Cloud Accounting - It’s Benefits and Challenges

Abstract

Cloud accounting refers to transactions performed over the internet. The practice does not require you to install software in your computer or own a server. A cloud computing company that sells accounting services provides remote servers and the applications. It is simply using the internet to access software and storage rather than physically installing it in a computer. Cloud accounting is also known as “online accounting” serves the same function as cloud computing. We have to install only the software on our computer but it runs on servers and we can access it using our internet. In some instances, we would not need to install the software on our computer and can access it via web browser. Technological trend of recent years brings forward the concept of cloud computing an innovative model of processing and storage of data that allows companies to run business smoothly. The study has made an attempt to find out the benefits and issues of cloud accounting an accounting and decision making abilities of the firm. The benefits are more in compared to the issues involved in using cloud based accounting system. This paper focuses on the impact of cloud accounting on each factor in the entire business area.