What Is Cloud-Based Accounting Software?
In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of your computer's hard drive. The cloud is just a metaphor for the Internet. It goes back to the days of flowcharts and presentations that would represent the gigantic server-farm infrastructure of the Internet as nothing but a puffy, white cumulus cloud, accepting connections and doling out information as it floats.
Differences between cloud accounting & traditional accounting systems
Traditional Accounting Software comes with initial infrastructure costs as well as maintenance costs of on-site software and hardware.
Cloud accounting is much more flexible, allowing anyone who has access to your cloud account to crunch real-time numbers from any device, anywhere, as long as there’s an internet connection.
Benefits of Cloud Accounting
Secure Storage of Financial Data
Cloud accounting technology can provide a more secure method of storing financial information than desktop-based software. Data is routinely backed up to servers in multiple locations and there are no physical hard drives or computers containing sensitive data that can be stolen. Since financial information isn’t kept on premise, the risks of fires and natural disasters are also mitigated.
The multi-user feature of cloud accounting means different people can have access to the financial records and bookkeeping process, which they can access remotely.
The ability for data to be accessed regardless of location or device.
This facilitates remote services and “anytime” communication, which will help to build stronger relationships between an accountant/bookkeeper and their clients.
The ability to facilitate a paperless environment.
This will eliminate the need to physically store and manage paper documents, which is not only beneficial from a cost and office space perspective, but also for the environment.
Getting more insight from your financial data
With instant access to real-time reporting and financial intelligence, management team can have the numbers, insights and key data needed to make sound and informed decisions.