Cloud accounting software is similar to traditional, on-premises, or self-install accounting software, only the accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent into “the cloud,” where it is processed and returned to the user.
All application functions are performed off-site, not on the user’s desktop. In cloud computing, users access software applications remotely through the Internet or other network via a cloud application service provider.
Using cloud accounting software frees the business from having to install and maintain software on individual desktop computers.
Cloud accounting solutions also allow employees in other departments, remote or branch offices to access the same data and the same version of the software.
You can deep dive to know more about Cloud Accounting here.
