How does Cloud Accounting Software Work?

Throughout most of the history of personal computing and computing for businesses of all sizes, data was always stored in essentially the exact same way. If you created a file on your computer, for example, that file was always stored locally on your computer’s internal or external hard disk drive. If you ever needed to access that file again in the future, you needed to return to the machine that it was created on. Devices like USB flash drives and other portable storage devices eventually made it easier to transport information between multiple machines. If you created a document at work that you wanted to work on at home, you could load it onto a USB flash drive and take it with you wherever you went. You were no longer beholden to a simple computer.

Cloud Accounting Software

However, even though data became infinitely more portable in recent years, there were still a number of key disadvantages to traditional storage methods. For starters, hard disk drives are susceptible to data loss through a large number of different situations. If a fire happened at your business, for example, you would potentially lose everything on your hard drives during the catastrophe. The small mechanical parts inside the disk drive could also stop functioning, rendering the drive useless. The data could become corrupted through an unfortunately large number of different situations. If you were transporting important documents on a USB flash drive, there is also always the possibility that the drive could become damaged or even completely lost during your travels.

In the last few years, an increased emphasis has been placed on cloud-based storage technology. Instead of storing information locally on a hard drive, information is essentially stored on the Internet. More specifically, information is stored remotely on a server that is always connected to the World Wide Web. Cloud accounting software like Cheqbook quickly followed suit and rolled all of the inherent benefits of cloud based technology into something that will truly benefit the way you keep track of the finances of your business.

Cloud based accounting software works in essentially the same way as all other cloud based software. Files that would normally be stored on a hard drive are stored online. Because the information is stored in such a way that it is always accessible, you can log into a service like Cheqbook and perform accounting practices on any computer on the planet with an Internet connection. Thanks to the development of mobile devices like smart phones, cloud based accounting means that you can take care of your businesses finances from wherever you are. Whether you’re stuck in traffic or want to take a much-needed vacation, you’ll always have the ability to log in and get work done in the event that an emergency arises.

One of the major benefits of cloud based accounting software like Cheqbook has to do with security. The important financial documents associated with your business are protected from nearly all of the catastrophes that could spell havoc for your organization if you were using traditional storage methods. If someone breaks into your business and steals your work computer, you don’t have to worry about them getting access to all of those financial documents at the same time. The financial documents are safe because they were never stored on that computer in the first place. They’re also safe from a fire, from a hard drive failure, from general data loss and other types of situations that business owners needed to worry about in the past. Cloud based accounting software also takes the extra step to encrypt your data to help keep it safe from malicious individuals who may be trying to access it using computer systems, viruses and through other means.

Another important thing to understand about cloud accounting software has to do with the variety of ways in which you can access that information. Cloud based accounting software is essentially “software as a service,” which means that the software you use to keep track of your important business information doesn’t need to be installed on a computer. If you wanted to use a program like Microsoft Word, for example, you would need to obtain either an installation file or an installation disc through official methods and install that software onto the machine you planned on using it on.

With cloud-based software, no installation is needed because the software (much like the records you’re creating with the software) is always stored in the cloud. All you need to do to use a service like Cheqbook is open the Web browser of choice on your device, navigate to the official Cheqbook website and log in using the username and password associated with your account. All of the information that you have added to your account will be available on any device, regardless of its size, it’s operating system, it’s technical specifications or its manufacture.

  • PStJTT

    But it seems like putting your data “in the cloud” also puts it in a position to be hacked or stolen (seems like hardly a month goes by without hearing about someone’s credit card database getting hacked.) What protects my data from being stolen from the cloud?

    • Cheqbook Accounting Software

      Thanks for the question PStJTT.

      We agree that there are a lot of stories in the news about different databases or companies that fall target to hackers and become unstable. Sometimes this results in sensitive information being stolen and other times they get nothing.

      However, what you don’t see in the news are stories about the world’s top Banks or other similar financial institutions being hacked.

      Why not?

      The reality of the situation is that hackers usually don’t target the banks because of the advanced security protocols put in place by these financial institutions. These financial institutions also undergo a level of ethical hacking by security administrators when their systems are being built or refined to find and patch any security vulnerabilities.

      To put it in short, hackers are criminals and they go after the low hanging fruit.

      Financial institutions are not low hanging fruit. Majority of these companies are so closely monitored that they would be alerted that someone is trying to break in long
      before the hacker could actually get away with any of the data they were trying to steal.

      For Cheqbook, we use the same security encryption & protocols as the world’s top financial institutions and you can rest assured that any data in our system is securely protected and monitored.

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