Monthly Archives: May 2014

Accounting Software – Entering the “Twilight Zone”

Caught Between Desktop Software and The Cloud

Just like the good old manual cashbook (c’mon you remember those) – desktop accounting software may soon have had its day due to the rise and rise of Cloud Accounting Solutions.

The rapid uptake of “Cloud / Online” Accounting solutions is partially due to the fact that so little of their Desktop Counterparts overall capabilities are actually being used. Desktop software vendors seem to have also stalled in the innovation of their existing solutions. This is perhaps making it easier to entertain a transition to internet based systems that promise so much but in reality are still being built out to the levels of functionality of their current Desktop competitors.

You could argue that current Desktop Software is only ½ used whilst Cloud Accounting software is only ½ built!

Although early adopters have taken the leap, the masses are sitting on the sidelines, waiting for the market to validate who are the suppliers of choice. Like all technology adoption life-cycles there comes a “Tipping Point” when the product becomes mainstream (seemingly overnight to the uninitiated) and this is where Cloud Accounting is fast approaching.

Although the future destination is clear we seem to be approaching an uneasy “Twilight Zone” where both solutions exist and neither dominates. Software providers are feverishly building their solutions to achieve this “Base Camp” level where feature sets can be easily compared between solutions. Once this phase (often described as the “End of the Beginning”) is complete the discussion will move from comparing features to philosophy and tangible long standing business benefits (both for Clients and Advisers) which is far more emotive and compelling.

It’s fascinating to watch how long standing software corporations are grappling with the process of continuing to enjoy the rewards from their established Desktop software products whilst knowing that their future lies in providing Cloud solutions. Whilst this Twilight Zone exists I wouldn’t expect any new ground breaking enhancements to your Desktop software, the developer’s interests and passion lies firmly in the development of cloud based solutions.

So right now you have 2 choices: Continue to finish implementing efficient business systems using your current Desktop Accounting Software as the base (whilst devising your cloud transition strategy). Or, take a leap of faith to the New World.

However be warned – if you approach the Cloud Solutions roll out in the same (incomplete) ways as your Desktop days then don’t expect to get a different result. Incomplete systems fail to deliver the potential benefits whether on your desktop or in the cloud. Worse, you could be taking a backwards step, particularly if you haven’t articulated what you wish to achieve by transitioning to the Cloud. This transition will often involve Re-learning a completely new program and paradigm in the way you work whilst hopefully tying down those efficiency loose ends which remained in your Desktop software set up.

So whilst the destination is set the course and duration of the journey is unknown – one thing for certain is that we all need to – Prepare for and Embrace – Change!