# 15 Benefits of Cloud Accounting [Rebeca Bichachi](https://www.netsuite.com/portal/resource/authors/rebeca-bichachi.shtml) | Product Marketing Specialist September 2, 2021 If your company still uses desktop software or spreadsheets for accounting, it may be time to consider upgrading to a cloud-based accounting system. Cloud-based software offers many benefits over on-premises solutions, including allowing users to work from anywhere, at any time, automation of time-consuming manual processes, improves accuracy and compliance and the ability to accelerate financial close processes with less effort. Depending on the software, companies can gain additional benefits, such as more predictable software costs, less spending on hardware, lower IT overhead, better disaster recovery, sophisticated threat and security monitoring, higher levels of availability, greater performance and scalability. ## 15 Benefits of Cloud Accounting to Know With a cloud system, the work of hosting and updating your accounting software is taken on by the provider. You move your books online and then access the software over the internet from a browser, paying for the service on a subscription basis. There’s no need to buy or install any software on computers in your office, and cloud software is less expensive to implement and deploy to multiple locations. Any cloud-based system brings a range of advantages, such as ensuring authorized users can access up-to-date, accurate financial information from home or while traveling. Some systems also provide more advanced capabilities, such as sophisticated automation of accounting processes. 01. **Less administration:** With cloud accounting software, business owners remove the need to contend with time-consuming software installation, backups and other administrative tasks. You don’t need to buy or manage servers or other IT infrastructure to run your accounting software. 02. **Software is always up-to-date:** Because the software is in the cloud, you always have the most up-to-date version. The cloud provider automatically updates the accounting software to include changes to tax rates and accounting rules and adds new features. 03. **Automation:** Cloud-based accounting platforms [automate many accounting and banking tasks](https://www.netsuite.com/portal/resource/articles/accounting/ap-automation.shtml), reducing manual work. For example, the software can automatically import bank and credit card transactions, produce recurring invoices, schedule reports, pay subscriptions and post transactions to the correct ledger. 04. **Ease of compliance:** Cloud accounting platforms help private and public companies with tax compliance by [producing accurate financial statements](https://www.netsuite.com/portal/resource/articles/accounting/accounting.shtml), quarterly tax estimates and yearly tax returns. 05. **Paper-free/eco-friendly:** Traditional accounting often entails paperwork — lots of it. Ask vendors to send invoices electronically so they can be imported directly into the cloud accounting system. 06. **Data security:** Cloud accounting services enhance security for most businesses. Providers apply multiple levels of security, including advanced encryption and access control. 07. **Scalability:** Cloud-based accounting software can scale and flex to match your business needs; you can start with basic accounting functions and add features and users as your business grows. 08. **Accuracy:** Cloud-based accounting software improves accuracy by eliminating many of the error-prone manual steps that are required when using spreadsheets. 09. **Single source of truth:** Cloud accounting systems store all financial information in a single database, ensuring consistency across all accounting processes and financial reports. 10. **Customization:** Cloud accounting software can be customized to your organization’s individual needs, allowing you to tailor processes and workflows. 11. **Accessibility/availability:** Authorized users can log in from any location, 24/7, through a web browser or mobile app. 12. **Real-time reporting and data visualization:** Cloud accounting systems provide [real-time access to centralized financial data](https://www.netsuite.com/portal/products/erp/financial-management/finance-accounting.shtml), enabling quick insights into business performance. 13. **Integration possibilities:** Some providers offer broad suites of integrated business applications that share the same central database. 14. **Collaboration:** Team members can collaborate more easily since all financial data is stored online in a single database. 15. **Efficiency:** Automated accounting processes, real-time access to accurate information and reduced administration contribute to a more efficient accounting function overall. ## Make the Move to Cloud Accounting Whether you’re a growing business or a global corporation, moving to a cloud-based accounting software system can increase efficiency and provide real-time visibility into financial performance. [NetSuite financial management software](https://www.netsuite.com/portal/products/erp/financial-management.shtml) automates everyday transactions, accelerates the financial close process, and helps ensure compliance with tax regulations and accounting standards. ### Award-winning cloud accounting software ## Cloud Accounting Benefits FAQs **Q: What are the benefits of cloud accounting?** **A:** Cloud accounting offers a broad range of benefits, including reduced need for software licenses and hardware. **Q: Why is cloud accounting good for business?** **A:** Leading cloud accounting solutions are extremely scalable, supporting growing companies and improving efficiency. **Q: What is cloud and its benefits?** **A:** The cloud makes data available online anytime, anywhere, from any device. **Q: What are the benefits of accounting?** **A:** Accounting helps business owners create budgets, control expenses, manage cash flow, and maintain accurate records.