Where are clouds, what is the cloud? Are we in clouds now? Joke aside, cloud accounting is uploading files to hosted service on the internet. This means you can access or store your data online. Cloud is just a metaphor used online. Of course you would expect this type of business is big, by the end of year 2023, it could be well worth over $270 billion dollars. Many companies are using cloud service because if you have too much computers in your work place it requires too much hardware to store all those data and files. When you are using cloud storage you can forget about dealing with all those problems regarding hardware, software, configuring, installing, testing securing and updating computers. It’s great because once you have an account you can decide and scale up and down how much storage space you need. There are 3 version of cloud computing. They can be either public, private or hybrid.
When you are private user of cloud, it benefits you in a way that you will always have your files secured online and never lost them if your PC or hard drive crashes. That way you don’t also need to spend countless of DVD burning files to them if you don’t have external hard drive to transfer and save files. Public cloud computing is probably most recognized model to users. It is cloud where services are hosted by some cloud provider and shared with their base of clients, it can be accessed through public networks. Third one Hybrid is like a combination of the previous two. It can be used both as private and public. This especially serves great to companies as they can use public for information that is not sensitive and private for other critical and sensitive information. So companies can make sure to set up their ideal configuration.
Cloud computing, as a new web technology, is becoming increasingly more used in the business world. The effects of using this technology in business are numerous. Cloud computing can be implemented in a wide range of business processes, with the aim of efficient management. There are many possibilities of using cloud computing technology in accounting.
Modern accounting systems are closely related to the new cloud computing technologies. Cloud accounting system allows the company to perform accounting functions online and allows “on – demand” approach to clients. This is known as online accounting or in some circumstances as SaaS (software as a service) accounting software.
Cloud accounting can be seen as a form of one virtual accounting information system. This form of accounting information system is not physically tied to one location but have business information available at any time from any place where there is an Internet connection. User information can be accessed via laptop, tablets, mobile phones and other devices.
Cloud computing can be very useful for companies to implement it in their operations. An increasing number of enterprises begins with the application of this technology in their operations, and that in almost all business functions. Application of cloud computing is still the least represented in finance, while the application in systems such as logistics, sales and production is far more pronounced. It allows fast access and analyze large amounts of data. With using this technology in accounting you will achieve lower costs and faster access to accounting information.