What is Cloud Accounting?
Cloud accounting can be described as a method of managing finances through online data inputting and storage. The difference with the typical accounting software that gets installed on a local computer is that cloud accounting software is installed on remote servers and accessed via the internet.
Advantages
1. Accessibility: Cloud accounting software lets customers read their financial data from any place in the world. It is particularly preferred by businesses with remote teams or several branches.
2. Real-Time Updates: Financial data is updated in real-time, thus the users are provided with the most recent knowledge in this sphere. This streamlines the decision-making process and enables businesses to be more effective in financial planning.
3. Collaboration: Many users with the appropriate authorizations are able to access and edit the same data at the same time. This creates a broader scope of collaboration among peers and accountants.
4. Cost-Effective: In the era of virtual reality cloud accounting software continues to be the most cost-effective alternative thus being much greener as it does not involve the use of physical infrastructure and IT service. Unlike traditional single-purchase software licenses, these usually are sold as subscriptions and are often cheaper.
5. Security: Accounting in the cloud ensures that very strict security measures are applied to the financial data by the cloud accounting providers.
Popular Cloud Accounting Software
· Quick Books Online: A cloud-based accounting program that enables tasks such as invoice creation, expense categories, and financial statements.
· Xero: Besides user-friendly usage and an inclusive variety of accounting apps, Xero is a common choice for small companies.
· FreshBooks: Built for both freelancers and small business owners, FreshBooks is better known for invoicing, expense tracking, and time management features.
. Sage Business Cloud Accounting: Provides businesses with a wide range of accounting options for all the levels of business.
