7 Ways Cloud Accounting Reduces IT Overhead
Your existing financial management and accounting system may not be taking up much of your IT team’s bandwidth. But if it’s zapping the time and energy of your finance and accounting team, you’re probably getting ready to change that by introducing new technology. Have you considered how your solution will impact your tech environment, tech personnel, and tech budget?
Here, we’ll show you how a cloud accounting solution can help keep your IT costs down.
- Lower Initial Investment
According to Nucleus Research, cloud deployments incur 63% lower initial consulting and implementation costs than on-premise ones. Indeed, building on-premise systems tend to require a significant budget for consulting, equipment and software—as well as an investment in time. With cloud-based solutions, your users access their tools from the web, so there are no programs to install on local computers and no licenses to purchase. And your data is stored and processed on your vendor’s virtual servers, so you’re not investing in additional machines and server stacks that need to be kept in an in-house data center.
- Minimal Infrastructure Maintenance
CIO reports survey results from a Rackspace study finding that 60% of companies say cloud computing has reduced the need for their IT team to maintain infrastructure, giving them more time to focus on strategy and innovation. That’s because you didn’t have to purchase the infrastructure in the first place: you’re leveraging hosted resources that your vendor takes care of from their location.
- Easy Evolution
Growing businesses are constantly evolving and their business needs (and financial transactions!) become more complex. So when it comes to managing software integrations and adding new app functionalities, cloud software makes it easy. Its code is written with a flexible and developer-friendly API so getting up and running with new tools—and connecting systems—is simple.
- Automatic Software Upgrades
Your cloud accounting technology vendor is responsible for keeping their software (and your tools and data) up to date and bug-free. Their IT resources—from programmers and developers to customer service and sales reps—are dedicated to making sure their software runs smoothly and delivers on customers’ expectations. That means your internal IT team doesn’t have to troubleshoot problems, run software patches, or perform upgrades…it’s all done automatically.
- Virtually No Downtime
Systems usually require downtime for implementation and maintenance, scheduled or otherwise. This is a big concern for users of single-tenant and on-premise software. Gartner finds that the average cost of network downtime is $5,600 per minute, or $300,000 per hour. Even for small companies, data outages or other unscheduled downtimes result in operational downtime and damaging financial consequences.
Cloud software is multi-tenant, so it’s maintained and deployed differently. (Don’t miss How Cloud Accounting Saves You Money) It’s built with massive data capacity, best-in-class backup and disaster recovery, and high system availability. And vendors boast their reliability: Sage Intacct, for instance, guarantees customers 99.8% system uptime and offers real-time and historical trends.
- Built-in User Support
Service is a key part of the with cloud-based, Software-as-a-Service vendor/customer relationship. Just like the vendor assumes responsibility for the software, data, and remote machines running the apps, they’re also available to help users with initial and ongoing training as well as any performance or user issues.
- Adding Strategic Value
As we’ve made clear, adopting a cloud accounting solution doesn’t mean you don’t need to hire new people. In fact, you can make better use of the employees you already have. Once your system is implemented, your existing IT team can focus on other imperatives—not your cloud accounting system—that positively affect your top- and bottom-lines.
On-premise and cloud-based solutions bring their own sets of costs to the table. What’s ultimately most cost-effective for your company depends on many factors, including your stage of growth, your current IT infrastructure and human resources, industry, and security and accessibility needs. This is why it’s a great idea to get expert help determining the right solution for your business. Contact us to learn more!