The cloud-based financial system is a phenomenon. Businesses choose these types of solutions because they are cheaper. However, before you make such a decision, you need to look at both the pros and cons of this option and consider your individual needs. This guide can help you with this.
A cloud-based financial system is simply finance software which is hosted on the server of the provider. The business can use it directly through an internet connection. The provider has the responsibility to maintain the server and the software itself.
The main benefit of a cloud-based financial system is that you will not have to invest in your own server and any additional hardware in order to use the software. There will be no server maintenance costs involved either.
The fact that the provider will manage the software is also quite beneficial. You do not have to worry about fixing issues by yourself or about planning for updates of this vital business tool. You will not have to back up the data which you have stored on the system either. The professionals will take care of that.
So far, everything looks great, but there are a number of drawbacks that you need to consider. Firstly, when the server is not on your premises, you will have no direct control over it. This can be an issue for companies that require frequent technical changes due to changes in factors such as the volume of transactions.
You put all your eggs in the provider’s basket so to speak and this poses certain risks. If something goes wrong with the server of the provider, your access to your data will be blocked and you may even lose some data. Issues may also arise if you rely on heavy customization of the solution which you have bought. If the provider decided to introduce updates, the customized features may be lost.
Now you are ready to compare the pros and cons of a cloud-based financial system in line with your needs.