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Accounting Software or Online Accounting Application

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From a number of years all applications are moving from computer to cloud. Anywhere access  and its low cost has attracted users to move to the cloud.

A cloud is an online platform where application and its database resides rather than on your local server or PC. Along with other applications, accounting applications are gradually moving to the clouds. Online accounting is very common in developed countries and also rising at a very good pace in countries like India . A number of accounting applications like quickbooks and profitbooks are available for Indian users. For a comparison of the best Indian accounting software – Best Accounting Softwares in India

Online Accounting Applications

Online accounting application works like an email account where user login to his account and then can access his account. Account can be accessed from anywhere in the world as it is hosted on a server. Generally individuals and small organisations doesn’t have professional management of data and therefore many times ends with corrupt data or data erased by mistake.

Pros

  1. You can work from anywhere in the world. You can use any PC or laptop as software is not installed on a system. Also many applications is compatible with smartphones and tablets.
  2. Risk of loss of data is almost zero. Since web servers are professionally maintained,  backup servers are installed at different locations and your data is also protected from loss of theft, physical damage etc.
  3. If your laptop on which application is installed corrupts, stolen or damaged then you cannot recover your precious data. You have to do all the tedious work again if you don’t have data backup from last few days.
  4. Low cost as compared to accounting software. As no person needs to come to your place to setup software, costs to company is reduced.
  5. No compatibility issues with windows or other software can arise.
  6. Application update is automatically handled.
  7. One big benefit with online software is that they provide multi tab working. User can open and work on many tabs with different accounts and listing. This is mostly not in case of desktop versions.

Cons

  1. Good internet connection required. In India internet is not fast enough in small cities which may cause problems in working on cloud applications. A 512 kbps connection is good enough to work on a cloud accountign application.

Accounting Software

Pros

  1. As application is installed on your system, speed is very fast. Although modern age cloud applications are also fast enough.
  2. No internet connection is required so no downtime issues.
  3. Accounting software is a must when no. of transactions to be entered goes in 5 figures.

Cons

  1. Risk of loss of data is very high. Data corruption, hard disk damage is very common and may force you to do all hard work from the beginning.
  2. Manual data backup is required which is a tedious job for non tech-savy people.
  3. Can be accessed from your system only. You don’t get the benefits of accessing anywhere and from any device.

Related Pages – 

5 Best accounting softwares in India

Prateek Agarwal

Prateek Agarwal is a Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He writes mainly about GST and Finance.

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