that time that you use to search for information in a huge pile of paperwork will be reduced to a second. Likewise, automation will carry out most of your manual tasks. Similarly, there are several excellent reports and charts templates which means you don’t have to waste time making them yourself. Furthermore, you can send your documents and data to multiple people at once through mass mailing. Moreover, cloud services allow collaboration features that allow several people involved in the process or transaction to work together.

Myth 4: Cloud Services Won’t Be Compatible With Your Current Business Infrastructure

It is a common myth that cloud infrastructure cannot support or hold complex business infrastructures. This is especially true for companies with multiple branches and several departments. There may be a hierarchical structure to follow while making requests and approvals. Similarly, there may be the need for data sharing between multiple branches or departments. However, modern cloud accounting software has grown highly flexible to account for all of these challenges. They ease the process of setting up new entities, managing hierarchical structure, converting currencies in case of cross border transactions, etc.

Myth 5: Cloud Accounting Won’t Work With Your Existing Technologies

As a business, you might be using technologies like Customer Relationship Management (CRM) and digital marketing. There is a common rumour that cloud accounting won’t work together with those technologies and make your job harder. However, modern cloud accounting services are built with APIs and services that can be integrated with the technology that you are already using. Since the tools are linked from the cloud, there is very little chance that you have to manage the integration yourself.

How Can We Help?

From this blog, we have learned the most common accounting myths that have been floating around the business world for a long time. Likewise, we also debunked these myths and separated facts from rumours.

3E Accounting can provide state-of-the-art cloud accounting services in Hong Kong to help your business make that much-needed technological transformation today. Our unparalleled expertise and decades of experience allow us to understand the reality of accounting technologies and what the future holds for them. Likewise, we can provide consultation services before you choose to make the big step.

Even though our services are top-quality, it is still very affordable. Our incredible track record has been backed by thousands of our satisfied clients.