creating and sending invoices creating quotes and estimates recording expenses completing tax returns checking cash flow or profit and loss creating budgets and forecasts Most repetitive, manual tasks involved in maintaining your accounts can be automated with accounting software. You can, for instance, connect many packages to your bank account to automatically confirm your bank transactions.

To use desktop accounting software, you must install it on your computer and run it there. All the data relating to your accounts is also stored on your computer. Cloud accounting software is available online. You do not have to install anything. The software can be accessed by visiting a website and entering a username and password. This means you can use cloud accounting software from any device that has access to the internet (including tablets and smartphones).

All your data is stored on the software provider's servers. This offers a number of advantages over traditional desktop accounting software: The cost is more manageable. You usually pay a monthly fee for cloud accounting software. This doesn't necessarily make it cheaper than paying a one-off fee for desktop software, but it does allow you to spread the cost. You can use it anywhere. Because you access the software over the internet, you can sign in anywhere there's an internet connection. You can also switch between computers and still see the same, up-to-date information. There are fewer management overheads. With no need to install software onto a computer or server, there's no need to keep it updated, either. The software provider will take care of this, as well as providing support and handling backups. There's usually a mobile app. Again, because you sign in to access your data, most cloud accounting packages offer apps that make it easy to carry out key accounting tasks and keep on top of your figures on the go. The accounting software industry has made a significant shift towards cloud software and apps. As a result, it generally makes sense for smaller companies to opt for cloud accounting software.