This month we are focusing on: Accounting Software
And this week are looking at: Cloud Based vs Desktop
To assist with important decision making within a business you need to have up to date and accessible software to record your financial transactions. There are still two main types of accounting software available:- desktop and cloud based.
The ‘cloud’ simply refers to software and services that you access using the internet with the data being stored on someone else’s computer, rather than your own.
Cloud Based Software offers a number of advantages such as:
- the convenience of being able to use the software from anywhere you have internet access,
• not having to install software (and updates) on your own computer,
• easy data sharing (and collaboration), and
• not needing to do backups.
However, there are also some down sides such as:
- potential security issues,
• lack of access if there is no internet connection
Desktop accounting software is installed and runs on your computer where the data is also usually stored.
The advantages of desktop software are:
- data is stored on your own PC,
- doesn’t require internet access.
- Often just a one off fee
The disadvantages of desktop software include:
- you need your own desktop or laptop computer,
• you need to install the software (and any updates)
• you need to backup your data,
• data sharing is not as easy.
Both have a cost implication – desktop often is a bigger outlay at the beginning – but if you don’t pay for upgrades is a one off cost. Whereas cloud based is easier on the initial cashflow as it tends to be a small amount per month – but over time could end up more expensive.