Well, cloud accounting is actually a combination of two ideas and it has been gaining a lot of traction and interest in recent years. Many small businesses are now turning to online applications to handle their business accounting needs.

First of all, accounting software, that is, any computer application that helps you with any form of accounting procedure. This can be as simple as a small sales accounting application to a full enterprise-level accounting package.

The second concept is cloud computing. Wikipedia lists cloud computing as “Cloud Computing it is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on demand, such as the power grid. “

Therefore, cloud accounting software is basically a way to run your small business accounts completely online without the need for offline storage or applications. Therefore, there is no native installation on your own computer and you can access your accounts from anywhere with an internet connection. This even means accessing your accounting data through your smartphone like iPhone or Blackberry.

Many people believe that ‘cloud accounting’ will completely replace locally installed copies of accounting software in the not too remote future. The reasons behind this can be summed up in better data access and sharing and faster and cheaper software development. The benefits of cloud accounting are not limited to small or large companies, but can be applied to both.

It is always important to remember if you are considering choosing accounting software applications what is the level of data security, how easily you can export your data to another platform, and of course always consider price and ease of use as factors. to make your decision.