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Essay: Cloud Computing for Accounting Information System

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  • Published: 1 April 2019*
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System is a set of two or more interrelated component interacting to achieve goals and people use it to run activities, perform a duty and solve the problem. Information is used in decision making and it is formed by the data which are the facts data recorded and stored, it is insufficient for decision making. Accounting information system (AIS) is used by accountant to collect, record, store and process data to procedure the information for decision making (Accounting Information Systems, 2013). The uninterrupted development by creating new trends in the accounting information system such as cloud computing already reduce the stress of the accountant because they always try to find the ways to make the job become easier.

In my opinion, cloud computing is the best new trend in the accounting information system. It is launched by Amazon as Elastic Compute Cloud in the year 2006 and it is become the first widely accessible cloud computing infrastructure service in the world (ComputerWeekly, 2009). Now, accountant can doing their business activities including prepare the financial report in the cloud computing and the work efficiency is being improved. The application is increasing that accountant can conduct their business in the cloud computing such as bill management, enterprise resource planning (ERP) applications, payroll, sales tax, tax preparation and workflow  (Defelice, 2010).

There are different types of cloud computing which is private, public and hybrid (Hurwitz et al., 2016). Public cloud computing is used by a lot of people such as Google and Facebook. That is off-side over the internet services and infrastructure which is enable be shared to everyone. The private cloud is secured and under control because it is the services and infrastructure which maintained on a private network with payment. People choose the private cloud because they want to protect the data of company. The hybrid cloud is the combination the options of private cloud and public cloud which is the services and infrastructure can used to communicate with other people but all the data is secured. People can share the financial report with a group of people if it is needed through the hybrid cloud so the whole process will keep in a security platform.

The difference between the cloud computing and traditional software is when you access to cloud computing, there is not doing actual computing but it is happen in a large data center which is outside of your company and you can simply see the result on your screen. Besides, it is not specifically requiring user to have a sophisticated computers but it can accessed by using any devices like smartphone and tablet with downloaded mobile apps because cloud computing services are accessed through web browser (Techsoupcanada.ca, 2016).

The financial record is large and people including accountant in the company cannot remember it at all. Instead of spending a large space in the company whether is software and hardware for the storage as backup, cloud computing can save the data of the financial record in long-term without using any space. Accountant can observe the financial record of every period whenever necessary. Besides, the risk of losing the data is low because the damaged of the computer will not affect to the cloud system.

Cloud computing bring the benefits of costs saving in the accounting information system (LevelCloud, 2016). An organisation will no need to purchase or install the software and equipment to record the financial transaction because it will be recorded in the cloud. They just need to access the cloud by using any device with network connection. Therefore, we can save the cost from purchasing the hardware software and energy of the worker and company.

Cloud computing also improve accessibility (Techsoupcanada.ca, 2016). Accountant can access the cloud system in anytime and anywhere by using any devices and within the condition of having internet connection. They can timely prepare any financial report if they are not in the company because all the data are stored in the cloud system. By the way, the financial report which is already prepared by the accountant will upload to the cloud so that the boss can check for it if is needed.

Cloud computing is also emerging the new ways of sharing data. Cloud computing as an online systems can make the digital data exchange between banks, accountants and customers become easier. When they merchandise with other companies and bank, we can share same data immediately if all of us are using cloud computing. If they are cooperate with the company in other country, they can send the resource document like invoice and credit note through the cloud computing so that the accountant can timely prepare the financial report.

If an organisation is using cloud computing, the aspect of monitoring project will become more effectively. All the transaction will under the control to avoid the expenses over the budget of the company. It will timely shows all the record of the payment and cash received in detail. Accountant can observe the financial changes of the company anytime to ensure that the expenses of the company is over the set up amount of the company. This will lead the company can run in the right way and easy to reach the target.

Cloud computing also as an automatic software integration (Viswanathan, 2016). A company just need to set up the program at the beginning of using the cloud computing then it will sort out the data automatically which means we do not need to customize and integrate the data before we save it to the cloud system. This will bring benefit to the accountant because they do not need to assort the types of the resources document and statement.

Besides bringing benefit to the accounting information system, cloud computing also as a green choice to the environment. It require less IT equipment because a large storage of the devise, software and hardware is not needed when the organisation is using the cloud computing. A large cloud computing can also optimize their datacenters for energy efficiency more precisely (Techsoupcanada.ca, 2016).

Although the cloud computing can bring a lot of benefit in the accounting information system, there are still some of the weaknesses have to be improved in using the cloud computing.

