Switching to Cloud-Based Accounting and Data Storage

Improve security and reliability while saving money and time

The last decade has brought numerous computing innovations, including cloud-based software and data storage. Data storage has evolved from magnetic tapes and storage discs to CDs, DVDs, portable hard drives and data sticks—and now, to the “cloud.” So, what exactly is the cloud? And why should you consider moving your accounting system and data there?

WHAT IS THE CLOUD?

The cloud isn’t really a thing as much as it is a concept. Big name companies like Google, Apple, Amazon and Microsoft, along with a lot of lesser-known companies, have built enormous data centers around the world that provide computer, network and storage capacity (such as Google Gmail, Microsoft Office365, Apple iCloud, etc.) that they then “rent” to other businesses so that they can offer their own services. For example, Netflix relies almost entirely on Amazon’s AWS cloud-computing services to run most of its platform.

For companies like Intuit, NetSuite, Xero, Dropbox and Microsoft, cloud computing provides a way to offer accounting, data storage and other services vital to running your business through software that can be securely accessed from nearly anywhere in the world and from any type of device (desktop computer, cell phone, tablet, etc.).

ADVANTAGES OF CLOUD STORAGE

Storing information and using software hosted in the cloud has numerous advantages. It’s why cloud computing is taking off—particularly for small businesses that can now potentially compete with the big players in their industries by avoiding costly capital purchases of servers and software, along with the expense of employees or contractors to operate and manage that infrastructure.

Some of the advantages of cloud storage are:

• Improved business continuity: should a disaster strike (such as a fire or flood), your data is already stored offsite and remains safe. Furthermore, the data would be accessible from an alternate location with little to no effort required on your part.

• Anytime, anywhere access: business owners and staff can access the information they need from anywhere. Need to work from home a few days each week? You could easily do so when you move your business data to the cloud.

• Low-cost backup solutions: there are several cloudbased backup solutions that no longer require purchasing back-up hardware and storage media nor will you need to dedicate staff to manage your backups each day.

• Improved security: cloud data storage providers take security to a much higher level with secured data centers, encryption, multi-factor authentication and other security measures that typically don’t exist for hard drives sitting in your office.

• Integration and capacity: many solutions like Microsoft OneDrive, Apple iCloud and Google Drive offer seamless integration with your computer operating system, making storing data in the cloud as simple as storing it on your hard drive with the added benefit that expanding your storage capacity typically requires little more than a few clicks in your user account and no new equipment to purchase or install.

UNDERSTANDING CLOUD ACCOUNTING

Most accounting software providers now offer a cloud-based version of their product and in most cases for new providers, the cloud is your only option. Gone are the days of needing to install software, manage updates/upgrades and print or ship files to your CPA every month. By choosing a cloudbased accounting solution, you get the benefits of cloudbased data storage along with anywhere, anytime access to your books from virtually any device. The mobility you’ll have compared to physically being at your desk to access key information about your company can be revolutionary.

The many advantages of switching to the cloud include:

• Saving money and time

• Improved security

• Greater flexibility

• Increased reliability

• The capability to recover quickly from a disaster

If you’re still unsure about shifting to cloud-based accounting and data storage solutions, they are worth considering for your business. Cloud-based services can help reduce your overhead, simplify your network and computing needs and provide your business with greater flexibility and security for when and where you and your employees can work. With that said, the cloud is not a panacea for all business technology needs and might not be appropriate for your particular situation. When in doubt, it’s always advisable to seek professional help in assessing your needs and getting your solutions up and running and properly secured. That modest investment in getting help can open the door to vast improvements in your business operations.

ABOUT THE CONTRIBUTOR: BILL GLASBY

Bill joined Heritage in 2017 as executive vice president chief technology officer. More than 20 years ago, Bill started in the banking industry as a teller. Since then, he’s held multiple leadership roles in product management, operational excellence and technology at Washington Mutual and JPMorgan Chase.