What is the Difference Between Cloud and Hosted Tax Software?

Practice Management Cloud computing service. Cupped hands holding cloud symbol.

When discussing our software with customers, we often get the question, “What’s the difference between cloud and hosted tax software?” They are both accessible via a web browser from anywhere that has an internet connection – so are they essentially the same thing? There are several differences you should be aware of when making the decision between a cloud tax software like Intuit® ProConnect™ Tax Online and QuickBooks® Online versus hosted tax solutions.

Cloud software such as Intuit ProConnect Tax Online and QuickBooks Online provides the functions of a traditional application, but instead of making use of local computer resources, the functions are provided through a web browser. Users just need to create an account to start using the software, so it’s fast and easy to get started.

A hosting service is created when a company provides server space and program maintenance for individuals that do not have their own servers. Programs typically need to be installed and configured by the hosting company before the customer can access and use their programs.

Below are some the other key differences between Intuit cloud software and the typical web-hosted professional tax software solution.

 

Key feature Cloud software Hosted software
Work from anywhere that has an internet connection x x
No program installation required x
No program maintenance required x
No need to regularly backup client data x
No need to install updates; the program is always up to date x
No monthly service charge x
No fee for additional users x

 

Find more information about Intuit’s cloud-based professional tax software, ProConnect Tax Online, as well as QuickBooks Online.

Comments (3) Leave your comment

  1. Yes, this is the time when world becomes more and more connected. It is true that cloud service and hosted task service are basically 2 different things. Your blog also describes some of the distinctions between cloud and hosted service. Mainly clod gives the access to the environment where one can customize his needs but with hosted service one is limited to the feature and capabilities. Cloud provides elasticity that means costs can increase or decrease according to the demand where service sets a fee per user by which cost remains fixed. In clod, data is backed up automatically but in hosted service if one stops paying for the service then this data can be immediately terminated.

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