In today's digital age, businesses have two primary options for accounting software: on-premises accounting software and cloud-based accounting software. While cloud accounting is gaining popularity, on-premises solutions like ABSS (formerly MYOB) and SQL Accounting continue to be the preferred choice for many businesses. But why? Let's dive into the differences and explore the key advantages of on-premises accounting software.
What is On-Premises Accounting Software?
On-premises accounting software is installed and run on a company’s local computers or servers, meaning the business has complete control over the system and its data.
Examples: ABSS (MYOB), SQL Accounting, AutoCount, Sage 50.
What is Cloud Accounting Software?
Cloud accounting software operates on remote servers, meaning users access it via the internet. The data is stored and managed by the software provider.
Examples: Xero, QuickBooks Online, Wave Accounting.
Key Advantages of On-Premises Accounting Software
1. Full Data Control & Security
With on-premises software, your financial data is stored on your own servers, reducing the risk of cyberattacks or unauthorized access. Businesses with strict compliance requirements or sensitive data prefer this level of security.
2. No Dependence on Internet Connection
Unlike cloud software, which requires a stable internet connection, on-premises accounting software allows businesses to work offline without disruptions, ensuring smooth operations even during internet outages.
3. One-Time Cost vs. Subscription Fees
Most on-premises accounting software involves a one-time purchase or a perpetual license, whereas cloud accounting follows a monthly or yearly subscription model. Over time, on-premises software can be more cost-effective for businesses that don’t want recurring expenses.
4. Customization & Flexibility
On-premises solutions like SQL Accounting offer deeper customization options, including:
Custom invoice and report designs
Integration with third-party software
Advanced user access control
Cloud accounting software often has limited customization due to the shared infrastructure.
5. Better Performance for Large Data Files
If your company handles large volumes of transactions, on-premises accounting software provides better speed and performance because the data is stored and processed locally rather than relying on remote servers.
6. Stronger Local Support
Solutions like ABSS and SQL Accounting come with local support from resellers, offering personalized assistance, training, and on-site troubleshooting, which cloud-based solutions may lack.
7. Remote Access Can Be Enabled
With on-premises software, businesses can set up remote access solutions to allow users to work from outside the office while still maintaining full ownership and control over their data.
8. Ownership of Data
With on-premises accounting software, you own your data permanently. In contrast, cloud-based accounting software restricts access if you unsubscribe, meaning you might not be able to retrieve your full database if you stop paying.
When is Cloud Accounting a Better Choice?
While on-premises software has many advantages, cloud accounting may be suitable for:
Small businesses that need easy access from multiple locations.
Companies with remote teams that require real-time collaboration.
Businesses that prefer automatic updates and backups handled by the provider.
Final Thoughts: Which One is Right for You?
If data security, performance, and long-term cost savings are your priorities, on-premises accounting software like ABSS and SQL Accounting is the best choice. It provides control, stability, and flexibility tailored to business needs.
However, if remote accessibility and minimal IT maintenance are more important, cloud accounting might be worth considering.
At the end of the day, every business is unique. Choose a solution that aligns with your company’s growth, workflow, and security requirements!
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