Analysis of Cloud Based Computing in Accounting Information System

This report provides a comprehensive analysis of cloud-based Accounting Information Systems (AIS). It begins with an introduction to AIS and then delves into a detailed examination of cloud computing's role, including system design, documentation, testing, data conversion, and implementation. The report outlines the advantages of cloud computing, such as improved decision-making, efficient storage, enhanced reporting, and cost-effectiveness. It also acknowledges the challenges, including system understanding, data loss, security concerns, and implementation costs. The conclusion summarizes the benefits and drawbacks, highlighting the importance of thorough analysis for successful long-term growth and progress in adopting cloud-based AIS. The report includes references to support the analysis.

l
Cloud Based
Computing
(Accounting Information
System)
2018

1
By student name
Professor
Date: 17 May, 2018.
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Executive Assessment
In this assignment we have discussed the importance of cloud computing based Accounting
Information System. In the present day scenario, there has been rapid growth in the cloud computing
environment. With this, there is many advantages like paper saving, helps to enhance cash flows, it
increases the efficiency, no upfront costs, there are benefits in costs, it has a long and extraordinary list
and is a repository that is never exhausted. All of the data can be stored under a single roof and can be
accessed at any time when needed. We have critically analysed the adoption of cloud base accounting
information system.
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Contents
Introduction...........…………………………………………………………………..........…..4
Analysis.......................……………….......................................................................................4-5
Advantages & Disadvantages……….......................................................................................6-9
Conclusion..................................................................................................................................10
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Introduction:
The Accounting Information System (AIS) is a system of storage, collection and to process the data
related to accounts and finance for the use of the decision makers. It is a computer based way to keep a
track on the activity of accounts alongwith the resources of IT. The Finance reports obtained with the
results of the AIS, shall then be used by the management for internal purpose or external parties like
suppliers, authority of tax, vendors, etc. The extended purpose of the AIS is for auditing purpose as well
as finance reporting.The primary operator of Accounting information system is human. In the beginning
phase, the designing of Accounting Information System (AIS) was made to perform the payroll
functionality. In the present day scenario, the cloud based information system have become popular for
the large as well as Small & Medium Enterprises at lower costs. After the implementation of Accounting
Information System (AIS), many companies have eliminated low skills, the roles of accounts at the level
of operation and transaction.
Analysis & Implementation:
The detailed analysis of the Accounting Information System, has been mentioned below:
Designing of the System:
A thorough analysis of the entities environment is studied and after a close examination of all the factors
of the organisation, the system designing is done. Herewith a new system is created to function in the
organisation. It is also analysed that what sort of data is to be input into the AIS, how they will be input,
the outcome of the information from the sorftware, and the manner in which it will be formatted. The
designing is done in a manner that it includes the relevant internal controls and to deliver the
appropriate information needed to the decision makers.
Documentation:
The manner in which the system is deseigned, it has to be written in a proper format and manner that
would be preserved. It shall be done in such a way, that the user find it easy to handle each process
specifically. Mostly all the documentation and procedures are done online, that is of help to the
company, where it can add more informations. It is tested at the time of imparting training procedures
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so that when the system is made available to all, then there shall be no interrogation of how it works
and the users are aware of the modifications.
Tests:
Before inaugurating, the employees or the users require proper training to handle the system with the
help of procedures. It refers to the expert with the help of procedures shows the end user to handle it.
These procedures needs to be updated at the time of imparting training, as they come across additional
scenarios and accordingly the system is updated with the help of add on information. The end user
thereby implements the procedures with the help of expert and the documentation. It performs this
task alone. This job is done before converting of data.
Converting of Data:
Devices are developed to convert the data from the present system to the new system. The information
is then allocated from one system to the new one, and data files are generated which will work with the
devices that are developed. This converting process is deeply checked and tested before final
conversion. Also there is a backup, inorder to see if there are any issues, it can be started as and when
esstential (Boghossian, 2017).
Inauguration:
The new system shall be executed only after all of the above mentioned work is done. The whole of the
company is known to the inauguration date of the system. Generally, the current system is kept and
operated side by side, until the new system shall start its operation in full and work efficiently (Chron,
2017).
Devices:
The resources are made available online to help with the planning procedures of Accounting Information
System (AIS). In order to determine the required needs of each company, the information system and
the financial forms plays a vital role. It also helps in imparting responsibilities to the engaged principles
(Coate & Mitschow, 2017).
Support:
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Those charged with management and the end users are provided with never ending help that is
available at all the times. All the upgradation also maintain the equal process and all the end users are
entirely taught of changes , upgradtion is made in an effective manner, and also well trained.
Most of the company opt to curtail the time and money that is being spent on the analysing, designing,
providing training, documenting, and go right for selecting software and implementing. But if a thorough
required analysis is being executed with specific time to be spent on the analysing, the implementing
and ongoing help shall be a lot minimising (Delone & Mclean, 2004). Those company that opt to omit
the above steps to meet up to their requirements are atlast left with annoying end users, huge cost
spending, and also the information which is not of current or accurate. Not only these, atlast, these
