Plethora of Benefits on Cloud Accounting Services

 

By Nor Kartini Mohd Rodzi, Senior Lecturer, Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Perlis.

The world of accounting software is rapidly shifting towards cloud computing. The accounting software vendors have moved their products to the cloud and provide different forms of cloud accounting solutions This integration of basic cloud computing principles and activities carried out by accounting software companies has led to the development and popularity of cloud accounting solutions. These solutions offer many benefits, including increased accessibility, scalability, and cost efficiency, making them an attractive option for many businesses (Motalo, 2023). Cloud accounting is an “online accounting service” that runs on the servers and accessibility is using the web browser, over the Internet and it serves the same function as accounting software installed on a computer (Sutthikun, Thapo & Sahayrak, 2018).

Small businesses may find traditional accounting software applications to be complex and expensive. These applications require significant storage capacity, internet bandwidth, and a specialized IT staff to configure, install, and update the accounting software (Mihalache, 2011). This can be a major challenge for small businesses with limited resources and budgets. In contrast, cloud accounting solutions offer a simplified and cost-effective alternative that requires minimal IT resources and can be accessed from any location with an internet connection. This has led to cloud accounting solutions becoming increasingly popular with small businesses.

The cloud accounting market is experiencing a significant rise, as it continues to offer innovative solutions that should be seriously considered. According to Dimitriu and Matei (2014), cloud accounting solutions include Financial Force.com, NetSuite, Microsoft Office 365, FreshBooks, Liquid, QuickBooks Online, Myob, Xero, Aqilla, Mint.com or Waveaccounting, each of them ensuring specific or customized functionalities. Moreover, companies from all over the world would benefit from cloud accounting services as customers. Cloud accounting solutions offer users the ability to access their financial data from anywhere, at any time, and on any device, making them a great option for businesses with remote and distributed teams.

Cloud accounting services offer numerous benefits to accounting departments including provide real-time data, lower IT costs, better accesibility, scalability and provide data security (Imene & Imhanzenobe, 2020; Attaran & Woods, 2019; Khanom, 2017; Youssef, 2012 and Carroll, Van Der Merwe & Kotze, 2011). In a study by Imene and Imhanzenobe (2020), cloud accounting services provide real-time financial data, allowing accountants to make informed decisions quickly, without delays. Cloud accounting services also require minimal IT resources, making them a cost-effective option for accounting departments, especially for small businesses (Attaran & Woods, 2019). According to Khanom, (2017) it was found that, cloud accounting services enable accountants to access financial data from anywhere, at any time, and on any device, making it easier to work remotely and collaborate with team members. These services can be easily scaled up or down depending on the needs of the accounting department, providing flexibility and cost-efficiency (Youssef, 2012). Besides that, cloud accounting services offer robust security measures to protect sensitive financial data from cyber threats and ensure the safety and security of the accounting department's data (Carroll, Van Der Merwe, & Kotze, 2011).

In conclusion, it is evident that cloud accounting services can significantly improve the efficiency, productivity, and accuracy of accounting departments, making them an essential tool for modern businesses. The flexibility, scalability, and cost-effectiveness of cloud accounting solutions make them an increasingly popular choice among small and large businesses. The cloud accounting market is expected to continue to grow and evolve, providing businesses with even more advanced and efficient solutions in the future.

 

References

Attaran, M., & Woods, J. (2019). Cloud computing technology: improving small business performance using the Internet. Journal of Small Business & Entrepreneurship, 31(6), 495-519.

Carroll, M., Van Der Merwe, A., & Kotze, P. (2011). Secure cloud computing: Benefits, risks and controls. In 2011 Information Security for South Africa (pp. 1-9). IEEE.

Dimitriu, O., & Matei, M. (2014). A new paradigm for accounting through cloud computing. Procedia economics and finance, 15, 840-846.

Imene, F., & Imhanzenobe, J. (2020). Information technology and the accountant today: What has really changed? Journal of Accounting and Taxation, 12(1), 48-60.

