Cloud accounting software works exactly just like the traditional accounting software, only the cloud accounting software just like QuickBooks online is hosted on remote servers of QBO Transaction data is sent into “the cloud,” where it is processed and returned to the user.
All application functions are performed off-site, not on the user’s desktop. Which enables you to use the platform from any device as long as you can log in to QBO. In cloud accounting, users access software applications remotely through the Internet or other networks via a cloud application service provider.
Using cloud accounting software frees the business from having to install, maintain and upgrade software on individual desktop computers.
Cloud accounting solutions also allow employees in other departments, remote or branch offices to access the same data and the same version of the software.
Organizational Reporting and Visibility
With cloud accounting, it’s also easier to get real-time reporting and visibility throughout your organization, with greater mobile capabilities and collaboration. Essential reports can be customized and saved on the software dashboard.
Is my financial data secure with cloud accounting?
Cloud accounting solutions provide an equally secure (and sometimes even more secure) method of storing financial information than traditional accounting software. For instance, a company computer or laptop with critical financial information could be lost or stolen, which could lead to an information breach. Cloud accounting, however, leaves no trace of financial data on company computers, and access to that data in the cloud is encrypted and password protected.
Sharing and storing data is worry free – Hakuna Mattata.
With cloud accounting, two people simply need access rights to the same system with their unique passwords. Traditional methods often require flash drives to transport data, which could be lost or stolen.
Lastly, cloud providers usually have backup servers in two or more locations. Should one server network go down, you still have access to your data. Information kept just on-premises could be destroyed or damaged in a fire or natural disaster, and may never be recovered.
Streamline, simplify, and automate your financial operations on the QuickBooks Online platform which gives you a flexible general ledger, automated billing processes, and brilliant intelligence all in one place.
Is cloud Accounting more cost-effective?
Yes, of course, companies that use cloud accounting require less initial server infrastructure to store data, and IT staff is not required to maintain it or update the cloud accounting system. Fewer overhead expenses and no new software purchases mean greater savings for the business.
This is the part that is neglected when we compare cloud vs earth software – Apps.
There are so many great apps available which specialize on streamlining at least one function. Just like Receipt Bank, T sheets, Invoice Sherpa, Wagepoint. These apps over time save business a lot of hours, eliminate human errors, make automatic process, provide more control, more accuracy and allow business to accomplish way more and also get more reports.
Read my logs on QBO Connect Toronto 2018 where I talked about a few of the application providers.