by QNE PH for Blog Post

One of the most significant factors in choosing an Accounting System is whether you want the system to be on premise or in cloud. First, let us know the meaning of On-premise and Cloud-based.

What is On-premise?

In an Accounting…

Published: June 6, 2019

Thinking of purchasing an accounting system? Here’s what you need to know about Cloud Accounting software Philippines and On-premise Accounting Software Philippines.

What is On-premise Accounting Software?

In an Accounting System like QNE Optimum and SAP Business One, On-premise means the Accounting Software is installed and runs on computers located within the premises of the person or organization.

Popular On-Premise Accounting System Software includes QNE Optimum Accounting Software, SAP Business One and Oracle Netsuite.

Cloud Accounting Software

It refers to the applications software like Accounting, Payroll Software, POS or services that are made available to the users via the Internet from a cloud computing provider’s server. Companies often chose Cloud Accounting Software Philippines to lessen the infrastructure cost and focusing on other business’ demands.

Cloud Accounting Software - Cloud Accounting Software Philippines - 1

Knowing your company’s capability will help you select what will work. To dig deeper, below is the list of the important details that the company must consider:

Pricing and Implementation of Cloud Accounting Software Philippines vs. On-Premise Accounting Software Philippines

In Cloud Accounting Software, the provider hosts the software using their server and accessed through a web browser.

While the On-premise Accounting Software the system is installed locally in the company’s server and workstations.

When it comes to pricing, cloud accounting software Philippines is priced via subscription based. For example, an individual or a company will pay monthly or annual fee to continue the use and support of the system. Most of the time, annual subscription will cost lesser.

On-premise accounting software can be availed one-time with a specific price for a perpetual license. The fee will depend on the company’s requirements and the number of concurrent users. Other fees include support, maintenance and updates which is usually free for a year or two depending on the provider.

This means, on-premise system will demand a higher initial investment cost for an individual or a company compare to cloud accounting system. While cloud accounting software Philippines is considered as continuous cost that the organization must pay.

Cloud Accounting Software Advantages and Disadvantages

Security is the main concern of the companies with cloud-based accounting system software. Companies worry about hacking and loss of important and private data. That is why a lot of cloud-based accounting software providers have implemented strict standards when it comes to managing client’s data.

This is the main reason why cloud-based software has growing number of users and it is more ideal for startup who needs an accounting software but wants a lower initial cost.

CostLower Initial InvestmentMay cost higher over time of use
Reliable Cost Estimate
Minor hardware investment
SecuritySystem and Database are in the hands of the providerData security concerns for the company
CustomizationContinuous updates from the providerLimited customized features or reports
ImplementationShorter Implementation timeSometimes self-taught

On-premise Accounting Software Advantages and Disadvantages

The main advantage of an On-premise software is that the company has a full-control of their data and customization is more convenient.

CostLong-term cost is lesserHigher initial investment
Riskier cost for investment
Company needs to invest in Hardware and IT setup
SecurityDatabase is maintained by the companyData security must be maintained by the company and a knowledgeable person must be in-charge
CustomizationCustomization is more flexibleCustomization may delay implementation
System Updates may affect customized features
ImplementationCompany has control of the implementationLonger implementation process

In general, Accounting Software type will be based on the requirement and capacity of the business, whether it is cloud-based or on-premise. Nowadays, accounting software like QNE Optimum, SAP Business One and Oracle Netsuite offer more option to the companies on how they will handle their data and transactions.

QNE offers a 60-days FREE Inventory Software Philippines License to let you experience the change that it can bring to your organization! Sign up now. Click the image below!

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