Cloud Accounting Software- Benefits and Advantages

Cloud Accounting Software is accounting software that is hosted on a remote server. It is neither based on your computer hard drive nor on your local server. Cloud accounting uses internet to access the accounting data, records and information. This data is sent to the cloud where it is stored and returned to the users as requested. The users must login or sign in using the internet to access this data.

Traditional accounting software made a tremendous job as replaced all the paperwork and calculators related to accounting. But modern development of internet and gadgets gives a possibility to move completely new level of development which is cloud accounting. Literarily this means do your accountancy online.

Common problems with traditional accounting software:

Security– The information is lost as your computer or other office’s gadgets are lost, damaged or stolen.

Investment- As the amount of information increases, you need to improve bandwidth of your computers to keep all the information, same time you need to purchase special servers or other type of gadgets.

Working place- Traditional accounting software requires being in front of your personal computer and don’t allow you to work out of the office.

Transferring the information– to share information using traditional software you need use email or hard disk, which is not secure in many cases. Same tame there could be a problem with transferring of information in the way when information is huge.

Limitation of users- Traditional software has a limitation of users who can work at the same time in the system.

Time consuming- traditional software require enter some information manually which takes an amount of time. Ex. Exchange rate..

The cloud accounting solves all the problems mentioned above:

    • Information is saved out of lost regardless the computer would be stolen or damaged as it is uploaded in clouds.

    • As the system is working using the internet, the special types of gadgets are not required.

   • As the system works using the internet, it allows users work without having personal computer in front of them or being in the office.

    • As it is uploaded on the clouds, transferring information doesn’t require hard disk or email system to share it.

    • Cloud accountant allows number of users to enter in the system at the same time and work together.

   • The system gives possibility to integrate it with internet banking, stock exchange and/or HM revenue & Customs services, get the information online.

   • Cloud accounting software gives new possibilities  to users, by providing comprehensive service in a comfort way wherever they are, be sure that data and information is safe out of losing, stolen and upgraded.  

General FAQs: 

What is cloud accounting software?

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. 

What are the benefits of cloud accounting?

     • Data about your sales or income and purchases can flow straight from your bank to your books
     • You can see your current financial position at any time.
     • Multi-user access makes it easy to collaborate online with your team and advisors.
     • It’s online software so there’s nothing to install or update, and all your data is backed up automatically.
    • You can set up a dashboard showing important financial information like who owes you money, what bills are due, and how your cash flow is looking.