Difference between Traditional and Cloud based accounting software


Difference between Traditional and Cloud based accounting software

December 23, 2018 Accounting Software 0

Companies are increasingly turning to cloud accounting software to successfully manage their accounting, VAT and payroll. Have a look at the benefits of cloud accounting packages over more traditional accounting software.


Traditional accounting software:

Although traditional desktop software is useful for recording data and keeping records, there are certain things which has to be taken care of:

  • Software not updated  – which means you will need to upgrade to the latest version of the software to avail additional features and usually at a cost.
  • Limited user access due to either software limitations or the fact that it is only available on one computer.
  • Support is always offered at an additional cost which is always expensive
  • Hardware requirements – for example, servers and hard drives increase costs.
  • It can also be expensive to keep backups
  • Reports tend to be simple or difficult to format and can lead to excessive reliance on Excel sheets that may be unstable.

Cloud based accounting software

Cloud based accounting software can keep books and records online in a clear and intuitive space.

Main benefits:

  • Fast and easy data entry
  • Faster software back up data storage
  • Affordable with many packages to choose from, usually on a low monthly rent model.It also allows users to access their accounting information at any time and via various devices. This has made modern accounting easy to understand for all users, regardless of their accounting experience. Thus, companies can spend more time focusing on the development of their business than on their accounts.

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