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Busted: the 4 most common myths about moving to cloud-based accounting

28th May 2024
Brought to you by
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Award-winning cloud accounting software for multi-company businesses.

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In an era where digital transformation is reshaping industries, cloud accounting stands out as a beacon of innovation in financial management. Yet, despite its numerous advantages, there are some persistent myths and misconceptions surrounding the technology that cause doubt to creep in for those making the decision to migrate to the cloud.  

In this article, we'll explore and debunk the common myths and misconceptions that cloud the shift to the cloud, from security concerns to fears around loss of control. In doing so, we’ll uncover the real benefits that can be gained from upgrading your accounting software, empowering you to embrace the transformation with confidence. 

Myth 1#: I’ll lose all control over my processes if I migrate to the cloud  

One of the most common hesitancies in migrating accounting functions to the cloud is that it will lead to a loss of control. Finance processes require a great deal of quality control, double checking figures, values and attention to detail, so relinquishing this responsibility to an automated function can seem daunting.  

BUSTED: The beauty of a cloud-based accounting system is that it enhances the work that your team does, automating the tedious, manual processes that occupy hours of their time, allowing them to shift their focus to other tasks. These platforms also allow for seamless integration, which increases your ability to control processes and eliminate errors. By connecting data from other systems, you can automatically populate your finance system and create faster, more accurate reporting.  

Myth 2#: Switching to the cloud will lead to redundancies

The common fear that advancements in technology, cloud applications and AI will lead to widespread job losses extends to how many people feel about cloud-based accounting. There is a sense among finance teams that if they automate their systems, the human aspect of the job will become redundant, and so will they.   

BUSTED: There is no need to panic, as cloud accounting and finance teams can, and should, sit happily and productively side by side. The benefit of automating manual, tedious data entry tasks free your team members up so they can redirect their focus towards more strategic tasks and wider business decisions. In fact, far from eliminating 'human’ roles, cloud accounting opens up new opportunities for your people to contribute to your business as it grows. 

Myth 3#: My firm’s data security will be compromised in the cloud. 

Many people believe that storing financial data remotely exposes it to greater risks of unauthorised access or breaches. Concerns about data sovereignty and regulatory compliance further fuel this misconception, as businesses fear losing control over sensitive information. And high-profile cyber-attacks don’t help to ease these fears, as the news is constantly full of stories about breaches and malware incidents.  

BUSTED: However, when it comes to cloud accounting, you can be reassured that solutions providers invest heavily in measures to prevent such threats. These platforms offer security features such as robust user permissions, detailed audit trails, two factor authentication and encryption protocols that ensure data integrity and confidentiality at all levels. By leveraging these tools, you can be assured that the financial data you manage is secure, while enjoying the benefits of flexibility and accessibility that the cloud provides. 

Myth 4#: Cloud accounting will only drown your business in costs. 

Money on your mind? Cloud accounting might seem pricey at first glance, but let's break it down. This myth thrives on the assumption that embracing cloud-based solutions incurs hefty upfront costs and ongoing subscription fees that strain budgets. It’s a common belief that traditional accounting software, with its one-time purchase model, offers a more cost-effective alternative.   

BUSTED: While cloud accounting does require an investment, it often proves to be more economical in the long run. With lower initial costs, predictable monthly fees, and the elimination of expenses associated with maintaining on-premises hardware and software, cloud accounting can deliver significant cost savings over time. More importantly, cloud solutions typically include updates, maintenance, and support in their subscription packages, reducing the total cost of ownership. This provides you with a scalable and flexible financial management solution which leaves you to focus your attention on other important tasks within your business. 

Proceed with confidence 

As you navigate the landscape of cloud accounting, it's essential to separate fact from fiction. The myths surrounding cloud accounting often stem from misconceptions and fear, hindering businesses from fully embracing this transformative solution.  

However, by addressing concerns about data control, job redundancies, security risks, and costs, you can confidently transition to cloud accounting, unlocking its myriad benefits. So, as you consider the next steps for your business's financial management, remember: the myths surrounding cloud accounting are just that—myths.  

By embracing the reality of cloud-based solutions, you can position your organisation for success in an ever-evolving digital landscape, empowering your team to thrive and innovate with confidence.  

About AccountsIQ  

This article is brought to you by AccountsIQ, scalable cloud accounting software for midsize companies looking to switch to advanced accounting software. Built for the cloud, AccountsIQ is in use in 85+ countries by over 20,000 users and is now the solution-of-choice for many of the world’s leading accounting practices.  

For further information on how AccountsIQ might work for your growing business please feel free to contact us and we would be happy to discuss your needs. 

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