Cloud Based Accounting
Cloud accounting software is similar to traditional, on-premises, or self-install accounting software, only the accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent into “the cloud,” where it is processed and returned to the user. All application functions are performed off-site, and not on the user’s desktop. In cloud computing, users access software applications remotely through the Internet or other network via a cloud application service provider. Using cloud accounting software frees the business from having to install and maintain software on individual desktop computers.
Benefits of Cloud Accounting
• Cloud Accounting provides for safe storage of data with routine backups thus mitigating the risk of loss of data.
• It is based on pay as you grow model thereby allowing small businesses to add required features as they grow. • It provides multi-user access from remote locations thus enabling quick communication and better management of tasks.
• Cloud accounting software contain built-in mechanisms to identify and eliminate double entry mistakes and human errors thereby enhancing data accuracy.
• Cloud accounting softwares notify in advance, the schedule of software updates required so as to avoid any unexpected downtime.