SaaS accounting software is sold online and offers various accounting services without the need for manual installation or updates. Benefits include skipping the installation process, secure data storage on remote servers, and advanced features such as GAAP reporting and multi-currency handling. SaaS accounting is a popular option for businesses and is expected to continue growing.
SaaS accounting is a specific type of software sold on the web. The term SaaS stands for Software as a Service and replaces traditional methods of selling software on data formats such as compact discs, inside a cardboard box from a store shelf. SaaS accounting software offers specific accounting services, such as payroll, tax accounting, daily balance sheets and much more. With SaaS accounting software, users easily engage in their accounting over the Internet without manually installing or updating programs.
Industry players have traditionally pointed to a number of primary benefits for those purchasing SaaS accounting programs and similar SaaS options. One is that the user can skip the entire process of loading software from discs or other formats and install it on local workstations. Installation had previously been one of the challenges of buying and using software from a vendor. Many SaaS programs are sold through online licensing, where users may be able to purchase access to online software applications through temporary licenses or “subscriptions.” With SaaS accounting tools, this means that a CPA, or other individual who may not have many IT skills, won’t have to struggle with IT elements, but can start “number crunching” right away.
Another benefit of SaaS specific accounting programs is that information can be stored securely on the vendor’s remote servers, rather than being kept in the customer’s local office. While some buyers may want local control over their data, others will see SaaS tracking and accounting as a very convenient way to limit liability. It can also reduce business insurance premiums in some cases.
Many companies looking into payroll and SaaS accounting options are surprised by everything these vendor programs can do. Experts point to many of the advanced features of SaaS accounting products available in today’s market, from GAAP reporting capabilities to multi-currency handling and A/P and A/R number processing with proprietary automation. Some also claim that some SaaS accounting programs can substantially reduce billing cycles and save a business time or manpower.
Businesses that may be interested in SaaS programs for accounting will often look into how the programs might help with particular functions. Some SaaS pre-built accounting programs can be extremely useful for payroll management. Others may be primarily useful for archiving customer financials, logistics information, or other critical aspects of operations.
SaaS is a popular and viable option for businesses, both large and small. In recent industry surveys, experts have identified SaaS accounting as one of the best-selling SaaS software categories used by businesses. This category of SaaS offerings is expected to grow as more companies join the fray to offer these solutions to businesses.
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