When we talk about cloud accounting, we shouldn’t be talking about it as an option, but rather an inevitability. A recent AICPA study revealed that 90% of accountants believe that delivery of digital services will be a key differentiator for practices by 2020. With 2017 fast approaching, leading accounting practices are getting a jump on the competition and migrating clients to the cloud at a rapid pace.
When it comes cloud accounting adoption, there’s no time like the present. Here are the 5 reasons now is the right time to switch your practice over to the cloud.
1. You’re Already There
What’s the first thing you do when you login to your computer in the morning? Maybe you sign into Gmail to check your inbox. Perhaps you check Facebook to see your friends’ photos from the weekend. Or hey, maybe you were in the mood to watch a cat riding a Roomba on YouTube. Whatever you do, if it’s in a web browser, it’s almost guaranteed to be powered by the cloud.
One of the most confusing things about the cloud is the name itself. We’ve assign a buzzword to a technology we interact with multiple times per day, multiple times per week. But strip away the nonsense, and what once seemed scary and exotic suddenly seems remarkably commonplace – because that’s exactly what it is.
2. Cloud Bookkeeping Software is Better Than Ever
When you’re in charge of handling a company’s financial data, you had better be confident in the capability of your software and the integrity of your data. When the very first cloud accounting software hit the market around the turn of the century, well, let’s just say early adopters had their hands full.
But today is a new day. The first version of QuickBooks Online was released in 2001. The first version Xero hit the market in 2006. In 2016, cloud accounting software is every bit as safe and reliable as desktop and accounting software. What’s more, cloud accounting software is fast, beautiful, and built to handle most of the accounting challenges you throw at it.
Certain clients with more complex accounting needs may need to remain on the Desktop version of your bookkeeping software, but the vast majority of your clients can make the switch to the cloud in a matter of minutes. And since all the leading cloud accounting software companies provide free trials of their services, there’s really no reason not to see for yourself just how easy migrating can be.
3. The Cloud Helps You Do More
There are enormous benefits to putting your financial data in the cloud. The first and most obvious is the speed at which you can reconcile books. When your bank can talk directly to accounting software, you can see cash flow, at a glance, whenever you want. Not only does this help you do your job better, it gives your clients better insight into health of their company.
The second big advantage is the single ledger. No more hunting for the right file. No more sharing back and forth. No more confusion. There is one book and everyone is on the same page, because everybody has the same information.
The last major advantage is that when your data is in the cloud, your other software can interact with it. Migrating your data to QuickBooks Online is just the first step – QuickBooks can be quicker! Using add-on software like Receipt Bank you can cut the time it takes to do things like bank reconciliation and records management in half.
4. Younger Clients Demand It
While your oldest clients probably won’t be chomping at the bit to migrate to the cloud, there’s guaranteed to be a contingent of your client base that has been ready to go for a while.
Any guesses as to which contingent?
If you guessed millennials you’d be absolutely right. Millennials are a strong driving force for cloud adoption in companies big and small. That’s because millennials are no longer kids. Gen Y has finally reached management level, with many holding senior management positions. According a recent Google study, nearly half of all B2B solutions researchers are millennials meaning that even if the decision makers in a company skew older, the ones doing the research, vetting, and recommendation are increasingly likely to favor firms with a strong grasp on technology.
What’s more, there is a whole subset of business decision makers who won’t even consider using your services if you don't offer cloud integration. Startups tend to prefer cloud technology as it cheaper and more scalable than enterprise desktop solutions. Plus, they are used to the integration and interoperability that comes with cloud software, and will balk at the prospect of having to manually transfer data from an offline data source to the rest of their online systems.
There’s a smarter way to work, and your savvy millennial clients are all about it.
5. There Will Be Winners and Losers
RIM saw iPhone’s fancy apps and shrugged them off. Blockbuster once looked at Netflix’s online offering and dismissed it as impossible to scale. The halls of history are littered with companies who stood idly by and watched other companies innovate around them. None of them escaped the disruption unscathed.
Think the bookkeeping business can’t be disrupted? It’s already happening. Cloud-only providers like Bench and inDinero are offering compelling cloud accounting packages at cut rates, and business is booming. Like, 2686% YOY growth booming.
What’s more, there are thousands of practices across the country who have already made the move to cloud accounting solutions. And even if practices in your city haven’t made the move, because cloud accounting practices run their business online, there could be an online bookkeeper based in Flagstaff that competes directly with your business in Des Moines.
One of the most compelling reasons to switch to cloud accounting is because, frankly, your competitors have switched already. Don’t get left behind. Make the switch today.
It’s Not Easy, But It’s Worth It
Switching to cloud accounting will revolutionize the way you do business, and like most revolutions, it won’t come easy or fast. We know transitioning your practice to the cloud can be a difficult endeavor, but it doesn't have to be. There are 5 big pitfalls most practices encounter when going to the cloud, and we'll show you how to avoid them.
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