What describes accounting software that is hosted on remote servers?

The term that best describes accounting software hosted on remote servers is cloud-based accounting software. This software leverages cloud computing technology, allowing users to access their accounting records and related functionalities from any internet-connected device. By being hosted on remote servers, it offers flexibility, scalability, and often enhanced security as it is maintained by the service provider.

Cloud-based accounting software typically provides real-time updates and collaboration features, making it an ideal choice for businesses that require accessibility and efficiency in managing their financial operations. The integration with other cloud services also enables more robust analytics and reporting capabilities.

While web-based accounting software might sound similar, it typically refers to applications accessed via a web browser that may not fully leverage the capabilities and services that a true cloud-based accounting solution provides. The other options, like remote accounting software and virtual accounting software, are less commonly used terms that do not specifically define the advantages and characteristics associated with cloud-based solutions.