ay iSystem is a set of two or more interrelated component which are combined and interacted to achieve goals. Software is used to process data which are the recorded and stored facts and the data had being processed is called information. However, accounting information system (AIS) is used for collecting, processing, and storing data about the organization and its business activities (Wiley, 2013). Nowadays, most of the large organization are using accounting information system by using information technology infrastructure such as computer, peripherals and network because it is efficiency and cost effectiveness. The innovation of AIS is causing the improvement in accounting sector without interruption such as social collaboration, smart mobility and cloud computing.
In my opinion, the cloud computing is the best trend in accounting information system in this century. It is an application and service which is putting away routinely utilized computer information on different servers that can be gotten to through the Internet (Itinfo.am, 2016). In the year 2006, Amazon launched the Elastic Compute Cloud which we call as Cloud Computing as the commercial web service and it was become the first widely accessible cloud computing infrastructure service (Amazon Web Services, Inc., 2006). The examples of cloud computing are backup services, social networking services and personal data services. The online application in the cloud is Microsoft online services. Thus, cloud computing provided a lot of advantages to the accountant as reduce stress in the working place and high level of efficiency at them same time.
Cloud system is divided into three types which are public cloud, private cloud and hybrid cloud (Itinfo.am, 2016). Company will make decision between them depend on their demand and what kind of company they are. Public cloud is used by a lot of people such as e-mail which is the service and infrastructure is provided in off-webpage over the internet and it is offer the highest-level of efficiency in shared the resources. The private cloud is which the service and infrastructure provided in the private network and they have highest security and control on the business’s data. Hybrid cloud is the service and infrastructure which is including both of public and private option in a business. User can share about their business information and communicate to others but also maintain in a secure platform.
There are three types of services in the cloud system which are Infrastructure-as-a-Service (IAAS), Software-as-a-Services (SaaS), Platform-as-a-Services, Utility Cloud Services, Manage Service and Service Commerce (Intouchit.com, 2016). Company make decision in choosing the service for business regarding operating through the cloud system. IAAS is providing the extra IT equipment which you need in your company such as storage, hardware and networking component. Cloud will help in maintain and running the application and the company just pay for what they use. A business is purchasing the usage of a cloud-based accounting software system when they choose Software-as-a-Service (SAAS) in the business and make your customer available to your business. They can make a choice between to purchase either AIS as basic or the use of ERP system overall.
On account of utilizing Platform-as-a-Service, the business maintain the software installed in the platform and the supplier take the obligation regarding the infrastructure. The Utility Cloud Service is a server option you can make virtual account which is regarding to your demand. You can even create a virtual account center for your own by using the utility Cloud Service. The Manage Service in Cloud computing is the applications such like monitoring services and anti-spam service which are used by provider as opposed to the user. Service Commerce is the combination of managed services and SAAS which provide a hub of services that users can interact with, it is commonly including travel ordering, expense tracking and virtual assistance services (Intouchit.com, 2016).
Nowadays, everyone got at least one smart phone whether an old people, adult, teenager and also a children. Cloud is also created for the users of mobile devices including tablet and smart phone to do their work easily. People can access it anytime if they are with internet connection and it is providing freedom to the people who operate within the AIS.
In the cloud computing, we can share same information in the same time if we are with computer and network computing because it is in anytime and anywhere. Different user such like the customer and company can access to their own cloud account to make preview or a simple adjustment like change the contact number. As a boss which who work around the world, they can also know about the company progress or financial report immediately through the cloud instead of waiting the report by any department. The employees in the company especially from different department can also get the information from the cloud without asking or waiting. For example, financial department will need to get the total sales from sales department in the end of month, with cloud, sales department just need to upload the result on time so that the financial department can make the report smoothly.
The advantages of using the cloud computing is also cost saving. We can minimize the cost when we are using the cloud computing in doing the business activities because it can go through without server storage or any application requirement. Our data will be saved in the cloud computing system and the quality of data will not be effected or damaged. Besides, the user of cloud can check for the information by using any device such like smart phone and tablet. These is very economize compare to traditional desktop software which is costing a lot in term of finance. Therefore, cloud can also utilized by small company to make the IT expenses become minimum.
That is flexibility to the cloud user in choosing to use the application which is the best option for their needs. Difference application has different features and also liked by different people. There are many types of cloud applications like Google Drive, Microsoft SkyDrive, Dropbox, iCloud and so on. For the mobile devices, the Apple’s users, they might choose the iCloud application which is their own application and the Samsung or others will usually use the Google Drive application. Regardless of they are using difference application, they can also share the same information through the cloud and totally will not be effected.
In the file storage, cloud get almost unlimited capacity in storage for user to save the data and information. In the traditional software, they need to spend a large capacity for the information and it is depend on the computer. To avoid the full of memory when we need to use it, company will clear up all the data after making backup to another storage in a period. The information and data will be saved in the online “cloud storage”, there is no requirement on purchasing for the file storage and we do not need to worry about the data will running out of the storage and it does not occupy capacity in computer.
The cloud computing is always there we do not need to worry about we will lost it in anytime. Cloud computing is avoid disaster whether it is artificial or natural such like your computer being stolen or an earthquake happened cause your computer totally damaged. For example, if you are accidentally pouring your drink to your computer, your computer will be suspended immediately but the data will still in the cloud system and you can continue your work when you access it in the next time. By the way, you can also use another computer to access it because everything is saved in the external cloud.
Yet, there is still some disadvantages in cloud computing and we have to consider about it before we use it. There might cause downtime when the cloud service provider take a large number of customer in every day. Too many customer and user will cause the system cannot load and even become technical outages. At that time, the system will become temporary suspended and you might not to continue your business activities at all. Besides, if you stay at where is without internet connection, you might not to access cloud system also nor matter you are having any devices. Therefore, cloud system is always used by small or middle size company because they have not too many client and user.
Moreover, the security in the cloud system are not perfect. The user will accessed to provide the important data including about personal or company when they use cloud-powered technology. However, cloud as a public service system which means our data will easily being stolen or watched by the nefarious users because they will have ability to scan, identify and exploit loopholes and vulnerability within a system. Therefore, the users might not be rely to cloud system and the information which is needed to use in the cloud system should not be private and confidential.
Apparently, cloud system is an advance system which can bring a lot of benefit in a business activities. Although using any technology, the goals will be same but cloud system really helpful in the business process as making the work become more efficiency and effectively compared to others. It can make the financial transaction activities going through with more convenience to the accountant and customer because its main feature is can be used at anywhere and anytime under the condition of having a device and internet connection. Therefore, cloud computing system is suitable to be used and it is the best trend in the accounting information system.