The Adoption of Ais

1746 Words Apr 18th, 2015 7 Pages
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
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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…