Khanom, T. (2017). Cloud accounting: a theoretical overview. IOSR Journal of Business and Management, 19(6), 31-38.

Mihalache A. Cloud Accounting. “Ovidius” University Annals. Economic Sciences Series 2011; XI (2):782-7.

Motalo, K., Nojeem, L., Ewani, J., Opuiyo, A., & Browndi, I. (2023). Algebraic Multigrid and Cloud Computing: Enhancing Scalability and Performance. International Journal of Technology and Scientific Research, 12, 342-348.

Sutthikun, W., Thapo, R., & Sahayrak, K. (2018). Accounting in the Cloud. International Journal of Integrated Education and Development, 3(2), 19-27.

Youssef, A. E. (2012). Exploring cloud computing services and applications. Journal of Emerging Trends in Computing and Information Sciences, 3(6), 838-847.

International Accounting Acculturation Camp 2022

15 Disember 2022 - Seramai 40 orang peserta terdiri daripada 32 orang pelajar dan 8 orang pensyarah Rattaphum College, Rajamangala University of Technology Srivijaya, Songkla (RUTS), Songkla, Thailand telah berkunjung ke kampus ini selama dua hari satu malam bermula  14 Disember 2022 bagi menghadiri Program International Accounting Acculturation Camp anjuran bersama Fakulti Perakaunan dengan kerjasama Pejabat Hal Ehwal Antarabangsa, UiTM Cawangan Perlis.

Majlis perasmian telah berlangsung pada 14 Disember 2022, jam 2.30 petang di Dewan Kuliah 6, Kompleks STAR. YBhg. Prof. Madya Ts Dr Shukor Sanim Mohd Fauzi, Rektor UiTM Cawangan Perlis telah hadir merasmikan program kolaborasi antarabangsa ini. Delegasi RUTS diketuai oleh Asst. Prof. Dr Patcharin Bunnoon, Ketua Pentadbiran Perniagaan. Turut hadir Timbalan Rektor Hal Ehwal Akademik, Timbalan Rektor Penyelidikan, Jaringan Industri, Masyarakat, Alumni dan Keusahawanan serta Ketua Pusat Pengajian, Fakulti Perakaunan, UiTM Cawangan Perlis. Hampir 200 orang hadir termasuk para pelajar dan pensyarah Fakulti Perakaunan, UiTM Cawangan Perlis di majlis perasmian ini.

Pelbagai pengisian telah dijalankan antaranya perkongsian ilmu oleh para pensyarah jemputan antara dua buah universiti berkaitan tentang Standard Perakaunan Antarabangsa (IAS8, IAS40 dan IAS19) dan "How to write an abstract", aktiviti secara berkumpulan, mensyuarat kolaborasi, klinik woodball serta perkongsian budaya. 

Besar harapan program  ini dapat memberi nilai tambah kepada para peserta,  meningkatkan hubungan kerjasama  yang sedia terjalin antara dua buah universiti sekaligus meningkatkan ketampakan UiTM Cawangan Perlis.

HOW TECHNOLOGY TRANSFORMS ACCOUNTANT’S ROLE

Norshimah Abdul Rahman, Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Perlis. 

INTRODUCTION

The role of the accountant has changed considerably over time. In today’s highly competitive marketplace, where businesses are fighting for the attention of customers, accountants are essential to the overall economic well-being of a business. The responsibilities of accountants today range from business analysis to reporting and regulatory compliance (Richardson, 2019). They play a greater role in the business and financial success of their clients than just the usual tasks of preparing financial statements, tax planning, and auditing.

The most well-known role of the accountant is to control the finances of a company. Depending on the size of the company, this can range from data collection and entry in smaller companies to recording, organizing, and reporting financial transactions in larger companies.

 

WHAT’S NEW?

It is obvious to everyone how technological advancement has affected almost every sector and aspects of life. Those who refuse to embrace change are already suffering the consequences (Epp, 2020). True insight does not come from simply keeping up to date with new technologies, but from grasping the big picture and understanding how to harness technological advancement. The finance and accounting sector is no exception. Many leaders see automation and software as a tool to be the position, while some see it as an existential threat to the profession.

