Definition

Software as a Service (SaaS)

What is Software as a Service? (SaaS)

Software as a Service (SaaS) is a software delivery model where applications are hosted by a provider and made available to users over the internet on a subscription basis. Rather than purchasing and installing software on local servers or individual computers, users access the application through a web browser or mobile app, with the provider managing all infrastructure, maintenance, updates, and security.

Accounting software delivered as SaaS eliminates the need for firms to maintain on-premise servers, manage software installations, or handle version updates across multiple workstations. The provider handles technical infrastructure, applies updates automatically, maintains data backups, and ensures system availability. Users access the same version of the software simultaneously, ensuring consistency across the practice.

SaaS solutions typically operate on monthly or annual subscription pricing, with costs based on factors such as user numbers, client volumes, or feature requirements. This model converts software from a capital expenditure to an operational expense, with predictable ongoing costs. Access from any internet-connected device supports remote working and flexible work arrangements, whilst built-in collaboration features enable multiple team members to work on the same client files simultaneously.

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