Accounting Information System: Cloud Based System Analysis Report

This report provides a comprehensive overview of cloud-based accounting information systems (AIS), examining their impact on business operations. It begins by introducing cloud computing and its role in modernizing accounting practices, highlighting benefits such as real-time reporting, cost r...Read More

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
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ACCOUNTING INFORMATION SYSTEM
Table of Contents
Introduction................................................................................................................................3
Overview of Cloud Computing..................................................................................................3
Challenges and Benefits.............................................................................................................4
Recommendation........................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
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Introduction
Organizations are expanding in terms of departments and employees and are assigned with
various work genres. Cloud based accounting information system that aids business
organizations to meet organizational goals and needs. Small and large business organizations
can benefit from the use of technological tool of cloud computing (Algari, 2017).
Organizations can compete with their rivals by using modified business applications. Internet
services assist the employees of business organizations to improve the productivity and trade
value through cloud based AIS. The objective of the study is to understand the change of
operation in business organizations in terms of adding cloud based accounting information
systems (AIS).
Overview of Cloud Computing
Cloud computing is known for revolutionizing the IT industry and provides a model for
enacting conducive, network access towards the common meld of services, storage, servers,
networks, and applications to facilitate ease in management of data. It allows customers to
omit human interaction by taking data from proper software as per one’s convenience. Clients
can connect to various platforms by using the dedicated software installed in their digital
devices connected to internet and is benefitting cloud based accounting information systems
(Dillon, Wu, & Chang, 2010). Pool based computing resources are configurable and signified
for better operation to serve varied customers by using customer demand pattern (Wang, Ren,
Lou, & Li, 2010). Customers can rapidly avail data that can be required over any given point
of time. Multi-tenancy approach entails cloud infrastructure with differed parameters for each
of the customers and provide assistance to the cloud based accounting information systems.
Cloud service providers promote their mesh of customized applications to the end customers,
who can try it by accessing the internet (Leimeister, Bohm, Riedl & Krcmar, 2010). Cloud
infrastructure is complicated to understand from the viewpoint of a customer, as it is operated
by optimizing diversified data.
Client can attempt to develop their applications over the online platform to edit and modify it
by allowing in-progress verifications. Clients have the facility to use IT infrastructure
services with a personalized virtual machine that is different from multi tenancy process. This
is due to the fact that it focuses on virtualization of distinguished infrastructure as a service
cloud. MYOB is one of the accessible cloud based accounting information systems website,
which offers various technology tools for its customers. MYOB has account edge, which is
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made for Macbook allowing clients to address tax obligations, meet BAS, GST reporting and
accounts reconciliation. Client can check business indicators to ascertain the benefits and
losses of the organization along with customize quotes, purchase orders and invoices through
apple devices, timesheet management, payroll tax determination according to the state, leave
& super, and PAYG operation (MYOB Technology Pty Ltd., 2017). MYOB invests large
amount annually in research and development and secures all the data related to bank
transactions. In addition, it also provides accountant-employee relation, updated ATO rules
and online payments by paydirect online. SAASU is another example of Australian based
accounting information systems, which helps customers with auto-invoicing, online
payments, inventory management, live dashboard, auto bank feeds, cashflow forecast, well
managed multicurrency, auto payroll and integration with add-ons (Saasu Pty Ltd., 2017).
Challenges and Benefits
Real-time account reporting is beneficial for the clients as compared to the conventional style
of financial accounting, budget making, controllable and uncontrollable event periodic
reporting (Bushman, Chen, Engel & Smith, 2004). Modern scenario of financial reporting is
based on the competitions that are faced by the companies’ due to advanced supply and
demand ratio. It is necessary for companies to adopt cloud based AIS to pace up against the
competing firms and address the problems quickly based on the market needs. Real-time
accounting comprises enterprise architecture, application integration, business operation
management and business intelligence through cloud based accounting information systems,
which can be enacted through internet based gadgets. In recent times, the real-time approach
narrates to the fastest link between computerized systems and input data. Managers can easily
trigger the changes and find solution associated with corporate performance to spot the key
dimension of investment opportunities to choose the better direction. Organizations can
deduct the operating costs of capital expenditure of IT functions with the help of using cloud
based accounting tools. Additionally, it is easy to be based on cloud infrastructure, as it is
beneficial in comparison with other machines and software (Garrison, Kim &Wakefield,
2012).
It saves extra costs of the company by reducing the employment of IT professionals, who
have significant expertise in accounting. Cloud based accounting information systems
benefits organizations, as it helps in controlling the IT infrastructure by enhancing or
reducing the parameters. Companies can easily teach using the technique of cloud based AIS
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within minimum time frame (Gupta, Seetharama & Raj, 2013). This feature allows the
organizational employees and clients’ opportunity to avail the cloud based AIS system from
anywhere. Cloud based accounting information systems saves the strenuous work towards
registering accounting information manually. It further allows organizational employees to
focus on the other critical issues of the company. Cloud services require good speed internet
connection to avail the data anywhere making it securer for unauthorized access. This helps
the organizations to rely on the cloud database for any emergency situation of hard-disk
failure, which results in the overall degradation and loss of valuable data (Vishwanath &
Nagappan, 2010).
Clients can manage their company data through reliable web based AIS, which dismisses the
idea saving the data in portable hard-drives or thumb drive. It is easy to access all the
financial data and recover company’s important information even after facing issues. Cloud
based AIS gives benefit by allowing protection to the office data, which has faced malware or
spam issues. Companies can take support in any emergency situation, as the cloud based AIS
provides services throughout the year. Supply chain is an integral part of the company that
has direct link with the accounting system and facilitates the client to share important data
with supply chain partners. Clients can share financial accounting data to the other business
partners as well. Cloud based AIS has totally omitted the offshore activities that need
physical presence of IT professional and auditors to partner countries (Takabi & Joshi, 2017).
