What has DNA got to do with accounting. DNA holds within it a secret of resilience and sustainability, constantly evolving over time. The same way, accounting firms must also move towards an adaptive approach to technology, rather than the reactive stance of the past.
Today, accounting success today stems from not just expertise; technology is also an important building block for it. Firms need to keep up, improve learning, and upgrade their tech stack to improve processes & workflow, create serendipitous user experiences, and drive profits.
Tech is the single big differentiator between mediocre accountants and successful accountants. Normal accountants use QuickBooks. However, great accountants with a forward-looking approach use cloud-hosted QuickBooks to make it limitless.
Digital accounting primarily revolves around cloud. It is a critical area for accounting firms. Great accountants don’t just have a singular focus on accounting expertise. They are also advancing their tech skills.
– Randolph P. (Randy) Johnston, MCS
Hosted QuickBooks gives them the independence (or flexibility) to streamline accounting operations for better client focus. They get the ability to bring data faster in a secure way, onboard clients, file tax preparations, and reach revenue faster. They also get the ability to access data and work from anywhere in a secure manner.
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Accounting Firms: QuickBooks Online Version Falls Short in Addressing Key Needs
QuickBooks has an online version (QuickBooks Online) that needs to be upgraded as and when users start using more of its capabilities. It has a dedicated resource section to explain the available APIs, Sandbox for testing, workflows, production keys, etc. Still, QBO is typically built for service-based businesses that require basic features for inventory tracking. Accounting firms need to upgrade the stack as they go further.
On the other hand, QuickBooks Hosting is the process of moving the desktop software to remote third-party servers for making it more accessible through the internet. Users get a web-based interface to access the familiar interface of the desktop version. Hosted QuickBooks score more points in terms of ease of use, security, customization, integration, disaster recovery, maintenance, cost, performance, and scalability.
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SaaS Related Limitations of QuickBooks Online Which Cascade Accessibility Issues
QuickBooks has an online version (QuickBooks Online) that needs to be upgraded as and when users start using more features. It has a dedicated resource section to explain the available APIs, Sandbox for testing, workflows, production keys, etc.
Still, QuickBooks Online (QBO) is typically built for service-based businesses that require basic features for inventory tracking. Accounting firms need to upgrade the stack as they go further.
On the other hand, QuickBooks Hosting is the deliberate process of moving the desktop software to remote third-party servers to make it more accessible through the internet. Users get a web-based interface to access the familiar interface of the desktop version.
Hosted QuickBooks scores more points in terms of ease of use, security, customization, integration, cost, performance, and scalability. A fair share of limitations of QuickBooks Online are Software as a Service (SaaS) related challenges. It has limited customization, security, maintenance, and integration issues. Here are some of the potential blowbacks:
- Costly Upgrades: Accountants cannot make changes to the workflows as they need to pay further for every new feature they want. Users have to pay again for customization, functionalities, data backups, etc. Cost significantly explode when every time a new feature is added.
- Lack of Back Up: Without an efficient backup mechanism, businesses are at risk of losing their critical data in the event of a system failure or a cyber-attack. This can potentially create severe consequences, such as financial and reputational damage, interruption of business operations, and legal liabilities.
- Security Issues: Security concerns are not unfounded in SaaS platforms, as reports indicate that they are increasingly becoming vulnerable to external threats. This makes them susceptible to hacking, data theft, and other malicious activities.
- Integration Issues: QuickBooks online has some features for API-led connections. However, setting up each connection with other business systems in this manner can be a costly undertaking. A lot of developer and tooling snowballs the cost for accounting firms.
- Exploding Maintenance Cost: QuickBooks Online does offer a number of features to assist with software upkeep. The level of control that users have over maintenance in QuickBooks Online is somewhat limited. Users are not granted the same degree of autonomy when it comes to managing the software and its maintenance.
- Lackluster Performance: QBO is a shared cloud environment, which means that system resources are shared among all users, leading to potential performance issues during peak usage times.
- Scalability Issues: One of the biggest downsides of QuickBooks is its limited scalability options. The software is designed to accommodate a specific number of users, which means that as a business grows, more licenses need to be purchased to add new users. This creates a considerable cost burden, particularly for businesses with expanding teams.
The Shortcomings of QuickBooks Online are the Advantages of QuickBooks Hosting – Advanced Capabilities for Better Accessibility and Data Interchange
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QuickBooks Hosting holds the promise to solve these problems. Cloud creates new pathways to transform accounting operations from inside out. Here are some ways hosting addresses the shortcomings of QuickBooks Online:
Recommended read: Top Advantages of QuickBooks Cloud Hosting
- Business Continuity and Resilience: In the event of a natural disaster, system malfunction, or cyber-attack, QuickBooks hosting guarantees minimal downtime and data loss. This is because the data is replicated across multiple data centers and updated in real time. Also, a reliable cloud hosting provider ensures that the servers are equipped with state-of-the-art backup and restoration capabilities, ensuring that users can retrieve their data quickly and easily.
- Secure Data Exchange: QuickBooks hosting offers a reliable and secure platform for exchanging important business data. By leveraging the power of the cloud, businesses can access their QuickBooks software from any location while benefiting from enhanced security measures, such as data encryption and multi-factor authentication.
- Start-to-End Data Integration: By hosting QuickBooks on a cloud-based server, businesses can seamlessly integrate their accounting software with other applications, such as customer relationship management (CRM) systems, time-tracking tools, and project management software, among others. This expansion of integration enhances the overall functionality of QuickBooks, allowing users to streamline their business operations and increase productivity.
- Lower Maintenance Cost: QuickBooks hosting presents an effective solution for businesses looking to lessen their overhead expenses significantly. Accountants can eliminate several costly maintenance responsibilities related to locally-installed applications. These maintenance tasks can range from server upkeep, system updates, and database management to the installation of antivirus software and system backups. All crucial tasks are outsourced to a capable provider, allowing accounting firms to focus on what matters most to their practice.
- Peak Performance Accounting: QuickBooks hosting has proven to be an exceptional solution that guarantees peak performance with unparalleled 99.995% uptime. This means that business owners can access their vital information like invoices, transactions, and payroll data at any given time without interruption.
- Scalability to Elevate Practice: Hosting allows for smoother onboarding of data and, inversely user experience. The ability to bring data faster ensures smoother hand-off from sales. It paves for faster tax preparation and time-to-revenue. This ultimately leads to a more streamlined and efficient workflow, increasing productivity and, ultimately profitability.
With the technology advancements, the field of accounting stands to benefit tremendously. Technology opens infinite possibilities — the smoother flow of documents, secure protocols, and frictionless data exchange.
Such improvements could effectively scale the accounting practice by several folds, paving the way for increased productivity, efficiency, and accuracy. By leveraging these benefits, accounting firms can improve their ability to quickly respond to market changes, mitigate downtime, and provide a consistently smooth and positive user experience.
However, selecting the right hosting provider can be a challenge as the market is very dense. At ACH We have defined gold standards & frameworks for applications hosting that are helping many accountants to build capacity and drive growth. Know how we can help you elevate the practice.