Cloud accounting software is a web-based accounting software or online accounting software which enables the users to send information of their financial accounts to the cloud, where this data is computed and reverted to the customers. These software programs are hosted on the off-site servers.
The applications of this software can be acquired by the users through the internet or any other networks. A cloud accounting software prevents an organization from setting up separate desktops with installed software so that every employee can obtain the cloud services on their devices. It permits the remote branches or teams to acquire the same data along with the same software version.
How does cloud-based accounting software different from traditional accounting software?
Most of the traditional accounting software malaysia were desktop-based software programs which required the installation of the actual application on the desktop computer and running it from the system’s hard drive. It consists of several limitations which include the constant need for software updates, limited data access along with backing up pricing of all the business information.
Cloud accounting software consists of almost similar functionality as desktop-based accounting software, however, it shifts and expands the whole business procedure to the cloud. It does not require any installation of a desktop application. A user can log into his/her online software solution which is readily up-to-date and every information data is saved on the cloud server with security. Many such cloud platforms also deliver an open API facility, that facilitates the connection of your system with the third-party software to enhance your business experience.
How does cloud-based accounting software works?
First of all, users need to subscribe themselves to web-based accounting software and then move their accounting books on the cloud. After finishing with this process, they can easily access their financial accounts from the specified app on their mobile phones or any web browser. Most of the end-users connect this software with their bank accounts, which regulates the automatic flow of banking transactions from their banks to their online books. This method helps them to save a lot of time of data entry.
Advantages of cloud-based accounting software
Administrating the business records online provides several benefits:
- It is easy to check your recent financial status anytime.
- Multiple users can access the system which makes it quite simple to collaborate with your advisors and team online.
- It saves your time to transcribe every information related to your sales, purchase flow or income as everything is safely recorded to online books.
- Automatic disaster recovery and data back-up services.
- Availability of several customization features helps you to design your dashboard according to your requirements, hence, delivering more user-friendly experience.
How safe is cloud accounting software?
To keep your financial accounts secure, cloud accounting software makes use of encryption, that rewrites the information into an encrypted code (secured and unbreakable) when storing or sending any data. A similar type of encryption technology is used in online banking to make it safe and secure.
Cloud accounting software provides several security measures which are listed below:
- Staff security
- Secure workplace
- Daily security audits
- Remote automated backup server
- Automatic updates
- Top-level digital software with outbound and inbound encryption security protocols
- Technical support and customer service
- Multiple isolated networks
- Several integral user authentication techniques