Web-based accounting software is similar to traditional accounting software.The main difference between traditional and web-based accounting software is:
Each of those two systems has advantages and disadvantages.
Generally, web-based accounting software is less expensive than traditional accounting software systems. Using cloud accounting software allows companies to avoid business costs on the hardware and accounting system installation, maintenance, administration, updating, and server failures. Usually, payments for web-based accounting software are made on a monthly basis.
Web-based accounting software enables access to the accounting data anytime from anywhere on any device via the Internet connection. The traditional accounting software provides access to the business data on a few select on-premises computers only. However, many providers of traditional accounting software offer mobile applications (developed for mobile devices) easily integrated with their accounting system. Such mobile solutions enable access to the business data anytime from anywhere via the Internet connection too. So, in the case of the problems with the Internet connection, the traditional accounting software system can be used, rather than the cloud ones.
In the case of using web-based accounting software, the business data could be hosted on the server anywhere in the world, and a company does not have control over where its financial information is. At the same time, depending on the judicial rules of the country where the accounting data is located the government may review and audit this business data.
The functionality provided by both cloud accounting systems and traditional accounting software can vary from simple systems designed for entrepreneurs and small businesses to more complex developed for middle and developing companies.
As a rule, traditional accounting software can be customized to meet the company’s specific needs. The cloud accounting software cannot be changed, configured, and customized as easily as the desktop accounting software system.
Usually, providers offer accounting software regardless of it is traditional or web-based that is integrated with other software products.