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. To enhance the user experience on phones and tablets, the supplier may additionally provide a mobile app.
Accounting is a crucial part of any enterprise resource planning (ERP) system. Accounting, financial planning and budgeting, inventory and order management, human resources (HR), customer relationship management (CRM), and other critical corporate operations are all centralized on an ERP platform. This database integrates modules meant to handle many elements of the company, allowing cross-functional operations to be supported, many of which must be linked to accounting. Payroll, purchase orders, and the value of on-hand inventory, for example, must all be reported in real time in the accounting system.