It seems like every time I turn around, I hear about a new accounting software solution making news. With AI now enhancing many general ledger applications, the choices can feel overwhelming. To cut through the noise, I want to share six criteria every business should consider when choosing an accounting platform: accessibility, cost, features, security, backups, and ownership.
Accessibility
One of the first questions I get is, “Can we use this software on a PC, Mac, or phone? How many users can log in at once?” The answer depends on the platform. Desktop accounting programs still exist, but they often limit access to one device and require special setup for remote work. Cloud-based systems, on the other hand, run on almost any device and usually allow multiple users to work simultaneously. For accessibility, cloud solutions clearly have the edge.
Cost
Desktop software used to be a one-time purchase, but most vendors have moved to annual subscriptions. Cloud applications are even more subscription-driven, often charging by both user and company file. While the monthly fee looks small, costs can add up quickly if your business needs several users or multiple entities.
Features
AI and third-party integrations are transforming the marketplace. Desktop programs still tend to offer more built-in features for the price. Cloud platforms often take an à la carte approach: the core handles general ledger and reporting, but specialized needs like inventory, CRM, or dispatching require add-ons. That flexibility can be powerful but also expensive.
Security
Security is always top of mind. Desktop programs now include features like cloud-based user authentication, while cloud systems rely on multi-factor authentication. Both approaches can work, but the real concern is backups.
Backups
With desktop, you control your own backups, ideally with multiple methods such as cloud storage, external drives, or network servers. The risk is keeping all copies in the same location. Cloud software shifts backups to the provider, but here’s the catch: many providers are vague about their policies. If the company shuts down or you need to migrate your data, you may discover you don’t actually have a usable copy.
Ownership
This leads to the biggest concern of all: who really owns your data? With both desktop and cloud, if your subscription lapses, you may still “have” your data but be unable to access it. Some providers keep a shadow copy for a limited time, but that falls far short of the three to seven years recommended for financial records.
The Bottom Line
When selecting accounting software, it’s easy to get dazzled by features or convenience. But look deeper: How will you access your files? What will it really cost over time? What happens if your subscription ends? The right choice is the one that balances modern efficiency with long-term control of your financial information.
