Category: online accounting

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QuickBooks and Dropbox? Yeah… no.

mobile cloud dataHaving your data available from anywhere is awesome.  Storing files in the cloud and being able to sync them with files on the computer is a great way to make sure the files are centrally available regardless of which machine you use to access them with.  Dropbox is among those favored solutions which provide users with the cloud drive storage and an ability to seamlessly sync those files to various computers.  It’s pretty cool, but let’s face it: not every type of file loves living in a Dropbox or sync folder.  Particularly for folks who want to be able to store and sync their QuickBooks and other business files to the cloud, there are a few things to be aware of when using these nifty sync solutions.

A file is not always just a file.  What do I mean by this?  Well, there are lots of different types of files an application might store and use, and not all of them work the same way.  For example, Word documents are files that only one person can actually work on at a time – there’s no actual “multi-user” functionality when it comes to a Word doc.  You either get the file in a state that allows you to make changes to it, or you get it in ready-only mode.  Document files like this – Word docs, Excel spreadsheets, PDFs and text files – work great with sync solutions. This is because the type of file being sync’d is designed to allow only one person at a time to have it open and editable.  You sync it to your computer, work on the file, and then sync it back.  It’s pretty straightforward.

The file that isn’t just a file is a database – a file or series of files that make up a complete data set, and which have some type of database manager or other framework keeping track of things.  It’s this type of solution that often has problems working in a sync folder or system.  An Outlook data file (a .PST file) is a type of file which fits into this category.  While the Outlook file isn’t generally viewed as a multi-user data file or a database file, it is being communicated with and written to by various processes while the application is running.  There is information being added to the file as emails are received, even while the user may be writing an email or entering a calendar appointment.  The point is that there are multiple types of data elements being updated all the time and by various processes.  This type of file is always in use and getting changes, so there really isn’t a point in time when it’s closed and available to make copies of, which is what has to happen for a proper sync.    And, because the sync solutions often try to sync incremental file changes, there is a big possibility of ending up with a damaged file because some changes were properly written where others might not be, ending up with file conflicts and corrupt data.

A QuickBooks company file is also a database file, so the same issues around syncing an Outlook data file exist with QuickBooks.  When the QuickBooks software is open and a company file is being worked on, the file may get incremental changes throughout the work session.  As each of these little changes happens, the sync program may attempt to copy those changes to the file in the cloud.  Because the QuickBooks file is constantly being updated, the attempt to incrementally sync updates to the file in the cloud can easily cause damage and corruption to the file.  Folks who have attempted to fake a sort of multi-user access to QuickBooks data files by using Dropbox or other sync services quickly find that the system isn’t going to work for them that way.  Further, they often find that the QuickBooks data files can get pretty screwed up trying to manage the live company file in this manner.

 

The only way to use QuickBooks, Outlook and similar types of data files with Dropbox is to recognize that the sync folders are only viable as a backup storage location for the files, not the place where the actual, working data files can be stored.  If using an application such as QuickBooks, businesses should store the “working copy” of the file in the documents area on the machine, and then backup or copy the data file to the sync folder periodically.  Placing the backup files or file copies in the sync folder allows them to sync to the cloud, storing them as offsite backups in case you need them, and allows the file to remain where it can be used by the application.

Businesses who need access to QuickBooks applications and data from different computers or locations may want to consider checking out hosting services as an alternative to a sync solution. Hosting solutions can help businesses get their software and data available anytime, anywhere either from their own PC or from a secure environment so they can access their QuickBooks applications and data from any Internet-connected device.

When a company wants to keep backup copies of their information in the cloud, a sync service might be an okay solution.  For folks who need to be able to access a live file and applications from a variety of locations, or if multi-user access is required (especially if those users are in different locations), then a full hosted solution might be the better answer.  Hosting the applications and data in the cloud is a great way to get the company connected, and it’s a far better alternative to pretending the system can be multi-user when it really can’t.

jmbunnyfeetMake Sense?

