Cloud Accounting Software Vs On-premise Accounting Software

You might have heard of cloud accounting software as well as on-premise accounting. These two are pivotal for a company’s financial health. Actually, either of the two will do. One can have a cloud accounting software and the other can have an on-premise accounting software. There are some pros and cons and we will find out which one works best for you and your company. 

Choosing between cloud and on-premise accounting software needs a thorough analysis. Understand the needs of your business first before deciding on what you will procure for your financial requirements. The expense for the purchase is one factor, however, and there are others that you need to consider. 

What is an on-premise accounting software? It is a software installed on a local server together with the company’s financial database. It is installed only once and serves the purpose. In the long run, when the system becomes outdated, updates and upgrades are done only when new licenses are purchased. 

On the other hand, cloud accounting software is also better known as SaaS (Software as a service). It is a software service that covers practically all the financial processes of a certain business. There are monthly subscription fees and for as long as fees are settled, the software updates flawlessly letting the accountant or the one in charge stay in control using the latest version. Cloud accounting software tackles accounts payable and accounts receivable, expenses, revenue, financial reporting and other pertinent data. 

What is so amazing about it, is it can be accessed anywhere and anytime from any part of the world for as long as there is internet connection. But of course, if it won’t fit your business model, then there are risks involved. 

Below are factors that you need to consider in choosing the best online accounting software:

1. Evaluate Costs

– Some vendors promise heaven and earth for both SaaS and on-premise online accounting software. They offer affordable rates at the forefront but will turn out expensive with some recurrent costs. Cloud accounting software usually charges monthly fees while on-premise has a one-time fee though there are recurring charges like hardware updates and upgrades notwithstanding the fact that there are expenses for technical staff salaries, back-up recovery and security services. In the long run, if you take into account all these and run the numbers, you will eventually find out which of the two comes out cheaper. Get the most affordable one with the best service.

2. Weigh the pros and cons

– Which online accounting software best suits your business? List what your needs and requirements are. Then jot down the pros and cons side by side. Do remember that both the advantages and disadvantages are relative to your business. For example: hiring a technical staff may be helpful and important to have in a large business but for a small or medium enterprise, it could not be applicable. This process can help you see which online accounting software matches perfectly with your business. Choose the best option considering all the things you have listed down. 

3. Consider service beyond cost

– While it is true that cost is a major consideration in getting an online accounting software, you also need to bring to the table the service it offers; account customization, control, security, compliance, restoration, good infrastructure, back up, accessibility, convenience, efficiency and protection against hazards both physical and technical. All these will help you run your business tirelessly and effortlessly. Yes, consider cost. But then great and efficient online accounting software service should outweigh the cost.

4. Know capacity of power and storage

– There are two critical areas you also need to look into. The power to run the systems and the storage that is capable to save your company’s data. If you are a small enterprise with a low demand for storage and data, then you can have an on-premise software. However, if you are looking into growing big and prep-up for a bigger-scale operations, then a SaaS or Cloud online accounting software surely can do the job!

5. Make sure of connectivity and synchronization

– The online accounting software, whether Cloud or on-premise should be compatible to your existing infrastructure. If it won’t work together, then everything you’ve done is in vain.

6. Seek a good relationship and customer service with the provider

– Providers should be true to their word starting from their sales call, purchase pitch, software installation, collection and after service. The provider that continues to coordinate and monitor is the one who is more committed to providing you excellent service. SaaS or Cloud online accounting software always has people to cater to your needs since you will be using the system everyday of each month that you are subscribed to. An on-premise accounting software usually is not in touch after the purchase and installation, so think twice.

7. Ask for a demo or a free-trial

– Test the service first, get the hang of it. Then decide which one can work well with your needs and requirements. 

With all these, choosing between SaaS and on-premise online accounting software wouldn’t be a problem anymore. The first step is to understand the needs of your business and go through these considerations. When you are uncertain, EasyFIS may be the right one for you!  It is a Software-as-a-service (SAAS) sales, inventory and accounting system designed for micro, small and medium (MSME) enterprises.

If you require your business to run in real-time and would need a WFH Work from Home Set-up, EasyFIS can offer services that reinforces accuracy, promotes efficiency, encourages synchronicity and seamless organization, provides timeliness, and gives better sales inputs. Why choose to do something difficult when there is an option for change and improvement? No matter how capable those hands are, there are limitations to them. Most importantly, EasyFIS is CAS (Computerized Accounting System) compliant, ready for government taxation in the Philippines.

EasyFIS is an automated inventory management system that is synchronized and works perfectly in an ecosystem with the following benefits:

• End-to-end accounting software with sales and inventory integration.
• Software as a Cloud-Based and Services (SAAS).
• Multi-currency. This system can trade in various currencies.
• Multilingual.
• Higher accuracy and real-time reporting.
• Faster coordination with the team.
• Cost-effective by reducing waste of paper and ink.
• Low cost of installation and maintenance.
• Improve customer service.
• Filipino tax law is ready. EasyFIS follows the regulations and guidelines set by the Bureau of Internal Revenue (BIR).
• Compatible with POS front-end software.
• Multi-branch. The system has multiple stores, branches, and warehouses and can monitor sales and inventory for the entire company.

EasyFIS can help you and your business become strong and competitive.  Make your business tick with EasyFIS Automated Inventory Management System. For inquiries, please contact Human Incubator at +63-32-256-2904 or +639088601619 or check our site: https://human-incubator.com/