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The introduction of new software in the field of accounting has changed the age-old ways of how this industry historically functioned. Nowadays, businesses use a combination of software for accounts and payroll related purposes. This is what you need to do too in order to stay competitive and keep providing exceptional value-added services to your clients.

This is also why you should start using cloud computing. Cloud accounting is one of the most prominent technological developments recently for the accounting industry.

What is Cloud Accounting?

Cloud accounting is a distinct type of software, specially designed for accounting related needs that are more accessible and efficient. The differentiating factor of cloud accounting from the functionality of desktop accounting software is that cloud accounting apps use remote servers through which all data and information is sent to the cloud online where it can be stored, shared and accessed through a web browser.

The software is offered as a hosting application, rather than installed on a specific device, because of which you can travel anywhere and still have access to your documents and data using a remote session via the Internet.

It is also offered as Software as a Service (SaaS), where accounting software, data and documents are stored on your vendor’s server and are accessible via a web browser.  Online banking is one of the best examples of SaaS.

Benefits for the Industry

Cloud accounting, because of its accessibility and other stand-out features, has plenty of benefits because of which it is being widely used by tech-savvy business owners.

It also provides accessibility of connecting with multiple colleagues, who are at different locations, at the same time. This helps ease the concern of working while traveling or at different destinations.  Cloud computing also has better security features as it is run from a data center which offers you multiple levels of security for protection of your confidential data. Real-time accessibility of information is also possible because of cloud computing which makes reporting much simpler.

By using cloud accounting software, you are only required to pay the required monthly subscriptions as these applications are rented and not purchased, whereas the software is maintained by your vendor who is supposed to regularly install the updates.

Risks for the Industry

Everything in this world has its own negatives and positives. Same goes for the tech world where nothing is perfect and has some drawbacks. In the same way, cloud computing has a few imperfections that accountants need to deal with while using the software.

Since the data is accessible from anywhere, this means that a lot of controls need to be in place when using the software. This could be a tedious task. Backing up the data is not as efficient as traditional software. Cloud accounting software does not store data for a large number of years which usually is the requirement of every business.  

When all is said and done, we cannot neglect the benefits that cloud computing offers because of some concerns. There is plenty of potential for accounting businesses and the industry to grow and cloud accounting software is set to become an integral part of that growth.