The Economics of Using Cloud Accounting Systems & a Free Webinar on Feb. 19, 2014

Smart CEO writes: Thought Leadership presented by Brittenford Systems.  Cloud-based accounting solutions offer several advantages over traditional on-site, on-premise software systems. As opposed to these more traditional systems, such as Quicken and Peachtree, cloud-based accounting solutions reduce total cost of ownership (TCO), improve return-on-investment (ROI), and shorten Payback timing, all while delivering other advantages in system performance, reporting, and worker efficiency.

Total Cost of Ownership: Cloud vs. On-Premise

When comparing the TCO of the cloud versus on-premise systems, it may initially appear that on-premise solutions provide a more cost-effective solution. For example, the start-up costs, on average, for software licenses is about 9% of the total IT expense as opposed to the initial subscription fee of cloud computing which can be 68% of the total IT expense. However, looking at all of the costs associated with each system shows there is more than meets the eye:

	On-Premise	Cloud
Initial Expense	Software licenses	Subscription fee
Additional Expenses	Customization and implementation Maintenance Software upgrades Data continuity and security IT resources Training	Implementation, customization and training

With on-premise software solutions, the majority of the ongoing costs become visible after the system has been implemented. With the cloud, the only ongoing costs include implementation, customization and training which require a less substantial ongoing investment. Because of this, businesses can actually save money with the cloud.  With lower total costs, Return on Investment (ROI) can often exceed triple-digit percentages, while Payback timing is typically a fraction of on-premise, averaging 3-6 months.

Cloud System Benefits

In addition to reduced on-going expenses, the cloud offers multiple benefits over on-premise systems including enhanced data security, reduced maintenance costs and easier workforce management.

Enhanced data security: Keeping sensitive financial data safe is paramount to any operation. Because a cloud-based system resides in a managed data center, the data are significantly more secure and stable that comparable on-site solutions. Offering 24-hour security, multiple redundancy and other forms of continuity, cloud-based systems significantly reduce the risk of theft, damage or other issues when compared to on-site, on-premise PCs within a central office.

Reduced maintenance costs: Cloud-based systems provide software upgrades that are automatically installed, which reduces the need to expend IT resources to install, reinstall or upgrade software programs. Additionally, because cloud-based software is monitored at a data center, any incompatibility issues have already been addressed and resolved before a new program is implemented. Cost savings are also realized due to reduced system downtime.

Easier workforce management: Cloud-based solutions enable software access from any computer. This makes it easier for business partners, such as auditing firms and outsourcing companies, to access relevant data more quickly. Companies also enjoy a greater degree of immediate control over data access when employees leave the company.

Flexibility and Scalability: cloud-based systems offer anytime data access from any computer, which optimizes the systems’ flexibility. Providing real-time data, reporting is more flexible with up to 13 dimensions and visibility for consolidated or multiple entities. Able to expand when needed, cloud-based systems are extremely scalable to suit the needs of an operation. Instead of having to procure user licenses and suitable hardware that is needed in traditional on-site installations, the cloud easily accommodates new users and  multiple entities, as well as multiple currencies through its central data center.

Cloud vs. On-Premise:  A Gift that Keeps Giving

When comparing the features of a cloud-based system to an on-premise system, factors such as enhanced data security, reduced maintenance costs and easier workforce management, as well as flexibility and scalability offer a significant improvement in performance over the long-term. Additionally, the greater costs and risks of on-premise systems associated with hardware, running software and maintaining data integrity make cloud-computing a much more appealing option.

To learn more, register for a FREE webcast titled, “The Economics of Cloud Financial Systems,” which will be broadcast on February 19, 2014 at 1:00 PM EST. The presentation will provide an in-depth look at the total cost of ownership and return on investment using cloud accounting solutions along with a demonstration of cloud accounting applications. Click here to register.

