Cloud-based accounting is about storing and accessing accounting data and information over the Internet rather than your local computer. Data is sent to remote servers known as clouds, where it is processed and returned to the user. Accounting operations are performed off-site, not on the local user’s computer.
Using cloud-based accounting software frees business from the need to install and maintain software on local computers. It also allows different department’s employees to access the same software data and version.
Most cloud-based service providers generally charge a subscription-based fee. Cloud-based accounting software can also be referred to as online accounting software or internet accounting software.
Quick pros and cons of cloud-based accounting
- Access your accounting remotely
- Simpler to own, without servers and not require software updates
- Cloud-based software is easy to use and learn
- Almost all cloud-based accounting packages without advanced stock control or ERP features.
- When you cancel your subscription, you’ll need to export and keep your data somewhere else.