What is Cloud accounting software?
Cloud accounting software, often known as online accounting software or web-based accounting software, is accounting software that is hosted on a distant server. Users transfer data to “the cloud,” which processes the data and returns it to the user.
Users can access the software applications through a cloud application service provider through the internet or other networks. A corporation does not need to set up separate computers with software when using cloud-based accounting software because everyone in the organization may access the cloud on their own devices. It also allows remote teams or branches to access the same data and software version.
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A significant advantage of cloud-based accounting software is that data backup and disaster recovery are frequently included.
Top 5 Cloud Accounting Softwares
FreshBooks is easy-to-use cloud-based accounting software made especially for freelancers, self-employed professionals, or businesses with employees/contractors. It is a highly recommended accounting software for small businesses. It is easy to use, affordable, and offers a wide range of features.
Features of FreshBooks include
- A unique feature that Freshbooks provides is In-App Estimates and Proposals. It sends estimates and payment reminders to your clients automatically and has four different payment plans and a 30-day free trial or 50% discount on a three-month plan.
- It also provides a mobile application, which allows the business owner to keep track or control tasks from anywhere at any time.
- It gives the business owner time-to-time financial as well as accounting reports.
- It also tracks time, expenses, mileage, project profitability, and creating and sending invoices.
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2. Zoho Books
Zoho Books performs practically all of your accounting responsibilities expertly, allowing you to focus on your business. Apart from the functionality Zoho Books provides, Zoho also provides 40+ more integrative platforms that can handle any aspect of your organization.
Features of Zoho Books include
- A mobile application for android and iOS users to keep track of their accounts whenever and wherever they want.
- It helps you get a custom domain with the Premium plan while also providing budgeting and reporting tools.
- It creates multiple languages, automatically sends recurring invoices, and tracks your expenses, mileage, sales tax, project profitability, and more.
- It also provides a 14-day trial period with four different plans for the organization to choose from.
A cloud accounting software made especially for small businesses. It has over 7 million customers worldwide and lets you access the software anywhere, anytime, and from any device.
Features of QuickBooks include
- It allows you to keep track of your income and spending, as well as assists you in optimizing your tax deductions.
- Tracks inventory, project profitability, and staff work hours and provides payroll enhancements.
- Helps in billing and financial reporting.
- It gives you a wide range of features at reasonable prices with five different plans to choose from: self-employed, simple start, essentials, plus, and advanced.
- You can choose a 30-day free trial period or get a 50% discount for three months on any of the plans mentioned above.
A highly recommended cloud accounting software designed to make your small business’s daily duties more manageable.
Features of Xero include
- Keep track of project time and profitability.
- Keeps track of your receipts and paperwork to assist you with tax filing.
- Create and distribute invoices, and keep track of each customer’s invoice history.
- Tools for financial reporting and analysis.
- Payroll integration with Gusto.
In addition to all the above features, Xero provides three unique plans (Early, Growing, Established) to choose from, with prices comparatively cheaper than its alternatives. It also provides a 50% discount on three months of any plan chosen.
5. NetSuite Cloud Accounting Software
NetSuite Cloud Accounting Software is the accounting software that streamlines the process of recording transactions, managing payables and receivables, collecting taxes, and closing the books and provides fast, accurate reporting and increased management of financial assets.
Features of NetSuite include
- Transparency and visibility of data
- Accounting Process Automation that is Smooth.
- A Platform That Is Both Unified And Comprehensive.
- Unrivaled Scalability.
- Forecasting with Precision.
- Users will have easier access.
- Audit Trail Transparency
Why is cloud accounting software crucial for small businesses?
Simply put, cloud accounting refers to internet accounting. You use the internet to access the program rather than your computer’s hard disk. You have already seen the power of cloud computing if you have used internet banking or an email service such as Gmail, Hotmail, or Yahoo.
Instead of installing accounting software from a CD, you may just launch your preferred browser and begin managing your financial operations. One such example of cloud accounting software is NetSuite cloud accounting software.
Reasons why cloud accounting software should be adopted:
- Computers are susceptible to virus attacks. ~ Because there is nothing to install with online software, your data is safe in the cloud (virtual servers) even if your machine is infected with a virus. You may just access the program from another computer.
- Weak or no access control poses significant risks. ~ Nothing is saved locally in the case of online accounting, and it is not feasible to steal or duplicate data without authorized access to the program.
- Sometimes free internet turns out to be costly. ~ Every reputable cloud accounting software vendor employs a secure HTTPS connection with high encryption levels. Data is protected against internet intrusions by firewall mechanisms.
- Backups are only performed after data loss. ~ Cloud accounting software providers take periodic backups and have a systematic process to retrieve the backups when needed.
- Unexpected events can occur. ~ Your financial data is protected in the cloud even if you lose your laptop or PC.
NetSuite Accounting Services and other cloud accounting service providers keep their data on a more sophisticated infrastructure far more powerful and secure than office computers.
Cloud servers are secured by powerful anti-virus software and are monitored 24 hours a day, seven days a week by a dedicated team of specialists.
Cloud data centers use cutting-edge electronic surveillance and multi-factor access control technologies. Data centers are staffed 24 hours a day, seven days a week by professional security guards, and access is carefully granted on a least-privileged basis.
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The backup procedure is quite disciplined, and historical data may be recovered in minutes if necessary.
Systems are built to reduce the impact of operational disruptions. Multiple geographic areas and Availability Zones enable you to be resilient in the face of most failure scenarios, such as natural catastrophes or system breakdowns.
One such company, VNMT Solutions, is a leading enterprise software development company and Oracle NetSuite ERP development and implementation partner with a global footprint.
Mrudul Modh is the chief NetSuite Consultant of VNMT Solutions, A NetSuite Alliance Partner with years in providing NetSuite Integration Services across diverse industry niches.