Cloud Accounting: Benefits, Challenges, and Transition Process Report

This report explores the transition to cloud accounting, highlighting its necessity due to Single Touch Payroll (STP) and its benefits, including time-saving, effective invoicing, and up-to-date facilities. The report also discusses the limitations of cloud accounting, such as potential data loss and internet dependence. It emphasizes the importance of a careful transition process and the need for professional assistance, such as through Bush Accounting, to facilitate the move. The report references several academic sources to support its findings and provides a comprehensive overview of the advantages and challenges associated with cloud accounting systems.

Cloud Accounting
Need of the hour is to move from traditional
accounting system to cloud accounting.

Importance of transition to cloud
accounting system
• Move to Single Touch Payroll.
• Change in reporting of payroll activities.
• Small, medium and large entities all have to follow the
direction of ATO.
• Facilitates effective payroll reporting.
• Cloud accounting is necessary for Single Touch Payroll
(STP).

Benefits of moving to cloud
accounting
• Save time.
• Effective Invoicing.
• Up-to-date facility.
• Ease of use.
• Effective accounting (Nwabueze, 2016).

Benefits..
• Overhead cost.
• Speed of processing.
• License fees.
• Best talent.
• Use and pay. (Mohanty & Mishra, 2017)

Benefits..
• Advanced features.
• Real time information.
• Automatic upgrade.
• Overall efficiency (Ciftci & Darrough, 2016).

Limitations
Limitations of cloud accounting are as following:
• Downtime.
• Potential loss of data.
• Dependent on internet.
• Myths.

Assisting in transition process.
• Bush Accounting can assist all of its clients in the
transition process.
• The knowledge of the system is compulsory to assist in
transition process.
• Use of professionals.
• Providing training (Modi, 2018).

Transition process
• It’s a very delicate process.
• Should be handled carefully.
• Commitment.
• Investment.

References
• Ciftci, M., & Darrough, M. (2016). Does the Riskiness of R&D Outweigh Its Benefits?
The Perspective of US Private Lenders. Journal Of Business Finance & Accounting, 43(5-
6), 654-692. doi: 10.1111/jbfa.12196
• Modi, P. (2018). Cloud Accounting - It’s Benefits and Challenges. International Journal
Of Trend In Scientific Research And Development, Volume-2(Issue-2), 1091-1094. doi:
10.31142/ijtsrd9620
• Mohanty, M., & Mishra, D. (2017). Benefits and Issues of Cloud Computing in
Accounting. International Journal Of Trend In Scientific Research And
Development, Volume-1(Issue-6), 283-288. doi: 10.31142/ijtsrd2507
• Nwabueze, E. (2016). Benefits of Cloud Computing: An Assessment of Its Implications in
Nigerian Industries. International Journal Of Engineering And Computer Science, 2(3),
12-33. doi: 10.18535/ijecs/v4i10.14