Cloud Accounting Pros & Cons

Pros

  • You can work from almost any device that has an internet connection. This means that you and your employees are not tied to a specific desk or computer to get work done. Multiple users are also able to work in the software at the same time.
  • Your accounting information is always just a click away, allowing you to access your information wherever you are to run your business in real-time.
  • There are no upfront costs to get started, just a regular monthly subscription fee. Different subscription rates are available to fit your specific needs.
  • If you decide that cloud accounting isn’t for you – it is easy to cancel your subscription.
  • You are always on the cutting edge with automatic updates. There is no downtime from installing time-consuming updates; you are always using the latest version.
  • New features and add-ons are constantly being developed and released.
  • Cloud accounting servers are very secure and can potentially provide you with more security than you are able to provide on your own computer and server. This protection is included with your subscription at no additional cost
  • A user-friendly interface makes it easier to be involved in your day-to-day bookkeeping. The software is designed for the everyday user, not for accountants.
  • If you need help, your accountant can log in at the same time to help you immediately. You can also communicate directly with your accountant through your software – you can attach notes and questions with certain transactions and upload documents.
  • Bank feeds can automatically upload your transactions directly from your financial institution for your bank accounts and credit cards. The software will make recommendations and match transactions that you already recorded.
  • Use your smartphone to take a photo of your receipts and upload it directly to your accounting system to be posted – the image is even attached to the transaction so you don’t need to worry about lost receipts!
  • Create and send invoices directly to your customers from any device, clients can also pay you directly from the invoice!

Cons

  • A monthly subscription may cost more in the long run than the upfront costs for desktop accounting software. Subscription rates are also subject to change in the future, potentially increasing your overall costs. Add-ons may also require an additional subscription.
  • You need to maintain your subscription in order to maintain access to your data.
  • Updates are mandatory and automatic – there is no option to skip or defer an update.
  • You cannot create backups or restore information from a past backup should something go wrong.
  • A stable internet connection is essential to access your data – should the internet go down or be insufficient, you will have no access.
  • You must still be cautious of security on all devices accessing the cloud accounting software. A virus or misplaced login information could leave your data vulnerable to an attack.