Cloud Accounting Software, the Next BIG Fail How to avoid it

Did it happen?

First, this sounds ominous. Surely, you have heard of how and why Cloud Accounting will be the way of the future. And, businesses not moving to the Cloud will be like the dinosaurs. Guess what. Fast forward to 2019 and we still see Cloud Accounting struggling to get market acceptance.

Companies that were pure Cloud play went away like the Dodo bird. A good example is the buyout of NetSuite by Oracle.  You also see that SAP is still very much dependent on their traditional licensing model which is based on their classic non-Cloud products.

Many software vendors report glowing success with their Cloud solutions. Somehow it is hard to believe since it is always phrased in a manner that does not lend credibility. For example, 50% year on year increase. Dissect this and you see that if they are at ground zero, a small number of sales would have been seen as big changes in the percentage. Or, some would offer creative marketing bundles where purchase of their standard products comes with free Cloud versions. They then reported this as Cloud sales. Now, this would have been a great move if they were to provide statistics on the number of customers switching over.

The answer is clear. Businesses are not adopting Cloud Accounting in droves. And, this is not helped with the frequent hacking and leaking of data. Yes, some of these are from on premise deployments but they were plugged to the Internet, directly or indirectly. Somehow this muddled the issue. This fear, uncertainty and doubt prevail and hence detract businesses to switch.

It is true that Cloud Accounting is still on the ground floor. Any hype that it is not is just that, hype.

Why the Hold Back?

The urgency and the justification to switch from what works has to be compelling. All the frequently touted reasons favoring Cloud Accounting fail to take into consideration the most important factor which is cost.

Cost is the biggest holdback. Many software vendors thinking behind Cloud Accounting is that they have a product that customers want. Unfortunately the need is not in the equation.

In the absence of need, the persuasion has to be even more attractive. Therefore, the pricing of Cloud Accounting cannot be the sum of all costs amortized over a given number of years. It has to be revolutionary. It has to be a loss leader.

Once traction takes place and becomes a commodity like telecommunications then pricing can reflect the true cost of the service. Until then, pricing should be like those new breed of internet businesses where the company has to bleed cash to gain market share.

The Magic Pill

If ever there is a magic pill to make Cloud Accounting usage becoming ubiquitous, it has to be a drastic change in pricing strategy. Technology is a given. With a bit of effort, software companies can create solutions that runs faster, runs on any device, boasts of inter-connectivity, even sing and dance. However, to get businesses to take the gamble and make the switch it has to be the “no-brainer” cheaper factor.

To do this, the big players stand a better chance of making a difference. It is unlikely we will see smaller players, even if they are pure Cloud play now, making a dent into the adoption rate of Cloud Accounting. But do the big boys have the foresight and the gumption. Are they willing to eat their own dog food?

In Summary

There will be a consolidation phase in the market once the big players understand that they need to step up their aggressiveness to see success in their Cloud offerings.

 

Until then, the market for Cloud Accounting will be a niche solution for selected businesses.

[Footnote] The author has been involved in computerized accounting software since 1983. He has witnessed the lifecycle of technology, participated in many new paradigm shifts and even promulgated Subscription Pricing which is the heart of Cloud Accounting services. This is an opinion piece based on his observation of the state of Cloud Accounting today. 

New release of PowerLib for Sage 300

Announcing a new release of PowerLib for Sage 300. 

In this release, we have replaced the use of A4WContainer.  This is one of the bugbear when it comes to customizing Sage 300. By replacing it, you are now able to develop programs that is version agnostic. 

What this means is that you do not need to update your program each time Sage releases a new version of Sage 300. This will save you time and effort. 

Your customers will love you for it as they will not be restricted from upgrading their Sage 300 because of your customizations.

Sage 300 e-Invoicing Solution

Author’s Note: There is no official announcement at this moment on whether Sage offers an e-Invoicing solution that works with the PEPPOL standard in their Sage 300 product. We will update this article when we have more to information.

If you have a current requirement to have this ability in your Sage 300 installation, then you have 2 choices available.

The first option is a makeshift temporary solution at best. This is to use one of the Access Point provider’s utility program to retrieve and submit e-Invoices. This should not be a permanent solution as it negates the benefits of using e-Invoicing since it is still a semi-manual procedure. Errors are very likely to occur with any manual effort. 

A better approach would be to use a program that is embedded in your installation. Such an end-to-end solution would offer all the benefits touted by the e-Invoicing initiative. No transposing or re-entering of data occur, hence saving you time and money.

