Recent data indicates that 82% of accountants have admitted that they would struggle to determine if their client’s cloud-based accounting solution is true or fake cloud.
In the UK today, there are several software solutions available that are marketed to accounting and finance professionals as ‘cloud accounting software’. However, many practices have adopted these tools only to learn, later down the line, that their chosen system doesn’t offer many of the advantages that other firms are experiencing, when moving to a cloud native solution.
These range from seamless, browser-based, remote working from any platform, without VPNs or concerns for security, to continuous functionality upgrades that are instantly available to all users as part of the Software-as-a-Service tool.
In addition, many practices also found, after it was too late, that limitations surrounding integration with other systems had a real impact on their ability to drive efficiency throughout their business.
Modern-day accounting professionals require one version of the truth
The root cause of the problem for purchasers of fake cloud systems is because much of the functionality, within the original on-premise version of the software, has been adapted to work in the cloud instead of being built specifically for it. In other words, it’s based upon an architecture that was built at a time when cloud, and cloud integration with other applications, was not an option.
Having structural issues at the core of these applications results in them often being unable to provide real-time data that presents one version of the truth, across a multitude of systems being accessed by users from multiple locations.
So, as thousands of industry professionals visited the 2021 AccountingWEB Live Expo in Coventry this December, we took the opportunity to gauge the level of understanding, within the accountant community, regarding hosted on-premise solutions (fake cloud) and cloud native offerings (built specifically for a cloud platform).
What some of the results say…
Asking them to complete a short survey about accounting software, we soon discovered that just 18% of respondents could confidently spot what was a true cloud solution over a fake counterpart.
Additionally, 1 in 2 respondents weren’t sure if their client’s current vendor offered a true cloud upgrade path and over a third predicted that at only 25% of software applications would be non-cloud in just three years’ time.
The findings suggest that the level of confusion remains high – which also correlates with similar surveys taken among Financial Directors in the SMB community. That’s why we’re continuing to educate industry professionals around the subject of selecting the right cloud option. If you’re still unsure too, don’t forget to read our blog on the true cloud v fake cloud differences.
Other data from the survey indicated high levels of fear associated with making any sort of change to their finance system, despite know it is inevitable in the medium term. A total of 73% of respondents suggested that they had ‘outgrown’ their existing system but didn’t feel there was an obvious, affordable next step with their existing provider.
Additional information was polled regarding the biggest headaches associated with finance software in Accountancy practices, Brexit, and payment mechanisms of the future – all of which will be analysed and released in our next post-show communication.
Our team of dedicated account managers can explain all the benefits and walk you through our savvy functionality. Book a demo today by calling 020 7729 3260, emailing: email@example.com or complete our contact form for a call back.