Introduction to Cloud Accounting: Benefits and Disadvantages for Jones and Associates

This presentation discusses cloud accounting and its benefits and disadvantages for Jones and Associates. It covers examples of cloud accounting systems, benefits for the firm and its clients, disadvantages, and the impact of cloud accounting. The presentation also includes a comparison of accounting software and specified features.

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 Cloud accounting is an accounting system that enables individuals or organization to
process financial data through the internet. The accounting system is hosted on
remote servers (Chang et al., 2017).
 Cloud accounting has helped users to receive more accurate financial information
that enhanced informed financial decisions in their organizations. The system is
automated and interconnected to relevant institutions that make it easy for the
business to effectively enter transactions to the business accounting system (Ruiz-
Agundez, Penya, & Bringas, 2011). Less manual work is required comparing to
traditional methods like balancing ledgers, inventory and payrolls .
Introduction to cloud accounting

 There are various cloud accounting systems examples outright,
kashoo, quick book, zoho books and yoldee. Most of these
accounting systems are suitable for small businesses. They are
accessible 24/7 despite change of location, transaction and
clients.
 Cloud accounting system`s saves time and tiresome work. This
encourages competent work.
Examples of Cloud Accounting Systems

 The following are benefits of using cloud accounting;
◦ Secure bank feeds are assured. Every user has a strong password
whenever they login in. This reduces risk of disclosing confidential
transactions made by clients (Spathis, & Ananiadis, 2005).
◦ Error free results are processed by the system. Since less manual work
is required (only data entry) ensuring good quality results and
performance
Benefits of cloud accounting to Jones and
Associates

 Jones and associate clients will be served faster and at any given
point. This is because the accounting system is decentralized. This
will also save clients time spend in making purchase as opposed to
traditional accounting systems where clients had to queue.
 Jones and Associates clients’ will be able to make payment in
different currencies. This cloud accounting system is integrated with
the bank making it flexible to use different currency.
Benefits of using Cloud Accounting to Jones and Associate
Clients’

 Initial cost is very expensive especially if Jones firm wishes
to offer it system to other firms. It requires investment on
hardware and software that are crucial to the system
(Christauskas, & Miseviciene, 2012).
 Maintenance cost is expensive due to arising legal fees and
up to date versions.
 Requires skilled personnel
Disadvantages of cloud accounting to Jones
and Associates

 The client requires internet connection to access and use the system. This
means that disconnections may limit a client from making a transaction
with the business. This is different from traditional accounting system where
clients were served on the business premises.
 It not possible to guarantee client confidentiality: The clients’ feel that their
information is shared by third party or being used by the business for
different purposes. This exposure affects the client willingness to adopt and
use cloud accounting. The traditional accounting system did not
automatically share client confidential information with third party.
Disadvantage of Cloud Accounting to Jones
And Associate Clients’

 Cloud accounting has proved to be flexible to many accountants. When
Jones decides to implement the cloud system this will enable them to grow
quickly.
 Jones firm will be able to access information mobile. This encourages
confidentiality between accountants and clients.
 Instant results are processed encouraging punctuality and interest to client`s
demands.
 Jones firm is able to make good profits. Since, client`s are willing to pay for
services offered to them. Through profits, encouraging more branches
Impact of cloud accounting to Jones and associate

If Jones wishes to implement cloud
accounting, they need to follow
institutional procedures. First, decision
making begins from managerial to general
office. This enables critical thinking,
creative and team work
strategy

packages
features
Kashoo outright xero
Digital dashboard Simple to use Has no digital
dashboard
complex
Secure bank feeds Secure for double entry
accounting process
Secure for single entry
accounting process
Not fully secure
General ledgers, payroll
20,accounts receivable,
accounts
payable ,inventory and
reporting
Quick view for General
Ledger, Account
Payable and Account
Receivable
General legder and
payroll 20
Allows inventory and
reporting, general
ledger, account
receivable and account
payable
Comparison between accounting software(s) and specified features

 Jones and Associates need to adopt cloud
accounting because of it many advantages
to other accounting systems and the impact
that the cloud accounting will have to their
business. It is recommended that they
engage an expert in the process of
implementing the system in the business in
order to minimize it risks and fully realize
the benefits of cloud accounting.
Conclusion

 Chang, V., Ramachandran, M., Walters, R. J., & Wills, G. (Eds.). (2017).
Enterprise Security: Second International Workshop, ES 2015, Vancouver,
BC, Canada, November 30–December 3, 2015, Revised Selected Papers
(Vol. 10131). Springer.
 Christauskas, C., & Miseviciene, R. (2012). Cloud–computing based
accounting for small to medium sized business. Engineering Economics,
23(1), 14-21.
 Ruiz-Agundez, I., Penya, Y. K., & Bringas, P. G. (2011, March). A flexible
accounting model for cloud computing. In SRII Global Conference (SRII),
2011 Annual (pp. 277-284). IEEE.
 Spathis, C., & Ananiadis, J. (2005). Assessing the benefits of using an
enterprise system in accounting information and management. Journal of
Enterprise Information Management, 18(2), 195-210.
References