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Cloud-based VS Desktop Accountancy software: Pros & Cons of each

Thinking about bringing changes to your accounting system. One thing that is common in every business is that all organizations switch to digital technology. It has promoted remote working in every industry. Therefore, every business owner finds himself wondering what advantages there are to have traditional desktop versions versus cloud-based accounting.

Both types of accounting software have their own benefits and drawbacks. Therefore, the majority of the users look for the better option that can suit their business organization. Let us have a look at both options here.

Cloud-based Accountancy Application

It is a platform that makes software and data accessible online anywhere and anytime from all devices. In the applications of the desktop, your hard drive is the central location of the information. Your hard drive does not need any central hub if you are using the cloud. It will be backed up and updated automatically. It is getting popular in all types of business because of its several benefits and perks. Cloud software is easy to use, access, and operate at any time. This is the best way to increase the productivity of the business.

Easy to get started

The major barrier to entry is low even for the biggest cloud networks, and you can get started with the solution in no time at all. Cloud-based accounting tools remove the requirement for the server that lessens the amount of money and time needed to get started since you do not have to purchase any new server hardware.

A cost-effective way to work

It is an affordable and superb way either an annual subscription or monthly, while the on-promise digital tool is a one-time upfront purchase. Combined with the costs associated with maintaining and purchasing a server, the on-premise solution needs a big investment to take a start. The cloud-based system is suitable for franchises and enterprises because more than one employee can access the tool at a time at any location. Therefore, it is an easy-to-use tool for the majority of businesses.

No servers required

With this cloud accounting software, you do not need to buy, maintain, and adjust a server to run your accounting network. These servers are costly, need full-time IT staff for support and maintenance since it needs some special facilities.  Like other IT gear, these servers are breakable. They become obsolete and need replacement over time. The software can be a lifetime. In this way, it becomes easy to manage for businesses of all levels. It is an efficient tool that comes with an easy-to-use interface. Therefore, most business owners prefer to use this software.


  • Offers back-up automatically.
  • Easy collaboration and data sharing
  • No need to install the tool
  • Get updates in your system
  • Convenient to access the files


  • Security issues
  • Needs internet to access the tool

Desktop Accounting Software

Digital accounting tools have several benefits over the years. These tools are highly suitable for many business owners. These are designed to provide ease of working at your pace. In this way, you can manage your business accounts without any issues. These programs are ideal to prepare taxes and track expenses. There are different types of tools available in the market and all of them have come with a variety of benefits and some drawbacks starting form a simple excel spreadsheet like this used by small businesses to branded accounting software suites for use by large enterprises and accountancy firms. We can learn about the pros and cons of these tools here.


All the business owners are not bookkeepers and accountants by trade. They find it challenging to do most accounting work. A business owner gets the benefit of the accounting tool. It is quite easy to use since these accounting tools come with a user-friendly interface. Therefore, no new person needs to take the special training to manage the account of his business by using these tools. These programs are quite easy to install and learn to operate. Most of the programs provide instant data entry options. In this way, users can establish their accounts of vendors, debts, and banks immediately.

Financial Comparison:

A good bookkeeper enables an entrepreneur to investigate spending and income one thing at any given moment. The information can be assembled constantly, month, quarter, or year to be analyzed and contrasted with past years. This is one way that entrepreneurs can find approaches to reduce organization spending and improve productivity.


You can save money when compared with the expense of enlisting, preparing, and keeping up in-house accountants. Virtual bookkeeper and accountant services help you produce more income, develop your business, and dispose of the requirement for keeping up a bookkeeping office. If your accounting work is not too big and complicated, then you can hire bookkeeping services to save the cost of having a regular accountant.

Expert for your business:

You should have the option to select an accounting expert for your business, both the business and size of your business.


  • Data will be stored on your PC
  • No ongoing charges while operating the tool
  • No security issues
  • No online hacking fears
  • No internet signals are required


  • Does not offer access anywhere
  • Installation of the software is required
  • Need to back up your data
  • Data sharing can be a problem

Bottom Line

Run Your Business Efficiently by Bookkeeping and accounting software. It is incredibly important to switch to digital systems if you want to increase the productivity of your business. Check this comparison guide of accounting applications to find out what is different in terms of options, platforms, supports, and specifications. For new companies and their organizers, dealing with the accounting tasks for their business can be scary and apparently overwhelming work.

Indeed, even probably the most essential parts of bookkeeping, for example, accounting, can get entangled. It is significant for new companies to keep their monetary records in a pure condition, as having clean financials fills many needs. Having appropriately arranged financial reports takes into consideration routinely refreshing your partners on your current finance-related position.

Bookkeeping for a startup will follow the transactional actions of your business, for example, accepting, recording, and paying bills or making, recording, and sending invoices for services rendered.