Online Bookkeeping vs Desktop - A 5 Point Debate

There’s a train call the Cloud and it isn’t slowing down.  The speed at which web-based solutions are being developed for big and small business is phenomenal. Book keeping is no stranger to this trend and there are now some fantastic solutions out there. However, for small business owners, making the switch from desktop to web-based bookkeeping needs to be an educated decision and as such, here is an express 5 point debate:

1. COST

Online bookkeeping solutions generally do not involve upfront software costs but often require a monthly subscription fee. However, the benefits of online book keeping solutions often dramatically outweigh the costs.

Here are a few more cost considerations:

  1. Saving time is saving money. Manual data entry usually costs several dollars per document in wages. Automating this function with a web-based solution can create huge cost savings for business owners through the elimination of these extra wages.
  2. Desktop bookkeeping softwaresolutions often involve maintenance and upgrade costs.
  3. Online-based bookkeeping solutions make it much easier for your business to become paper free! This will help you save both money (on paper, printers, ink, files, folders, filing cabinets...the list goes on) and trees.
  4. Web-based solutions require an internet connection which generally involves a monthly fee.
  5. The simplified and automated bookkeeping processes of web-based programs can help to significantly lower end of financial year accounting costs (less time is spent sifting through documents and the accountant can log in directly).

2. FLEXIBILITY

‘Cloud’ bookkeeping means it is available anywhere, anytime and from any device with an internet connection. A desktop based bookkeeping service limits your locational flexibility.

3. INTEGRATION

Web-based programs usually allow integration with other web-based applications and bank accounts, enabling smoother processes and automated management of payments, invoices and other records.  Desktop programs may link to Excel spreadsheets or other documents but web-based book keeping programs like Saasu do this as well.

4. DATA ENTRY

Online bookkeeping software usually automates the majority of data entry, saving huge amounts of time (and as discussed above, huge amounts of money) and minimising the risk of human error. Some desktop systems allow the importation of data from excel spreadsheets or other documents however there is generally a great deal more manual data entry involved  than with a web-based program.

5. FILE SHARING

Moving into the cloud also enables you to share documents through (often free) online portals. This facilitates efficient, simple and time-saving practice that improves productivity. You can have ‘shared drives’ on a desktop but these files are usually only accessible at your workplace. Dropbox is a great example of a web-based document sharing application that features instant collaboration and helps you avoid extra emails and faxing.

These considerations are only the tip of the iceberg. The ‘Cloud Train’ is gaining momentum for a reason. Perhaps you should consider getting your small business on-board?

So, how do you plan to manage your bookkeeping in 2012?

Perfex – January 2012