Accounting software: cloud or local installation?
Introduction
When the time comes to choose accounting software, a technical question quickly arises: should you opt for a cloud solution (SaaS) or install software locally on your computer?
This decision is not just a matter of personal preference. It directly influences your costs, work flexibility, data security and compliance with Swiss standards. Cloud accounting software promises access from anywhere and automatic updates. Locally installed solutions offer total control and independence from the internet.
For Swiss SMEs, freelancers and startups, the choice between SaaS vs local has concrete consequences on daily operations. Total cost of ownership, maintenance, backups, multi-user access: each model presents advantages and limitations that must be understood before committing.
This article objectively compares the two approaches, without bias. You will discover the real costs, technical constraints and use cases suited to each solution to make an informed choice according to your actual needs.
📌 Summary (TL;DR)
Cloud accounting software offers accessibility, automatic updates and predictable costs, but depends on the internet and involves a recurring subscription. Local solutions provide total control and work offline, but require a high initial investment, manual updates and self-managed backups.
For most Swiss SMEs and freelancers, the cloud represents the best simplicity-cost-compliance ratio, especially with remote access and collaboration needs.
📚 Table of contents
Cloud vs local installation: understanding the differences
Cloud accounting software operates entirely online. You access it via your web browser, without installing anything on your computer. Your data is hosted on remote servers, managed by the provider.
Locally installed software requires installation on your workstation or company server. The data remains physically with you, on your infrastructure.
The main difference? The cloud (or SaaS) updates automatically. Local software requires manual installations with each update. For Swiss compliance such as QR-invoices, this difference becomes crucial.
The cloud works on a monthly subscription basis. Local software generally requires a one-time licence purchase, but with hidden maintenance costs.
Advantages of cloud accounting software
Cloud accounting software transforms the daily management of Swiss entrepreneurs and SMEs. Here are the concrete benefits you gain by choosing a SaaS solution.
These advantages directly affect your productivity, compliance and budget. They explain why more and more freelancers are abandoning local installations.
Access from anywhere, at any time
Your accounting follows you everywhere. From your office, at a client's premises or whilst travelling, you access your invoices via any browser.
A freelancer can create an invoice directly at their client's location, on their tablet. An SME manager checks pending payments from their smartphone during a journey.
This mobility becomes essential with widespread remote working. No need to be physically at the office to manage your invoicing. You gain in responsiveness and flexibility.
Several collaborators can work simultaneously, each from their own workstation. Remote access eliminates geographical and technical constraints.
Automatic updates and guaranteed compliance
Swiss standards evolve regularly. VAT rates change, QR-invoice formats are refined. With cloud accounting software, you remain compliant automatically.
The provider deploys updates without any intervention on your part. You always use the latest version, with security patches applied immediately.
This automation eliminates a major risk: forgetting a critical update and sending non-compliant invoices. For entrepreneurs without an IT department, this is invaluable peace of mind.
Swiss legal changes are integrated as soon as they come into force. You no longer manage technical maintenance.
Predictable costs and reduced initial investment
Cloud accounting software operates on a monthly subscription basis. At BePaid, it's 20 CHF per month, with no hidden fees. Your budget remains predictable.
No heavy initial investment. No server to buy, no licence costing several thousand francs, no IT infrastructure to deploy.
Compare with a local installation: licence at 2,000-5,000 CHF, server at 3,000 CHF minimum, annual maintenance at 500-1,000 CHF. The installation cost quickly explodes.
For a micro-business or freelancer, the cloud subscription represents a controlled expense. You start with the free version, then upgrade to Premium according to your needs.
Automatic backups and enhanced security
Your data is backed up automatically, several times a day. In case of a problem, no information loss. Professional servers offer redundancy that few companies can afford internally.
Cloud security relies on professional standards: data encryption, certified data centres, 24/7 monitoring. Specialised providers invest heavily in protection.
With local software, you manage backups yourself. A hard drive fails, a computer is stolen, and you lose everything without a recent backup.
To understand where your data is hosted and how it is protected, consult our guide on online accounting data security.
Limitations and disadvantages of the cloud
Cloud accounting software is not perfect. Let's be transparent about its real constraints.
