Cloud Vs On-Premise Invoicing Solution: Which is Better?

Cloud Vs On-Premise Invoicing Solution: Which is Better?

Recent years have seen a steep surge in the online invoicing software market usage. However, a debate on which is better: traditional or cloud systems, continues to ensue.

If we consider global trends, cloud solutions are much easier to use when compared with on-premise systems. 

These solutions need to be installed and then stored on a local server. This blog will help you establish a clear difference between both solutions and know which is better. 

Installation and Storage 

Traditional invoicing systems can help you keep your company books and other admin tasks in order. They also give you access to free invoice templates, and all the data is stored on these computers. 

Whereas cloud invoicing and accounting solutions are hosted on a remote server. This server stores a lot of data and no particular business owns it. While this solution also provides access to multiple free invoice templates, the major difference lies in its mobility, price and location. 

The good thing is that you don’t need to take care of computers or company servers with cloud accounting software. Your vendor does this job for you! 

The major difference between the two is that cloud solutions are held on remote servers, and data is sent, processed, and stored on the cloud. You can access your information any time and only a good internet connection is needed for that. 


One of the key differentiators between cloud and on-premise invoicing solutions is the money you need to shell out for the same. 

In the case of the latter, you need to get hold of the equipment from the beginning. This will also include the servers on which you plan to store and process data. 

Besides, it will also require you to spend on licensing costs and be very specific on the functionality. However, the situation is different with cloud systems. The initial costs are not high, and you don’t need to buy servers for processing data, get licenses for antivirus programs, and devices for storing copies of data. 

Moreover, your systems don’t need to function on a higher power as compared to traditional systems. This implies you can save on system costs and use them for better purposes. 

Maintenance costs are added due to purchased hardware and equipment. But, you can cut these costs by 70% with cloud accounting. Also, you will save a bomb on data storage which can be a huge cost with traditional solutions. 

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Tell us something is your money safer in your wallet or in a bank safe. Well, no prizes for guessing, millions of bank accounts are the answer to this question. 

Let us understand these scenarios when it comes to traditional and cloud invoicing. Natural calamities are potential threats to software and data. Imagine your invoices being stolen or burnt. Well, this is the reality when it comes to traditional invoicing systems. 

But, with cloud-based invoicing software, the data is stored on secure servers away from the company. Thus, your data is stored away from the prying eyes of hackers. 

Thus, the implementation of online invoicing software can be a long-drawn process if you are still resorting to traditional solutions. On-premise solutions will need a lot of preparation and investment to make the system function smoothly in the long run. 

While cloud systems also require effort, they provide business customization to an unimaginable extent, and all you need is the ability to learn and adapt. 

Besides, it is super easy to scale with cloud systems. All you need is available online, and there is simply a need for advanced computer equipment. 

Wrapping Up 

Be it traditional or cloud invoicing software, having the right accounting information is a must. One of the main advantages of cloud solutions is that it lets businesses leverage greater flexibility and improvise on workforce mobility. 

When it comes to traditional invoicing tools, you will need uninterrupted access to the internet at all times.  Also, you will need to ensure the uninterrupted operation of servers and have the right solution installed. 

So, the choice is yours; consider all the pointers and then choose the right solution for your business. If you cannot make up your mind, let us help you come to a decision! 


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