What exactly is cloud-based accounting software?

If you use your bank’s online banking platform or store files on Google Drive, you’re already familiar with the cloud. It is a system that enables the storage of data and software online, rather than in your computer’s hard drive.

Many cloud-based accounting solutions are designed for non-accounting professionals. The benefit of cloud based accounting is that, the data can be entered and accessed from anywhere from various devices. Other great advantage is that most of the software now supports Bank feeds which enables the user to directly import the their bank transaction into the software hence saving enormous time in data entry and provides the accuracy.

What cloud-based accounting software does?Like desktop accounting software, cloud-based software handles your basic bookkeeping and accounting functions. While there are many options on the market, the main players all perform the same basic functions: tracking accounts payable and receivable, invoicing, customer and vendor profiles, bank synchronization and reconciliation, bill management, financial reporting, and cash flow snapshots. Many also offer payroll, inventory, quotes, and other services as an add-on, or as part of the package.