Benefits And Drawbacks Of Cloud Based Accounting Information Systems ( Ais )

Benefits And Drawbacks Of Cloud Based Accounting Information Systems ( Ais )

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Many organisations have changed their method to manage and operate business since the commencement of the Internet, which leads to the development of new technologies for using in the company (Marand, Marand and Dashtebayaz 2013). A result from the inefficient traditional accounting information systems, one of the information machinery, called “Cloud Computing”, is introduced to accounting system because of business advantages (Christauskas and Miseviciene 2012). However, risk issues should be regarded.
This research is conducted to review benefits and drawbacks of cloud-based accounting information systems (AIS) adopted in the business. Moreover, the research was carried out by analysing the related literature and academic journal articles.

Overview of cloud computing
Cloud computing, which is one of the modern technological systems, is a model that supplies various online processes and resources, such as servers, software and applications, for users (Jin et al. 2010). Therefore, individuals can easily access the services provided which is solely required the Internet connection (Jin et al. 2010). The Cloud model is divided into three types in terms of services including Infrastructure as a services (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS) (Mell and Grace 2011).
According to Mell and Grance (2011), the features of cloud computing can be divided into five aspects as following: self-services based on user’s demand, broad access to network, pooling of resources which is also available for multiple users, flexibility, and measured deployment that payment depends on the proportion used. These crucial characteristics can respond the users’ demand (Jin et al. 2010). Hence, it becomes a common technologic...

... middle of paper ... who are interested in adoption of cloud software should be established. Therefore, they will be able to use correctly this software and gain all the benefits offered by cloud model.

The significant number of organisations has changed the system and recently accept cloud computing. This model is applied to promote the competence in financial management. Additionally, the model will contribute numerous benefits for users. It can be allocated its explicit advantages as follows; low cost of operation, an increase in opportunities for companies and effectiveness in management. On the other hand, some firms still hesitate to adopt it because they are aware of security, standard of the system and their inadequate knowledge about controlling the model. These issues should be considered and solved by a collaboration of users and providers.

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