The basic concept of cloud accounting is somewhat similar to the normal accounting that you perform on your personal computer except the accounting software application runs on third part server.
It serves the purpose of your accounting software and you access all your data entries through a web browser. Hence, this Cloud Account Software is not installed on your personal computer. It allows you enter, modify, delete and make other changes in your data.
But the question is, “why it is required to be installed on third party server”. Of course, it is done to secure all your stored and processed data. So, even if your computer is infected because of some malicious software, it doesn’t hurt your data.
5 ways, Cloud Computing can Benefit Your Business:
- It offers you a very clear overview of your business transactions in real-time
- It allows you to establish an online collaboration as it can be accessed by multiple users
- You don’t have to worry about maintenance as it will be the responsibility of the third party
- There is nothing to install, upgrade or backup. Everything is done automatically online by the service provider
- Ultimately business costs are reduced