Also known as online accounting or virtual accounting, cloud accounting is the method of using software applications and computer hardware to complete accounting online. Information is sent to the cloud, processed, and returned to the user.

Cloud accounting offers many benefits for both entrepreneurs and their accountants. The two can collaborate better and work together more accurately. It gives both sides greater insight into the numbers and cash flow with its anywhere accessibility, advanced security technology, live updates, and bug fixes along with real-time facts and figures.