Role of Accounting Information Systems in Cloud Accounting Transition

This report examines the role of Accounting Information Systems (AIS) in the context of cloud accounting, focusing on the transition from traditional systems. It details the benefits of cloud accounting, such as improved global access, real-time data updates, and streamlined processes, while also addressing potential risks like data security and compliance issues. The report highlights the impact of Single Touch Payroll (STP) mandated by the Australian Taxation Office, which necessitates businesses to adopt cloud-based solutions. It also explores how firms like Bush Accounting can assist clients in this transition by providing strategic financial and virtual consultancy, including application support. Overall, the report underscores the importance of AIS in modernizing accounting practices and ensuring compliance with evolving regulatory requirements.

Role of Accounting
Information System
PRESENTED BY:-

Accounting Information System
 It is a system which business used to collecting, storing, managing,
processing, retrieving and reporting the financial data of the firm, so
anyone can use it.
 It increases the level of accuracy while preparing the company’s
financial transaction as well as recording them.
 This make financial data of the firm available for its users.

Single Touch Payroll
 Single Touch Payroll is a regulation of Australia taxation Office, in which
employers need to send the payroll information of the employees that
includes salary, wages and other information to the Australian Taxation
Office at the similar time when standards pay run.

Why client transit their business
to a cloud accounting
 In order to get speed in the process of transaction the clients move to cloud
accounting system.
 Cloud accounting enables the user to expand the business network beyond the
domestic market and helps to reach the international market.
 It is very time consuming to track and upgrade the internal server, the cloud
computing system automatically upgrade and thus save time for the organization.
 Some cloud computing can do many administrative task such as database
backup, software upgrade automatically.

Benefits to clients in moving from
a traditional to a cloud
accounting system
Some of the major benefits of the cloud system are narrated below
 It enables the users to work from any place
 It gives automatic updating of the data
 It ensures the safety of the information of the user
 It is very easy to use.

Some risks for clients in moving
from the traditional to a cloud
accounting system
Though there are several benefits the cloud accounting system has many
limitations also some of these are:
 In cloud computing always have a risk that third party can access the
data.
 The cloud accounting system often fail to meet the compliance and
legal requirements.
 The user may loose the control on the management of data.

Effect of bush accounting in the
process of transition from a
traditional to a cloud accounting
system
 The bush accounting system provides various services to the users which
enables them to change the accounting system from the traditional
system to cloud accounting system.
 Bush accounting system provide strategic financial and virtual consultancy
to the users to enable them to understand the process of transition from a
traditional method to a cloud accounting system.
 Bush accounting provides necessary application that enables the client to
get access of cloud accounting system.

Cloud Accounting System
 This is an accounting software which hosted on the remote servers.
 It provides service related to SaaS.
 The system send data into the cloud based to processes it and then
returned to their users.

Importance of Cloud Accounting
System
 It helps to prepare the payroll of the employees which full the
requirement of the ATO.
 This also store the data for the future convenience.
 This improves the accounting policy of the firm by using the technology.

Benefits of Cloud Accounting System
 Global access of data
 Up-to-date view of business
 Paperless procedure
 Safe and secure data storage

Limitations of the Cloud Accounting
System
 High Cost
 Data Security
 Accessibility
 Bandwidth

Bibliography
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Özdemir, S., & Elitaş, C. (2015). The Risks of Cloud Computing in
Accounting Field and the Solution Offers: The Case of Turkey.
Sobhan, R. (2019). The Concept of Cloud Accounting and its Adoption.
Stannard, J. (2016). Single touch payroll reforms and ASIC guidance on
disclosure and robo-advice. Superfunds Magazine, (417), 10.
Trigo, A., Belfo, F., & Estébanez, R. P. (2016). Accounting Information
Systems: evolving towards a business process oriented
accounting. Procedia Computer Science, 100, 987-994.

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