Wednesday, July 24, 2013

Paperless Accounting Systems: Advantages and Disadvantages

Paperless accounting systems, also known as cloud accounting software, is, quite simply, accounting software hosted on remote servers and is becoming increasingly popular with businesses today.  However, there are numerous advantages and disadvantages of using this software.  It is ultimately your decision as to whether cloud accounting software is a viable option for you and your business.

Reduced cost.     Cloud accounting software can save your business quite a bit of money.  Since it is hosted on remote servers, you have no need to purchase hardware.  There is no need for updates, since the servers automatically keep the software up-to-date.  Since cloud accounting software is maintained by the service provider, you have no need to worry about maintenance or overhead costs.

Ease of access.     You can access your cloud accounting software anywhere.  Since it is hosted on remote servers, there is no downloading or installing involved.  This allows you to quickly access the software, complete your task, then disconnect.  All you need is computer and internet access.

Potential downtime.     When using cloud accounting software, you are dependent on your internet connection.  In short, if it is down, you will not be able to access the software.  Additionally, occasionally the server that your software is hosted on will be down due to outages.  If this occurs, you will not be able to access the software.

Security issues.     Since cloud accounting software is hosted on remote servers, there is a risk of your data being stolen.  When choosing cloud accounting software, you will want to be sure you are working with reputable and reliable service providers.  A good rule of thumb:  If you are not comfortable putting it on the internet, do not put it on cloud accounting software. 

Your business could benefit from implementing cloud accounting software.  Contact us at Imagine Solutions Group for more information.

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