The Adoption Of Cloud Based Accounting Information System

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1 Introduction The aim of this report is to critically analyze the adoption of cloud based accounting information system (AIS) in business organizations and also its challenges and benefits of cloud based environment. Cloud accounting (SAASU 2014, para 3) is also called ‘online accounting’, which provides the same service as accounting software and data is securely stored on servers known as the cloud. According to Emma Watkins (Demand Media 2014, para 1), “cloud accounting is the use of computer hardware and software applications delivered as a service over the Internet. It allows to store files and use applications using many different devices and from many different locations in a simple way”. This report will evaluate the cloud accounting in terms of their benefits and challenges in modern business and give the recommendations in relation to whether this online storage system is suitable for modern business use. 2 Overview of cloud computing 2.1 Definition cloud computing Cloud computing is generally defined as a type of computing that depends on sharing computing resources rather than using local servers or personal equipments to handle applications (Beal 2014, para 1). According to Beal (2014, paras 1-3), the term “cloud” stands for “internet” in cloud computing which indicate that it is a type of internet-based application. Figure 1. Provider, consumer and users of storage services. Source: Mihoob et al. Journal of Internet Services and Applications 2013 4:8
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