Clients can easily track financial growth of globally spread international companies. Modern
day online activities are burdened with cyber criminal and cloud based AIS assures that the
there will be no manipulation or loss of financial data. Cloud based AIS strictly avoid the use
of company financial data for any commercial purposes and provide better security in the
long run. Challenges are noteworthy in the evolving pattern of cloud computing AIS
including privacy and security issues. There are risks of misusing the financial data of the
organization, as a single technical mistake can abuse it (Takabi & Joshi, 2017). Security and
privacy can be on continuous risk, if organization and cloud service providers are not able to
maintain authenticity at their sharing levels. Software as a service enable providers a set of
differed functionalities for different companies and their security system has varied
implications of enforcement services. Thus, varieties of integrated features supports customer
extensibility and acts as a challenge for cloud based AIS platforms. Customers can run, build
and protect their applications but providers can isolate the workspaces and applications,
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which acts as a barrier to the service. Infrastructure, as a service provides authority to the
client to secure their content, applications and systems, but it lacks the basic protection
capabilities. Multi-tenancy can raise issues for the clients, as it shares customer data even
after using it in a secured manner.
Recommendation
Clients can strictly report violation and abuse of their financial data in the case of any
mistrust, which help them to omit the challenges of the cloud based AIS. Homogeneity in
resource virtualization should be avoided in case of building cloud services for different
clients. The global operation of cloud based AIS asserts varied responses in case of
compliance issues with multiple jurisdictions. It needs to be mandatorily monitored by the
organization. Privacy and security of multi domain framework of cloud computing is based
on policy improvements as per the organizational needs. Client identification and password
authentication can be improved to shield sensitive financial information. Cloud based AIS
should take an account of its dynamic collaboration during interoperation process, as it leads
to security breaches. Cloud service providers need to pay heed to trust based framework
creation for better financial operation of the business entities. Privacy is the key concern for
business organizations and client should have the authority access information for audit,
traceback and access control. Risk analysis, service attestation, penetration testing and
previous life-cycle models are the prime components to reassess for the business
organization’s satisfaction.
Cloud based accounting information systems need to strengthen the cyberinsurance industry,
though it is one of the complicated prospect due to the global attributes. Strict usage policy
norms and cryptographic approaches are necessary to defend the financial data of business
organizations. Privacy and security management teams of cloud computing AIS should act
more responsible to assess the success factors its adoption. There are certain aspects of
accepting the growth factors for advanced form of accounting standards. Thus, organizations
experience substantial improvement in performing tasks, business operations, productivity
and business expansion (Oliviera, Thomas & Espadanal, 2014). Country specific limitations
and future possibilities can vary from the others, but business organizations need to
comprehend the information processing capability and its requirements.
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Conclusion
The research objective of the study is to understand the deep changes in accounting standards
of business organizations due to the addition of cloud b AIS. Primitive ways of financial
accounting is changing with the change of market demand and promotional factors to achieve
business goals and governance. Nowadays, business organizations have to compete
constantly with other organizations, which have made it necessary to track the productivity
on a daily basis to improve the efficiency. It is easy to keep track of tax, payroll, and growth,
stock, and other financial reports through a cloud based platform from any gadgets, which has
internet connection.
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References
Algari, A 2017, ‘The Impact of cloud based information systems on organization's
performance’, Journal of Computer Engineering, vol. 19, no. 2, pp. 42-46
Bushman, R, Chen, Qi, Engel, E, & Smith, A 2004, ‘Financial accounting information,
organizational complexity and corporate governance systems’. Journal of Accounting and
Economics, vol. 37, pp. 167-201.
Dillion, T, Wu, Chen & Chang, E 2010, Cloud computing: Issues and challenges, IEEE
Computer Society, viewed 26 January 2017, <http://sistemas-humano-
computacionais.wdfiles.com/local--files/capitulo%3Asistemas-de-servico/Dillon2010.pdf>
Garrison, G, Kim, S. & Wakefield, R, L 2012. ‘Success factors for deploying cloud
computing’, Communications of the ACM, vol. 55, no. 9, pp. 62-68.
Gupta, P, Seetharama, A & Raj, J, R 2013, ‘The usage and adoption of cloud computing by
small and medium businesses’, International Journal of Information Management, vol. 33,
pp. 861-874.
Leimeister, S Bohm, M, Riedl, C & Krcmar, H 2010, ‘The business perspective of cloud
computing: actors, roles and value networks’, ECIS 2010 Proceedings, pp. 1-12.
MYOB Technology Pty Ltd., 2017, AccountEdge, MYOB, viewed 26 January 2017,
<https://www.myob.com/au/accounting-software/accountedge>
Oliviera, T, Thomas, M & Espadanal, M 2014 ‘Assessing the determinants of cloud
computing adoption: An analysis of the manufacturing and services sectors’, Information &
Management, vol. 51, no. 5, pp. 497-510.
Saasu Pty Ltd., 2017, $125 Billion+ transactions by 80,000 users since 2000, SAASU,
viewed 26 September 2017, <https://www.saasu.com/>
Takabi, H & Joshi, J, B, D 2017, ‘Security and privacy challenges in cloud computing
environments’,IEEE Security and Privacy Magazine, pp. 24-31.
Vishwanath, K.V. & Nagappan, N 2010, ‘Characterizing cloud computing hardware
reliability’, In Proceedings of the 1st ACM symposium on Cloud computing, pp. 193-204.
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Wang, C, Ren, K, Lou, W & Li, J 2010, ‘Toward publicly auditable secure cloud data storage
services’, IEEE Network, pp. 19-24.
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