Cloud or Desktop Accounting Software (6 Comparative Characteristics )


cloud based accounting software solution

There are no two identical companies even in one industry. Each company is unique. Certainly, there are government legislation and some common requirements for conducting any business and accounting of its activities. However, in addition to typical strict demands for accounting, the particular industry needs and, finally, the company's specific necessities and wishes are considered. Therefore, every business needs to select accounting software that provides services meeting all government and industry requirements and the company's individual needs.

Cloud-based and desktop accounting software systems are similar.

The main difference between traditional and cloud accounting software:
 
  • To run the traditional (desktop) accounting software system needs to be locally installed on the desktop or laptop computers. 
  • The cloud-based accounting software system is hosted on remote servers, and users access their data through the Internet.

Each of those two systems has advantages and disadvantages.

6 Comparative characteristics of cloud accounting software and desktop accounting software:

#1. Price.

Generally, cloud-based accounting software is less expensive than traditional accounting software systems. Using cloud accounting software allows companies to avoid costs on the hardware and accounting system installation, maintenance, administration, updating, and server failures. Usually, payments for cloud-based accounting software are made every month.

#2. Access.

Cloud-based accounting software enables access to the accounting data anytime from anywhere on any device via the Internet connection. The traditional accounting software only provides access to the business data on a few select on-premises computers. However, many providers of desktop accounting software offer mobile applications (developed for mobile devices) easily integrated with their accounting system. Such mobile solutions enable access to the business data anytime from anywhere via the Internet connection. So, in the case of problems with the Internet connection, the traditional accounting software system can be used, rather than the cloud ones.

#3. Control.

If a company uses cloud-based accounting software, the business data could be hosted on a server anywhere in the world. The company does not have control over where its financial information is. At the same time, depending on the judicial rules of the country where the accounting data is located the government may review and audit this business data.

#4. Features.

The functionality provided by both cloud accounting systems and traditional accounting software can vary from simple systems designed for entrepreneurs and small businesses to more complex developed for middle and developing companies.

#5. Customization.

As a rule, traditional accounting software can be customized to meet the company’s specific needs. The cloud accounting software cannot be changed, configured, and customized as easily as the desktop accounting software system.

#6. Integration.

Usually, providers offer accounting software regardless of whether it is traditional or web-based that is integrated with other software products.

Cloud accounting software is a better solution for companies if their owners:

  • Don’t want to spend much money on accounting software.
  • Don’t want to buy or want to cut business costs on hardware such as servers and computer equipment.
  • Don’t want or cannot pay another company or freelancer for services such as software installation, managing servers, running backups, and others.
  • Don’t want to spend time and money on updating the accounting software system.
  • Don’t want or cannot pay for applications and their customization they want to be integrated with the current software.
  • Want to have access to their business data from different computers and devices.
  • Don’t want to spend money on data security.
  • Like that the processes of cash flow, payroll, and calculating revenue were easy and accurate.
  • Worry about the accuracy of maintaining accounts.
cloud accounting software for small business
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