What is Cloud Accounting and How Does It Work?

Cloud Accounting: A Quick Beginner’s Guide

Are you looking for ways to improve your bookkeeping efficiency, streamline your financial administration, and receive a real-time view of your critical data?

Then it's time to look into cloud accounting. But what is cloud computing accounting software, and what role does it play in today's businesses? 

Cloud computing refers to the delivery of computer services through the Internet, and it has never been more critical for small businesses, especially when it comes to accounting. 

But how can you decide which platform is suitable for you when there are so many options? 

In this post, we'll walk you through the main advantages of transitioning to cloud accounting, as well as recommendations for the best platforms to use.

What is a Cloud Accounting System?

It’s fairly easy to define a cloud-based accounting system. After all, cloud accounting software is identical to on-premises accounting software, except it is hosted on remote servers. The user's data is transmitted to "the cloud," which is processed and returned.

All program functions are handled remotely rather than on the user's desktop. Users access software programs remotely through the Internet or another network via a cloud application service provider in cloud computing.

A firm does not have to install and maintain applications on individual PCs when using cloud accounting software.

Staff in other departments, working offsite, or operating out of branch offices can access the same data using cloud accounting solutions.

How Does Cloud-Based Accounting Services Work?

Many sectors have been changed by cloud-based software and technology, and accounting is no exception.

Cloud computing accounting is similar to other cloud-based software. It's also comparable to self-installed accounting software, such as previous versions of Intuit Quickbooks, that you've probably experienced as a small company owner.

The main distinction is where the program is executing its operations.

Remote servers host cloud accounting software through a business model known as SaaS (Software-as-a-Service), in which data is saved on the cloud rather than on your hard drive. The application service provider connects you to the program through the Internet or other networks. Cloud bookkeeping is simple to use, saves hard drive space, and eliminates the need for software installation or maintenance because it is hosted in the cloud.

Employees can access data from any location, including mobile devices, using cloud-based accounting software.

How Does Cloud Accounting Services Benefit Businesses? 

A cloud-based accounting system is probably the best option for you if you're looking to streamline your accounting requirements. Cloud accounting comes with many perks and features that will entice you to give it serious thought. You can do the following using a cloud-based accounting solution:

Reduce Costs - Cost-Efficient

Cloud accounting companies need less initial server equipment to store data, and IT staff isn't necessary to maintain or upgrade the cloud accounting system. Businesses can save more money with less overhead expenditures and software investments. It's the polar opposite in the on-premises world. When a company expands, it incurs more software licensing and maintenance expenses and additional licenses and fees for database, systems management, and other software.

Access It Anywhere - Remote Access

Because the solution is online, you can access it from any device. Cloud accounting allows you 24/7 access to your critical company figures from any place with an internet connection, eliminating the need to operate from a single central office-based computer. Use a web browser on your laptop to access your accounts or download your provider's mobile app to access your accounts on your phone or tablet.

Increase Data Security - Enhanced Security

With cloud-based accounting software, you can quickly offer access to your accounts to your accountant, bank, or other consultants. There's no need for an external hard drive or email chains. Your financial advisers have real-time, secure access to all of your financial data. Cloud accounting is faster, safer and provides your advisers with the information they need to help and advise you in the future.

Examples of Cloud Accounting Software

Open Systems Accounting Software (OSAS) can be the ideal solution for you if you're looking for a scalable, customized ERP accounting system with a wide range of applications. This extremely adaptable, user-friendly company management, e-Commerce, and ERP accounting software may help you enhance your business processes and reach your objectives.

OSAS is an award-winning accounting and business management system that runs on Windows, Linux, UNIX, and Mac computers. OSAS is adaptable and simple to tailor to your needs. OSAS accounting and distribution programs are simple to learn and operate, with a lengthy track record of successful installations. OSAS, an established industry leader, will fulfill your current and future demands and aspirations.

Over 100 design improvements, updates, and new features have been added to OSAS version 7.5 to help you be more productive. With a simplified interface, extra inquiry options, and drill-down features, your task is made easier. Thanks to new auditing capabilities and data encryption choices, your data is safer than ever before.

QuickBooks Online provides a slightly different experience compared to its desktop cousin. It is designed to make tasks both easier and more efficient while being used anywhere and on any device. With QuickBooks Online, you and your employees can send invoices, run payroll, and reconcile accounts from a phone or tablet anywhere in the world. It also provides an easy way for you to share access to your books remotely, enabling your accountant to have quicker turnaround on answering questions and fixing problems.

To help cut down on redundant financial data entry, QuickBooks Online connects with bank and credit card accounts to automatically download banking transactions. After the initial setup, QuickBooks will help categorize deposits and expenses and match transactions that were previously documented.

Sage Intacct® is a Web-based financial accounting software system with a broad set of functionality for small to mid-sized businesses. The system is built for a wide variety of industries as a horizontal accounting solution. Sage Intacct supports applications for core accounting, time and expenses, revenue management, project accounting, order and billing, purchasing, global consolidations, multi-currency management, and financial reporting.

Sage Intacct’s sole focus is on building amazing professional-strength financial management and accounting applications that fit into your existing business infrastructure and integrate well with the key applications you use to run your business—giving you the freedom to choose and deploy the best applications for each of your departments.

Sage Intacct can help you meet complicated challenges with sophisticated solutions to automate financial management and accounting. Intacct, together with business partners, has helped more than 5,000 organizations—from fast growing companies ready to graduate from QuickBooks to multinational organizations, public companies, and global enterprises dissatisfied with their current financial applications—make the move to cloud computing, and streamline financial management processes.

Let Porte Brown Handle Your Cloud-Based Accounting Needs

At Porte Brown, we can help you choose the most versatile cloud accounting software for business needs and assist you in ensuring a flawless and straightforward deployment. We also specialize in business consulting services and personal finance advice

Contact us today to learn how we can handle all of your cloud accounting needs.

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