J

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Just Getting Started: App Hosting for Small Business

Just Getting Started: Application Hosting for Small Business

acoustic couplerAccessing software applications and data from a remote system isn’t new stuff.  Starting with telephone modems, acoustic couplers (those things you’d put the phone handset into so that the modem could “hear” the data), green screen ASCII terminals and host computers, users have connected to remote systems to access applications and manipulate stored data for years.  As personal computers became viable for business use, applications and data moved from centralized hosts to local computer environments.

As complexity of local environments rises and broadband becomes truly affordable and accessible, application and data management services are moving back to the centralized system approach.  It’s an expand and contract model, where new capabilities empower the endpoint (the user device) and complexity and scale economies drive centralization of resources and management.  Computing paradigms have once again reached the point where centralization of resources, along with the management and administration of the resource, makes sense for even the smallest of business organizations.  This is the new push for small business IT service delivery, and we’re just getting started.

Application Service Providers (ASPs) were once thought to be the providers who would tip the scales towards server-based computing in the new era.  Rather than creating wide-spread adoption of hosted applications and “virtual” desktops, the ASP business model fell by the wayside as part of the dot-com bust.  It was the right idea, but the market wasn’t ready to accept it and promises of the demise of the desktop turned into the demise of the ASP.

With the successful introduction of SaaS solutions and web-based applications, interest in subscription based IT models has not only grown, but becomes the specific focus of the entire IT industry.  From OEMs to channel resellers, the supply chain for IT products and services is adopting cloud and subscription-based service and business models.  What’s interesting about this second go-around with Internet-based desktop and application services is that the adoption levels are real, the revenue potential is real, and customers are seeking out these solutions rather than being sold.  Managed applications and hosted virtual desktops have become accepted, if not preferred, models for delivering IT services to businesses.

Small businesses can benefit from enterprise-class technologies when a certain economy of scale is developed, and if the environment delivers services around the software and functionality those businesses already need and use.  Logic dictates that Intuit QuickBooks desktop products might be a focus for hosting service providers, as the solution is easily the most accepted financial application by small businesses.  Businesses don’t readily change their financial and accounting software, so addressing this need is a key aspect of adoption.  Also, with QuickBooks, it is as likely as not that the business has an outside accountant who will, at some point, need access to the application and data. Meeting this need and proving the viability of hosting applications such as QuickBooks – offering the solution in the form of subscription service to the customer – has been accomplished through many years of discovery and validation by some of the providers in what is now the Intuit Authorized Host for QuickBooks program.

With the validation of the service model and Intuit’s introduction of an Authorized Host for QuickBooks program, a great deal of opportunity has been created for value added resellers and their small business customers.  Some in the industry would suggest that Intuit’s focus on the Online edition of the product indicates that opportunities around selling or hosting the desktop products have diminished, and Intuit appears to be spending heftily on the promotion of QuickBooks Online.   Yet it remains true that many customers – whether they be existing QuickBooks desktop customers or new QuickBooks customers – want the functionality and the integrations available only with the desktop editions.

For these customers, a hosted/managed application service model is the only answer.  IT resellers working with small business customers are undoubtedly getting the requests, and a few are beginning to recognize the value and service potential associated with offering hosted application services for QuickBooks and other popular small business software products.

As the largest of software vendors (like Microsoft, Intuit, etc.) with small business solutions make their licensing models available to hosting providers, resellers and hosts alike can take advantage these programs and offer their customers the benefits of mobility and managed service around the applications already in use.  Business owners like the benefits to be gained by adopting cloud computing models, but are resistant to changing their software and restructuring their processes.  It is the ability to deliver the benefit without the disruption that makes these application hosting service models attractive.

There are millions of QuickBooks desktop users out there, and only a small fraction are being hosted by authorized providers.  Intuit continues to sell the desktop solutions and the number of QuickBooks users isn’t in decline, so the opportunity to serve those QuickBooks customers continues to grow.  When it comes to providing application hosting services for small businesses, we really are just getting started.

jmbunnyfeetMake Sense?

