Cloud Accounting: Concept, Benefits, and Limitations

Running Head: Concept of Cloud Computing
Cloud Accounting

Concept of Cloud Computing 1
Introduction:
The accounting industry is undergoing drastic changes on the constant basis due to the
technological development. The evolution of new technologies has brought the new concept
of cloud computing which has actually resulted in increased expectations of the customers
and the accountants are also rethinking about the ways they must operate to fulfil the new
demands.
Cloud accounting:
Cloud technology is one of the prime technological trends in the recent times. Cloud is the
platform where any software can be accessed on the online mode anytime and from anywhere
in the world with the use of any compatible device that supports the internet connection.
Cloud accounting is the key concept of cloud technology under which data is sent to the
cloud platform where such data is processed and then returned to the intended users. In the
businesses where cloud accounting is being used, all the application functions are executed
on the off-site mode and not on the desktop of the users and this practice frees such business
from the need to install and maintain the requisite accounting software on the individual
computers.
Cloud accounting v/s Traditional accounting software:
In cloud computing, the accounting documents are dematerialised and various accounting
software are migrated to the cloud platforms that are electronic in nature. In traditional
accounting systems the accounting software is usually brought to the business as a product
and then it is installed on all the user desktops whereas cloud accounting is availed as a
service from the cloud operators who are the service providers (Aiton & Russell, 2011).

Concept of Cloud Computing 2
Benefits of cloud accounting
For Business Plus Advisors:
 Minimum Investment in Cloud Infrastructure:
To purchase and install the accounting software for the purpose of providing accounting
services, the firm has to invest a considerable amount and also the accounting software will
require regular maintenance of such software.
 Easy information sharing:
While using the cloud accounting, the client can easily share the financial information with
their clients.
 Minimum storage:
Since all the accounting data of all the clients that the accounting service provider is serving,
is stored on the cloud platform, it becomes easy for the accounting firm to manage and store
huge data so that it can readily be accessed anytime and anywhere (Khanom, 2017).
For the clients:
 Easy to find service providers
While using the cloud accounting services, they can easily find other service provider on the
cloud platform, when they are not satisfied with the service of one provider.
 Regular updates for business performance:
The clients using the services of accounting firm that has adopted the cloud accounting
technology can get real time information that allows them to check how their business is
performing.