On-premise travel expense accounting - when does it make sense?

On-premise travel expense accounting - when does it make sense?

Cloud solutions are flexible, low-maintenance and the ideal choice for many companies. However, if the highest demands are placed on data protection, data sovereignty or system integration, an on-premise travel expense report can be the superior alternative. In this article, we show why, especially in the area of Travel expense report locally installed software is the better strategic decision for certain organisations.

1. introduction: Travel expenses in the digital age - why accounting is crucial

In many companies, travelling expenses are not just an annoying administrative process, but a real cost factor. Whether field service, customer appointments or training courses - every journey incurs expenses that need to be correctly documented and accounted for. In an increasingly digitalised world, cloud solutions are dominating the market. However, not every company can or wants to place sensitive billing data in external hands. One On Premise Travel expense report represents a controlled, secure alternative here - especially for organisations with special requirements for data protection, independence and integration.

While cloud models advertise with flexibility and low entry costs, a Locally installed software decisive advantages when it comes to Complete data sovereignty, system integration and legal security goes.

2. what does a On Premise travel expense accounting?

"On Premise" means that software solutions can be directly installed on the company's own servers and operated - in contrast to cloud services, where data is processed via the internet in external data centres. The Local data processing takes place entirely within the company's infrastructure - without any dependence on third parties.

Typical for a Self-hosted software solution are:

  • Operation in your own data centre or server room
  • Access via the internal company network or via VPN
  • Maintenance and data backup by the company's own IT department
  • Maximum control over sensitive travel dataincluding receipts, mileage allowance, daily allowances and booking histories

These In-house solutions fulfil the highest requirements for Data protection and security and can be customised precisely to individual business processes.

3. differences to the cloud solution - a comparison of advantages and disadvantages

On premise or cloud? This decision not only influences costs and IT operations, but also security, flexibility and future viability.

Technical and organisational differences:

(See table "On Premise vs Cloud" under point 9)

Beyond that:

  • Updates & maintenanceCloud applications are updated automatically by the provider. On-premise requires in-house IT expertise, but offers planning security.
  • Service Level AgreementsCloud providers define downtimes and availability. With on-premise, companies are responsible themselves - with maximum independence.
  • Dependence on third countries: With many cloud services, data is stored outside the EU - with on-premise, everything remains in-house.

4. which companies benefit particularly from a On Premise Solution?

Not every company has the same requirements. An on-premise solution is particularly useful if:

  • Data protection is a key issue (e.g. healthcare, authorities)
  • IT capacities available to ensure maintenance and operation
  • High integration requirements with existing systems
  • Poor or unreliable internet connection prevails

Typical application scenarios:

Sectors that benefit in particular include

  • Public administration
  • Industry with multiple locations
  • Research institutions with confidential projects
  • Educational institutions with internal billing

5 Data protection & compliance: when sensitive data should not leave the company

The Travel expense report in Austria is subject to a large number of legal requirements. Especially the GDPRbut also tax audit obligations require full transparency and control. A On Premise Solution enables the processing of personal data - including absence times, logbook and expenses completely internal.

Further advantages:

  • Compliance with internal data protection guidelines and company agreements
  • No transfer of data to non-EU countries (e.g. USA)
  • Possibility of anonymised processing in works council contexts

6. integration with existing systems - the silent advantage of In-house solutions

On-premise systems can be excellently integrated into the existing IT landscape. Particularly important for Travel expense report: the direct connection to

  • Payroll accounting software (e.g. BMD, DPW, SAP)
  • Cost centre and ERP systems
  • Digital personnel file
  • Auditing & accounting

This is done via:

  • CSV interfaces
  • REST APIs
  • Direct connection to local databases

The result: fewer media disruptions, automated processes and consistent data.

7. offline-capable and independent: Why Locally operated applications are robust

Stable Internet is not available everywhere - especially in rural areas or industrial zones. One locally operated application continues to run reliably even if the connection is weak. This is particularly relevant when:

  • Time-critical billing without interruption is necessary
  • employees are working on the factory floor or on construction sites, for example
  • Business Continuity Management (BCM) Risk management includes

Even in the event of a disaster (e.g. cyber attack, provider failure), a On Premise IT Solution fully functional - provided that appropriate backup processes have been implemented.

8. practical example: How an on-premise travel expense report works in reality

A company from the mechanical engineering sector decides in favour of the On Premise variant of workflow. Implementation takes place in just a few months, adapted to the collective agreements and company guidelines.

Roles involved:

  • Employees: Entry of business trips & receipts
  • HR: Check, authorisation, export for payroll accounting
  • IT: Operation & maintenance of the system
  • Controlling: Evaluation of travel expenses per department

Result:

  • 50 % fewer queries thanks to self-service portal
  • 100 % GDPR-compliant
  • Refunds are faster - employees are more satisfied
  • Time savings of many hours per month in the HR department

9. decision check: When is it worth switching to (or staying with) On Premise?

Here is an extended overview for decision-making:

CriterionOn PremiseCloud
Sensitive data
Own IT available
Internet access unreliable
Mobile access required⚠️
Low budget, fast implementation
Long-term data sovereignty desired
High need for customisation⚠️
External hosting concerns

10. on premise is not a discontinued model - but a strategic decision

Who believes, On Premise Software is outdated is a huge mistake. Particularly in the HR sector - especially in the Travel expense report - play topics such as Data protection, integrity and control a central role. For companies with the necessary infrastructure, the In-house variant often the more robust and economical way in the long term.

A look into the future shows: Hybrid models, in which critical applications are operated locally and others (e.g. calendar, office) are cloud-based, are becoming increasingly popular. However, the same still applies to highly sensitive data: Local operation means maximum protection.

FAQ - Frequently asked questions about on-premise travel expense reports

When is on-premise preferable to the cloud?

If a company has high requirements in terms of data protection, compliance or system integration - for example in public administration, the healthcare sector or with a limited Internet connection - an on-premise solution is often the better choice.

What are the technical requirements for an on-premise solution?

An on-premise solution requires an internal server infrastructure, sufficient storage space, IT specialists for maintenance and security and, if necessary, VPN access for external use.

How secure is an on-premise solution really?

On-premise solutions offer a high level of security, provided they are properly maintained. They allow complete control over data access, assignment of rights and internal security guidelines - without dependency on external providers. Cloud providers.

What legal advantages does On Premise offer?

On-premise solutions fulfil the requirements of the GDPR particularly well, as all data remains within the company. They also enable audit-proof management of travel data, expenses and per diems - a major advantage in the event of official audits.

Arrange a consultation appointment

Would you like to know more about onpremise travel expense report experience? Simply book your personal consultation appointment now. We will help you find the right solution for your company - customised, practical and non-binding.