WHAT IS CLOUD ACCOUNTING?

One of the most exciting changes in the accounting industry is cloud accounting. Cloud accounting is a general term for several types of accounting solutions, all of which have in common one thing: The accounting system is accessible via a remote server that is connected to the internet, but in a private, secure space that only authorized users can access.

In the past, accounting systems software programs such as Intuit QuickBooks? have been located on a small business owners own private PC or a private server within the small business. This allowed one or more employees within the same physical location access to the accounting software. Access to a desktop accounting system was limited, especially if the small business added additional business locations and/or needed outside consultants such as bookkeepers, tax preparers, or auditors to be able to access the system.

Cloud accounting solves the limited access problem because you can access a cloud accounting system via an Internet browser or a remote desktop connection that accesses the system through a private connection.