3 Things to Consider About Cloud Based Accounting

Author: Paul Cantelli

Accounting in the cloud is an excellent solution for many small and medium businesses. However, there are some factors to consider before you take the plunge. While accounting in the cloud provides better efficiency, more flexibility and several other benefits, you must remember that you are dealing with sensitive financial information that should not be handled lightly.

Think about these three issues before you make the switch to accounting in the cloud:

1. Vendors: A basic search for any type of cloud-based accounting solution will quickly show you that you have a lot of choices. In fact, you have so many choices that it can be overwhelming to compare the various features, functions and pricing. You also need to consider how reliable a provider is, what level of customer service they offer, and how long they will stay in business.
2. Legal issues: If your business is subject to certain data handling requirements, either from an external body or from your own internal policies, it is important to work with a provider who can meet these requirements. Find out how the vendor protects your data and what their confidentiality and privacy policies are.
3. Data backup: Data in the cloud is generally safe, especially if your providers use multiple servers at multiple locations. However, because this data is so important, you may want to consider having your own backup. Some providers allow you to automatically keep a backup on your local server, while others may require you to manually export data and back it up. Make sure that your provider can accommodate your preferences and make it easy to back up your data if you want to. 

If you are considering accounting in the cloud, work with The Tax Office, Inc. to help you make the transition, or simply outsource all of your bookkeeping and payroll functions to us. We work with trusted vendors for all the accounting functions you need so you don't have to worry about managing multiple accounts or researching every cloud-based solution before you make a decision. Contact us today to learn more or to schedule a consultation.