How to Choose Between Cloud vs. Desktop Accounting for Growth

Deciding between desktop and cloud accounting software is a crucial decision for businesses aiming for efficiency and growth.

As technology continues to change and software options continue to become more complex, the most important step in the evaluation process starts with aligning an accounting solution to your business needs.

This guide provides an overview of factors to consider when choosing between desktop and cloud-based accounting systems. Understanding traditional accounting methods and the latest innovations is crucial for making an informed decision. Learn how to choose the right accounting system based on your current and future business requirements, financial demands, and plans for growth.

What is Accounting Software?

Accounting software serves as a comprehensive solution for businesses to efficiently collect, record, and manage financial data. It automates essential functions like creating journal entries, generating financial statements, and handling payroll, saving companies time and money. The software comes in various forms, from on-premises packages to feature-rich cloud-based solutions, offering flexibility in pricing models. Core features include general ledger entries, invoicing, accounts payable and receivable, and reporting. Whether businesses opt for desktop or cloud solutions, accounting software streamlines financial processes and enhances overall efficiency.

What sets Cloud Accounting apart from Desktop Accounting Software?

Cloud Accounting Software:
A cloud-based accounting system is a type of financial software that operates on remote servers accessed over the internet. With true cloud technology, all accounting data and applications are stored in the cloud and accessible from any device at anytime, with an internet connection. Cloud software enhances accessibility, flexibility, and data security for businesses, especially those with remote employees.

Cloud Accounting Highlights:

Anytime, anywhere access, and flexibility for the entire workforce.
Real-time collaboration, visibility, and reduction of manual processes.
Software is updated automatically with the latest features and compliance requirements.
Seamlessly scale with business growth, increased data volumes, and users.
Advanced data security and data encryption.

Desktop Accounting Software:
A desktop accounting system is finance software installed on a computer or network in a specific place. This software stores accounting data and applications on a server that users can directly access from their device. Local software enables businesses to access financial data without an internet connection. It also allows them to update the software at their convenience.

Desktop Accounting Highlights:

Local access from a specific computer on-premises or trusted network.
Security relies on the company and individual user of the software.
Upgrade and update manually, when you want to, at your own speed and timeline.
Tip: Make sure to update your software in a timely manner or it may lead to delays in features, compliance, or an outdated versions of the software.
Scale slowly with data volume or user demands.
Tip: Desktop solutions may face limitations with large increases of data without adjustments to the infrastructure.

The choice between traditional accounting software and cloud computing solutions depends on a business's unique requirements, preferences, and long-term plans for growth.

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What are the Benefits of Cloud Accounting?
Cloud-based solutions come with built-in benefits, like giving finance teams the freedom to handle accounting tasks from any location, on any device, and scale with the business as they encounter change and increased complexity. Software flexibility is important in a changing business world where growth is always a priority.

According to the CEO and Senior Business Executive Survey conducted by Gartner, growth remains incredibly important, as 49% of CEOs view it as a vital business focus for 2023 and anticipate its further rise in 2024. This aligns with the important trend of businesses moving to cloud accounting solutions to meet their complex needs.

Why Businesses Should Consider Cloud Software:

Automation and Agility:
As we step into 2024, automation will continue to remain a key factor for improving efficiency, productivity, and innovation for businesses in all industries. Cloud accounting software uses automation to improve data accuracy, reduce errors, and automate tasks like reporting, data entry, and reconciliation. With cloud accounting platforms business have more time to focus on effectively managing growth instead of managing outdated software.

Anytime Accessibility:
With a remote and hybrid workforce, it is crucial to have easy access to business information anytime and anywhere. Cloud accounting lets employees access important data from home, on trips, or while traveling. This level of accessibility enables collaboration, accelerates decision-making, and empowers businesses to operate with efficiency.

Remote Work Statistics:
1. Over the past year, Forbes found that remote and hybrid work continued to increase with 12.7% working remotely and 28.2% adopting a hybrid model.

2. Upwork, a professional hiring marketplace predicts that 32.6 million Americans (22% of the workforce) will work remotely by 2025 and the number continues to increase.

3. According to Buffer's State of Remote Work 2023, 98% of employees desire remote work, so employers are adapting and business software should adapt too.

Real-time Collaboration:
Cloud software provides instant updates, ensuring that the entire team has access to the most current and accurate financial reporting. This not only enhances communication and teamwork but also contributes to better decision-making based on up-to-date insights. Advanced analytics and reporting capabilities are critical for strategic planning and achieving business objectives.

75% of enterprises plan to invest in modern technology platforms to facilitate innovation over the next few years. Cloud Stats for 2023

Competitive Advantage:
Companies that embrace modern software gain a competitive edge. They can respond faster to market changes, deliver better customer experiences, and innovate more effectively than those relying on outdated systems.

According to Gartner 85% of organizations will embrace a cloud-first principle by 2025 and will not be able to fully execute their digital strategies without the use of cloud-native architectures and technologies.

Learn how NetSuite Cloud Accounting can Streamline Your Business
Looking for a change from your on-premises accounting solution? NetSuite accounting software makes recording transactions, managing payments, collecting taxes, and closing books easier. It also allows for accurate reporting and better control of financial assets. You can easily examine details and solve problems with instant access to financial information. NetSuite automates repetitive tasks and eliminates the need to collect and normalize data from other departments.

NetSuite empowers organizations to overcome challenges, reduce costs, and stay ahead of the competition in today's dynamic business landscape. Take the next step today to learn more about NetSuite for your financial needs and your unique business.

Calculate NetSuite Accounting Pricing The Benefits of Working With Protelo

How Much is NetSuite Cloud Accounting Software?

How is NetSuite pricing calculated?
A NetSuite license contains: the core platform, modules based on individual requirements, and number of users. As your business changes and grows, so does the software, and the ability to add modules and users at any time. With NetSuite, accounting capabilities come with the NetSuite platform license.

Our team is here to help you through every phase from software evaluation, competitive pricing, licensing, implementation, customization, and on-going support. The true benefit of working with Protelo is that we are big enough to deliver, and small enough to care. Call us for direct access to the experts…the first time you dial or contact us through our online form.