When it comes to bookkeeping and accounting, there are two primary platforms to choose from: desktop and the cloud. Before cloud accounting was introduced, traditional desktop accounting seemed to be all any company ever needed. However, as the business environment began to evolve, there was a demand for solutions that were more accessible, more secure, and less prone to human error.

Cloud accounting offers all that — and more.

However, despite all the benefits of cloud accounting, countless business owners remain hesitant to move to the cloud. Many believe the transition is not necessary, while others simply haven’t weighed the pros and cons.

While no two businesses are alike, they all want to remain competitive. And in this digital age, the way to keep your edge is by leveraging modern solutions.

Here is a cloud vs. desktop comparison to help you to determine what’s best for organizing your business finances:

Accessibility

With cloud accounting, all you need is an Internet connection to access your data. You, your team, and your accountant or bookkeeper can log on from any computer or mobile device. With desktop accounting, however, only the computer you’ve purchased a license for has access.

Users

Because desktop accounting means there is only one dedicated computer, it is limited to only one user. In contrast, cloud accounting often means countless users across unlimited devices.

Customization

Most desktop solutions are all the same, rarely allowing integration with third-party apps. With cloud accounting, there are hundreds of third-party apps to choose from that can be customized to your unique business needs — meaning flexibility and personalization.

Data Backup

Once you’ve migrated to the cloud, data is backed up 24/7. Computer stolen? No problem. Devices broken? Your data is covered.

With desktop, however, backups are done manually. If your system is destroyed for any reason, you’ll only be able to retrieve data from the last time you backed it up. Backed up your data weeks or months ago? You can say goodbye to a rather considerable amount of important information.

Shareability

When you work with desktop accounting, sharing information with your bookkeeper or accountant can be a lengthy, time-consuming process. You must export the relevant data from your computer, save it to a flash drive or print it on paper before you can personally hand it over to your accountant.

When you migrate to the cloud, all you need to do is give your bookkeeper or accountant access by giving them an account they can log into. Instantly — from anywhere they are — they will see real-time data just as you see it.

Automation

With desktop accounting, there is little to no automation — expect all processes to be manual. With cloud accounting, on the other hand, third-party apps support automation and streamline workflows. Expect the ability to sync and reconcile automatically.

The decision between desktop or cloud accounting comes down to what’s best for your business. Both solutions will help you manage your daily finances. However, transitioning to the cloud now and adopting modern processes may be what your business needs to ensure you don’t get left behind with solutions that are outdated and may soon become obsolete.

Until the next time,