Web-Based Software Applications

Web Based Software Applications - The Option to Rent

Application Service Providers (ASP) are the new kids on the block. They provide accounting and other software to small and medium business through their Internet Server computers. You access their site and the software using the web browser on your computer such as Microsoft Internet Explorer or Netscape.

The Advantages to this approach are:

Low up-front cost and probably lower long-term cost than buying it.
They provide the hardware expertise.
They provide the security for the data.
Anybody that you authorize can enter data or see reports regardless of their location.
You are always using the latest version of the software and probably a much higher class software than you normally could afford to buy.

The Disadvantages are:

Dial-up networking at 56k is probably too slow for most applications. This problem is on the way out with the proliferation of ISDN and DSL hookups.
The Internet is not yet as reliable as the Local Area Network (LAN) that you may be use to. There are times when the Internet is overwhelmed with volume.
This is a very new animal and development of most of the sites offered by ASP's are no where near as complete as I would like them to be.

While many businesses will be interested in this approach because of the low cash requirements, the real advantage in my mind is that any authorized person with a computer and modem can access the data from anywhere. This allows you to have a bookkeeper keypunch your vendor invoices from their home with potential savings in salaries and office space. Your CPA could access your General Ledger and fix mistakes without leaving his or her office, a potential fee savings. You can be at a condo near Disney and still check the list of checks printed that day or review the financial statements with the new drill down capacity available in modern accounting software. Businesses with remote locations should definitely give web-based accounting software a look.

The major concern most people will have is that their data is not on their local computer and therefore out of their control. I believe that this concern is very much overrated. Most of us are spotty at best about performing regular backups, whereas the guys with the mainframe computers have automatic backup programs and mirroring schemes that keeps the data on several different hard drives at different locations. Most of us are very poor about keeping our virus programs up-to-date. The big box boys have way to much money invested in their computers and software to let their guard down. The mainframe computer sites, with their professional staffing, also have been using 128-bit encryption as the norm, while most of us are planning on getting around to it soon.

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