Cloud accounting refers to performing basic accounting functions, like managing and balancing the books, using an application that resides in the cloud and is often delivered through a as-a-service model. Within the program, staff or third-party accountants may handle accounts payable, accounts receivable, the general ledger, and much more.
Cloud accounting software, like other cloud-based systems, works on a cloud provider’s platform rather than on a local hard disk or server. Staff or third-party accountants do not need to be in a certain area to comprehend the financial status of the organization since they can access the resources they need over the internet.
Accountants, controllers, CFOs, and other parties involved obtain login credentials for the system and access it through a web browser on a laptop, smartphone, or tablet in cloud accounting.