APPtalics in conjunction with their partner can offer such a solution today. Our deep knowledge of Sage 300 together with our pre-built utility program that can generate XML outputs through a scripting engine, provides for a real world solution. Once installed, your invoicing system can submit or retrieve invoices, from your Access Point provider, with no manual editing and directly from your application.

Whether you are a user of Sage 300 or a Sage Business Partner, if you are looking for a ready made solution to e-Invoicing based on PEPPOL or any standards, we have a solution for you. Contact us today at info@apptalics.com.

Digitalizing Your Business

Any business today who believes that going digital is hype and that they can sit and wait it out will be in for surprises. A good example is the surge in eCommerce sites and businesses. It is mind boggling when one reads about the success of eCommerce sites such as Alibaba and Tencent. A single sale event can involve billions of dollars!

On a smaller scale, we have seen how transport providers such as Uber and regional players like Grab and GoJek cornering the online booking of taxis.  Some can argue that traditional taxi service is still mainstream, just like shopping malls and retail outlets. We can see how wrong they are now. Everyone is scrambling to see how they can tap the online world. Even F&B businesses are not spared as not tying up with food delivery service providers is a major mistake. The new generation of consumers will not hesitate to pick up their phone and order a meal, or a dress or a book a cab. This is the segment of consumers that digitalizing is squarely aimed at.

Digitalization is not necessary always about customers directly. It can also be about your internal processes and staff. The new generation of workers is enticed by a totally different set of work values. Heavy paper based work will find little interest with them. Businesses need to review their job descriptions and work processes and incorporate digital solutions that not only improve efficiencies but excite staff to stay.

We at APPtalics is focused on helping small and mid-size businesses (SMEs) to take the digital route through our small and SME-centric approach to go digital. At the core of the approach are our business friendly arrangements.

Subscription Arrangements

Have an idea but not sure it can work or you can afford it? Choose this option and we can help you allay your investments over a 3 year period. Mind you this is not a leasing scheme. It is our way to work with you and grow with your business, for the long term.

Ad-hoc Projects

It is sometimes difficult to engage software companies to work on small projects. Need a report created, a process automated, data extracted, a mobile app developed and so on? This is where our “no project is too small” approach helps. But do note that whatever we do it has to be in relation with your backend systems, whether it is an ERP/Accounting or CRM application. Our expertise lies with our nearly 30 years of experience with ERP/Accounting and CRM products.

Simply put, we are not a sweatshop that offers cheap rates and nothing more. Come to us only if you see a need to have someone that understands business applications.

Any business today who believes that going digital is hype and that they can sit and wait it out will be in for surprises. A good example is the surge in eCommerce sites and businesses. It is mind boggling when one reads about the success of eCommerce sites such as Alibaba and Tencent. A single sale event can involve billions of dollars!

On a smaller scale, we have seen how transport providers such as Uber and regional players like Grab and GoJek cornering the online booking of taxis.  Some can argue that traditional taxi service is still mainstream, just like shopping malls and retail outlets. We can see how wrong they are now. Everyone is scrambling to see how they can tap the online world. Even F&B businesses are not spared as not tying up with food delivery service providers is a major mistake. The new generation of consumers will not hesitate to pick up their phone and order a meal, or a dress or a book a cab. This is the segment of consumers that digitalizing is squarely aimed at.

Digitalization is not necessary always about customers directly. It can also be about your internal processes and staff. The new generation of workers is enticed by a totally different set of work values. Heavy paper based work will find little interest amongst them. Businesses need to review their job descriptions and work processes and incorporate digital solutions that not only improve efficiencies but excite staff to stay.

We at APPtalics is focused on helping SMEs to take the digital route through our small and mid-size business-centric approach to go digital. At the core of the approach are our business friendly arrangements.

Subscription Arrangements

Have an idea but not sure it can work or you can afford it? Choose this option and we can help you allay your investments over a 3 year period. Mind you this is not a leasing scheme. It is our way to work with you and grow with your business, for the long term.

Ad-hoc Projects

It is sometimes difficult to engage software companies to work on small projects. Need a report created, a processes automated, data extracted, a mobile app developed and so on? This is where our “no project is too small” approach helps. But do note that whatever we do it has to be in relation with your backend systems, whether it is an ERP/Accounting or CRM application. Our expertise lies with our nearly 30 years of experience with ERP/Accounting and CRM products.

Simply put, we are not a sweatshop that offers cheap rates and nothing more. Come to us only if you see a need to have someone that understands business applications.

 Contact Us Today

For more information, contact us at info@apptalics.com.