Benefits of Cloud Accounting-Free-Samples-Myassignementhelp.com

Questions: 1.What are the Benefits and Limitation of Cloud Accounting, How would Implementation of the Cloud Computing Impact on the Corporate Strategy. Answers: Introduction Cloud accounting can be defined as an accounting system that is hosted on remote servers and can be accessed on the internet (Simkin, Norman, Rose, 2014). Cloud accounting helps record financial details for both small and large businesses more effectively compared to a manual or in-house accounting system. Benefits of Cloud Accounting Cloud accounting software helps to process financial records more accurately even with big numbers. Cloud accounting ensures that there is a backup server in more than one locations. This reduces risk of losing data in case of a cyber theft or interference (Mian, Teixeira, Koskivaara, 2011). The software enables individuals to access information anywhere. Despite of their locality differences. Cost effective. After purchasing cost, there are no additional costs. Once the server has being purchased there is no need to purchase it twice. Time management. When the user enters data for processing. He or she is assured of timely results whereby there will be no delays. Cloud accounting can also be accessed to more than three corporate users without slow or delayed services. The clients of Jones and Associates will be able use the software despite limitations like different currencies. The software is able to convert and give accurate results. Cloud accounting is able to process transactions efficiently for Jones and associate clients. Limitations of Cloud accounting system Cloud accounting requires uninterrupted internet connection in order to operate according to the users commands. Cloud accounting relies heavily on the users skills to enter data. If the user mistypes or misuses the software features. This will result to poor quality results and wastage of time. Garbage in ,garbage out (Molnar, Schechter, 2010). Cloud accounting can only be used by users who have legal rights of ownership or legal agreements to share. Cloud accounting software is expensive at initial cost .because one has to purchase expensive new hardware serves. This might scare of clients to Jones firm who will find their serves expensive. Cloud accounting software incurs costly maintenance due to new licensing and fee for the database system. Since the user needs to update or renew it. Software requires endless supply of electricity which will loss data if interrupted. Due to easy access of accounting software. This tends to limit professionals example accountants to be unemployed. Since the software has no specialized skills Impact of clound Accounting Profitability is ensured since more accountants are able to use it in book keeping , this ensures good quality results and good performance. When profitability is assured. This makes the firm grow rapidly since they are able to retain their clients. Security is high since cloud accounting has a password. So, bank feeds are safe and other transaction details are safe. Hence processing transactions efficiently for Jones and associate clients (Christauskas, Miseviciene, 2012). Cost effective. After purchasing cost, there are no additional cost . Once the server has being purchased there is no need to purchase it twice. Time management. When the user enters data for processing. He or she is assured of timely results whereby there will be no delays. Cloud accounting can also be accessed to more than three corporate users without slow or delayed services. The clients of Jones and Associates will be able use the software despite limitations like different currencies. The software is able to convert and give accurate results. Comparison of Xero, zoho books and wave accounting accounting packages features XERO ZOHO BOOKS Wave accounting GL,AR, AP AP and AR only GL, AR AND AP GL, AR and AP Digital Dashboard yes yes yes Secure Bank feeds yes no no Conclusion In summary, cloud accounting system is an improvement of in-house accounting systems and enables a decentralized accounting system. Therefore, Jones and Associates should adopt the cloud accounting system to enhance their proficiency and profitability in their business. References Christauskas, C., Miseviciene, R. (2012). Cloudcomputing based accounting for small to medium sized business. Engineering Economics, 23(1), 14-21. Molnar, D., Schechter, S. E. (2010). Self Hosting vs. Cloud Hosting: Accounting for the Security Impact of Hosting in the Cloud. In WEIS. Mian, S., Teixeira, J., Koskivaara, E. (2011). Open-source software implications in the competitive mobile platforms market. Building the e-World Ecosystem, 110-128. Romney, M. B., Steinbart, P. J. (2012). Accounting information systems. Boston: Pearson. Simkin, M. G., Norman, C. S., Rose, J. M. (2014). Core concepts of accounting information systems. John Wiley Sons.