Cloud Accounting: Benefits and Limitations for Business Plus Advisors

This article discusses cloud accounting and its benefits and limitations for Business Plus Advisors. It covers topics such as smart management for distributed workforce, relationship maintenance, easy verification of discrepancies, efficiency, accessibility, and safety of data. It also highlights the limitations of cloud accounting such as downtime, vulnerability to attack, limited flexibility and control, and client lock-in. The article concludes with a recommendation for Business Plus Advisors to shift to cloud accounting software despite its limitations.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting information system
Name of the student
Name of the university
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Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................4
References..................................................................................................................................5

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Answer 1
Cloud accounting
Cloud accounting is the method of accounting that is executed through software that
is remotely hosted on cloud that is online. It is the software that is identical to the on-
premises, self install or traditional software for accounting. Data is transferred to cloud where
the data is processed and sent back to user. All the applications related to the application are
performed off-site and not on the user’s computer. Under cloud computing the users are able
to access the software remotely through internet or any other network using the service
provider for the cloud application. Cloud accounting software does not require the business to
maintain and install software on individual computers. It further allows the employees of
other departments or branch to have access on the same information and same software
version (Rittinghouse & Ransome, 2016).
Answer 2
Benefits of cloud accounting as compared to traditional accounting
From the perspective of Business Plus Advisors –
 It allows smart management for distributed workforce – as the accounting data under
cloud computing can be added and accessed from anywhere employees of Business
Plus Advisors can easily and quickly complete the work irrespective of the physical
location. For instance, if the finance manager is required to add the expense receipts
can do so through cloud accounting software and make it accessible to other managers
of the company

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 Relationship maintenance and easy verification of discrepancies – relationship with
the distributors and vendors play major role towards success of Business Plus
Advisors. Using the cloud computing the company is able to co-ordinate with the
suppliers in better way as required documents can be easily found in the software.
Further, the advance tools in cloud software enable the employees to find out and
verify the discrepancies, if any (Hashizume et al., 2013).
From the perspective of clients of Business Plus Advisors
 Efficiency and accessibility – clients of Business Plus Advisors can update and access
the information from anywhere. Further, the updates are on real time basis and
automatic.
 Safety of data – data stored in the cloud accounting software are safe as it is stored in
secure data system. Further, losing the power does not impact the software as most of
the servers offer 99.99% uptime facilities. Moreover the data can be accessed any
time through internet (Avram, 2014).
Limitations of cloud accounting as compared to traditional accounting
From the perspective of Business Plus Advisors –
 Downtime – major disadvantage of cloud computing is the downtime. As the cloud
computing are based on internet, service of Business Plus Advisors can be impacted
by internet downtime.
 Vulnerability to attack – as each component of cloud computing is online based it is
exposed to potential vulnerabilities.
From the perspective of clients of Business Plus Advisors –

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 Limited flexibility and control – cloud user clients of Business Plus Advisors may
find that they have limited access and control on execution and function of cloud
hosted services.
 Client lock-in – client lock-in as another disadvantage of cloud software that may
create issues while shifting from one to another cloud platform (Park & Ryoo, 2013).
Answer 3
Recommendation
Though cloud computing have some inherent limitations it has various advantages
that can encourage Business Plus Advisors to ask their clients to shift into cloud accounting
software. It will enable the company to have all details regarding the clients under single
software. Moreover the data associated with clients of Business Plus Advisors can be
accessed from any location which in turn will enable the users to update the data in less time
and verify the discrepancy, if any.

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References
Avram, M. G. (2014). Advantages and challenges of adopting cloud computing from an
enterprise perspective. Procedia Technology, 12, 529-534.
Hashizume, K., Rosado, D. G., Fernández-Medina, E., & Fernandez, E. B. (2013). An
analysis of security issues for cloud computing. Journal of internet services and
applications, 4(1), 5.
Park, S. C., & Ryoo, S. Y. (2013). An empirical investigation of end-users’ switching toward
cloud computing: A two factor theory perspective. Computers in Human
Behavior, 29(1), 160-170.
Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud computing: implementation,
management, and security. CRC press.