Benefits and Limitations of Cloud Accounting for Jones and Associates

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.