The word ‘Cloud’ often gives people nightmares, because of its complications and technicalities. Especially small business owners often choose to steer clear of adopting this technology as they feel that a cloud environment is only suitable for large businesses with huge data. However, that is just a myth! Cloud adoption gives you complete freedom to work from anywhere at any time, and so flexibility is something which every business needs, especially with remote working taking priority.
While cloud environments are scalable, reliable, and flexible, in general, those aren’t the only driving factors for your decision to adopt the technology. For companies considering moving to cloud technology, there are several factors that you’ll want to take into account — from the benefits and the risks to the cloud service model and type that is right for your business.
Find out which are 5 Important Questions to Ask While Choosing a Cloud Accounting Solution for Your Small Business
In this article, we’ll cover the risks and benefits associated with the adoption of cloud environment for your business.
Risks in cloud migration
When it comes to risks while adopting cloud service, there very few risks involved. Let us dive into some of the most common risks which companies face while choosing a cloud accounting software:
- The first and most important question to answer is does your business really need a solution of this nature. Your operations, nature of users of the application and your future plans as an entrepreneur may help you answer this
- Incompatibility issues is one of the most common problems which companies face while moving to a cloud environment. It may require skilled IT professionals to implement a technology and integrate it with their current system. Running, managing and growing your business is your priority. While implementing a solution of this nature would come with its share of technological complexity, you would expect that you are kept away from it and are able to focus on using the solution to your advantage
- One of the most worrisome problems which companies face is data loss during migration. Unpleasant cases of missing, corrupt, or incomplete files are common. Therefore, it is critical to have a backup in case business owners or other stakeholders require to restore or recover lost data
- Whether it is a small or a large enterprise, data security is key. Your business data is sensitive and you may be concerned about the reliability and credibility of the entity who is handling it on their servers. Several companies hesitate to adopt cloud technology as there could be a risk of irrevocable data loss or insecure data visibility
- Cloud based applications are generally associated with high upfront and recurring costs because of the infrastructure involved. While you would want a reliable and secure system, but affordability is equally important
- Business continuity is extremely critical and your operations cannot stop because of a system. Since internet-based applications are prone to interruptions caused by unreliable network / hardware / software, this is a key consideration.
Benefits of adopting cloud service technology
- Adopting cloud accounting technology for your business will give you access to your business data remotely. Irrespective of your physical location, you can access your business reports from anywhere at any time
- Secure data exchange will ensure remote collaboration and with cloud accounting, this activity of working in sync with concerned individuals becomes much easier. With a straight-forward process, cloud gives business owners an advantage of exchanging data without the need of travelling to another location
- Since business owners have more control over which data should be accessed by whom in the organisation, it improves work-life balance and each stakeholder will have access to the data that is useful for them, on individual levels
- Many cloud solution providers offer high-security data storage at a minimum cost. It is easy to expand and shrink the storage based on your requirements in cloud computing.