Cloud Accounting: Benefits, Limitations & Recommendations for BPA

This report provides a comprehensive analysis of cloud accounting and its impact on Business Plus Advisors (BPA) and their clients, comparing it to traditional accounting systems. It defines cloud accounting as a method executed through remotely hosted software, highlighting its accessibility and real-time updates. From BPA's perspective, the benefits include better management of a distributed workforce, improved relationship maintenance with distributors, and easy verification of discrepancies. Clients benefit from efficiency, accessibility, and data safety. However, limitations such as downtime, vulnerability to attacks, and limited flexibility are also discussed. The report recommends that BPA encourage clients to transition to cloud accounting due to its numerous advantages, including centralized data management and improved data accessibility, despite inherent limitations. The analysis considers factors like data security, client lock-in, and potential vulnerabilities, ultimately advocating for a shift towards cloud-based solutions for enhanced efficiency and coordination.

Accounting information system
Name of the student
Name of the university
Student ID

Cloud accounting
 Cloud accounting is the method of accounting that is executed
through software that is remotely hosted on cloud that is online.
 It is the software that is identical to the on-premises, self install
or traditional software for accounting.
 Data is transferred to cloud where the data is processed and
sent back to user.
 All the applications related to the application are performed off-
site and not on the user’s computer.

 Under cloud computing the users are able to access the
software remotely through internet or any other network using
the service provider for the cloud application.
 Cloud accounting software does not require the business to
maintain and install software on individual computers.
 It further allows the employees of other departments or
branch to have access on the same information and same
software version (Rittinghouse & Ransome, 2016).

Benefits of cloud accounting as compared to
traditional accounting
From the perspective of Business Plus Advisors –
It allows the management of Business Plus Advisor to manage the
distributed workforce in better way. As the accounting data under
cloud computing can be added and accessed from anywhere employees
of Business Plus Advisor can easily and quickly complete the work
irrespective of the physical location.
If the finance manager of Business Plus Advisor is required to add the
expense receipts he can do so through cloud accounting software and
make it accessible to other managers of the company

 It enables Relationship maintenance and easy verification of
discrepancies with the company.
 Relationship of Business Plus Advisor with their distributors
and vendors play major role towards success of its business.
Using the cloud computing the company is able to co-ordinate
with the suppliers in better way as required documents can be
easily found in the software.
 The advance tools in cloud software enable the employees of
Business Plus Advisor to find out and verify the discrepancies, if
any (Hashizume et al., 2013).

From the perspective of clients of
Business Plus Advisors –
 Efficiency and accessibility – clients
of Business Plus Advisor can update
and access the information from
anywhere. Further, the updates are on
real time basis and automatic.

Safety of data – data stored for the cleints of
Business Plus Advisor in the cloud accounting
software are safe as it is stored in secure data
system.
 Further, losing the power does not impact
the software as most of the servers offer
99.99% uptime facilities. Moreover the data
can be accessed any time through internet
(Avram, 2014).

Limitations of cloud accounting as compared to
traditional accounting
From the perspective of Business Plus
Advisors –
 Downtime – major disadvantage of cloud
computing is the downtime. As the cloud
computing are based on internet, service of
Business Plus Advisor can be impacted by
internet downtime.

 Vulnerability to attack – as each component
of cloud computing is online based it is
exposed to potential vulnerabilities.
 Data security - Irrespective of various
security measures data of Business Plus
Advisor can be lost or theft and even the best
IT experts of the company may fail to prevent
the data loss.

From the perspective of clients of Business Plus
Advisors –
 Limited flexibility and control – cloud user clients of
Business Plus Advisor may find that they have limited
access and control on execution and function of cloud
hosted services.
 Client lock-in – client lock-in as another disadvantage
of cloud software that may create issues while shifting
from one to another cloud platform (Park & Ryoo, 2013).

Recommendation
 Though cloud computing have some inherent
limitations it has various advantages that can
encourage Business Plus Advisor to ask their clients to
shift into cloud accounting software.
 It will enable the company to have all details
regarding the clients under single software.
 The data associated with clients of Business Plus
Advisor can be accessed from any location which in
turn will enable the users to update the data in less
time and verify the discrepancy, if any.

References
Avram, M. G. (2014). Advantages and challenges of adopting cloud
computing from an enterprise perspective. Procedia
Technology, 12, 529-534.
Hashizume, K., Rosado, D. G., Fernández-Medina, E., & Fernandez,
E. B. (2013). An analysis of security issues for cloud
computing. Journal of internet services and applications, 4(1), 5.
Park, S. C., & Ryoo, S. Y. (2013). An empirical investigation of end-
users’ switching toward cloud computing: A two factor theory
perspective. Computers in Human Behavior, 29(1), 160-170.
Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud computing:
implementation, management, and security. CRC press.