Cloud computing accounting software is software that is hosted on remote servers. It provides accounting capabilities to businesses in a fashion similar to the SaaS (Software as a Service) business model. Data is sent into QuickBooks Resource Center “cloud” where it is processed, returned to the user and stored. All application functions are performed off-site, 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 computing accounting software frees the business from having to install and maintain software on individual desktop computers. It also allows employees in remote or branch offices to access the same data and the same version of the software. Business owners can have peace of mind that comes from knowing that routine maintenance and updates to the software are managed by the SaaS (Software as a Service) provider. Cloud accounting solutions are often subscription based, and clients can upgrade monthly or annual plans to meet the growing needs of a business.  The benefits to the end user include access to real time data from anywhere with an Internet connection, and from any device–including laptops, smartphones, and tablets.

The benefits of cloud accounting

For new businesses, starting fresh with a cloud solution is easy as signing up. Established businesses however, will need to plan ahead for migration to ensure that critical data is kept intact and everything continues running smoothly. Fortunately, major cloud accounting providers such as QuickBooks Online allow seamless transition from older, traditional desktop based solutions. Many business owners who migrated to cloud accounting technology have reported cost savings and greater efficiencies in day to day operations.

Here are the top benefits of cloud accounting solutions:

storage data

Safe 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 by the SaaS provider, 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.

Pay as you grow

Small businesses often experience growing pains, which makes choosing

software with future growth in mind a priority for many. Cloud accounting

software allows businesses to purchase what they need and increase their

spend as they grow. This includes adding more storage space, users, and

more advanced features.

Multi user access

Once you reach a point where your business is looking to outsource specific

tasks, using cloud accounting can help scale in a cost-effective and controlled

manner. The multiuser feature of cloud accounting means you can give

different people access to your financial records and bookkeeping process,

which can be accessed remotely. This streamlines workflow, and allows you to

ask your advisor or accountant questions directly, all based on the most

up to-date versions of documents. The multiuser feature makes for quick

communication, team collaboration and less back and forth.

Data accuracy

Cloud accounting programs promote accuracy by streamlining the data importing

process and eliminating double-entry mistakes or other human errors that might occur.

Prevent unauthorized access

Login credentials for your cloud accounting software enable only designated people to view and access your financial information. Data is completely private and protected.

Minimal downtime

As with any online or desktop software, periodic security upgrades and

software updates are essential to keep programs running smoothly. Cloud

accounting software is no different. Users will experience some

minimal downtime for such updates, but will be alerted in advance.

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