Internet dependency. Without a connection, you cannot access your data. For most Swiss entrepreneurs with a stable connection, this is not a daily problem. But in poorly covered areas or during an outage, you are blocked.
Recurring cost. The monthly subscription accumulates over the long term. Over 10 years, you pay more than a one-time licence. This model suits you if you value flexibility and continuous updates.
Less customisation. SaaS solutions offer standardised features. If you have very specific needs, bespoke local software may be more suitable.
Data sovereignty. Your information is hosted by a third party. Some companies prefer to maintain total physical control, especially in sensitive sectors.
Advantages of locally installed software
Locally installed software offers total control. Your data remains physically on your servers, without external dependency. For some companies, this sovereignty justifies the constraints.
No internet dependency. You access your accounting even without a connection. Relevant for organisations in isolated areas or with absolute availability requirements.
Advanced customisation. You modify the software according to your internal processes. Large companies with complex workflows appreciate this flexibility.
One-time purchase. You pay once for the licence, then optional maintenance fees. Psychologically, some prefer to own their tool rather than rent a service.
These advantages are mainly aimed at SMEs with mature IT infrastructure and dedicated resources.
Disadvantages of local installation
Local installation hides costs and constraints that are often underestimated. The initial purchase price represents only a fraction of the actual budget.
SMEs without an internal IT department quickly discover the complexity of maintenance. Manual updates require time and technical skills.
High total cost of ownership
The installation cost of local software quickly explodes. Initial licence: 3,000 CHF. Dedicated server: 4,000 CHF. Installation and configuration: 1,500 CHF. You are already at 8,500 CHF before even starting.
Add annual maintenance (800 CHF), paid updates (500 CHF/year), backups (hardware and time), and internal or external IT support.
Over 3 years, the total cost easily exceeds 12,000-15,000 CHF. Compare with cloud accounting software at 20 CHF/month: 720 CHF per year, or 2,160 CHF over 3 years, all inclusive.
The cloud transforms a heavy investment into a predictable operating expense.
Manual maintenance and updates
Each update requires manual intervention. You must download, install, test, sometimes correct incompatibilities. This takes time and mobilises resources.
The major risk? Neglecting a critical update. Your QR-invoices become non-compliant, your VAT rates obsolete. The consequences can be costly.
Without internal IT skills, you depend on an external provider. Each intervention is charged. Small businesses lose autonomy and responsiveness.
SaaS eliminates this mental and operational burden. Updates happen automatically, in the background, without service interruption.
Which choice for Swiss SMEs and freelancers?
The choice between cloud and local depends on your profile and actual resources.
Micro-businesses and freelancers: cloud accounting software is essential. You have neither the budget nor the IT skills to manage a local installation. Mobility and controlled costs are decisive. BePaid offers exactly what you need: Swiss compliance, simplicity and 20 CHF/month.
SMEs without an internal IT department: the cloud remains the best choice. You avoid hidden maintenance costs and remain compliant automatically. Remote access facilitates remote working and collaboration.
SMEs with mature IT infrastructure: both options are viable. If you already have servers and internal skills, local can be justified. But even in this case, the cloud simplifies life.
Decision criteria: available initial budget, necessary mobility, IT skills, data volume, information sensitivity.
To deepen your reflection, consult our guide to choosing the right invoicing software. If you are hesitating between managing yourself or delegating, read our comparison accounting in-house or fiduciary.
The choice between cloud accounting software and a local installation depends on your priorities. The cloud offers accessibility, automatic updates, predictable costs and enhanced security. Local installation guarantees total control and independence, but involves hidden costs, complex maintenance and risks of non-compliance.
For most Swiss SMEs and freelancers, the cloud today represents the most pragmatic solution. The advantages in terms of time savings, guaranteed compliance and ease of use far outweigh the few limitations.
If you are looking for a simple solution to manage your invoices compliant with Swiss standards without complicating your life, try BePaid for free. Create your QR-invoices in a few clicks, track your payments and automate your reminders. Free version available, without commitment, and migration to Premium at only 20 CHF/month if your needs evolve.
