This tutorial is about Desktop vs Cloud accounting software. We will do our best for you to understand this guide. I hope you will like this blog Desktop vs cloud accounting software. If your answer is yes, please share after reading this.
Check Desktop Accounting Software Against the Cloud
Accounting dates back to a time long before the invention of computers. However, it’s so important to businesses that it’s often state-of-the-art. The profession relies on the ability to create, manage and retrieve records and produce financial reports on the fly. In the past, this was all done manually, but thankfully those days are behind us. We may already be in the middle of the digital accounting era, but the next big thing is already upon us: the cloud accounting era. What is cloud accounting/cloud computing/cloud services?
Cloud computing goes by different names and allows you to access data through an active internet connection, so you are no longer tied to a specific computer. By using the cloud, you free yourself from these constraints. Simply log in to your account on almost any connected device and you will be able to access your data. This new paradigm means flexibility, efficiency, reliability and safety…and a whole lot more power. (More on that later…) There are several reasons why you should consider moving to the cloud for your accounting needs.
Desktop vs cloud accounting software
office accounting software
Desktop accounting software installs directly on your own computer. This means that the accounting system and all of your company’s accounting data resides on your desktop or laptop computer. Traditional accounting software solutions were based on desktop computers. You have downloaded an application to your computer, for free or for a one-time fee, and then you can use it as needed. While this is cost effective, it also means you have to take responsibility for updating your software and backing up your data.
With a desktop solution, if your computer crashes, all of your financial data is lost, unless you purchase an external hard drive or server and regularly back up your data. Additionally, desktop solutions are not designed to work on tablets or mobile devices. You can only work on the go if you take your laptop with you. However, the fact that you can access your software without an internet connection is a great advantage if you travel frequently or work in places with weak or limited internet connections. Here is an overview of the pros and cons of desktop accounting software:
- Accessible without internet connection
- Very safe, when you are not connected to the internet. If your computer is connected, hackers could still access your software and information through your computer
- Pricing is typically lower than cloud accounting software
- Desktop solutions may work faster, depending on your internet connection speed
- Only one person can be in the software at a time
- You must access it on the computer on which it is installed; you cannot switch between different laptops or desktops
- It cannot be used on a tablet or mobile phone.
- Must be installed and updated manually
- A backup must be done manually to a secondary location. Otherwise, if your computer crashes, you could lose everything.
cloud accounting software
Cloud accounting software is stored “in the cloud”. In other words, the system and its data are stored on the Internet. Therefore, it can be accessed from any location or device that has an internet connection and secure access. In the past, cloud software was considered less secure because everything ran over the internet. However, security and encryption methods are constantly evolving, so your data is now safer than ever. Many cloud-based accounting solutions even use bank-level encryption software. In other words: your data is just as safe in your software as it is in your bank account. In fact, it’s probably more secure than data stored on a desktop computer. Unless, of course, that computer is never connected to the Internet.
One of the most appealing features of cloud software is the ability for multiple users to access and work simultaneously. Not only can you seamlessly switch between desktop, laptop, and mobile device, but you can also have one or more of your employees working on the software at the same time. Do you use an external accountant to prepare your financial statements and taxes? If so, you can easily grant them access as well. Here is an overview of the pros and cons of cloud accounting software:
- Multiple users can work on the software at the same time
- Does not require installation
- Updates and backups are automatic, with no need for manual updates or secondary servers, hard drives, etc.
- Cloud software usually has more security features, such as multiple layers of encryption.
- You can access your data from multiple devices and switch between devices.
- You need an Internet connection to access your software.
- The cost is usually higher. Most cloud solutions have monthly fees that must be paid indefinitely. If you stop paying, you risk losing access to your account and data.
- If you have a slow internet connection, cloud solutions may seem slow.
- The right choice for your business
Is it time to jump into the cloud?
It’s no surprise that for us, the cloud is the clear winner in this epic battle with the desktop. Still, making the right decision when choosing accounting software is extremely important. First, you need to choose the software that gives you the features you need.
Dryrun is cloud-based financial forecasting software for small businesses. Our unique scenario-based approach and highly flexible system offers the ability to connect to Xero, QuickBooks Online, and Pipedrive.
Final Words: Desktop vs. Cloud Accounting Software
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