Disadvantages of Cloud-Based Accounting Software

advantagesanddisadcantages

Cloud computing is a wise choice for many companies, but some issues have to be considered by users. A large number of companies are using online accounting solutions such as Xero even though a few of them find it hard to use these tools effectively. Essentially some factors have to be considered before businesses begin to use an accounting software. This will ensure that the company remains operational and that the online accounting software in use is reliable and beneficial.

Online Solutions do not Apply to Everyone

The cloud-based accounting solutions are not universal. Even though some users will find them beneficial, other users will find it hard to use online accounting software due to reliance on the internet. Furthermore, there is a lack of control over the data as the information is stored by a third party. The accountant does not have control over the system, how it works and the data stored. Moreover, these applications lack some advanced features that accountants might need. They also have user and data limitations in that the user can only access certain aspects of the software. This means that the accountant will have less control over the software in comparison to offline data sources. These could be overlooked, because obviously, when an accountant sells her services, they would prefer to highlight the positive benefits of using cloud technologies rather than the negatives. Furthermore, the applications cannot support the applications a business has, but instead, it relies on what the cloud-solutions developer can provide.

Confidentiality

There is a lack of confidentiality when a business relies on a third party for their accounting needs. The business is sharing its financial data with another company, and this is a risk for the business as the information can be used for their personal gain. Additionally, the financial information can be accessed by unwanted parties such as governments which can easy audit and review our data, especially when the provider relies on servers located in different countries.

Lack of Backup

Even though cloud solutions have a backup functionality, you cannot store the information on your computer. In case the company decides to use a different provider, then you will face problems when transferring the data. The new provider might use software that is incompatible with the previous provider, and the business ends up losing its financial data. Additional, the business can choose to continue paying the previous provider, and this leads to additional costs for the business.

Horizontal Nature

A large number of the cloud-based accounting solutions are horizontal in nature. These solutions are often designed to meet the bookkeeping needs of small business. However, some companies have unique requirements that might not be met by the software.

Despite the disadvantages, the accounting software is useful in meeting the basic needs of many businesses. It includes sales tax, banking features, job costing, fixed asset tracking, inventory and basic accounting. Many companies are suspicious about revealing their financial information to an outsourced company. However, this will be less risky if there is a good and professional relationship with the outsourced company. Moreover, the outsourced company should be reliable, and it should provide the necessary support to ensure that the cloud-based solutions work as expected and at all times. This will ensure that businesses can rely on cloud-based accounting software, and they will experience the benefits.

  digital-transformation

          The digital transformation is now. This maxim, uttered by Jean-Marc Lagoutte, vice president and CIO of Cigref Danone, epitomizes the atmosphere of the General Assembly of the Club of large companies, held on Tuesday 8 October. Red wire of the event, the institution that brings together the CIOs of large French groups, has stressed the upheaval by the transition to the digital world in the organization of firms, both in terms of their governance and their business model. This has been stressed by the different Vice Presidents of Cigref that have succeeded, to a packed house. This shift represents a vast upheaval of the value creation process, as noted by Jean-Marc Lagoutte.

The CIO however recalled that in this digital transformation, providers too should adapt to the new digital culture. Jean-Marc Lagoutte has therefore advocated among CIOs in the room a model of co-construction with suppliers. Because these two worlds are in his opinion, very “interdependent” in this transformation to digital. “Suppliers must also make their digital transformation, with, in addition, their position as ‘knowledgeable parties,'” he explained. “So providers and user companies have an incentive to cooperate to ‘cracker’ digital transformation.” “Or disappear,” he blurted out, referring to the “value co-construction”.

Note that Cigref is working with several leading suppliers of the sector. One remembers, for example, his work with Oracle, Microsoft, SAP and HP, to name a few. Building sites are also underway with Orange Business Services and IBM but also with Amazon or Google – members since 2008. In 2013, continues Jean-Marc Lagoutte, relations were established with Salesforce and Samsung. “We want to build a favorable ecosystem for all,” with “suppliers that evolve and new players,” recalling the mission of Cigref. This is according to him “our duty”. It does not matter if it is an IT consultancy firm in London or a large investment house in France, the ecosystem has to benefit everyone.

Trust, sharing, collective intelligence, or transformation of management methods in promoting cross – the topics covered in the reference book “Digital Enterprise & Culture”, updated and published during this General Assembly – are at the heart of Cigref’s speech. But above all, he recalls, the CIO must be “carrying the message. Because it controls the internal and external flows. ” One of the other great challenges of the transition to digital technology relies on the ability of the company to implement a strategy driven by Comex and crafts, still shows the club of big business. But beware, launches Bernard Duverneuil “digital must fit into a meaningful project. Yes to digital, but it does matter how,” he says again.

In its supportive role of big business – “a crossroads of exchange reflection and guidance,” said Pascal Buffard, club president and president of AXA Technology Services, Cigref also announced the creation of the Institute of digital transformation, in partnership with the CNAM, whose mission is to offer training programs (of 5 half days cycles) “around the issues of digital transformation.” Even smaller firms such as Prosyn, which provides IT support for small businesses, has a stake in these issues.

Another message, more of a global one, was to remember when the General Assembly of Cigref, “inevitable” digital business transformation. For Bernard Duverneuil, the CIO Essilor and vice president of Cigref, this transformation must be built on digital culture that large companies must acquire.

Cloud maturity: AWS leads but Microsoft virtually doubles cloud revenue

Amazon Webservices (AWS) is continuing to grow its cause over rival public cloud companies, while Microsoft experienced 96% year-on-year progress in 2014.

Analyst Synergy believed quarterly cloud structure service profits – including infrastructure-as a service (IaaS), system being a service, exclusive cloud and hybrid cloud – reach the $5bn milestone, with following 12-month profits exceeding $16bn.

Complete cloud revenues for 2014 became by 48% in the previous year.

The revenue growth demonstrates increasing acceptance of public cloud services within the organization, especially with interest in IaaS.

Synergy mentioned that in 2014, AWSis share of the global market was 28%, accompanied by Microsoft (10%), IBM (7%), Bing (5%), Salesforce (4%) and Rackspace (3%).

Research manager John Dinsdale and synergy Research Group chief expert stated the traction built-up at AWS and Microsoft is very extraordinary.

“They have an ever- they are also benefitting from a slowdown inside the tremendous and broadening profile of companies -extreme cost opposition that was a of the initial 50% of 2014 he said.

Amazon Tom Szkutak recently proved the company’s responsibility to rising shareholder value while in the AWS enterprise by positioning its cloud business around the company’s balance sheet.

At its re discussion in 2014, Amazon unveiled a database engine termed Aurora, that’ll target classic enterprise database choices from IBM Oracle and Microsoft.

Meanwhile, Microsoft CEO Nadella has extended to represent Orange Active Directory and Office 365 as entrypoints to the company’s cloud that was public.

Microsoft claims to get more than 350m Violet Active Directory customers, which is at the heart of Microsoft’s unit management method, which spans desktop products, laptops, supplements.

Managing director Gavin and aWS UK recently said in a appointment that unlike classic IT providers, cloudservices do not involve the exact same amount of frenetic exercise to close deals.

” since the customer determines once they certainly will come and move and utilize AWS as they please We’re not there to close a at the conclusion of the quarter,” he said.

Perhaps, it’s this flexibility that’s built cloud services that are public appealing to organizations.