Cloud vs On-Premise Accounting: Which Is Right for Your Businesses?

26.8.2025

2 minute read

It has become clear that every business needs reliable accounting software. But with so many options available on the market, which accounting software is the best for you?

The main difference between most accounting softwares is whether they are cloud-based, or on-premise setups. At Progressive we offer both types of softwares, Summa Cloud Accounting (a cloud-based solution) and Sage 50 and Sage 200 Evolution (on-premise solutions). Let’s dive into what each software offers, and which is the best fit for your business.

What is Cloud Accounting?

Cloud accounting works by hosting online servers, allowing you to log in from any device whenever you need to. With automatic updates and backups, you simply need to pay your subscription fee and let the cloud handle the rest.

Summa Cloud Accounting

Pros:

• Access your accounts anytime, even when out of office.
• No need for constant IT maintenance.
• Easy collaboration with your accountants or team.  
• Easily scale up your system and add features as your business grows.
• Automatic system updates and data backups. 
• Lower upfront costs without needing to buy servers or expensive hardware.

Cons:

• Requires a constant and reliable internet connection
• Data hosted off-site (some businesses may prefer local storage)

What is On-Premise Accounting?

On-premise systems are installed directly on your computers or servers, giving you full control over where data is stored and how it’s managed.

Sage 50 and Sage 200 Evolution

Pros:

• Full control over data storage. 
• Know your sensitive data is secure with limited access. 
• Often more customisable for complex needs.
• Performance stability since it does not depend on an internet connection

Cons:

• Higher upfront investment in hardware and licenses.
• Manual upgrades and backups are required.
• Access limited to devices within your office (unless you set up remote connections or use Sage 50’s hybrid connection solution).

So, Which One Should You Choose?

For startups, medium-sized businesses, and service providers, Summa Cloud offers a cost-effective solution with low setup and maintenance requirements. For more complex operations, the choice between cloud and on-premise systems often comes down to priorities, mobility and flexibility vs control and customisation.

Large enterprises generally work better with an on-premise system like Sage 200 Evolution, which provides advanced features and greater control.

Companies that operate remotely can benefit from Summa Cloud, as it enables easier collaboration and secure remote access. In contrast, businesses in highly regulated industries may prefer the added security and data control of an on-premise solution such as Sage 50 or Sage 200 Evolution.

Still unsure on which is right for you? Contact us today to set up a consultation with our team and book a demo with the system best suited for your business.