Given its functionality and the conveniences it brings, IT should be a top investment priority even for small- and medium-sized businesses (SMBs). But before implementing anything, you must fully understand your company’s needs and processes. Otherwise you could be incurring costs that may prove useless in the long run.
For SMBs, it is especially imperative to constantly look for ways to minimize overhead costs. Perhaps it’s time to introduce a new system, one that will keep your IT overhead to a minimum as you move all your data to the cloud.
The International Data Corporation (IDC) predicts that by 2018, at least half of IT spending will be cloud-based, reaching 60% of all IT infrastructure, and 60-70% of all software, services, and technology spending by 2020.
Cloud accounting calls for minimal investment.
Building an on-premises data center and creating an email server can get really expensive. Consulting, equipment, and software, not to mention in-house experts and physical space, all require a significant budget. But when everything is automated, processes are done more efficiently, saving you time and money.
Such is the case for companies that utilize cloud accounting. With a cloud-based software like Sage Intacct, there are no programs to install and additional equipment and licenses to purchase because all your data is stored and processed on virtual servers managed by the vendor. The vendor also provides initial and ongoing training and support and helps with any user or performance issues.
There is little maintenance, and upgrades are done automatically.
With cloud solutions, your IT team doesn't need to fix bugs and troubleshoot issues. That’s because you already take advantage of hosted resources that the vendor manages. In fact, you don’t need any IT staff to maintain or update the system.
The same goes with software upgrades. It’s the vendor’s responsibility to keep your software, along with all the tools and data, running smoothly and up to date.
Expect no downtime.
Scheduled or not, implementation and maintenance processes result in downtime. This means trouble to the unprepared. According to Gartner, the average cost of network downtime is $5,600 per minute, which is $300,000 per hour. The highly publicized IT outage suffered by British Airways last year cost them $68 million in flight reimbursements.
But even for SMBs, especially those that use single-tenant and on-premises software, downtime is damaging. Recent reports say that nearly 40% of small businesses close after a disaster, yet 75% of small businesses have no disaster recovery plan.
Cloud accounting is multi-tenant and built with massive data capacity and superb backup and disaster recovery.
Evolution shouldn’t be complicated.
As your business grows, your operational needs and financial transactions get more complex; therefore, managing software integrations and adding more app functionalities can be a headache. This is not the case with a cloud accounting software; which is designed to be flexible and adoptable where data can be accessed from anywhere, anytime and from any device.
Add strategic value to your business!
While the maintenance-free nature of web-based software will save you IT support costs, it doesn’t mean that you won’t need your existing personnel. You can reallocate resources, making better use of the team you already have. Once implemented, the software allows the IT team to shift worries from the cloud accounting system to other important technology concerns.
Cloud enhances the accounting system while minimizing your IT overhead. Let our team at WhiteOwl provide you with this cost-effective solution through Sage Intacct. Get in touch with us to learn more about Cloud Accouting!