CLOUD BASED PROGRAMS - Yes or No?

Question

Do any of you use cloud based programs for accounting or other uses? What has been your experience? Have you personally ever had a bad experience with a cloud based program, and if so, what was it?

Roy N. · Answer

@Rahul Bura

Aside from the entrusting of your data integrity and security to a third-party - which may or may not be a good thing depending on your own capabilities - you stumble into the problem that while "the Cloud" is etherial from the consumer's perspective it is tethered to a datacenter (or more than one) which has a physical address on the surface of the Earth.  The surface of the Earth, which is continually being carved-up into countries and empires, each with different laws and politics, is decidedly not etherial.

There is a strong possibility your data will reside on a computer located in a country other than the one in which you live and/or operate your business.   The laws in this country may not assure your data the same privacy and security as it would enjoy in its country of origin.  It may even permit the government of the country in which your data resides access to your data for its own purposes.

Example:

As a Canadian, or European, if you were to use a Cloud service where your data was stored in the U.S.A., it will be in a jurisdiction with more relaxed privacy legislation and would also be subject to the Patriot Act and other U.S.A. intelligence/surveillance measures.

One of the challenges with Cloud computing, never clearly stated upfront in the sales pitch, is the underlaying global politique.   There may be undisclosed - and not understood -  consequences for the convenience of having your finances, or other data, in the cloud.

Jeff B. · Answer

My 37yr career in software has taught me that unless your data is on your systems and devices, then you can expect data loss and data theft.

To keep privacy, don't post or upload anywhere (including the 'cloud' products).

Jeff S. · Answer

We take a middle ground here, @Karen Margrave.  We use no cloud-based software but store 99.99% of our files on Dropbox.  Many files, such as anything containing our own personal data and those of our borrowers, are encrypted.

Dropbox automatically syncs these files as local copies on both my and my wife's computers, which are also encrypted.  I use Carbonite for automatic backup, and also backup to a hard drive once per week.  That is, our data is available to us any time from any place on any computer if we want, and is continually backed up.  This includes our QuickBooks files, which we also store in Dropbox, though not encrypted.

I'm not a fan of allowing Intuit to store what would be the only copy of our QuickBooks data on their cloud-based site.  Plus, I don't know if they use versioning, to allow me to go to a copy from last week or last month if I totally screwed something up. (Not like that's ever happened.)  Maybe they do, but it doesn't matter.

Either way, the desktop version of QB, which both my wife and I have a legal copy of on our computers, will lock the Dropbox file if one of us is using it, thereby preventing the other from messing up the database.

We do the same with all our Word, Excel, and PowerPoint files, etc., and it's a system that has been working perfectly for us for years.  I consider it very safe and convenient and about as reasonably secure as my paranoia will allow, without getting in the way.

We can only use some common sense to store data without completely hindering our business or lifestyle.  For all I know, Vladimir Putin and Xi Jinping review our finances nightly. In truth, it's not any one government I'd worry about. It's some 14 year old kid in the Ukraine who would do the most damage to our identity.

Rahul Bura · Answer

One could argue that data can be lost just as easily on your local devices/machines if they fail - with cloud products usually they are backed up and can be retrieved. As for security, these days there are many levels of authentication in place if the product is of any worth.

The beauty of cloud products I find is that your data comes with you wherever and is accessible on your device anywhere you have an internet connection - data at your fingertips while you're on the go. The other neat thing with cloud products is that most have API that allows you to integrate one tool with another (invoicing/accounting tool with your CRM etc.) - i.e: your tools talk to eachother and share information automatically as you specify; automation is gold. These are the main reasons I'd advocate Cloud products.

Nick Hawryluk · Answer

I just adopted cloud-based book keeping.  I thought it would be a no-brainer and I'd just go with QuickBooks, one of the biggest names out there, and call it a day.  I'm glad I did my homework because the reviews were surprisingly awful.  I evaluated several services before finally deciding on Zoho for my minimalistic needs.  You really need to research.  At least, I ended up doing much more research than I ever thought I'd need to.  Here's what I found to be the differentiating factors:

- Many reviewers have reported lost data on several different services.  Several services let you take offline backups so I would be sure this is a feature of your chosen system, and use it.

- Performance can be a real problem.  Every update and query is a call to the web and the host's servers.  If they are slow it can make simple bookkeeping an arduous task.

- Not all services have the same features.  Watch a demo, review the product forums and study the service before you commit.  Just because it's a standard accounting function or you think, 'it's gotta be there', doesn't mean it will be.  I was quite surprised.

- Customer support!  I found the reviews on support range from excellent to practically non-existent.  One strange finding was Xero that has NO CUSTOMER SUPPORT PHONE service.  You can only email.  Imagine that if you have a time sensitive issue.

- Many services integrate with other online accounting apps and tools.  This can be really cool if you've adopted those into your process.

Google, "cloud based accounting software reviews" for a few good summaries to help make your decision.

Good luck.

Mark Holencik · Answer

I have my constuction businesses in the cloud. Foreman's and salesman can access all the jobs info from the jobsite. Can upload pictures right as you are taking them. All accounting is in the cloud. Accountant can check on something from his office. Timeclocks are on every employees phone. We can see in real time where every employee is.

My office survillance cameras are in the cloud too. We can look at them any time form any where.

Nick Hawryluk · Answer

@Lynn Currie   I've been happy so far.  Zoho Books is the accounting app.  I'd say it's a mid-weight in it's class based on the functionality and depth of features.  They have several add-on modules for Books as well as other major apps (CRM, EMail/collab, +) that all integrate so I like the possibly for expansion.  The uptime and speed of the application has been excellent.  Also, the online community is very active for tips/tricks and there is open communication with the development team about new features.

I think there have been several great points in this thread about migrating your business to the cloud.  None that should be taken lightly.  There are a certain set of risks and loss of control when dedicating yourself to cloud based, business critical, software.  The flip-side is that these applications have become so powerful. Access from any PC and fully functional mobile device apps are a huge benefit.  And, the integrations that are possible between these apps creates a synergy that is difficult for desktop apps to compete with absent a lot of customization.

Lynn Currie · Answer

@Mark Holencik what software are you using for the various tasks and are you happy with them?

@Nick Hawryluk have you been happy with Zoho? I know a lot of people like it for contact and project management. I didn't even know that it had a bookkeeping app.

Roy N. · Answer

Rahul:

It's been my experience (decades in information security), that most customers, particularly  individuals, do not know what they should ask.   If they did, most sales, and technical, personal at the service provider do not understand the implications of storing data in another jurisdiction and would not be able to answer.

Rahul Bura · Answer

@Jeff Rabinowitz . From the data management standpoint, most companies usually allow you to port data easily out of whatever system you're using. It is usually in a universal common form (CSV, Excel, XML etc.) which makes it easy to port that information to a new service/system.

As for how long data stays on the old system, that's something you would have to find out - each service provider may have its own policies. Some may hold them temporarily some may delete them upon request from their database etc.

CLOUD BASED PROGRAMS - Yes or No?

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