Welcome to the Cloud – An Introduction to Cloud Accounting
Has fear of the unknown prevented you from adopting cloud accounting? If so, you are not alone. Despite the promises of increased speed, cost savings and ease of use, some owners remain reluctant to trust their bookkeeping and finances to the cloud. This is largely due to a few misconceptions about what overall cloud computing and actual cloud accounting entails.
Myths About Cloud Computing and Cloud Accounting
The most persistent myths surrounding cloud accounting involve concerns that the technology is “new” and therefore unreliable. Others worry that the data cannot be secured, that performance is unstable, or that the owner will lose freedom of choice and other control over their information. The results experienced by organisations of all sizes that have adopted cloud services, however, shows each of these beliefs to be mostly false.
Cloud computing actually isn’t a new service, as it has been around in some form since the 1950s. During this time period, governments, universities and other large organisations did not actually own their computer hardware but rented the use of time, in the form of “timeshares,” on mainframe computers.
In the 1990s, cloud computing and accounting in the cloud really began to come into its own when Amazon and other large companies beginning to conduct most of their business online and storing their documents in the cloud.
The Results Speak for Themselves and Should put Your Mind at Ease
Amazon and these other companies could not have grown into the large and wildly profitable organisations they are today without the ability to use secure, fast and reliable cloud services. Moving their bookkeeping and other financial transactions to the cloud, allowed these companies to take advantage of lower costs, faster speeds and greater security of their data. Increased growth and higher profit margins were the natural results of adopting cloud computing and cloud accounting services.
Most providers of cloud services know that they must offer secure and reliable options in order to remain in business, so they go to great lengths to secure the information that a user accesses and stores in the cloud. While it’s true that cloud users do not actually own the hardware that is used to run the programs or store the information, they still own and have easy portability of their data.
Cloud computing is now so commonplace, reliable and easy to use, that it’s likely that you’ve already been using it, you just didn’t know it. If you’ve ever used popular online platforms such as Skype, Google Drive, Gmail, LinkedIn, or online banking with your financial institution, you’ve already been accessing data and storing it in the cloud.