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Cloud-based software myths debunked

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Cloud-based software has become an increasingly popular option for businesses, including tax and accounting firms. However, there is still a lot of confusion and misinformation surrounding this technology. Some people confuse it with web-based software, while others have concerns about security and data privacy.

Here, we’ll address these misconceptions and examine seven common myths about cloud-based software, share where these myths came from, and reveal the truth.

Cloud-based software defined

Cloud-based software refers to programs and applications you access and run over the internet, rather than from a local computer. This technology offers several benefits for accountants and tax professionals, including increased flexibility, scalability, and accessibility, which can help you streamline operations and better serve your clients.

Cloud-based software—also referred to as native-cloud software—is different from web-based software. Remote servers host cloud-based software and is accessed it over the internet; web-based software refers to programs you access using a web browser.

More confusion surrounds the terms “native cloud” and “cloud hosting.” Native cloud refers to software designed specifically for the cloud environment, and cloud hosting is the practice of hosting traditional software on cloud servers. Native-cloud applications are typically more scalable, flexible, and efficient, while cloud hosting provides a way for businesses to migrate their existing applications to the cloud without significant modification.

7 cloud software myths debunked

Myth 1: The cloud requires an extensive installation process 

This myth likely stems from the misconception that the cloud is a complex and technical environment where you might need an IT specialist to help set up and maintain.

Truth: Cloud-based software is user-friendly and easy to set up. Many providers offer self-service options, intuitive interfaces, and step-by-step guides that enable you to be up and running in minutes.

Myth 2: Cloud software is not security-compliant and prone to hacks 

Fear of losing data to third-party breaches is the culprit behind this myth. Many people worry that the cloud could compromise sensitive information.

Truth: Cloud-based software is often more secure than conventional desktop software, with providers investing heavily in security, such as data encryption, access controls, and multi-factor authentication.

Myth 3: Cloud-based software for accountants is expensive

The thinking behind this falsehood is likely that cloud solutions require a significant investment in hardware, software, and IT support. 

Truth: Compared with conventional desktop software, cloud-based software is often more cost-effective. Businesses can typically pay for a package best suited to their needs on a subscription basis, avoiding the need for upfront capital expenditures. This can make it easier for businesses to scale up or down as necessary, without having to worry about purchasing additional hardware or software.


Myth 4: Cloud-based software can’t integrate with other applications

Sure, in the early days of cloud computing, integration capabilities were more limited, so it’s no wonder some people believe this.

Truth: Today’s cloud-based software solutions offer a wide range of integration options, often through APIs or prebuilt connectors. In fact, cloud-based software often provides more seamless and flexible integration capabilities versus conventional desktop software. These capabilities can help businesses streamline their operations and maximize their technology investment. For instance, platforms such as Ignition integrate with a number of ledger, payroll, workflow automation, and practice management systems.

Myth 5: Cloud-based software is too complex to maintain

Some people believe that a managing cloud infrastructure requires advanced technical skills. 

Truth: In reality, cloud-based software is often easier to maintain than conventional desktop software, because the cloud provider handles most of the infrastructure and maintenance tasks. With intuitive interfaces, robust customer support, and training resources, businesses can quickly adopt and maintain their cloud-based software solutions.

Myth 6: Cloud software is unreliable

Early experiences with cloud technology, when it was a relatively new and untested concept, is probably the reason behind this myth. 

Truth: Today’s cloud software solutions are often more reliable than other legacy solutions. Cloud providers invest heavily in making sure their infrastructure is highly available and resilient, often leveraging redundant hardware and software by creating multiple copies of their infrastructure across geographically dispersed data centers. This allows providers to ensure that if one data center experiences an outage or failure, another one can take over, minimizing downtime. What’s more, cloud providers typically offer robust disaster recovery and business continuity options to make sure critical applications and data are always available, even in the event of a major outage or disaster.

Myth 7: Cloud software is just a trend 

The idea that cloud software is just the latest “it thing” may again come from the perception that cloud technology is relatively new and untested. 

Truth: Cloud software has been around for many years, and is now a mature, sophisticated technology that millions of businesses worldwide, including many accounting and tax firms, have adopted. The cloud is here to stay, and as cloud technology continues to evolve and improve, it will likely become an even more integral part of business operations.

Embrace the cloud 

Clearly, the myths surrounding cloud software for accountants are unfounded. It’s safe, secure, and efficient. It enables tax and accounting professionals to collaborate, access data remotely, and improve their workflow. It’s time to dispel these misconceptions and embrace the benefits of cloud software.

This blog post was co-written with Ignition. I have obtained permission to share it on my website/social media. For the original source of this post, please visit

Editor’s note: Intuit® ProConnect™ Tax is a cloud-based tax software, and QuickBooks® Online integrates with it, offering books-to-tax and other benefits. Check out the advantages of moving to ProConnect Tax today.

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