Summary: The prevalence of Web-based accounting systems continues to grow, as more and more businesses choose them over client/server solutions. This article highlights the tremendous value an organization can derive through the use of a Web-based accounting software package.

Is Web-Based Accounting Software Right for You?

When it comes to accounting software packages today, there are many “flavors” for companies to choose from. But the popularity of one particular type – Web-based accounting software – continues to grow at a rapid pace. 

In the past, Web-based accounting software systems were primarily for smaller businesses who couldn’t afford to buy the many available enterprise-scale software packages on the market. But, current trends are proving that more and more organizations, both small and large alike, are opting for Web-based accounting solutions to address their most vital financial management needs. 

The term Web-based accounting software is often used interchangeably, to describe two different types of solutions. Its two distinct meanings are:

• On-site accounting software packages that are deployed over the Web with a browser front-end, typically via corporate Intranets. These systems are also often referred to as Web-enabled accounting software. 
• Hosted or on-demand accounting software solutions that are installed and maintained by a third-party application service provider (ASP), then accessed by end users through the Web.

A Web-based accounting software package that is installed on a company’s premises, and resides on the company’s own servers, can offer many significant advantages over accounting software solutions that are implemented in client/server environments. Some of these benefits include:

Improved Accessibility and Portability
With Web-based accounting software solutions, users can get to the application, and retrieve the data it contains, at any time, from any Internet-enabled location around the world in real time. This is particularly important for those organizations that have a high number of remote staff members, workers in branch locations, or employees who travel frequently. 

Ease of Use
Web-based interfaces are typically known for being simpler and more intuitive than their client/server solution counterparts. And, this is also the case when it comes to Web-based accounting software, which offers unmatched user-friendliness. 

Improved Integration
Since they are already Internet-enabled right out of the box, Web-based accounting software solutions offer faster and tighter integration with online banking systems, as well as e-procurement, e-billing, and other Web applications – even those that are owned and maintained by third parties. 

In addition to the benefits listed above, hosted or on-demand Web-based accounting software applications can offer additional value to organizations, such as:

Reduced Total Cost of Ownership (TCO)
On-site accounting software often requires a big upfront investment. But, with hosted Web-based accounting solutions, big-ticket software purchases are replaced with lower, more cost-efficient monthly fees, based on the number of licensed users or the number of financial transactions processed. This approach can minimize total cost of ownership and accelerate return on investment. 

Decreased Administration
With hosted Web-based accounting software systems, companies don’t have to worry about installation, upgrades, technical support, and ongoing maintenance. All system deployment and management activities (and in many cases, end user training and roll out) are the responsibility of the ASP. So, limited IT staff resources won’t be further strained, and are freed up to work on other important technology projects.