Cloud vs Traditional Accounting

This assignment analyzes the advantages and disadvantages of cloud-based and traditional accounting methods. It explores how cloud accounting benefits businesses like Goodie Gumdrops with accessibility, cost-effectiveness, and scalability, while acknowledging concerns about data privacy. Conversely, traditional accounting offers enhanced security but can be more expensive and less adaptable to modern needs. The assignment concludes that cloud-based accounting is a better fit for Goodie Gumdrops due to its ease of use, customization, and alignment with current legal regulations.

Accounting

PART B
Accounting is a significant part of every business. Thus it needs to be accomplished in an
effective manner. With the improvisation in technology, Cloud based accounting provides a
convenient option to business entities to record financial transactions in an accurate manner. To
cope up with the market, industries and business firms want to switch their old fashioned
traditional approach of accounting and get them updated in terms of technology.
With every passing day, startups are enrolled to cloud based accounting because it provides
benefit like data can be accessed anytime and anyplace by Goodie Gumdrops. Further, there will
be less possibility of loss of data because as it stored on the cloud and backed up is there
(Carmona, Ezzamel, & Gutiérrez, 2016). This accounting method is comparably cheaper than
traditional accounting approach, and multi user like accountant and colleagues can use cloud
accounting at no extra cost. However, cloud accounting approach is not for those businesses
which are extremely worried about the privacy of their data.
On the other hand, traditional accounting is the evergreen approach. Accounting transaction is
much safer in traditional accounting because data is not shared with the third party. Only
restricted persons were allowed to see books of accounts of the firm (Dimitriu & Matei, 2014).
There are other benefits also for Goodie Gumdrops like data cannot be damaged by cyber-attack,
and people are doing traditional accounting for years, so it is easy for them to understand and use
traditional system. However, it is relatively expensive than cloud accounting and needs to change
according to the need and demand of the present environment.
By considering above described aspects, cloud based accounting approach is best suited for
Goodie Gumdrops because it is easy, scalable, customizable and collaborative. Also, it is
updated with the current legal regulation of the country.

REFRENCES
Dimitriu, O., & Matei, M. (2014). A new paradigm for accounting through cloud
computing. Procedia Economics and Finance, 15, 840-846.
Carmona, S., Ezzamel, M., & Gutiérrez, F. (2016). Accounting history research: traditional and
new accounting history perspectives. De Computis-Revista Española de Historia de la
Contabilidad, 1(1), 24-53.