Cloud Accounting: Benefits and Drawbacks for Organizations

Microsoft
Cloud Computing
Summary of the PPT
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Summary of the presentation
With the ramified economic change, each and every organization needs to adopt
advance system process in their process. It is analyzed that with the increasing accounting
and financial recording complexity, every organization needs to adopt accounting software or
application in its accounting recording frameworks. Cloud accounting allows organization to
lower down the complexity of the accounting recording for preparing financial statement.
However, the adoption of could accounting in the process depends upon the several factors
such as nature of the busienss, complexity, accountant, investment capital available and
reporting framework of organization. Nonetheless, the main advantage of cloud computing is
that Cloud accounting follows the same accounting standards and accounting concepts to
keep the harmonization in the reporting frameworks in cloud accounting and traditional
accounting (Dimitriu, & Matei, 2015).
It is further analyzed that if company uses the cloud computing then it will also lower
down the administration expenses to maintain the cloud accounting in the accounting process.
The main disadvantage of cloud accounting is based on its vulnerability of the insider trading.
It is analyzed that when company avails the cloud accounting services then it will have to
outsource its accounting and reporting activities to other software organization which
undertakes all the accounting recording activities. The outsourcing of these activities might
increase the overall vulnerability of the business risk and insider trading of the organization
(Elmroth, Marquez, Henriksson, & Ferrera, 2009).
It is advised to companies that Cloud accounting is reliable and less expensive for the
companies to adopt in its accounting frameworks which should be adopted by the big
organizations or clients after following the proper cost benefit analysis. On the negative side,
it is considered that if in case, cloud accounting service providers go online then it might