companies end up developing the system thrice instead of once.
Challenges of cloud computing environment:
The major challenges faced by the company with regards to the cloud computing environment are listed
below:
1. To know the system:
The individuals when being taught about this system, may find it difficult to understand and
operate. Also on behalf of the company, there maybe excess usages of manpower and time
of the company (Wang, et al., 2018).
2. Time Loss:
Giving the trainings to the employess, may consume alott of time. It may delay the work
process and production of the company.
3. Loosing of Information:
Since this system is based on computer, there is always a chance of loss of data. The
information maybe lost due to power cut, or the system may crash (Abdullah & Said, 2017).
4. Installation of Anti-Virus:
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To safeguard the information system, the company installs anti-virus software for
precaution. However, even if the anti-virus gets installed, there are still chances that 100%
information may not be recovered.
5. Understanding the accounting system:
Once proper trainings are provided to the employees, this maybe difficult to train new
personelll of any of the old employee quits. It may take a lot of days, weeks, etc. to again
educate any personnel.
6. Re-evaluation:
The information system installed in any company, needs to be re-evaluted from time to
time. To cope up with the latest trends in the market, the company has to be updated and
shall have to process the information as well. Hence, the re-evaluation may take time to
implement (Ghofiqi, 2018).
7. Costs Money:
Installation of this accounting information system, do costs money. Even if the system is
updated or re-evalutated, it actually costs money, which shall be excess spending on the
part of the company’s management (Grundy, et al., 2017).
8. Keeping update with the market:
The accounting information system, inprder to keep itself updated in the present scenario, it
has to make changes in the way of operating thw way to manage business. This act may
result in damage, as each company has its own uniqueness.
9. Implementation Expenses:
Since this is an intergrated software, the initial installation costs huge money. This maybe
excess expenditure on the part of company to bear the expenses.
10. Lack of Security:
With the lack of security, the sensitive information of the company may fall prey in the
hands of hackers, thieves, etc.
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11. Maintainance:
Since this is a costly system, it has maintaince costs as well. It requires a lot of security, and
storage with regards to the AIS.
Advantages of cloud computing environment:
The cloud computing environment has made working in the business organisation easier. It has
a lot of advantages that helps internally or externally to the business environment. The benefits
are enumerated as below:
1. Decision Making:
It helps in providing the information timely to help in decision making for the organisation.
2. Storage:
Since it’s a cloud based storage, the data can be assessed and retrieved at any time and any
place, without hampering the client work.
3. Maitaining relationship:
It helps to maintain relationship among the vendors, i.e. any discripencies can be resolved
on a real time basis and can also be solved in a quick turnaround.
4. Reporting:
It provides a clear reporting of the organisations performances, i.e. a summary to see the
information accurately.
5. Repository:
Since it acts as a repository of data, it stores all the data centrally and retrives the data,
whenever needed.
6. Cost Effective:
It is cost effective way of storage of data.
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7. Automated:
It saves paper work and is entirely an automated based accounting. It is a automated based
system of accounting (Cayon, et al., 2017).
8. Efficient:
It resolves many issues like ineffectiveness and inefficiency caused by using the manual
process.
9. Timeliness:
It acts as an automatic support to process the huge amount of data, resulting in intime and
accurate information.
10. Connectivity:
It also provides a connectivity and consolidation among other businesses.
11. Safety:
It ensures safety of information by keeping all the information under the same roof.
12. Scrutiny:
It helps for scrutizing of cybercriminals by researchers that might target the company.
13. Improve quality of Life:
The use of cloud computing made the work life easy. It saves the manual manpower and
improves the quality of life by their systematic way (Wang, et al., 2018).
14. Accuracy:
Since the cloud computing environment gets updated everytime with the lastest I
information, it provides all the information that are current and correct.
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Conclusion:
We have gone through detailed analysis of the AIS in the cloud computing environment. Hence,
we can say that even if the cloud computing has benefits, we briefly studied that there were
challenges as well. Every system has the positive and the negative sides as well. It can be said
that cloud computing is a very effective method that would help in the future prospects for the
growth of the organization that works for it. There are various ways in companies can appoint
and install such system but a thorough analysis is needed for long term growth and progress.
This is how cloud computing will work in best of its abilities to generate great results.
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References
Abdullah, W. & Said, R., 2017. Religious, Educational Background and Corporate Crime Tolerance by
Accounting Professionals. State-of-the-Art Theories and Empirical Evidence, pp. 129-149.
Boghossian, P., 2017. The Socratic method, defeasibility, and doxastic responsibility. Educational
Philosophy and Theory, 50(3), pp. 244-253.
Cayon, E., Thorp, S. & Wu, E., 2017. Immunity and infection: Emerging and developed market sovereign
spreads over the Global Financial Crisis. Emerging Markets Review.
Chron, 2017. five-common-features-internal-control-system-business. [Online]
Available at: http://smallbusiness.chron.com/five-common-features-internal-control-system-business-
430.html
[Accessed 07 december 2017].
Coate, C. & Mitschow, M., 2017. Luca Pacioli and the Role of Accounting and Business: Early Lessons in
Social Responsibility. s.l.:s.n.
Delone, W. & Mclean, E., 2004. Measuring e-Commerce Success: Applying the DeLone & McLean
Information Systems Success Model. International Journal of Electronic Commerce, 9(1).
Ghofiqi, M., 2018. FORMATION OF VIEWS AND INTERESTS TO THE ACCOUNTANTS PROFESSION IN
MASTER OF ACCOUNTING STUDENTS OF JEMBER UNIVERSITY FORCE OF 2016 USING STRUCTURATION
THEORY ANALYSIS. THE 3RD INTERNATIONAL CONFERENCE ON ECONOMICS, BUSINESS, AND
ACCOUNTING STUDIES.
Grundy, Q., Held, F. & Bero, L., 2017. A Social Network Analysis of the Financial Links Backing Health and
Fitness Apps. American Journal of Public Health.
Wang, Z., Chiu, Y., li, Y. & Hsiao, L., 2018. Performance appraisal for the operation and management of
listed and OTC Taiwanese companies with DEA benchmarking models.
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