Definition: Online software resides on the online software provider's file servers instead of on your computer hard drive as with traditional software. You use online software via the Internet with a browser such as Firefox or Internet Explorer.

While a few online software packages allow data to be store on the user's computer, the vast majority of online software holds this data on secure file servers owned or rented the software company.

Among the advantages of using online personal finance software is that since it is not loaded on your hard drive, you will not have any installation problems and will never need to reinstall.

Also Known As: Online Application Examples: I use online personal finance software called ClearCheckbook to manage my credit card and bank accounts.