Cloud Accounting for Jones and Associates: A Comprehensive Report

This report provides a comprehensive overview of cloud accounting systems, defining them as internet-based accounting solutions offering advantages over traditional methods. The report details the benefits of cloud accounting, such as accuracy, privacy, flexibility, cost-effectiveness, time management, and accessibility, highlighting their positive impact on business operations, including enhanced profitability and security. It also addresses the limitations, including the need for a stable internet connection, user skill dependency, potential expense, and the impact on traditional accounting roles. The report then compares features of Xero, Zoho Books, and Wave accounting packages, providing a comparative analysis of their functionalities. Ultimately, the report recommends the adoption of cloud accounting systems for businesses like Jones and Associates to improve proficiency and profitability.

Introduction
Cloud accounting can be defined as an accounting system that is hosted on remote servers and can be
accessed on the internet (Simkin, Norman, & Rose, 2014).
Cloud accounting helps record financial details for both small and large businesses more effectively
compared to a manual or in-house accounting system.
Benefits of Cloud Accounting
 Accuracy. Cloud accounting software helps to process financial records more accurately even
with big numbers.
 Privacy. Cloud accounting ensures that there is a backup server in more than one locations. This
reduces risk of losing data in case of a cyber theft or interference (Mian, Teixeira, & Koskivaara,
2011).
 Flexibility. The software enables individuals to access information anywhere. Despite of their
locality differences.
 Cost effective. After purchasing cost, there are no additional costs. Once the server has being
purchased there is no need to purchase it twice.
 Time management. When the user enters data for processing. He or she is assured of timely
results whereby there will be no delays.
 Accessibility. Cloud accounting can also be accessed to more than three corporate users without
slow or delayed services.
 The clients of Jones and Associates will be able use the software despite limitations like different
currencies. The software is able to convert and give accurate results.
 Cloud accounting is able to process transactions efficiently for Jones and associate clients.
Limitations of Cloud accounting system
• Cloud accounting requires uninterrupted internet connection in order to operate according to
the users’ commands.
• Cloud accounting relies heavily on the users skills to enter data. If the user mistypes or misuses
the software features. This will result to poor quality results and wastage of time. Garbage
in ,garbage out (Molnar, & Schechter, 2010).
• Cloud accounting can only be used by users who have legal rights of ownership or legal
agreements to share.
• Expensive. Cloud accounting software is expensive at initial cost .because one has to purchase
expensive new hardware serves. This might scare of clients to Jones firm who will find their
serves expensive.
• Cloud accounting software incurs costly maintenance due to new licensing and fee for the
database system. Since the user needs to update or renew it.

• Software requires endless supply of electricity which will loss data if interrupted.
• Due to easy access of accounting software. This tends to limit professionals example
accountants to be unemployed. Since the software has no specialized skills
Impact of clound Accounting
• Profitability is ensured since more accountants are able to use it in book keeping , this ensures
good quality results and good performance.
• When profitability is assured. This makes the firm grow rapidly since they are able to retain their
clients.
• Security is high since cloud accounting has a password. So, bank feeds are safe and other
transaction details are safe. Hence processing transactions efficiently for Jones and associate
clients (Christauskas, & Miseviciene, 2012).
• Cost effective. After purchasing cost, there are no additional cost . Once the server has being
purchased there is no need to purchase it twice.
• Time management. When the user enters data for processing. He or she is assured of timely
results whereby there will be no delays.
• Accessibility. Cloud accounting can also be accessed to more than three corporate users without
slow or delayed services.
• The clients of Jones and Associates will be able use the software despite limitations like different
currencies. The software is able to convert and give accurate results.

Comparison of Xero, zoho books and wave accounting
• accounting
packages
• features
• XERO • ZOHO BOOKS • Wave
accounti
ng
• GL,AR, AP • AP and AR only • GL, AR AND AP • GL, AR
and AP
• Digital Dashboard • yes • yes • yes
• Secure Bank feeds • yes • no • no
•
Conclusion
In summary, cloud accounting system is an improvement of in-house accounting systems and enables a
decentralized accounting system. Therefore, Jones and Associates should adopt the cloud accounting
system to enhance their proficiency and profitability in their business.
References

Christauskas, C., & Miseviciene, R. (2012). Cloud–computing based accounting for small to medium sized
business. Engineering Economics, 23(1), 14-21.
Molnar, D., & Schechter, S. E. (2010). Self Hosting vs. Cloud Hosting: Accounting for the Security Impact
of Hosting in the Cloud. In WEIS.
Mian, S., Teixeira, J., & Koskivaara, E. (2011). Open-source software implications in the competitive
mobile platforms market. Building the e-World Ecosystem, 110-128.
Romney, M. B., & Steinbart, P. J. (2012). Accounting information systems. Boston: Pearson.
Simkin, M. G., Norman, C. S., & Rose, J. M. (2014). Core concepts of accounting information systems.
John Wiley & Sons.