Lately I’ve received many calls asking about cloud based accounting software solutions and in particular QuickBooks Online.  My answer to these questions tends to be a lengthy discussion of the needs of the client.  Here are my thoughts…

Find the software that meets your needs first.  Many cloud applications require the use of various add-ons to achieve the total solution while in-house software may have all the functionality needed in one product.  If the in-house product is a better match for the business, it can be hosted by various companies and you still have the option of a 24/7 solution. 

If you have a cloud based or hosted solution, you can access your data and program 24/7 and multiple users have access from any location or device that connects to the internet.  That sounds great but there are the issues to address:

• Connectivity – Vendor issues that may not allow you to access your data, what is their history?
• Security – What security is available and does it meet the legal requirements of you industry?
• Costs – Expect a monthly fee per user or company file.  I am not a fan of free solutions.
• Backups – Do you have the ability to download your data in a usable format?

If you choose an in-house solution you have more control, however there are also issues to address:

• Connectivity – Do you have remote users that need to log into the system?
• Security – How will you provide the proper level of security for your business?
• Costs –What are the software costs, annual renewals/updates, and cost of maintaining server?
• Backups – What is your backup strategy?

These are just some of the issues you will need to consider.