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Here is how QuickBooks on the cloud works:

Licensed copies of QuickBooks are installed on the server of a service provider.
The QuickBooks user is provided access to the server over the internet with specific configurations:
– Proper security steps are deployed to secure the application
– Connectivity between the end-user device and the server is accomplished using Remote Desktop Protocol (RDP) that can be configured to log in as the desired user.
– Server is customized to be accessed from any device (smartphone, tablet, desktop, etc.) working on different Operating Systems/platforms (Windows, iOS, Mac OS, Android, etc.)
The user can access and work on QuickBooks via a web browser (like Chrome, IE, Firefox, etc.) or RDP shortcut. The rest of the UI, features, and other functionalities remain the same as QB Desktop.
All the changes made on hosted QuickBooks are saved automatically and will appear to all authorized users.
How Hosted QuickBooks is Better Than Traditional Desktop QuickBooks?
QuickBooks Desktop is one of the most advanced and used accounting applications. However, certain limitations exist with the software that can restrict accountants and CPAs from achieving their maximum potential. Some of the limitations with QuickBooks Desktop are:

Limited user access
No Remote Access
All data remains only on the local device
Resource limitations of the local device
No real-time team collaboration
Sharing & exchanging files is inconvenient
Lack of automation in updates
Lack of automation with data entry
Most of the limitations mentioned above can be mitigated using cloud technology. Since hosted QuickBooks works on cloud technology, it gets all the benefits and features that the cloud offers, including:

Multiple user access
Anywhere, anytime access
Real-time change tracking
Easy file sharing with unlimited users
Flexibility and scalability with resources
Data Security
Mobile device compatibility and collaboration
Reduced local IT expenses
Seamless integration with add-ons
Disaster recovery
24×7 customer support