Accounting software is onto "Cloud based" now, Cloud computing is the latest buzz word in Information Technology. Cloud Computing is a type of service where a computer infrastructure together with software application is accessible over internet round the clock to the users. The place where the cloud computing data resides is called Data Centre, which may be a collection one or more interconnected Data centres at the same geographical location or spread continents apart. Prior to the "Cloud based Accounting", the Accounting software like Tally were installed in individual computers or in small network of computers. Enterprises had to rely on Accountants to operate on their accounting software and it was the responsibility to deliver back the executed data to the enterprise management. This was a lengthy cycle prone to delay and lack of transparency and monitoring the progress of 'accounting data processing' was more complex. With the advent of cloud based accounting as "SAAS" (Software as a Service) model, the transparency and delivery issues have been overcome to a major degree of reliability. Now the enterprise management can keep an eye on progress of accounting data processing on a real time basis, access of Accounts processing throughout the globe is available on demand. There is no more uncertainty on when the executive Accountant will deliver the accounting data process reports. Management can have an eye on right from the beginning of accounting work and monitor the progress, provide course correction of accounting with corroborated end result. This paper tries to compare the Characteristics, risks, functions, licence, accounting software framework, upcoming features, and future trends of five popular cloud based accounting software for small businesses in India namely- Tally 9 ERP, Quick books, Marg, Busy and ZOHO Books. This paper also describes on how this Cloud Based Accounting software complies with latest GST and other important Tax laws announced by Government of India from time to time.