What is Cloud Accounting?

Mar 15, 2016

Whether you know it or not, you use the cloud on a daily basis. If you log onto Facebook, pay your bills online, or surf the internet, you are using the cloud. Cloud computing, or the cloud, is the general term for anything involved in delivering hosted services over the Internet rather than on your local desktop. The cloud utilizes multiple remote servers networked to permit the sharing of data-processing tasks, centralized data storage, and online access to computer services or resources. The cloud permits higher volumes of information to be shared than the traditional direct connection to a server.

What is cloud accounting?

Cloud accounting serves the same function as the accounting software installed on your computer. However, the program runs from outside servers and access to the program involves using your web browser, over the Internet.

Cloud accounting employs the cloud to process your accounting transactions. Traditionally, businesses and organizations purchased accounting software, installed it on internal computers or networks, and processed transactions with the program. WVC RubixCloud provides an application (general ledger software) which is hosted on someone else’s system, allowing you to complete your processing by accessing the program online. All of your data is securely stored and processed on a remote server in the cloud.

How secure is my data?

Often times, the cloud is more secure than being on your own network. In fact, cloud computing offers a level of physical and electronic security that an on-site server or a locked file cabinet cannot begin to approach. It’s important to understand that data hosted in the cloud is managed by a data center. All data centers are different and independent. You need to make sure the data center you choose can manage the data you are processing. There is a whole checklist of security measures you should be aware of, and I will address those in a future post.

Cloud computing offers more reliable protection from internal data loss than other communication methods because it gives you centralized control over your data. It’s much easier to establish and enforce policies for a cloud-based system than for the individual silos of email accounts, physical media, applications and flash drives that handle on-site data storage.

Is cloud accounting expensive?

Computing in the cloud has proven to be significantly inexpensive compared to traditional methods. There are fewer overall costs associated with cloud computing. There is no software to install and maintain. The IT infrastructure required is simply a connection to the internet, whereas traditional methods include a series of networks, applications, and workarounds. Cloud computing provides you the flexibility to utilize only the services you want, when you want them, and at a fixed monthly fee.

So, now that you know more about the cloud and cloud accounting, why should you make the transition? Click here to for 10 reasons you will love WVC RubixCloud.

By: Jennifer Kinzel, Director of WVC RubixCloud

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