When the topic of Cloud Computing systems and Accounting Systems specifically comes up, invariably the same issue gets discussed.
Understandably, people want to know if their information is safe, but what they really want to know is whether it is secure. Safe means that you need to make sure it’s backed up and you won’t lose data. Secure means that access to your data is limited to those you know about.
We’ll discuss these aspects, but the main thrust of this article is to discuss the pros and cons of cloud computing so you can work out if it is right for you.
Is it safe / Is it secure?
If you have a bank account or you do online banking, you have already experienced the security level of Cloud Computing service providers. They tend to use the same security measures as Australian Banks. In the case of Bank accounts and in particular credit cards, eternal vigilance is ultimately your only protection. Checking your credit card statement regularly is your best defense – in the same way, checking the access logs to your system on a quarterly basis is prudent. All the players have robust security systems so all in all, your data is as safe as a bank can provide.
Why would I want to consider cloud computing?
- Being able to access your accounting system anywhere / anytime
- Always having up to date software- not having to update the software yourself
- Not having to swap USB drives with your Accountant so he/she can work on your accounts together, as you both have access
- Being able to discuss results with your Accountant in real time - any adjustments are made to the same accounts so there is never the issue of "did you post those year end journals like you said you would?"
Other things to consider
- Cost - if you don't need lots of people accessing your accounting system, it is a slightly more expensive option in some cases where you pay access fees per month and establishment fees.
- Your real need - if you need people to work on your accounts infrequently, then other (free) options can be considered to give them access to your computer so they can work as if they are sitting at it. Services like Teamviewer and join.me are available free of charge.
- Check the hardware requirements - old versions of accounting packages run happily in the dinosaur in the corner but cloud based systems need a bit of grunt and you may need a new machine.
- Response times. As good as they are, your internet speed is unlikely to give you the same response time as the cabling to your server. If you have lots of transactions, make sure your response time is good or get a hobby you can do while waiting to process the next transaction
Who are the major players?
- MYOB - a range of online products
- QuickBooks Online - also a range of products
- Reckon Hosted
- Xero - completely online but has a marketplace of add-ons
How do I work out which one is for me?
- Is it strong in the features I need?
- Will it import bank statements and how?
- If i decide it's not for me, how do i get my dataand end the arrangement?
- Is the cost worth it?
- How good is the support?