Is Your Services Company Outgrowing QuickBooks?
Learn why successful services companies upgrade to the cloud to support their growth. Growing services businesses often don’t realize how crucial business software is to company expansion. QuickBooks was most likely the best fit for your business when you first started using it, but is it the right choice to drive success in the next stage of your company’s growth?
This white paper draws on the real-world stories of small and medium-sized businesses that upgraded from QuickBooks to NetSuite at critical junctures in their business development and highlights the obstacles they faced before to making the transition.
Dowload this White Paper and learn The Four Reasons Why QuickBooks Is Failing Your Services Business…

1. QuickBooks Is a Simple General Ledger Solution That Doesn’t Support Your Entire Company
2. QuickBooks Gives You Limited Visibility into Business Performance
3. QuickBooks’ Limited Functionality Won’t Scale with Your Business
4. With QuickBooks, You Always Have to Worry About IT Issues and Costs

- See more at: http://innovergent.com/2014/01/08/four-reasons-quickbooks-failing-services-business/#sthash.uEb2nuer.dpuf

QuickBooks was the best fit for your business when your company was in

its infancy, but is it the right choice to drive success in the next stage of your

organization’s growth? QuickBooks claims more than 3.5 million users, so you’re

not the only one facing this question.

Many services organizations arrive at a similar crossroads every year. Timing is

everything—if you replace QuickBooks too early, you may end up buying more

capability than you need. But if you wait too long, you could end up struggling

with inefficient business processes that hurt your project delivery, business

performance and future profitability and growth.

Laboring ahead on QuickBooks may seem convenient, but at what point do

you start missing out on growth opportunities by maintaining the status quo?

When is the right time to make the move? NetSuite has been working for years

with businesses in the services industry that have reached the limits of QuickBooks.

While services businesses are diverse, the issues they face when reaching the limits

of QuickBooks are remarkably similar.

This white paper draws on real-world stories of small and medium-sized

professional services organizations (PSOs) that have upgraded from QuickBooks

to NetSuite at critical junctures in their development. It also outlines four common

business process inefficiencies that you might see reflected in your own business—

the reasons why QuickBooks may be failing your services organization:

1.

QuickBooks is a simple general ledger solution that doesn’t support

your entire company.

Fast-growing services organizations need solutions

that can create efficiency and reduce headaches across functions, instead of

addressing only accounting and finance.

2.

QuickBooks restricts your visibility into business performance.

Companies using QuickBooks usually have siloed applications and data,

making real-time analysis and accurate business decisions virtually impossible.

3.

QuickBooks’ limited functionality won’t scale with your business.

Because QuickBooks was built to support a narrow scope of processes and

business offerings, it severely limits companies from expanding their offerings

or offering new methods of service and payment.

4.

With QuickBooks, you always have to worry about IT issues and costs.

On-premise software like QuickBooks and the applications that surround it need

monitoring and troubleshooting by your IT team, and can drive up personnel

and infrastructure costs.

Is Your Services Company Outgrowing QuickBooks?
Learn why successful services companies upgrade to the cloud to support their growth. Growing services businesses often don’t realize how crucial business software is to company expansion. QuickBooks was most likely the best fit for your business when you first started using it, but is it the right choice to drive success in the next stage of your company’s growth?
This white paper draws on the real-world stories of small and medium-sized businesses that upgraded from QuickBooks to NetSuite at critical junctures in their business development and highlights the obstacles they faced before to making the transition.
Dowload this White Paper and learn The Four Reasons Why QuickBooks Is Failing Your Services Business…

1. QuickBooks Is a Simple General Ledger Solution That Doesn’t Support Your Entire Company
2. QuickBooks Gives You Limited Visibility into Business Performance
3. QuickBooks’ Limited Functionality Won’t Scale with Your Business
4. With QuickBooks, You Always Have to Worry About IT Issues and Costs

- See more at: http://innovergent.com/2014/01/08/four-reasons-quickbooks-failing-services-business/#sthash.uEb2nuer.dpuf

Is Your Services Company Outgrowing QuickBooks?
Learn why successful services companies upgrade to the cloud to support their growth. Growing services businesses often don’t realize how crucial business software is to company expansion. QuickBooks was most likely the best fit for your business when you first started using it, but is it the right choice to drive success in the next stage of your company’s growth?
This white paper draws on the real-world stories of small and medium-sized businesses that upgraded from QuickBooks to NetSuite at critical junctures in their business development and highlights the obstacles they faced before to making the transition.
Dowload this White Paper and learn The Four Reasons Why QuickBooks Is Failing Your Services Business…

1. QuickBooks Is a Simple General Ledger Solution That Doesn’t Support Your Entire Company
2. QuickBooks Gives You Limited Visibility into Business Performance
3. QuickBooks’ Limited Functionality Won’t Scale with Your Business
4. With QuickBooks, You Always Have to Worry About IT Issues and Costs

- See more at: http://innovergent.com/2014/01/08/four-reasons-quickbooks-failing-services-business/#sthash.uEb2nuer.dpuf