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What is Cloud Based Accounting?

Cloud accounting also known as online accounting, is the latest technology used by accountants to store a company’s accounting data online. This software can be accessed online through remote servers. The online approach makes the process faster, efficient, and up-to-date for accountants. This software doesn’t bind you to store data on one computer. However, You just need an internet connection to access the accounting and transactional reports of a company.

The benefit of using this storage medium is that you don’t need to update data on every server. Moreover, your employees can access data from any system using accounting software no matter wherever they are located. This software is easier to use and has a variety of tools to store data. Cloud accounting makes the storage process more smooth and efficient. An accounting revolution came with online software. Also, for small businesses, cloud accounting software is very convenient. Also, they are cost-effective, storing data is a lot easier and less complicated.

This accounting software gives employees the flexibility to update their company’s new data and information from their devices no matter wherever they are located. However, many software’s have security flaws and loopholes but the good part about cloud accounting is that data is highly secure and there is no need for you to worry about your company’s confidential data. Furthermore, it ensures that all your data cannot have access by any unauthorized person.

Cloud accounting VS Traditional accounting

Traditional accounting was highly popular and widely used by businesses. It was the only option available at that time. With the emergence of cloud-based accounting technology, accounting professionals recommend using cloud software to keep your records safe and up to date.

Here are few differences between Cloud accounting and Traditional accounting

1. Cloud accounting is highly accessible for everyone. You just need a good internet connection to get your accounting data and reports instantly. In traditional accounting is not easily accessible. You can only store your data on one server.
2. With cloud software, there is a very low chance of any error in your financial records as data will get regular updating. Whereas, in traditional accounting, manual data updating has a higher chance of having errors.
3. Working on cloud software is less expensive as you only need to pay software installation charges and can store data online. However, in traditional accounting, you need to buy new servers which are very expensive.
4. These accounting systems protect effectively your sensitive data. On the other hand, in traditional accounting servers, your accounting data is at risk. This can result in data damage or server failure.