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Understanding cloud accounting and its benefits
Cloud computing has transformed workspaces in more ways than one can imagine. This has also been felt in the realm of accounting with the advent of cloud accounting. The term refers to the practice of using accounting software that is hosted on safe, remote servers. This gives companies the ability to store and access their accounting systems, reports, and more from anywhere in the world. Read on to learn more about cloud accounting software and its benefits. How does cloud accounting work? Cloud accounting uses web-based software to complete all tasks, from recording income and expenses to managing and balancing the books. This is hosted on a SaaS (Software as a Service) business model. To access this software, users need to log into an online solution that continues to update their work in real time. This reduces the hassle of installing, using, or maintaining individual desktop applications. It also allows employees across departments, branches, and locations to quickly access the same data for smooth, seamless functioning. How is it different from traditional accounting? Cloud accounting manages the same functions as traditional accounting – bookkeeping, record maintenance, report-making, etc. Traditional accounting requires the installation of a special application on the desktop.