These days many business owners are switching to use cloud accounting. They have seen multiple benefits which can make their lives easier in the business industry. Cloud based accounting like Xero accounting can help reduce their overall costs. It can also fasten the process of saving and sharing data to all their clients and accountant. Most importantly, they can access their financial data anytime and anywhere 24/7.
There are numerous advantages that cloud accounting can provide to business owners, yet some are hesitant to leave their old accounting software. So here are the top 5 reasons why they are not in favor of the latest cloud accounting system.
- Errors in System – this accounting software is using the newest technology which gives accountants a reason of doubt whether this system is reliable as their old process of accounting. Many of them thought that this cloud based accounting system can still be subject for technical errors or glitches.
- Unprepared for necessary changes- in most of the cases, accountants are thinking that this new system can push them out of their comfort zones. Many of them are not yet ready to embrace this cloud accounting tool in their practice.
- Setup costs- most of the business owners are afraid to pay additional setup costs. They think that it can cost them more money and will later on ask their client to shoulder the expenses. If this will happen, owners will look for an accountant who charges less.
- Issues in Security- In general, cloud accounting will store your business financial data into its remote servers instead of storing them in your own data storage hardware. There are also misconception about this new software, some would think that storing data in the cloud will make it susceptible to intruders.
- Lack of information- we all know that not all accountants are ready to embrace cloud accounting as their newest tool. Those who are not in favor of cloud accounting usage are the ones who are responsible in distorting the facts to the potential users and clients. In general, business owners are not the ones who develop cloud accounting and accountants do not share this idea to them. So it is recommended that before you invest in a cloud accounting services, make sure that you check if it is compatible for the type of your business.