Cloud Computing Effect on Accounting Research Paper

Pages: 17 (5211 words)  ·  Bibliography Sources: 14  ·  File: .docx  ·  Level: Doctorate  ·  Topic: Accounting / Finance  ·  Written: December 8, 2019

SAMPLE EXCERPT . . .
9 percent system accessibility and uptime. Taking into consideration that the cloud service providers partake in the sustenance of the operating system together with provide software support, corporations usually experience very minimal downtime for system patches and also software version upgrades (Kumar and Vidhyalakshmi, 2018). What is more, in using cloud computing, the service providers provide assurance of system availability as part of their contract. Secondly, there is the advantage of utilizing processors. This is in the sense that owing to the reason that cloud-based providers have the ability to scale processors on demand, an accounting firm does not face the need for deploying a significant number of processors in order to meet the entity’s potential demand. Rather, a firm can approximate initial demand and subsequently scale up or scale down accordingly and with dynamism to instigate a more efficacious utilization of processors (Kumar and Vidhyalakshmi, 2018).

Research Paper on Cloud Computing Effect on Accounting Assignment

In addition, it is imperative to note that cloud computing permits complete accessibility to each significant process in the business by making data from each unit or department easily accessible to the user and the senior management. What is more, bearing in mind that the incorporation of data is done in real-time, it becomes significantly faster for the organization to conduct its various accounting activities. As a result, there is the advantage of enhanced reporting and planning (Kumar and Vidhyalakshmi, 2018). Carrying out a cloud computing system implies that the organization has a sole, integrated system of reporting for each process. Through this single source of information, an organization’s cloud computing system can freely create beneficial reports and analytics at any given point in time. In addition to diminished IT and training expenses, a cloud computing system can also diminish the time and effort necessitated by the labor force to implement their everyday activities. Therefore, the system enhances efficiency within the entity. Furthermore, the clients of the cloud computing services obtain benefits from the implementation of such a system for the reason that it is both centralized and streamlined (Kumar and Vidhyalakshmi, 2018).

Cloud computing facilitates diminished system management accountability. Cloud computing shifts a great deal of infrastructure together with other system management responsibilities towards the cloud service vendors. Devoted teams at the vendor’s end are capable of carrying out all of these activities. As a result, the firms who are the end-users can enjoy a sense of respite and can focus solely on their accounting interest devoid of being concerned about the management of the computing issues (Bhowmik, 2017). Furthermore, the cloud is accessible all the time and for that reason does not restrict members of staff within an organization to solely the regular working hours. The computerized reserve of the financial data is implemented as a programmed undertaking on an everyday, weekly or monthly basis, based on the needs and requirements of the accounting firm. The cloud provider is at all times expending a stable setting for the reason that in the end, protecting accounting data and information is essential for each and every firm. Scalability or the distribution of company resources are made available through the use of cloud-based software (Stergiou et al., 2018).

By assimilating corporate data and harmonizing between functional units in real-time, enterprise resource planning systems permit performance analysis in the current period of time, which is the present moment (Soyata, 2015). In addition, traditional systems permit the examination of performance metrics, but at all times the preceding data is taken into consideration. Therefore any analysis would give rise to lagging with what is taking place in the prevailing moment. Within a setting that is dynamic, this is a significant difference. For instance, in the accounting sector, cloud computing enables accounting companies with business intelligent oriented solutions for gathering performance pertinent information for the business procedures, personnel activities in addition to technical system-level measurements (Soyata, 2015).

Higher Return on Investment (ROI)

A distinguishing feature of making an investment in the implementation of cloud and mobile technologies in the accounting information systems is the high rate of ROI. A constructive financial impact of adopting cloud services is the one on the business’s cash flows by decreasing payments for purchases of hardware and software. Cloud services are pay-per-usage and they are used by recompensing rent monthly or yearly (Hill and Wright, 2013).

The adoption of cloud computing facilitates the integration and restructuring of the organizations’ processes by integrating business processes. This gives rise to improved process efficiency through the reduction of mistakes, quicker processing of data, uniformity, and dependability in data and increase in throughput (Bhowmik, 2017). In addition, this results in an enhanced collaboration between departments brought about by collective data and integrated processes, enabling the organization to achieve economies of scale. The inference of this is that the organization can subsequently form cost leadership, having attained economies of scale.

Cloud computing also facilitates the customization of, products and services; billing and individualized project services to different customer requirements. In addition, utilizing cloud computing dissimilar levels of services are provided in the agreement with different sizes of customer companies (Bhowmik, 2017). What is more, taking into account that cloud computing renders up-to-date information, accounting companies can partake in the creation of financial statements in a swift and more accurate and effective manner. Quality not only provides a cherished advantage to the firms over other rivals in the market but also makes it conceivable for the companies to charge greater prices for accounting services as a result of the differentiation factor. This approach ultimately brings about sustainable competitive advantage (Bond, 2015).

Improved Decision Making

Managerial motivations for carrying out cloud computing are to augment resource management, improve decision-making and enhance performance control within the organization. Cloud computing facilitates the delivery of informed and the latest organization-wide data and information, and henceforth, organizations are able to attain improvement in decision support across the organization as a whole, improve strategic decision making, and consequently, attain the overall improvement in decision-making (Sehgal, Bhatt, and Acken, 2019). What is more, firms also seek to improve decision making by augmenting cooperative decision making. Therefore, through cloud computing, the firms are able to leverage the general operational efficiency and efficacy in management given rise to by the integration of operations and the increase in efficiency to achieve better performance control. Cloud accounting renders managerial benefits for the reason that they comprise of integrated database and built-in data analysis competences. Consequently, these benefits aid the firm un attaining better resource management, augmented decision making and planning, and performance improvement in various departments of the organization (Sehgal, Bhatt, and Acken, 2019).

The interactions of accounting managers with cloud-based systems enable them to gain access to decision-making information in new ways. There is the flexibility offered by the cloud and this makes it possible for managers to facilitate decision making even when they are not in the board room or within the premises. Cloud accounting facilitates quick decision making within the organization and therefore improving the operations of the business (Strauss, Kristandl, and Quinn, 2015).

Network Improvements and Maintenance

Traditionally, firms have to conduct regular updates on their networks. This process is usually tiresome, costly, unsettling and also challenging in espousing change to the new technology and making modifications as necessitated. However, through the cloud, it becomes conceivable to eliminate the necessity of ever going through a network improvement based on the reason that everything is hosted within the cloud (Laudon and Laudon, 2016). Cloud service providers enable users… [END OF PREVIEW] . . . READ MORE

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