Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
Technology will advance whether your business adapts to it or not. In the long run, a business that does not adapt to technological developments will become incompetent. This is especially true for cloud-based accounting software.
Accounting is becoming more technologically dependent. The cloud stores sizable amounts of data, which experts manage. However, if business owners keep believing in technology misconceptions, their businesses may be at a disadvantage.
Unloop is here to offer new perspectives to common beliefs that restrain business owners from considering cloud-based accounting and provide a practical solution to help them jump in and enjoy the technology.
Misconceptions About Cloud-based Accounting Software for Small Business Owners
If your business still relies on stacks of ledgers or creaky read/write hard disk drives (HDDs), you may have these ideas in your mind.
The Cloud Is Vulnerable to Fraud
One dominant misconception about cloud-based accounting software is vulnerability. It makes sense to think that it's open for everyone if it's up in the air.
However, cloud accounting software systems are designed to have sophisticated security protocols. These security measures are monitored and updated to ensure your data is private and secure. That means whatever data you have in the cloud is for your eyes only until you choose to share it.
Cloud Accounting Software Technology Isn’t Sustainable
Some small business owners think that online accounting software is just a fad. Given enough time, we'll all return to our hard drives and papers. That may be the case, but it's unlikely to happen soon.
BlueWeave Consulting research shows that the cloud-based computing market was valued at $390 billion in 2021. This figure is expected to grow by 11% until 2028. It's a big market with an even bigger need to fill, and there is no sign of it slowing down at any rate.
Cloud Accounting Is for Big Corporations Only
The best accounting software that is "up in the clouds" has a technologically intimidating ring to it, especially for SME entrepreneurs. However, they think cloud-based services are for large companies with big data storage requirements, while the opposite is true.
Small businesses can also take advantage of cloud-based accounting even if their data requirement is small. It can be a huge benefit to start cloud accounting when you're early in the business.
Online Accounting Software Costs a Lot of Money
Cost is another obstacle that stops entrepreneurs from switching to a cloud-based solution. They think the service model will cripple their budget as most cloud-based software are subscription-based.
A cloud-based accounting solution is indeed paid for regularly. But the price you pay is also proportional to the volume of data and services you want. So, you'll get a fair price depending on your business needs.
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Adopting a Cloud-Based Accounting System Is Difficult
Moving your accounting system to the cloud seems like a headache. It's new technology. Plus, it might not be familiar, and it may take a long time for you to adapt to it.
Accounting works the same way, whether written in the books, stashed on a hard drive, or stored in the cloud. The cloud-based accounting system should be fairly easy to use and adapt if you know how accounting principles work.
It’s Only for Experts
The best cloud accounting software interface can make any small business owner conclude it's for experts—it's not. While it's true that experts will use accounting software faster, you can also give it a go.
Top cloud accounting software like QuickBooks Online (QBO) has a user-friendly interface perfect for ecommerce small business accounting and financial reporting. Intuit, the maker of QBO, understands that its accounting software caters to accounting needs of all business stakeholders. That's why it's made to be simple to use.
On the other hand, if you don't have the time nor the interest to explore these small business accounting software, you can easily let the experts handle it for you, which brings us to the next misconception.
You Give Up Control of Your Data
Uploading your accounting data to the cloud to be handled by a team of experts may seem like you're giving up control. But the fact is, you're delegating control, and you take on a different role.
Cloud-based accounting services from a team of experts allow you to share your accounting data privately. Then, these experts can handle bookkeeping and accounting functions for your business, leaving you with the task to monitor and analyze your business performance using the reports they provide regularly.
Debunk These Myths With Unloop
Take a positive step for your business and consider outsourcing with Unloop. We are knowledgeable experts trained in the best cloud-based accounting software and experienced with multichannel markets. Here's a glimpse of what's in store for you and your business.
A wide array of services: Our team offers more than just bookkeeping. We can give you monthly financial statements, calculate the cost of goods sold (COGS), assist in forecasting, and many other services.
Cost adaptable: We make sure the fees you'll pay are proportionate to the nature and size of your business. Plus, you get the value of cloud-based storage and a team of experts handling it.
Secure and reliable: Let us take over your manual data entry process. Your business financial information will be protected by us, and you're free to retrieve it as you wish. We're just a click or call away.Book a call if you're curious about how cloud-based accounting can work for your business. You can also explore our ecommerce accounting service offerings now.