J

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4 Rules of Thumb for Considering Cloud Applications in Business

With all the talk of cloud computing and Software-as-a-Service models, businesses are increasingly questioning their continued use of on-premises and “traditional” software implementations. Having heard that cloud applications are cheaper and better than locally installed solutions, some small business owners and IT managers are actively seeking alternatives to their current software selections. In too many cases, however, these business owners or IT managers aren’t looking at the longer term impacts of their decisions, and may be adopting cloud software solutions simply because it seems to be the way things are going these days.

The cloud is simply a term being applied to a new way of looking at information technology – how businesses buy it, how they use it, and what they expect from it. Even as technology gets more complicated, users are demanding greater ease-of-use and lower costs. The response to these conditions is the cloud: addressing basic and common requirements and delivering the solution for a low-cost to many users. While the approach meets the simplicity and affordability elements, it may or may not fully address all the functional, compliance or sustainability needs of the business.

4-rules-of-thumbOne size never fits all, and this is as true with cloud computing as it is with bathing suits. For the business owner or IT manager considering adoption of cloud-based applications for the business, keep in mind these 4 Rules of Thumb so that the hype and excitement doesn’t cloud your judgment.

Rule 1: Software is software, and it is installed somewhere. Just because an application is accessed using a browser (which is software) doesn’t mean the product isn’t installed somewhere. When it’s a SaaS solution, the product is simply installed and running on the provider’s servers rather than your own computers.  Software can fail even when it isn’t on your computer, so it should be expected that failure could happen with SaaS solutions.  The difference is that a failure of an app on one machine isn’t news; failure of an app that lots of people are using at the same time is news.

Rule 2: Software that talks to other software means there is integration between the two. Whether the products are installed on the PC or whether they run from different providers’ systems, they still have to be able to communicate together at some common level. The Windows platform used to provide a “common” standard for integration of Windows applications. When applications move from the desktop platform to the web, many of the common integration approaches no longer work and new methods must be developed.  Just because a solution integrates with the desktop edition of a product does not mean it will automatically integrate with a web or SaaS edition of the product (QuickBooks exemplifies this).

Rule 3: Software still requires hardware and other resources. When cloud-based solutions are implemented, the cost of the server and storage facilities (along with other elements) may be included in the subscription price. The efficiency and scale economies developed by the provider will ultimately determine their profitability, but it is generally the case that centralization of resources, management and administration can significantly reduce the cost of operations. With most cloud solutions, it is the assumption of scale (leveraging a single asset base to many subscribing customers) which makes things more affordable than deploying similar capabilities individually for each customer. Consider also that any deployment of cloud software solutions still means that businesses must retain their local networks and devices. While PCs, laptops and tablets may not be running business applications, they are still computing devices which may need to connect to networks, have virus protection, have remote access or connection software installed on them, and any number of other things. In short, moving to the cloud does not remove the requirement to have and maintain user devices, printers and LANs.  And really, don’t most people still want Office applications on their devices, even if they also have remote access to such applications?  Office for iPad is somewhat of a tell in that respect; kind of proves the point.

Rule 4: Not all data is stored in the same manner. This is as true on a PC or LAN as it is in the cloud. However, cloud solutions can introduce quite a wrinkle when it comes to keeping copies of business data over time. With PCs and local networks, a business would back up their data in any variety of ways, preserving the files and formats for possible later use. As long as there was software available to read and open the files, the backed up data would be usable. Simply due to the popularity of some data formats, there might also be tools or utilities available to read the data even if the original application was lost. The wrinkle introduced with cloud solutions is not necessarily that the format of the data is strange – it is likely that most cloud-based business applications use fairly proven and recognizable database technology. The difficulty is that the actual database file(s) containing a company’s unique data may or may not be separate from other company data. If it is separate (single-tenant database), it is unlikely that the database as structured is portable. The fact is, most web-based or cloud solutions will allow users to export data from the database, but cannot provide actual structured data files ready for use with another application, lacking logical data or table relationships. Some solutions suggest that simple list exports are sufficient, and others may say they have data conversion capabilities, but the reality is that data existing in a cloud application is not very portable. Business intelligence is a terrible thing to waste, so it is really important to be able to take all the data with you (in a meaningful way, not as a bunch of disparate lists).

