Should You Be Worried If You're Not In the Cloud?

One of the big things to hit the accounting industry this year is cloud accounting. A good number of accounting companies, like VJNassociates, as well as freelance CPA's are already 'in the cloud' with their clients conducting business. While this is definitely an advancement in the world of numbers, a few are still quite skeptical about making the switch.

This big question for 2014 now is: should they be worried if they're not yet in the cloud?

Cloud Accounting Benefits

Since it's deployment in the market, it has certainly gained positive feedback over the years – creating quite a buzz by 2013. According to a research done by a leading information services company, those who have not yet made the switch to this accounting method have high intentions of doing so before the year is over. Here's why:

• Cloud accounting is nonrestrictive. It lets both business owners and accountants anywhere across the country (or internationally even) to connect with one another. No longer would people feel the need to be tied up to a particular service they are not happy with, because they have countless of other options.
• No need for maintenance when it comes to servers or hardware. Data can be accessed anywhere, at anytime, as long as there is an Internet connection.
• Cloud accounting is highly flexible. Accountants can easily adapt to changes in their clients.
• Auditing is made easy because simple content such as tax tables are automatically completed on a cloud system.
• Accountants become highly invaluable because there is real-time communication with clients. They can quickly process new information as well as give immediate feedback.
• The variety of cloud accounting features enable accountants and business owners choose the right one for them and their needs.

Why Others Are Still Stuck

There could be a variety of reasons as to why some enterprises and accountants have not made the switch; however, current statistics show they are pressured. The earlier study showed that about two-thirds of business owners (small and medium enterprises or SME's) are likely to abandon their current accountants unless they embrace cloud technology. It's obvious that CPA's are worried; but others are not.

Some don't see the need to make changes to their current accounting methods simply because it works fine. It's true that switching from one platform to another can be time-consuming as well as eat up other resources (although cloud accounting is more affordable in the long run compared to desktop-based software). But having real and easy communication with an accountant can be one the most important investments a business owner can make.

The study also presented that a large number of SME's, roughly 82% of the respondents, said their accountant was their most trusted third party adviser. This makes CPA's higher in the hearts of businessmen; even more ahead that their financial adviser, lawyer, and business partner. It's possible that not switching to a cloud-based software could break an accountant's standing in the competitive industry.

Beyond The Clouds

More than joining the technological bandwagon, accountants these days should be versatile enough to handle both the financial and management aspects of their clients' companies. Cloud computing is only the beginning – but the real challenge is going above and beyond expectations.