Yes that is the best way to install/update the software but, if you connect your tool using the USB cable to your computer there are good chances of killing your tool...................
You can connect your tool using the USB cable if you want to back up so, you can copy all the Files/Folders to your computer using USB Cable NO Problem...........But, NOT for installing or, updating the software............. Or, just connect your tool directly to the internet if you have that options and update it.............