7 Economic Benefits of Cloud Accounting Software

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By Paul Sparkes, Commercial Director of implicitan award-winning accounting software developer

Is your accounting software laughing at you?

Caution is more than a mantra. It is the deep dedication that underpins the entire finance function. Yet thousands of organizations use accounting software that undermines this fundamental credo.

No one is implying that finance departments are lavish. Far from there. Nor is it suggested that the software at the very heart of their work betrays them (although some of the more idiosyncratic systems can sometimes feel that way).

No – the problem is seasoned finance professionals relying on legacy software that unfortunately comes with unnecessary costs. And yet these costs could be eliminated so quickly and easily.

It’s terrifying how many SMBs and nonprofits are still struggling with old on-premise accounting software or fake cloud accounting software. Here are seven key cost advantages they lack…

  1. More server, more server maintenance

Migrate your accounting software to the cloud and you will no longer need a server to host it on. You can also say goodbye to all those expensive server maintenance bills.

In addition, your data will be more secure in the cloud. And easy to access from anywhere with a reliable internet connection. The pandemic has proven how crucial, practical and attractive this is.

So forget about all the expense and hassle of hosting your accounting software on your own server. It’s old fashioned these days…kind of like owning a fax machine or a typewriter.

  1. Smarter, faster and more economical software updates

Like death and taxes, software updates will always be with us. They are a computer fatality. But that doesn’t mean they have to be time-consuming, inconvenient and expensive.

Updating old legacy software can be a laborious process. Not least because it has to be done system by system, PC by PC. You will also almost certainly have to pay a significant sum each time your old software needs to be updated.

And these intervals may well become more frequent as your old software ages. It will need more fixes to help it keep up (if possible) with the ever-increasing demands of the modern finance team.

Compare this old 20th century approach with true cloud accounting software that is regularly updated from the source – so you are always using the most modern version. These updates are fast and seamless.

And they’re usually free as part of your normal monthly software cost.

  1. Resource redirection

True cloud accounting software allows for much smarter work, especially if designed to meet middle market demands. It will be a great read for anyone who currently needs to extend their entry-level software with manual workarounds and spreadsheets.

Work gets done faster with true cloud software, especially if you make good use of automation. Are you worried about automation? Test it first in a sandbox environment to avoid errors. You’ll soon gain confidence and wonder why you didn’t adopt it sooner.

All of this means you can free your co-workers from mundane, soul-destroying tasks and redeploy them to bigger, higher-value tasks that spur growth.

  1. Smaller offices, lower energy bills

True cloud technology liberates and empowers teams with more efficient WFH and hybrid work. You and your colleagues can spend more time doing productive work and less time stuck in traffic.

More flexible working gives you the opportunity to significantly reduce overhead costs: smaller offices, lower utility bills, lower insurance premiums, lower ongoing property maintenance costs, less asks for perks like cars, coffee, snacks, and all the other baggage that comes with running a large, human-intensive office.

  1. Powerful accounting software doesn’t have to be expensive

There are generally two reasons why organizations may have been reluctant to upgrade their existing entry-level software:

  • Cost – this is a huge leap from Xero, QuickBooks and Sage 50 to large ERP systems such as Dynamics, NetSuite and Intacct.
  • Fear of change – many organizations worry about the time/hassle involved. Implementing a large ERP system can take months, sometimes over a year.

Thus, some organizations choose to continue with their existing software. But their fears are based on error. Major changes in the middle market mean users now have access to accounting software that works for them…at a fraction of the price of Dynamics, NetSuite and Intacct.

And it can be installed in just 16 applied days. So you can start living in a few weeks. Long gone are the disruptive upheavals of yesteryear.

  1. Data archiving is much cheaper with the right provider

Are your existing software vendors threatening you with punitive data archiving fees if you try to leave? We regularly hear about suppliers charging between £15,000 and £20,000. They think they have you on a barrel because you need access to your data for HMRC to be happy. So the software companies think it gives them a license to slap the expensive handcuffs.

It’s not. And besides, now there is a real alternative which allows you to migrate and archive your data for a nominal fee. So you don’t need to keep your old software running.

  1. You don’t have to put up with the old paradigm

In the past, big software developers had enormous power. And they weren’t afraid to handle it.

Why do some vendors charge such exorbitant prices for their software? Because they can. Or to echo Robert Mitchum in the film Anzio: “Because they love.”

There is also the issue of long contracts. Large providers like to bind their customers for at least five years. It’s rarely attractive – and especially not now with the state of the economy.

But times are changing, and they are changing very quickly.

A new breed of agile developers is beginning to disrupt the accounting software market, especially the underserved middle market. They have created smart, scalable and intuitive software that is quick to implement, easily customizable and very user-friendly.

And they wage battle against greedy developers on your behalf.

So hop on board and enjoy the ride.

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