Choosing the right type of accounting software is important for businesses to maximize productivity. You can look for SaaS accounting software in two scenarios – Your traditional accounting software is not offering desired features even after several upgrades, or you are looking for software for the first time.
Software-as-a-Service (SaaS) is an increasingly popular option for many companies. But, is it the right choice for your company? If you are confused between on-premise and cloud accounting software, here are the quick comparisons to help you make a well-informed choice.
- While traditionally installed accounting software comes with large upfront cost and heavy upgrade expenses, SaaS accounting solutions require small subscription charges on set intervals.
- If on-premise accounting software gives you complete control over your own data, cloud-based accounting software helps in regular update of data controlled by service provider.
- With SaaS, you have the benefit of fast integration, installed accounting software ensures custom integration with existing systems in an organization.
Both these options have their own advantages, and are equally popular among small and medium sized organizations. Going for cloud computing solutions is more like opting for rented but scalable features. Such solutions ensure faster and less expensive service along with increment in terms of features as the requirement increases.
On the other hand, on-premise accounting software calls for long-term investment with large upfront cost. Though it takes a while to set up a new accounting system, but users get the benefit of customized features.
When You Should Install Accounting Software On-Premise?
When you are in a company that has a large budget to spare on enterprise technology, you can opt for on-premise accounting software. You need a software which can be customized as per your demands, and gets integrated easily with the existing systems in use. In a big enterprise, several smaller systems are operating in the background. All such systems need to be integrated with the accounting software, as every employee needs to be connected with the accounts department for important details. While the integration of all business systems with the accounting software requires a lot of work, big enterprises often have a dedicated IT team to take care of smooth and successful incorporation.
The security of data stored in on-premise accounting system can also be taken care by dedicated IT professionals. This way, a company can have better control over the security of important data.
When SaaS Accounting Software Makes the Best Choice?
Small and medium-sized companies can do better with the SaaS model. SaaS accounting software can help them in hitting the competitive landscape with the backup of enterprise technology. With limited resources to handle installation requirement on-premise, SMBs can save cost and time by opting for cloud solutions. Also, small businesses lack the latest network security devices, and the security of their data is always at stake. Holding all sensitive data on a local machine can prove to be a troublesome practice for SMBs. SaaS accounting solution vendors, who are experts in handling the security of important data, can be the best choice for small businesses. Also, cloud-based accounting software vendors provide the ease of regulatory compliance. Hosted accounting systems store data in the encrypted form and transmit it with safety. Thus, malicious malware and ransomware find it hard to hack data on the cloud.
While making a decision between SaaS and on-premise accounting software, you need to consider the customization requirement, integration with other software, data security features and scalability. Further, remember to consider how quickly you need software upgrade and update to keep the system up and running. Based on these considerations, you can make the final choice between buying a software and renting it. If the idea of long-term investment doesn’t fit in your agenda, SaaS solution is the best pick.
If you are still in doubt whether SaaS accounting software is right for you, there is only one way to know it for sure – ask for a subscription now! Cloud-based accounting software vendors are more than happy to give you free trials, so that you can make a well-informed choice. So, make sure you go for free trials before you buy.