Cloud computing covers a really broad spectrum of technologies and delivery models, and most of the above is more about SaaS applications rather than actual cloud platforms. The platforms are where the applications live – server and network environments.  This is where hosting companies do their work, as the things they host live on the platforms.

Businesses electing to add mobility, management, fault tolerance and other capabilities to their systems should explore the benefits of application hosting and cloud platforms, and not immediately look to SaaS and cloud application alternatives to their existing software solutions. By deploying their systems in a managed hosting environment, businesses can often keep using their existing core software products, integrations, and data archiving methods while gaining the best benefits of “cloud”.

Joanie Mann Bunny FeetMake Sense?
J

 

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Client Experience and Perceived Value: It’s Looking Cloudy for Accountants Working with Small Business

Client Experience and Perceived Value: It’s Looking Cloudy for Accountants Working with Small Business

Every day it seems there is another professional accounting or bookkeeping firm asking questions about how to get new clients for their new “online accounting” business.  Most of these professionals are likely missing the point that their current clients are probably already looking at online accounting solutions and services. Just like in the days when QuickBooks was beginning to take the lead in the market; today’s increasingly popular online accounting solutions are gaining popularity with the direct users, and are bringing those solutions to the professional community (not the other way around).  Professionals who wish to build their businesses on what the market demands would do well to recognize that the push to the cloud coming from their clients is a reflection of past activities, and firms riding the wave are much more likely to see success than those fighting it.

In reflection, remember that QuickBooks, unlike the other business accounting and financial products at the time, was a retail product marketed to and sold via retail and direct-to-customer outlets rather than via a channel or reseller approach.  At that time, State of the Art Software (which became Peachtree and then Sage 50) was the solution preferred by most accounting professionals, yet more and more small business owners would come to the professionals with the QuickBooks product already in hand, so accountants threw up their hands and adopted (if not embraced) the software.  Over the years, QuickBooks became the “go to” software for small business accounting, and many professional firms didn’t just gear up to work with it, but went as far as developing standards and practices based on the product.

With the introduction of high-speed broadband access, business Internet connectivity and affordable remote/mobile service, businesses are now finding that their options for shopping for, purchasing and implementing various solutions to business problems is possible at any time and from anywhere.  Even more, social computing and the blurring of the lines between personal and business use has made it all but assured that new business owners will seek online solutions where they can access business information and perform business-related activities regardless of location or mode of access.  This is what they have come to expect as consumers of information and services, and the expectation extends no less into their small businesses.

Professional firms must recognize that these evolving paradigms represent opportunity, taking advantage of cloud-based, real-time collaboration models to provide more timely value to their clients.  Where the more traditional on-premises and paper-based models have flourished, the online working models representing lean process and sustainability become the focus.

The movement to the cloud for small business accounting started with the consumer, who ultimately became the small business, and who may eventually become the big business. The professionals who recognize the value of and wisely adopt cloud technologies and online application services in their businesses – specifically in terms of how they work with clients and deliver value – are the firms which recognize that the client experience and perception of value delivered are the most important elements of all.

jmbunnyfeetMake Sense?

J

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Why Accounting in the Cloud?

Why Accounting in the Cloud?

Business owners and managers need to keep close control of their financial data.  They need to know where they stand at all times, and having information available to make business decisions is essential.  When the financial information is in the office but the owner isn’t, how can wise decisions be made without access to supporting data?  They can’t, and that’s a problem.  The solution is simple: work in the cloud.

A cloud computing model properly applied to accounting and bookkeeping systems helps businesses of any size keep their financial data and accounting applications in a safe a secure environment, yet accessible to those who need it.  By locating the business applications and data in a protected central location, access to programs and data sets can be provided to authorized users regardless of location or computing platform.  For a small business owner, this means that working from home or on vacation can be as productive as working in the office.  In larger businesses, cloud-based accounting means the accounting department, CFO and financial advisers might all access the same financial records and applications no matter where they work from.

