Benefits and Limitations of Cloud Accounting for Jones and Associates

This presentation discusses the benefits and limitations of cloud accounting for Jones and Associates, including cost savings, improved efficiency, and real-time reporting. It also covers potential risks and limitations for both the firm and its clients. Additionally, it compares popular cloud-based accounting packages such as FreshBooks, QuickBooks, and Kashoo.

1.0. Introduction.
 The globe is undergoing changes in terms of technology and computer applications.
 In that connection, majority of firms have decide to incorporate these changes so as to
integrate all the requirements intended to make production more effective and efficient.
 Systems innovation have been done in the field of accounting so as to improve on
traditional accounting systems.
 By considering the concepts of modern accounting systems such as cloud accounting
system, then we will realize how beneficial modern accounting system assist accounting
firms and their clients.
 Therefore, stakeholders in accounting firms such as Alex, Jones and Associates will be
able to understanding the impacts associated to application of cloud accounting system.

1.1. Cloud Accounting.
 Cloud accounting is a software tool used in accounting firms. The application of this
software is very beneficial to small and medium accounting firms.
 By definition, cloud accounting is a software tool similar to traditional accounting
system (Kay, 2013). However, cloud accounting software is hosted on remote servers
just like the widely used Software as a Service business model.
 The data used in cloud accounting is accessed to user after being sent to “the cloud”
where processing take place.
 In that case, there is not need to install and maintain cloud accounting software into a
desktop or personal computer.
 The functions applied in cloud accounting software are performed off-site unlike in
traditional accounting software where the application of functions are performed on
user’s desktop.

1.2. Benefits of using cloud
accounting to Jones and Associates.Jones and Associates will have real-time reporting along with visibility across all departments in
accounting firms located in Bendigo, Victoria.
 Jones and Associates will save a lot of money if they incorporate cloud accounting (Yacht, 2015).
This is because they will get latest updates to the software without purchasing a new software
package.
The accounting firm for Jones and Associates require less capital for server infrastructure for data
storage. This save a lot of money.
The firm does not require IT staff to update as well as to maintain cloud accounting software. Again
the firm save more money.
Accounting firm for Jones and Associates will receive cloud accounting software updates when they
arrive with no additional costs.
Cloud accounting software has advanced features that the firm can apply.
Cloud accounting software has capability to improve overall efficiency of a business.

1.3. Benefits to clients of Jones
and Associates.
They clients are guaranteed on security of their financial data if they incorporate cloud
accounting software. This is because financial data is encrypted and protect via strong
passwords impossible top crack.
Cloud accounting apply strong servers and backup servers (Fletcher, 2012). Thus, the
clients of Jones and Associate can retrieve data even when one server is slowing down.
Cloud accounting will enhance mobile capabilities as well as close collaborations.
Cloud accounting software will assist clients of Jones and Associates to coordinate other
departments as well as to allow different offices to access the same data. This will be
coordinated by the same version of software.
There is reducing licensing fees.
Reduction of overhead costs.

1.4. limitations of cloud
accounting to Jones and
Associates.
 The confidentiality of data is not guaranteed since you are sharing data with a
third party (Aiton, 2011). In that case, the competitors of your business may use
your data for their personal interests.
 Your data can be audited and reviewed by the government since that data is
stored in different countries. The firm has no direct control to the data.
 There are restrictions in the application of cloud accounting software. Some of
the requirements of your business or accounting firm may not be available in
cloud accounting system.
 Data back up is not guaranteed. Once you change your software tool, data may be
lost because cloud accounting software do not provide a facility to back up your
data in the computer.

1.5. limitations of cloud
accounting to clients of Jones and
Associates. The is potential loss of important and sensitive data regarding the
clients of Jones and Associates.
 The clients may experience delays in business operations and
transactions in case of problems in internet connectivity (Saloner,
2009).
 The laws and regulations governing cloud accounting can be
violated by the firm which would affect the clients.

1.6. Implementation of cloud accounting and
impact to corporate strategy for Jones and
Associate.
 Through application and implementation of cloud accounting, Jones
and Associates will be able to realize the following aspects of
corporate strategy.
 First, there is automation of manual business processes. Jones and
Associate have a firm whose growth will be experienced in the near
future. Demand for data associated to the firm also grow
proportionately.
 Implementation of cloud accounting will assist Jones and Associates
to eliminate duplicate entries for error prevention as well as
improvement of data accuracy.
 Implementation of cloud accounting assist in securing user access

1.7. Implementation of cloud accounting and
impact to value chain for Jones and Associate.
 This will offer ultimate security and quality of data as managed in
IT environment (Bragg, 2015). Value chain incorporate highest
standards in cloud accounting system and infrastructure.
 Value chain for Jones and Associates is contributed by 24/7 data
access in control as well as in collaboration due to increased
customer base and mobile workforce.
 Implementation of cloud accounting open application of
sophisticated accounting tools for Jones and Associates than could
be accessed through traditional accounting system.

1.8. Comparison of cloud based
accounting packages.
1. FreshBooks 2. QuickBooks 3. Kashoo
 It is a guided help boxes applied to
make small and medium business
accounting simple and to get
business owners get paid and
organized.
 It is possible to access business data
on a mobile device with online
simple start.
 it is possible to categorize expenses
and income for purposes of taxation
and tax reporting.
• It features options for payments done
online.
• It contain payroll bundle for making
payments to employees.
• Ability to connect to online bank
accounts. Users can apply credit
cards.
• Allow time-tracking, tracking of
expense, accounting reports as well
as taxes.
 It has merchant service app applied
to accept debit, credit cards along
with checking online services in
QuickBooks.
 Ability to share business data to
accountants online.
 It is free for 30 days. The basic
business plan begin at $ 19.95 each
month.
 It has 30-day free trial with online
version starting at $12.95 each
month.
 A free version is offered which is
limited to 20 transactions per month.
It is priced at $16 each month.
 The business can create new invoice
as well as addition of new client to
the record.
 It is possible to create invoices,
facilitates tracking of sales and
downloading banking transactions.
 It is based on professional invoices
along with simple dashboards.

1.9. Conclusion.
 In conclusion, it is very important to appreciate modern innovations done in the
different fields of technological advancement.
 The innovation of cloud accounting system has brought great positive impacts in
business operations.
 Cloud accounting system is much better as compared to traditional accounting
system.
 There is need to subscribe to cloud accounting system so as to benefit from
different services offered by this accounting package.
 Despite some limitations, cloud accounting tend to offer a better solution in
accounting firms along with other business enterprises.
 The different cloud accounting packages such as FreshBooks, QuickBooks,
Kashoo, outright and Xero can be applied based on the objective of a business at
a particular point in time.

1.10. References.
Aiton, C. (2011). Cloud Accounting. Smyth Barnabas Publishing.
Bragg, S.M. (2015). Accounting for Inventory. Accounting Tools.
Fletcher, F. (2012). Business Problem Solving. Routledge.
Kay, D. (2013). Accounting Information Systems: The Crossroads of Accounting
and IT. Pearson.
Saloner, G. (2009). Strategic Management. Wiley Publisher.
Yacht, C. (2015). Computer Accounting in the Cloud with QuickBooks Online.
McGraw-Hill/Irwin.