Cloud computing and accounting software bears similitude and contrast to contemporary and widely used desktop applications, similar in the sense that they can be used from desktops and on premises but instead of them being installed on the standalone machine they are serviced through the cloud and can be accessed through the web browser. Data can be transmitted and received through the cloud instead of being dependent on onsite servers or the space of the standalone desktop.
Software and application functionality is dispensed off site although browser is being used by the actual functionality is being used by offsite servers and via the internet. Users are in fact using the applications remotely and via service providers.
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
Differences between desktop and cloud accounting applications.
- There are various key differences between the two.
- Cloud applications are more flexible and portable.
- Cloud does not need installment and can be accessed through web browsers.
- Accounting data and reports can be obtained only with an internet connection.
- Data is being input real time so there is no lead or lag.
- Data is more accurate and up to date
- Lower cost of maintenance of the hardware.
- Organisation does not have to invest in expensive hardware.
- These are all the benefits of cloud accounting software.
- VAT facilities are usually part of the package
- Payroll can also be added into the package to integrate the bookkeeping and the payroll functions
- Making Tax Digital MTD functionality is also part of the compliance and is added to the cloud suite
- Other tax compliance packages are also available such as Corporation tax, Personal Tax etc
- Financial reporting is also available through Cloud computing these days
Popular Cloud Accounting applications are as follows
- Xero
- Sage One
- Quickbooks Online
- Brightpay
- Taxfiler