Some products are easy to purchase, even when there are a ton of choices. Just think about what it is like to buy soda, detergent or a mobile phone. Although there any many possible options in each case, a few big brands or platforms - e.g., Coke and Pepsi, Tide and Gain and iOS and Android - dominate the picture and ultimately simplify the decision-making process. For example, research firm Gartner has estimated that nearly 97 percent of all smartphones sold run either Apple's or Google's platform. Regardless of what buyers are looking for, they will probably settle on one of a handful of popular devices.
With enterprise software in general and accounting solutions in particular, making the best possible decision takes much more time and effort and is not as straightforward. Not only may it be worth looking far beyond mainstays such as QuickBooks and Microsoft Excel, it may also be useful to consider changing the entire deployment model and switch from on-premises tools to cloud financial software. How can SMBs best evaluate cloud solutions, though?
What to look for when stacking up cloud accounting software
A modern accounting solution should excel at the same fundamental functions as its predecessors, while also providing a better end-user experience, a broader set of integrations with best-of-breed applications and improved compatibility with mobile devices. Let's look at each one in more detail.
User experience
A recently published TrustRadius guide noted that many cloud-based tools were chipping away at the dominance of desktop versions of QuickBooks, in part due to their superior usability. While many on-premises solutions were designed around the peculiar limitations of on-premises IT (e.g., remote access to them was only possible through a terminal server or Citrix), newer software typically has a more accessible, consumer-oriented feel.
The latter paradigm is possible because of the anytime/anywhere delivery of software-as-a-service. Complexity can be reduced, since nothing more than an Internet connection and an IP-enabled device is needed to get access to a comprehensive set of features such as revenue recognition and vendor management.
Product integrations are key with cloud accounting solutions.
Integrations
For decades, platforms from Microsoft Windows to the PlayStation 4 have succeeded because of their respective ecosystems, which included numerous compatible applications and services. A good cloud accounting solution is no different. Its integrations with third-party tools for customer relationship management and enterprise resource planning can demonstrate its value to businesses by distinguishing it from older tools.
"Mobile apps have raised user expectations of financial software."
"Strongly related to the cloud deployment model is the growing importance of programmatic integration with other systems," stated the authors of the TrustRadius guide. "Historically, accounting packages started life as simple general ledger tools for managing debits and credits. Over time though, CFOs began to see that having islands of general ledger functionality was of limited value, and that integration with other financial capabilities was essential."
Mobile
The cloud and mobile are like peanut butter and jelly - seemingly made for each other. The remote infrastructure and automatic security and updates of the cloud gives otherwise limited (compared with PCs and servers) devices such as smartphones the ability to easily and safely access complex applications on the go.
At the same time, mobile apps have raised the stakes for what users expect from financial software. A solution that delivers a top-notch experience across many different device types has a good chance of being integrated into the rapidly evolving workflows of today's SMBs.
Overall, cloud accounting solutions should be evaluated with a close eye to ease of use, interactions with other applications and suitability for a variety of computing platforms. With workplaces becoming increasingly mobile- and cloud-oriented, a tool that hits all of these marks can be used with the confidence that it will scale and deliver accurate results.