The downtime problem will happened in the cloud computing (LevelCloud, 2016). When too many people is using the cloud computing in the same time, the data will overload and the business activities will cannot going on in a moment or the speed will become slow. Therefore, if there are amount of the data in financial record and the cloud computing is used by many people, the time of the preparation financial report will be delayed. Besides, the cloud computing is dependent in the reliability of the internet connection. Outages problem would happened if the network is offline.

The security in the cloud computing is also not perfect at all (LevelCloud, 2016). Nefarious will have the ability to scan, identify and exploit the loopholes and vulnerabilities of the system because the cloud system is easy to access. The hacker might try to break the data for the reason to get some benefit from it. If any record is being stored, accountant might not able to prepare the financial report and it will affect the sequence of the company. Therefore, the company would need to set the high security password and provide some verification question or code to the employee and make it is not exploit.

As a conclusion, cloud computing can bring a lot of the advantages to the accounting information system compare to the disadvantages. It makes the work become easier and convenience to the accountant so that stresses reduced obviously. By the benefit of using the cloud computing, the image of the company will being improved because there is high efficiency in every business process. Therefore, cloud computing is the best new trend in the accounting information system. 

2.1 The roles of accounting professionals in designing and building accounting databases

Database is form by many rows and column and collection of information that is organized so that it can easily be accessed, managed and updated.

 The role of the accounting professional in designing and building the accounting database is decide the number base on the knowledge of accounting. Accounting professional will provide the information to the database designer on the number of row and column and tell them which is suitable to use by an accountant. They will help to reach the efficiency database in low data redundancy or duplication by making the database can store a large amount of data because to avoid the data cannot be updated in the same time.

Accountant also know how to evaluate the integrity information so that they can ensure that the accuracy and completeness of the database. Besides, accountant will also decide the types of field is required for sales order table. They will made the sales order table easy to use and understand to the user.


2.2 Importance for accounting professionals to know about enterprise databases.

Enterprise database also known as Enterprise Resources Planning system (ERP). Enterprise database is a place of integrate an organisation’s data into one overall accounting information system. Enterprise system is having the data of revenue cycle, expenditure cycle, production cycle, payroll cycle and general ledger and reporting system and each cycle have different activities.

Accounting professional need to know about the enterprise database because they need to know the running process in the company. They need to know the change of give-get activities in every cycle before they make the financial report in the end of the period. They need to measure the financial report is authentic and accurately.

Accounting professional can avoid the business process is running over the budget when they know about the enterprise database. They can let every monetary activities is under control because they will check the information from time to time to avoid overdose. This can prevent the unnecessary loss in the company such like when the shipping amount is higher than sales, accountant will inform to the person in charge to reduce the shipping amount as possible.

Accounting professional need to know about the enterprise database because they can know exactly about the information of the company and make the comparison between the reports. If a company is financial losing compare to the previous year, accountant can easily find out the problem in the database system and solve it immediately.


2.3 How modern database systems support the growth of large enterprises

In the years from 2007 to 2012, there was shirt from SQL DBMS system to NoQSL DBMS becoming lightweight, non-consistent and fast in-memory storages (Finley, 2012). The program access to the data through the DBMS, therefore, DBMS is the immediate layer between the programs and the data (Thakur, 2016). The modern database already support the growth of the large enterprise by providing accurate and up-to-date intelligence for efficiency decision making.

A modern database also provide a better data integration to the large enterprise. It is accessing to the well-managed data promotes an integrated view of the organisation’s operation and providing big picture. The big picture provided is clearer and easy to view. The data will being sort out so that people can easy to understand the information. This is easy to know how the company work and the action taken in every processes.

The modern database can also provide the greater management visibility and increased the monitoring to let everyone in the company can view the data. It is designed for the large company for everyone including the consumer and employee can see the data. Therefore, they can know the newest information in the database system and everyone is in consistent pace.

The modern database can also provide more efficient manufacturing for the large enterprise. The data of the every process will be recorded in detail. Therefore, they can carry on the business activities smoothly because the data is provided completely. They can also solve the problem easily because they can find out the problem from the data in the modern database. Consequently, they can make in the manufacturing process perfectly and provide the best good and services to the consumer.

It can also monitoring overall business performance to help the growth of the large enterprise. A modern database can control the performance in the company by processing the overall data to make sure they are always in the best condition. When the information is easy to understand, it will provide a good performance to society in improving the image of the company and attract more customers.  

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