When it comes to choosing between local servers and cloud-hosted infrastructure, there’s no one-size-fits-all answer, especially for accounting firms. The right solution depends on your unique business needs, risk tolerance, and the way your team operates.
Rather than chasing the “best” option, firms should focus on what’s best for them.
Do You Have a Physical Office or a Remote Team?
If your entire team works from a central office, a local server can be a practical, cost-effective solution. It keeps data close and often reduces monthly expenses compared to ongoing cloud subscriptions.
But if your team is hybrid or remote, the cloud shines. It enables secure, anytime-anywhere access to your software and client files, often without needing VPNs or direct office connectivity. Remote teams benefit from the flexibility and built-in redundancy of cloud accounting services.
What Applications Are You Running?
The software you rely on should heavily influence your decision:
- Cloud-native tools like QuickBooks Online, Canopy, or Xero? You’re already in the cloud for accountants ecosystem—lean into it.
- Legacy or desktop-only apps like older versions of UltraTax or Drake? These often perform better on-premises unless hosted in a managed private cloud.
The more cloud-friendly your software stack, the easier and more secure accounting cloud services adoption becomes.
Cost vs. Risk: A Balancing Act
Local infrastructure (servers, switches, firewalls) can have a lower total cost of ownership over a 3–5 year period. But that comes with trade-offs:
- You’re responsible for backups, disaster recovery, and hardware maintenance.
- Power loss, fire, or theft can jeopardize your data and business continuity.
- Scaling requires capital investment—not just a click of a button.
Cloud accounting services often cost more on paper (monthly fees, data storage, etc.) but shift the responsibility for uptime, failover, and updates to the provider. And if something goes wrong, the recovery options are often faster and more robust.
Security and Compliance Considerations
Both local and cloud environments can be secure—but require different approaches.
- On-premise setups demand disciplined patching, firewall management, endpoint protection, and offsite backups.
- Cloud environments come with built-in safeguards but must still be configured securely.
If you’re subject to FTC Safeguards, SOC audits, or other regulations, make sure your choice aligns with those requirements. The right cloud solutions for accounting firms can support compliance with minimal friction.
Questions to Help Guide Your Decision
Here are a few key questions to ask:
- Do we have a physical office with centralized staff?
- How often do we access systems remotely?
- Are our core applications cloud-based, server-based, or hybrid?
- Do we have the resources to manage our own infrastructure securely?
- Are we comfortable relying on a cloud server for accountants for uptime and data handling?
Final Thoughts
There’s no universal answer, but there is a smart answer for your firm. Whether it’s a fully cloud-hosted setup, local infrastructure, or a hybrid environment, the goal is to support your workflow, protect your data, and make IT easier, not harder.
Need help evaluating your options? At Plus 1 Technology, we specialize in helping accounting firms find the right-fit infrastructure—no fluff, no bias, just smart strategy. Contact us today to get started with modern cloud solutions for accounting firms.
