What is Cloud Accounting?

By Michael O'Brien - 20th Nov 2013

Find under: Accounting

Cloud accounting is a relatively new term. The term may be confusing for those unfamiliar with it but really it isn’t that complicated.The word ‘cloud’ in computing terms refers to the combination of hardware, networks, storage and user interfaces that are combined to form a service.

The end user or consumer of cloud accounting doesn’t really need to know about what’s going on ‘under the hood’ or the technical aspects of the cloud in order to use the service effectively. It is the responsibility of the provider to ensure that data security is upheld. The provider is also responsible for maintenance of the system unlike traditional packages where this was generally the responsibility of the end user.

Cloud computing is a term used to describe many computers on network using a program at the same time. There is no actual hardware involved – the ‘hardware’ is virtual and it is simulated by software running on different machines over a network.

Central to the concept of cloud accounting, or online accounting is shared services. Many services are moving to the Cloud as it is a much more cost effective and efficient than the old model – buying hardware and continually updating it until it becomes deprecated and new hardware is needed.

Changes can be made to software in the Cloud on the fly without affecting the end users when the adjustments to the programs are being implemented. This is another large advantage of Cloud based services. One important application of Cloud computing is in the area of Accounts Software.

Cloud Accounting

Cloud accounting follows the Software as a Service (SaaS) model; this means that instead of paying for software in a large one-off payment and installing it, a monthly fee is paid for the use of service. This has many advantages.  One big advantage of this is that any upgrades to the software must is the responsibility of the hosting company and the cost is not borne by the subscriber. There are no hidden extra costs. Training and installation of the package is the responsibility of the service provider.

The software can be operated anywhere on any internet enabled device.  This is a very important aspect of cloud accounting software – it frees you from physical premises where the traditional accounting software would have been installed.

This means you can perform your accounts duties when it suits you, rather than depending on the opening hours of a physical building. Everything is available at the click of a button. You can manage your invoicing, VAT and purchases so easily from any location at a time that suits you. This can free up your time immensely and allow you to concentrate on possibly more pressing matters, if necessary.

Big Red Cloud is an online accounting software that is available as a free trial. After availing of this free trial we are confident that you will be impressed with the features and convenience of our set up.


About the Author: Michael O'Brien

Michael is the marketing manager for Big Red Cloud. Apart from trying to demystify accounting software, Michael enjoys rugby, photography, good food and seeing as much of the world as possible.