Cloud computing and hosted application models applied to accounting and bookkeeping represent a viable option for managing, securing and providing access to critical financial information.  Businesses outsourcing their accounting or bookkeeping work find that cloud based approaches offer workflow and process efficiencies to help get the necessary information in the hands of those who need it, quickly and efficiently.

Keeping accounting and bookkeeping systems safe yet available, providing business decision makers with the flexibility of accessing their financial data from anywhere and at any time is a highly valuable service. Accounting and finance professionals can act as the trusted adviser to their clients, providing important business insight and information, with guidance in developing cloud computing and online accounting approaches being among the benefits the firm offers.   Working closer with clients allows professionals to produce better, more accurate and insightful results.   Cloud computing models remove distance barriers and allow professionals and their clients to work more collaboratively with applications and data than ever before.

Many firms are just recently discovering the relationship between technology adoption and business competitiveness.  Those that embrace new computing paradigms gain the ability to meet client requirements in innovative, efficient and timely ways while those that do not adopt these new models continue to struggle, unable to communicate value and differentiation in their service offerings.

There are some recognized truths in business, and one is that is isn’t what you know but who you know.  Another truth, an understanding that is just now being fully recognized, is that it’s not what you do, but how you do it that matters.  Accounting and bookkeeping for business is absolutely an area where cloud computing and the wise application of technology and service can improve cost efficiency, accuracy and turnaround times, allowing the firm to provide a higher level of service to clients.  Accounting in the cloud is a technology-enabled approach which propels the firm into an entirely new range of capabilities and potential service offerings, reaching higher levels of performance and profitability.

Joanie Mann Bunny FeetMake Sense?

J

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Efficiency and Value with Cloud Accounting

For some accounting professionals, the problem is finding a way to provide services that are valuable to the client, and doing it in a way that makes it profitable for the provider.  Outsourced and online accounting models are the answer, employing innovative tools in the practice and with clients: tools and resources necessary to get more informed and run the business better.

accountingCloud

With online accounting solutions the firm is able to increase profitability with the range of services offered, often adding clients and work without hiring more personnel.  Online solutions allow professionals and their clients to work from anywhere at any time, providing both with the freedom to focus on core business capabilities (and lifestyle).

Reducing the requirement for sophisticated on-premises technology may mean providing everyone with the ease of use and security of server-based computing models, which is among the benefits of a cloud IT approach.  Centralizing and managing applications, protecting valuable data resources, and streamlining business processes are among the benefits to be achieved with an outsourced, managed application hosting solution.  Businesses who outsource their IT management often realize an increased capacity to do business simply by leveraging the cloud to make the current working models more efficient and effective.

Leveraging mobility and real time access is also about increasing the overall range of opportunity to deliver value.  Contractors, employees and clients all find improvements in getting the information they need when it matters, and the firm finds a greater agility in meeting client demands and expanding service offerings.

Cloud computing and online accounting solutions have proven the viability of anytime, anywhere working models, and professional accounting practices of all sizes and orientations are realizing the benefits of working closer with their clients by applying them to the engagement.

Cloud accounting is really about improving the profitability of the accounting practice while delivering higher levels of service to the client.  The movement of information from one place to another; translating data from one form to another – these are the processes representing the cost and inefficiency in the practice, and are specific areas where a collaborative, online approach may introduce new service efficiency and value.

jmbunnyfeet

Make Sense?

J

It is worth noting that “cloud accounting” and online accounting models do not necessarily require the use of a SaaS solution.  QuickBooks Online, Xero, Freshbooks – these are new small business offerings that exist purely on the web.  QuickBooks desktop editions can be “cloudy”, too, when they’re hosted by an authorized QuickBooks hosting provider.  The point is not necessarily to use web software, but to approach IT management and systems from an outsourced perspective, allowing for centralized management and administration and delivering secure remote and mobile access.  The systems should facilitate the working model, not force it.