The Adoption Of Cloud AIS

Topics: Cloud computing, Accounting software, Business process Pages: 6 (1724 words) Published: April 16, 2015
The adoption of cloud based accounting information system in business I. Introduction
Accounting information system is playing an important role in the business operation, and the cloud computing has a great impact on the revolution of accounting information system. This research paper aims to discuss the new trend of cloud based accounting information system in business. The whole text is divided into three parts: First part gives an overview of the cloud computing and accounting information system; second part analyses the benefits and challenges of the accounting information system's move to the cloud; and third part gives the recommendations on key success factors of the adoption.

II. Cloud-based accounting information system overview
i. Cloud computing
According to the definition given by the NIST (National Institute of Standards and Technology), “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of five essential characteristics.” The NIST also identified the following five essential characteristics that cloud computing has: (i) “On-demand self-service”. With the time and network stored in the cloud server, cloud computing dramatically reduces consumer’s human interaction with the service provider. (ii) “Broad network access”, which enables services to be provided through Internet on a variety of client platforms. (iii) “Resource pooling”. Multiple consumers can be served together by the pooled computer resources based on different remote data centers. (iv) “Rapid elasticity”. The scale of services can be adjusted rapidly according to the consumer’s demand. (v) “Measured service”. The usage of computing resources is measured by the cloud systems automatically, thus utilizing the service provided to the consumer. There are basically three service models: Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), and four deployment models: Public cloud, Private cloud, Hybrid cloud and Community cloud. (Mell and Grance, 2011).

ii. Accounting information system (AIS)
Accounting information system is often described as “the combination of two terms- Accounting & Information System, whose major function is to collect, financial data, process it & provide financial information to the external & internal users” (Salehi et al. 2014, pp. 186). In essence, accounting information system is not necessarily a computerized system, it can be merely a simple manual system using pen and paper. However, with the rapid development of cloud computing, it has an increasingly significant impact on the revolution of accounting information system.

iii. Adoption of cloud based accounting information system on the market On the Australian market, MYOB and QuickBooks have been the dominant accounting software providers for the past 25 years. However, cloud computing opens up possibilities for new software to enter into market. Xero and Saasu are the examples of those strong contenders in this area. (Ambrosiussen Accountants & Advisors, 2014) According to a research study conducted by CCH Australia in 2013 nationwide, fourteen per cent of small and medium enterprises are using a cloud based software to manage their accounts, while the adoption among accountants is much higher, almost one in four currently using a cloud platform. (CCH, 2013) Although cloud accounting information system is still a new concept in the accounting area, more and more businesses are expected to be involved in the adoption of cloud accounting information system.

III. Benefits and challenges
Businesses can enjoy great benefits from the adoption of the cloud based accounting information system, many previous papers have...
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