The Cloud Acounting Essay

Submitted By Adegbenga-Onasanya
Words: 2224
Pages: 9

Overview of Cloud Accounting


The Cloud, in technical terms is also known as Software as a Service (SaaS).It is the currency of the internet's advancement. Hardware; network, storage, services and software all rolled up to and delivered via client browser anywhere any time on any device.
Cloud computing refers to transactions performed over the Internet. The practice does not require installing software in computers or own a server. A cloud computing company that sells accounting services provides remote servers and the applications. For a fee, there is online access for managing and maintaining financial record of the client company.
Cloud accounting, also referred to as “online accounting”, serves the same function as accounting software that would install be on the enterprise (client)own computer, except it runs on another enterprise servers (host)and can be accessed using web browser, over the Internet. Client data is securely stored and processed on the host servers or “in the cloud”.
Buying or building a successful business is premise on credible and effective management. This is because of the synergy or the magic wand it hold to create unimaginable and perhaps unbelievable transformation and fortune beyond anyone wildest dream.
Cloud accounting is indirectly outsourcing support functions, processes, activities except that the functions or transactions resulting in clouding computing or accounting may not have been carried out or executed by the client enterprise. A cloud accounting or computing apply to every business type, nature and size. The cloud computing drivers goes beyond immediate cost saving benefits.
Cloud account online, desktop and traditional software available to processes in varying degree add value to successful ERP package, such as Microsoft Dynamics GP or Microsoft Dynamics NAV, for small to medium-sized (SME) organizations (between $30m and $1b in revenues) and SAP system for large business in terms of available modules, and functionality among others.
Relevance of cloud computing/Accounting in the 21st Century Business A Virtual Accountant in which a cloud accounting company eliminates the need to hire accountant or bookkeeper, provide computer program to generate financial reports. Internet service acts as virtual accounts manager reporting GAAP Transactions.
Organizations are starting to focus on achieving the transformational benefits of cloud rather than simply focusing on the cost efficiencies, according to the KPMG Global cloud survey: the implementation challenge under the title “cloud takes shape”.
Small business owners, other emerging or growing businesses in the range of small-medium size do not have to purchase expensive business accounting software programs or spend hours lost in complicated reports. Any accounting software will provide the basic applications for accounting tasks, packages designed for small office owners and manager tend to simplify the process and provide essentials including general ledger, the capability to create detailed invoices or view business inventory and purchase history.
Cloud accounting firms follow the same financial standards as traditional accountants. Different tools in use but same policies are adhered to. The FASB standard provides guidance to private companies’ financial statement preparation and disclosures. The SEC governs the accounting practices of public entities, but historically based its policies on the private sector accounting model.
Studies conducted to assess the relevance of cloud computing shows that when asked about the objectives organizations expect to gain from cloud, two of the top three objectives identified by business executives were opportunities for cloud to enhance new market entry and drive business process transformation. Both are key enablers of greater business effectiveness.
The transformative value of cloud
Rick Wright, KPMG’s Global Cloud Enablement Program Leader, notes that achieving