Cloud computing refers to transactions performed over the Internet. The practice does not require you to install software in your computer or own a server. A cloud computing company that sells accounting services provides remote servers and the applications. For a fee, they grant you online access to them for managing and maintaining your financial records
Cloud computing accounting software is accounting software that is hosted on remote servers. It provides accounting capabilities to businesses in a fashion similar to the SaaS (Software as a Service) business model. Data is sent into "the cloud," where it is processed and returned to the user. All application functions are performed off-site, not on the user's desktop.
In cloud computing, users access software applications remotely through the Internet or other network via a cloud application service provider. Using cloud computing accounting software frees the business from having to install and maintain software on individual desktop computers. It also allows employees in remote or branch offices to access the same data and the same version of the software.