On-premise vs cloud accounting systems

Do you know what the difference is between cloud-based accounting software and on-premise accounting software? If not, don’t worry! This article will help you get a handle on what makes each type of system tick. You’ll learn about the pros and cons of each as well as recommendations for using them in your business.


What are the benefits of on-premise accounting software?

On-premise accounting systems offer a number of benefits. Because the software is installed on your organization’s network, it can be customized to fit your needs better than cloud-based options. This can be especially beneficial for companies with specific data residency requirements or who want complete control over how their accounts are managed.

However, purchasing, storing, maintaining, and making software adjustments can all be cost-prohibitive factors that should be weighed into any consideration. So too are the resources you have available to ensure both physical and digital security of that data. 


When should you use cloud-based vs on-premise accounting software?

If you’re looking to store your company’s data in its own servers, then an on-premise accounting system can be the right choice for you. If your business needs a more robust solution that allows remote employees and customers access to data at any time, then cloud-based software is probably better suited for your needs.

Most businesses use cloud solutions because they don’t want the headaches of maintaining their own servers, but there are pros and cons to this decision:

  • On-premise systems are typically more expensive than cloud solutions due to licensing fees and maintenance costs
  • Cloud solutions require no upfront investment — you only pay for what you use (usually by the month)


There are a number of pros and cons to both cloud and on-premise accounting software.

Cloud accounting software is more flexible, cost effective, scalable and secure. On-premise accounting software requires you to invest in hardware and software infrastructure.

Pros of cloud accounting systems:

  • Cloud accounting systems are more flexible than on-premise systems because they can be accessed remotely from anywhere at any time. This means that you can complete your financial tasks while travelling or working at home without having to be in the office.
  • If your business expands quickly, you may need to scale up quickly too which is not possible with an on-premise solution because there’s no room for expansion within your walls or building premises.
  • It’s also easier to access data from multiple locations using cloud solutions whereas on-premises solutions typically require everybody who needs access to be physically present at the same location so that they can connect via a local network connection.


There is no right or wrong answer when it comes to choosing between on-premise or cloud accounting software. Both have their pros and cons, so it’s important that you weigh the options carefully before making a decision. Not sure which is best for you? Reach out to our team today to discuss your business case and get a personalized demo.