It is widely assumed among all the business houses that with the changing business scenario cloud-based system for keeping records is the need of an hour and it is replacing the traditional accounting system. But the question arises that does cloud computing furnish all the requirements of the business? And can it be fully implemented in place of a traditional accounting system? This paper tries to answer these questions by giving a deep understanding of the concept of cloud accounting and its pros and cons over traditional accounting system. Modern accounting procedures have consistently revolutionized accounting over the last few decades. Clients' and accountants' expectations are shifting as cloud accounting evolves. Accountants are reconsidering how they work to meet new needs and work more quickly and efficiently. This research is descriptive and examines cloud accounting using previous literature, journals, books, magazines, and websites, among other sources. It also includes a wide range of academic material on cloud computing and cloud accounting. This study suggests that to cope up with the dynamic environment and to increase the efficiency and performance of a business concern it should adopt the new technologies in the form of cloud computing.