Cloud Accounting: Benefits and Risks for Businesses | Desklib

This presentation explores the benefits and risks of cloud accounting for businesses. It covers why clients choose cloud accounting software, benefits of transferring to cloud accounting from traditional system, risks associated in moving from traditional to cloud, and how to convince clients to turn up into cloud accounting.

Name of the Student-
Name of the Organization-
Author’s note-
ACCOUNTING INFORMATION SYSTEM

INTRODUCTION
Cloud accounting is an accounting software which hosted on remote servers. It provides
accounting features to business houses in a way, which is similar to “software as service”
business model. It follows the structure where data is send to the cloud, where data is
processed with the help of information stored in it. Later, when data is processed, it is
returned back to the user interface. Cloud accounting helps to free the business from
installing and maintaining the software on every computers available in the function.
Cloud accounting allow employees in all departments, branches to access same sort of data
as well same version of software in the system.

TOPIC 1: WHY CLIENTS CHOOSE CLOUD
ACCOUNTING SOFTWARE
• In context to Single Touch Payroll( STP ), a new of reporting tax publishing
superannuation benefit information to the taxation department.
• Cloud accounting software helps to generate payroll information of the employees of
an organization, such as wages and salary.
• It also identifies the transaction, the expenses of the company (Egerová & Nosková,
2019).

CONTINUE…
• Accounting professionals are often more excited when it comes to work in cloud
accounting (Duska, Duska & Kury, 2018).
• More accounting firms are choosing cloud accounting tools because the benefits are
unmatched in the stream.
• It provides better mobility and easy collaboration with clients. These reasons are strong
enough for the companies to choose cloud accounting software. Cloud is the future and is
considered as gen-next version of accounting. Suppose client’s accounting data is not
stored in stored in the database where it can be lost or might be stolen.
• Cloud accounting gives an unmatched benefit where it is stored remotely on secured
servers.

TOPIC 2: BENEFITS TO CLIENTS IN TRANSFERRING TO CLOUD ACCOUNTING
FROM TRADITIONAL SYSTEM
• Cloud accounting are less costlier than traditional accounting system in the market and up
gradation of the software are instantly done. They always try to innovate the best suit
possible.
• High class security is something which a company wont negotiate; cloud accounting does
provides world class security which stores data securely much effectively than traditional
system. Cloud accounting is paperless in nature, it minimizes risk of manual errors and it
shows results in a most efficient way .
• Traditional accounting system do not delivers the need which is expected from the
business. Whereas, cloud accounting allow to customize the needs required by the business
and helps to access easily.

CONTINUE…
• It helps to maintain relationship with the distributors, co-workers and suppliers very
efficiently. Users can easily locate the invoices of the payment structure and can track
whether any payment got missed out.
• Hawkins, 2019 has mentioned that cloud accountants allows business owners to stay
connect and follow parameters wit the accountant or finance team of the company.
• The most important benefit of cloud accounting is they keep all data of the company very
organized. It also allows to update every gains or expenses associated with the company
and it is easier to find data, which is not available in traditional accounting system.

BENEFITS OF CLOUD ACCOUNTING FROM XERO
AND MYOB
• Cloud accounting meet nearly all requirements, whereas MYOB and XERO do not meet all
requirements. The pricing and credit terms are very good in cloud accounting.
• Cloud accounting has auto reordering, multiple receipts, accrual accounting, Whereas
XERO and MYOB considers basic receipt and invoicing, which are similar steps.
• Cloud accounting is user friendly in nature, More number of employees are turning up to
use the software because it is agile and enables quick business.

TOPIC 3: RISK ASSOCIATED IN MOVING FROM
TRADITIONAL TO CLOUD
• Traditional accounting do not require internet access but cloud accounting need internet to
access it from anywhere. If the user do not have internet facility then they cannot access
the accounting data.
• Manisha & Bosman, 2018 mentioned that cloud accounting vendor might flee away from
the company. There are certain circumstances where vendor were selected but fled due to
poor contingency plan.

CONTINUED…
• Infiltration risk segmented with electronic data are stored . It includes theft of data,
which is breach of privacy (Saez, Schoefer & Seim, 2019)
• Data is also taken by hostile and is locked out from the system.
• Infiltration is also caused due to malicious software attack which is unwillingly
installed by the user.

DISADVANTAGES OF CLOUD ACCOUNTING FROM
XERO AND MYOB
• The major disadvantage of cloud accounting is, internet connection has to
be active every time. Weak connections will be a challenge for the users to
analyze data.
• There are chances of data hacking. Though many parameters are innovating
to prevent data hacking, it is not 100% safe.
• Data protection is not practiced vigorously, users should evaluate whether
data is stored securely before it heading straight to cloud.

CONTINUED…
• It has too many access points, which gives a clear path for the hackers to dilute the
network.
• High cost is influenced by data storage and whenever the company grows higher
the incremental cost also increases.

TOPIC 4: HOW CAN BUSH ACCOUNTING
CONVINCE CLIENTS TO TURN UP INTO CLOUD
ACCOUNTING
• Bush accounting will explain the clients, the benefits associated with cloud accounting and
how to mold the opportunities ( Bush & Co Limited, 2019).
• Cloud saves the data automatically and ensures all the data are saved securely. This
advantage is not available in any traditional accounting, hence this can be one of the main
point of convincing the clients.
• Cloud accounting produces agility to business. Cloud remove all the barriers associated in
accounting and helps to adopt new technologies.

Accountants in Exeter : Bush & Co Limited. (2019). Bushaccountants.com. Retrieved 18 July 2019,
from bushaccountants.com
Duska, R. F., Duska, B. S., & Kury, K. W. (2018). Accounting ethics. Wiley-Blackwell.
Egerová, D., & Nosková, M. (2019). Top management team composition and financial performance:
examining the role of gender diversity.
Hawkins, R. B., Mehaffey, J. H., Yount, K. W., Yarboro, L. T., Fonner, C., Kron, I. L., ... &
Investigators for the Virginia Cardiac Services Quality Initiative. (2018). Coronary artery bypass
grafting bundled payment proposal will have significant financial impact on hospitals. The Journal of
thoracic and cardiovascular surgery, 155(1), 182-188.
Manisha, M., & Bosman, R. (2018). Effect of cloud accounting on an accounting firm’s costs.
Saez, E., Schoefer, B., & Seim, D. (2019). Payroll taxes, firm behavior, and rent sharing: Evidence
from a young workers' tax cut in Sweden. American Economic Review, 109(5), 1717-63.
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