You require accounting software because of all the savings you can acquire, the financial adjustments you can make, and the important information you can chart out to show if your business is booming or not by having such a program on hand.
Online software is cloud-based software you can access via your browser like a website so that you can get to use it only when you need it along with your Internet connection (which is an essential expenditure for companies nowadays). Meanwhile, offline software (or just plain regular software, if you’d like) is traditional software you buy and install into your computer to do a whole variety of tasks. Which is better, then? Online or offline accounting software?
The Pros and Cons of “Offline” Software
Traditional software… the ones you have to install to your computer via a disk or a downloading installation program… can either be bought or used for free. You can also avail of accounting programs that are freeware, but these either come in the form of free trials (you can only use the program for 30 days until you have to buy it; once you buy it, that’s when you’ll be given an activation code that will enable you to use it indefinitely) or open-source software.
A program that’s open-source is made available for free to that users or other programmers can give feedback to the actual developer of the software to make improvements on their code. Obviously, open-source accounting software comes with the caveat that it may still contain bugs and won’t be usable until a couple of updates and patches down the line.
Your best bet remains proprietary software. Then again, a simple spreadsheet program available in all (free or otherwise) office suites can do just fine in a pinch. It’s better than you invest on an application that’s dedicated in streamlining the act of keeping your finances accounted for.
The Pros and Cons of “Online” Software
Software that’s available in the cloud (that is, cloud computing) is typically available in a pay-per-use platform, such that you only have to pay for the amount of times you use it. Then again, if you’re going to use it daily, then an argument can be made that it’s better for you to buy “offline” software outright so that you can have indefinite access and use of your accounting software.
What’s more, cloud-based programs can only be accessed with an Internet connection, so as soon as you go offline, you’re basically out of luck. With that said, dedicated Internet access is something that all businesses big and small require.
Cloud accounting software comes with the advantage of regular software updates, less use of your existing servers or hardware resources to house the program, and flexibility in accordance to your company needs.
Even though you’re essentially renting out software, you’ll be spending roughly the same amount (or more) whenever you update your software to new versions or replace your hardware to keep up with the escalating requirements of your accounting program. In summary, cloud-based accounting software is more affordable, but traditional software is more accessible.