Director of Sales and Marketing Coral Tree
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Why Cloud Accounting May Not Be for You - Part 4

Jan 7th 2019
Man shunning cloud over his head
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This five-part series is designed to speak to the group that, for whatever reason, does not want to move to a cloud-based solution, but are looking for the reassurance that they are not “close minded” or “behind the times.”

Part Four: “Why should I pay all of that extra cost?”

When considering whether or not it makes sense to move accounting functions to the cloud, many people will immediately consider their cost increases. As we have discussed in the first three parts of this series, when you are a business owner that does not have any compelling reasons from a functionality perspective to move away from the desktop, you will not be enamored with spending more money.

There are quite often debates regarding whether or not it is more cost effective to move to a purely cloud-based program (QuickBooks Online, Xero, etc.), a cloud hosting service (Right Networks, Cloud 9, Unidata, etc.) or just to stay with the desktop software. 

Most commonly, a user will purchase software and use it for a minimum of two to three years having paid a one-time fee. In many cases, a user may extend the use of a version for an additional one to three years even though the software provider discontinues support. 

In these scenarios, a user will spend substantially less than the cost for an equivalent cloud-based resource, which requires a monthly subscription fee. Additionally, when using a cloud-based resource, the subscription fees can often be increased and all users are subject to those cost changes. 

Example:

Small Business Owner Using QuickBooks Pro for Windows

Option/First Year Price Three-Year Price
Desktop Software/$299.99 $299.99
QuickBooks Online*(per user) $274.86 $921.66
Right Networks Hosting**(per user) $600.00 $1,800.00
*Pricing based on QuickBooks Online Essentials as advertised on Intuit website. (First six months $18.86 then $26.95 a month)

**Pricing based on Right Networks hosting prices as advertised on website-price does not include software fees

Summary

As previously mentioned in the first three parts of this series, a user should always choose the accounting solution that best meets the needs of their business. Although some business owners will benefit from the features and accessibility of a cloud-based solution, the users that do not have a reason to change will only end up spending more money for a resource they do not need.

In other words, if the desktop version of your software is working well for you and you want to continue working within your local environment, there is no reason to change. 

Next...Part Five: "Can I have the best of both worlds?"

 

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