Online accounting refers to the digital management of financial records and transactions using cloud-based software. It streamlines bookkeeping, invoicing, payroll, and tax filing, offering accessibility from any device with internet access. This method ensures real-time collaboration among multiple users, facilitates automatic data backups, and enhances security through encryption and regular software updates. Online accounting optimizes efficiency, reduces errors, and provides insights into business finances through customizable reports. Its scalability and remote accessibility make it an invaluable tool for businesses of all sizes, enabling accurate financial tracking and informed decision-making.