What is this technology and how has it changed the role of the accountant?  Access to faster software that can perform more complex functions to, and networked technology has made accounting both easier and more efficient. Organizing financial information, analyzing data, and measuring economic activity has never been easier.

 

Cloud-based technologies

Cloud-based technologies are becoming widely used by accounting firms to organize all their data. All you need to do to access your data right now, wherever you are and whenever it is during the day, is log on.

Diverse roles of accountant

Thanks to the development of accounting software and applications, accountants today have more time for a variety of tasks. They can move away from time-consuming number crunching and take on increasingly specialized and strategic tasks. More specific and value-added tasks can now be assigned,  and qualified accountants can offer more specialized services at a higher level, including analysis of data and its interpretation, financial planning advice and business consultancy, and greater involvement in the day-to-day running of the business.

Advances in computer technology and the Internet have enabled accountants to perform their duties in preparing budgets and taxes more efficiently, to calculate forecasts with less margin for error, and to expand their means of communication (Rivera, 2020). However, innovations in the way people interact with data and how it fits into the business world have produced new technologies that have made some of the more mundane and routine tasks that were common in their day-to-day work obsolete.

Better way to handle client transactions

The digitalization of data and processes is not only for beneficial the company's employees, but also for its customers. With developments in accounting technology, on site consultations are no longer essential. Both clients and accountants can review, amend, and comment on their statements simultaneously as both parties  can access real-time data remotely. They can then sit down and discuss in the way that suits them best, e.g.  via video conferencing over the internet.

Mobile accounting

There are now also mobile applications for accounting. With a smartphone or tablet and mobile device management, accountants can take their office with them wherever they go. This means they do not have to wait until they get back to the office. This is important because the clients are just as busy as they are. They will appreciate it more if we can give them important answers at the moment, they need them. And this appreciation leads to stronger customer loyalty.

Moreover, today there are more effective processing tools and specialized accounting software that allow faster data entry and calculation. Even manual data entry into software is becoming less common as scanning technology allows users to simply take a photo of a page and let the program fill in the necessary blanks.

In accounting, the accuracy of calculations is crucial, and when all information is calculated by a computer, accuracy has significantly increased and the margin for  error has decreased.

 

CONCLUSION

Digital innovation is transforming the accounting profession, and this transformation is likely to increase. Artificial intelligence (AI) applications, blockchain, and decision support technologies have moved beyond the ‘hype’ stage and are already being used (Igou et al., 2022). As an accountant in today’s world, it is necessary to keep up with the most recent advances in technologies to be competitive and increase your productivity. Take up the challenge and engage with all the fascinating ways technology has changed the accounting industry. Embracing these changes will prove to be greatly beneficial for us and our business.

 

References

Epp, K. (2020, October 16). The evolution of the accountant. Retrieved from https://www.goldbeck.com/expertise/accounting-finance/the-evolution-of-the-accountant/

Igou, A. J., Power, D. J., Brosnan, S., & Heavin, C. (2022). Digital futures for accountants.

Journal of Emerging Technologies in Accounting, doi: https://doi.org/10.2308/JETA-2020-088

Jen Ledger (2020, October 16). 5 ways technology has changed the accounting industry in

the last 5 years. Retrieved from https://www.jmark.com/5-ways-technology-has-changed-the-accounting-industry/

Matheson, L. (2022, October 16). The future of accounting: How are digital technologies

reshaping the industry? Retrieved from https://www.firstintuition.co.uk/fihub/the-future-of-accounting-how-are-digital-technologies-reshaping-the-industry/

 

Richardson, M. (2019, October 16). The modern-day role of the accountant. Retrieved from https://www.swindellsaccounting.co.uk/business/modern-day-role-accountant/

Rivera, A. (2020, October 17). What are the changes in the roles of accountants? Retrieved from   https://www.cpapracticeadvisor.com/2020/06/24/the-shifting-roles-of-accountants/38959/