Advantages Of Cloud Based Accounting Information System
Apart from the benefits mentioned above, the challenges from the adoption of cloud accounting information system should not be ignored.
(i) Fear of privacy and data security:
Based on the cloud rather than in-house bookkeeping, the private and sensitive accounting information of the business is stored on the third-party servers, which is more vulnerable to be detected by hackers and bears higher risks in the confidentiality issues.
(ii) High requirement on network quality:
Given that the Internet access is the basis of the cloud accounting information system, the quality of network must be taken into account. Network failure will lead to the thorough breakdown of the entire business operation. As a result, the economic loss is beyond imagination and it can offset any of the advantages of the cloud accounting information system.
(iii) Dependency on service provider:
With the move the cloud, the business has to rely on the outsourcing cloud service supplier to maintain, update and manage the application, and gradually loses control over it, which gives rise to the uncertainty of internal-control ability. The business may undergo significant difficulties under the inefficient response of the supplier towards certain …show more content…
Regular review of the user experience feedback should be conducted to collect the information needed for solving problems and improving the system.
This research report dealt with the adoption of cloud based accounting information system (AIS). It summarizes the opinions of previous researchers. Cloud based accounting information system is generally a combination of the accounting information system with the global information technology trend of cloud computing.
This research report analyzes the benefits as well as the challenges from the adoption. As conclusion, the business is encouraged to adapt the cloud based accounting information system. However, in order to achieve a successful adoption, four recommendations of key factors are given as references for the business.
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Ambrosiussen Accountants & Advisors 2014, Which Software is Best in the Cloud – MYOB, QuickBooks, Xero or Saasu?, viewed 10 October 2014,