On-demand accounting software, also referred to as “hosted” or “Web-based” accounting software, provides all the same features and capabilities as on-site accounting software solutions. However, a hosted solution is not installed and maintained at the company’s site.

Instead, it is essentially leased from a third-party application service provider (ASP), who takes on all responsibility for its deployment, storage, and ongoing administration. Your business would simply pay a monthly fee to use the system, while the ASP handles the rest.

If you’re unsure as to whether on-demand is right for your company, here are some factors to consider: some advantages to a hosted software system include better affordability in the short-run, rapid deployment, minimized technical administration, and accelerated return-on-investment. On the other hand, hosting your data elsewhere can mean reduced control over that data. Using lower-quality applications can be risky from a security standpoint. And, with the monthly billing for on-demand accounting software, your company would face increased long-term total cost of ownership.