Last updated on July 18th, 2022
Cloud accounting is the new norm. While the world is moving towards cloud accounting, many organizations are still not aware of the differences between a cloud-hosted solution and an on-premise solution. Similar is the case with QuickBooks hosting. In this post, we’ll discuss why QuickBooks hosting is better than a locally installed QuickBooks.
But before that, let’s try to understand both of them in brief.
Any QuickBooks solution consists of a software and hardware setup. Depending upon the nature and size of the organization, the number of databases, computers, and other hardware may vary.
Cloud hosting means that the software and hardware reside in an offsite data center, and the cloud solution is provided by a hosting provider. The hosting provider is your dedicated point of contact for any issue that you may face. Locally installed means that the IT environment lies on the company premises and managed by your company’s IT team.
So, Does QuickBooks Hosting Beat Locally Installed QuickBooks?
Due to its flexibility, security, reliability, and availability, QuickBooks hosting is the new form of accounting solution that today’s accounting firms are opting for. The cloud provider offers a range of unmatched benefits like remote access, better data security, high-performance servers, etc., making it a superior choice.
Let’s now look at some aspects where QuickBooks hosting solution is a clear winner.
1. Remote Access
QuickBooks on a local desktop system does not offer the facility to access data remotely. You’ll have to be present in office premises to make even a small change in datasheets. This can be a problem when your client asks for urgent help during non-business hours.
When hosted on the cloud, QuickBooks and the accounting data can be accessed remotely over the Internet. The users can log in to their QuickBooks account from any place in the world. All they need is a compatible device and an internet connection.
Businesses can grow only if they outdo their competition and grow. And in order to grow and become the market leader in their domain, they need to change many things. This means that they need to increase the size of their team and scale their operations.
When your business expands, you would need to upgrade your accounting software as well. Your accounts department will expand, and quite a few significant changes will take place in their responsibilities. A locally installed solution requires a great deal of manual labor to scale the software and hardware requirements. It might impact your company’s business operations as well.
A hosted QuickBooks software is exactly what you would need. It can be scaled up in terms of capabilities and the number of users instantaneously without impacting daily operations.
3. Data Security
Data security is an essential component of any accounting business as they deal with sensitive numbers of their own and their clients. This means that this data needs to be handled with care and cannot go in the wrongs hands at any cost.
If you handle data on the local premises, it needs expertise and proper handling, which means you will need to hire a group of dedicated experts. Data security also includes advanced methods, algorithms, and technologies. Most small businesses cannot afford such a high level of security.
In the case of QuickBooks hosting, your hosting provider will cater to all the privacy, confidentiality, and security requirements, ensuring that your data gets an optimum security environment.
4. Ownership Cost
The cost and ROI of a solution matter the most for most businesses. This is how business owners calculate the value it will add to their organization. Thus, the cost is of considerable significance while implementing any solution.
The cost of implementing a locally installed QuickBooks solution requires enormous capital investment because the company bears everything ranging from the installation, maintenance, and upgrade of the IT hardware infrastructure, and the like. Then there’s an additional cost of hiring the right personnel for troubleshooting the issues. If yours is a startup, a locally installed QuickBooks solution might not be viable.
In the case of QuickBooks on cloud, you don’t own the IT infra; instead, pay a monthly fee according to the selected plan. The hosting provider also handles all the maintenance expenses and other issues, saving you both capital and operations costs.
In today’s competitive world, accounting firms must have access to high-performance systems. A delay of a few seconds in processing financial documents means that your competitors can take advantage of it and lure your clients away.
A locally installed QuickBooks may slow down or crash while handling large files or when a lot of third-party apps are integrated. This means a delay in work, resulting in your employees having to spend more time waiting.
The cloud-hosted Quickbooks solution is powered by High-Performance Computing (HPC) servers. This means that performance will never be an issue – whether it is processing large files or integrating several apps with your QuickBooks solution.
6. Disaster Recovery
Every financial institution should have a disaster recovery plan in place to combat a natural or human-made disaster. However, CIOs are often challenged by limited finances or other resources while considering a disaster recovery plan.
Locally installed QuickBooks solution backup the data on a dedicated local server. Moreover, the security and ability to recover the data during a disaster will be the sole responsibility of your IT team, and if a disaster strikes, everything (including your original and backup data) can be lost.
The cloud hosting providers offer a cloud-based alternative that proves to be an effective substitute for the on-premise solution. The pay-as-you-use pricing allows companies to pay a monthly subscription fee and not worry about data recovery or business continuity. All of it will be taken care of by the hosting provider.
The cloud has and will continue to impact accounting firms. Whatever their preference may be, companies are bidding goodbye to their traditional locally installed QuickBooks.
If you’re wondering about migrating your QuickBooks to the cloud, get in touch with our Solutions Consultant at 855-910-6927.
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