SaaS accounting is a specific kind of software that is sold over 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 related accounting, daily balance spreadsheets, and much more. With SaaS accounting software, the users engage in their book-keeping easily over the Internet without having to manually install or update the programs.
Those inside the industry have classically pointed to a number of primary benefits for those who buy SaaS accounting programs and similar SaaS options. One is that the user can skip the whole process of loading the software from discs or other formats, and installing it on local workstations. Installation had previously been one of the challenges of buying and using software from a vendor. Many SaaS programs get sold through online licensing, where users may be able to buy access to online software applications through temporary licenses or “memberships.” With SaaS accounting tools, this means that a CPA, or other individual who may not have a lot of computer skills, will not have to struggle with IT elements, but can get down to “crunching numbers” right away.
Another benefit of SaaS specific accounting programs is that the information can be stored safely on the remote servers of the vendor, rather than being kept in the client’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 may even reduce business insurance premiums in some cases.
Many companies looking at SaaS payroll and accounting options are surprised by all of what these vendor programs can do. Experts point out many of the advanced features of the SaaS accounting products available in today’s market, from GAAP reporting ability to handling multiple currencies and crunching numbers on A/P and A/R with proprietary automation. Some also say that certain SaaS accounting programs can reduce billing cycles substantially, and save a business both time or accounting manpower.
Businesses that may be interested in SaaS programs for accounting will often look at how the programs could assist with particular functions. Some SaaS pre-arranged accounting programs may be extremely helpful with handling payroll. Others can be primarily useful in storing client financial data, 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 top selling categories of SaaS software used by corporations. This category of SaaS offers is expected to grow, as many more companies join the fray to offer these solutions to business.