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concept of big data and cloud computing: real cloud and technology devices illustration
The adoption of cloud computing for small and medium accounting firms is essential for many reasons. With the information highway at our fingertips, knowledge has increased and research, along with science and technology, has made it possible for many businesses to actually do more with their time and resources. The digital era has made connectivity, and other valuable mediums used by businesses, to enhance and develop them at the mental level. With the dawn of the cyber world, businesses from every industry have sought their own share in this new space which has spawned new areas of opportunity for many professionals, i.e. e-marketing, e-commerce, etc.

The Adoption of Cloud Computing

The adoption of cloud computing, not only for small and medium accounting firms but businesses and professionals from every industry, benefits from the next-generation in Information Technology. Cloud computing is the latest innovation that changes the way IT resources are provided. It combines already-existing heterogeneous technologies into one fully compatible ecosystem instead of creating new systems afresh. Cloud computing can be defined as a model for effective, convenient, sustained and on-demand provisioned network access to a shared pool of computing resources that are configurable which require little or minimal management labors or services providers assistance. 

Software as a Service, or SaaS, is the most common and refined form of adoption of cloud computing for small and medium accounting firms where both hardware and software are offered by a cloud service provider and users are permitted to access the software. The capability and energy required to maintain their own software is relieved from the users in the SaaS model, but there are limitations regarding customization of the system. There are other forms of SaaS that are commonly used: PaaS and IaaS. Infrastructure as a Service helps users with providing storage and computing resources hardware infrastructure while users utilize their own OS and software. It minimizes the need to maintain hardware but does not always lead to relieving the users from maintaining their own software. Large corporations and other institutions, such as universities, use IaaS.

Whereas, PaaS is sort of in the middle of SaaS and IaaS. In it, a platform of systems and vital toolkits are provided and users own their own compatible applications, which are deployed at convenience. PaaS is ideal for supporting those businesses who develop their own applications without providing hardware. The main principle and purpose of cloud computing is providing multiple users with centralized computer resources as services. Not being a technology or a product, the adoption of cloud computing is the arrangement of computing resources. In fact, any type of IT infrastructure that differentiates users from providers of services can be cloud computing but the concept of shared resources certainly isn’t new. Like grid computing and application service among many others. Cloud computing differentiates from grid computing by heavy virtualization. Computing resources are accessed from the internet instead of specialized interfaces.

Cloud computing has more flexibility in the way that computing resources are used by businesses. It helps set the illusion of limitless resources due to its virtue of connecting widely with a range of computing devices. Cloud service providers are able to give an infinite amount of computing resources due to the fact that all the resources in the cloud computing model are pooled and offered to users at any given time and shifting unused resources to others who need them. This helps business users match their actual demand by configuring their IT services that eradicate the need to forecast yearly resource usage and capacity addition. This is great for businesses who’s needs fluctuate a great deal or who’s demands increase and decrease irregularly.

The adoption of cloud computing also helps to invest in IT resources and infrastructure with reduced risk by using capital investment as operational expenses. IT infrastructures do not come cheap and, even though it produces significant benefits, it does not guarantee benefits to a firm. However, building upon a cloud computing model would help use it in a meaningful method. Cloud computing has no upfront costs or investment charges so it is eyed as a desirable trait. Cloud-based services are changed on usage which helps a business acquire new IT systems without bearing greater costs for licenses, software, hardware, etc. Cloud computing is more meaningful for small and medium accounting businesses who do not possess the financial capital or expertise needed to implement, configure and manage complicated IT systems.

For businesses, centralizing computing resources and cloud computing provides enhanced and improved efficiency and lesser need for maintenance so users enjoy many reliefs. Organizations and large corporations usually have their own in-house IT support that is usually inefficient. Cloud service providers combine and amalgamate computing resources which help economically unburden businesses. Furthermore, it may even aid in cost savings by eliminating expenditure incurred to manage IT systems.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Hand holding digital tablet with global network connection technology and e-learning, education concept. Element of this image are furnished by NASA
With the help of science and technology, the world has become a global village. With globalization and development in many essential industries, creative and newer ways of economics is the primary need of the time. Information technology is used to overcome many of today’s business requirements and needs that help the economics of a market. Businesses are equipped with tools that enable more productivity and effective time usage and/or management among many other blessings.  Many of today’s corporations and market leaders use critical systems that help them communicate, connect and share several aspects of their resources by the adoption of cloud computing in regards to IT service accounting.

What is Cloud Computing?

Cloud computing is hard to clearly define. The broad spectrum application it is used under is generally vast and a certain perspective cannot be maintained. It is not a new concept but, still, much of it is beginning to have huge impacts on the businesses who adopt it. Cloud computing is a platform where all shared resources of a business can be utilized and serviced to users within a network. The practical implementation is evidently used in manufacturing, inventory and stock, accounting and finance, legal offices and libraries, universities and other such institutions… just to give an idea.

A more particular and generally agreed upon definition of cloud computing for IT service accounting is “a type of parallel and distributed system consisting of a collection of interconnected and virtualized computers that are dynamically provisioned and presented as one or more unified computing resources based on service-level agreements established  through negotiation  between  the  service  provider  and consumers” by Buyya R, Yeo C, Venugopal S. Market-oriented cloud computing: Vision, hype, and reality for delivering it services as computing utilities. 10th IEEE International Conference on High-Performance Computing and Communications 2008. Dalian, China.

Cloud computing uses software and hardware as a service provided to various users connected to the network. All of these users in cloud computing for IT service accounting environments are patched in through the internet. It allows the users to store data and use applications via devices situated remotely at multiple locations. All computing power is associated as resources and are bundled together and served to these users who need tools and applications to perform tasks or design integral software.

Cloud Computing for IT Service Accounting

Information technology plays a vital role in various areas of business operations such as finance and accounting. Business financial accounts are meant for public audit and are not part of the business itself. Accounting models have made financial accounting easier, where traditional applications were complex and expensive. They required a massive storage capacity, designated internet flows, specialized IT departments, among many other hassles. Upgrading such IT systems can be arduous, too. With recent developments, cloud computing has allowed accounting models achieve efficient use of the internet to ease access, customization, collaboration and drive cloud computing towards cloud accounting.

Cloud accounting, like cloud computing, has an IT service accounting approach or online accounting for professionals who use traditional accounting software which is installed on a remote resource connected via the internet. But, that remote resource is a server owned by a cloud service provider who charges users for using the software. This is done by cloud computing solutions and there is no definition defining “online accounting or cloud accounting”. It is theorized to provide functionality and advantages. Without the main need of owning or investing in costly supercomputers or an IT infrastructure, businesses can focus on other parts of their business and pay for the usage of software.

Impacts

Cloud computing solutions for IT service accounting environments reduce the amount of labor to provide and effectively address the multifaceted loads and several activities via an online system. It can automatically generate transactions and operations with accounting notes or details of a different nature. It can also review management and financial accounting of accounts participating and correlate them. Statements can be automatically generated as well as critical financial reports. A cloud accounting provider helps eradicate the need to use an in-house IT or accounting professional, thus making it a cost-effective method for many businesses. The services offered are that of a finance manager, virtually, but cloud computing is more diverse and covers many areas of implementation.

Cloud computing in regards to IT service accounting helps businesses reduce costs. No investment is required to buy equipment and there are no costs undertaken to set up an IT Infrastructure. It helps users connect no matter where their location is by providing remote connections. The internet is used by users worldwide to access platforms with tools and software to perform integral parts of their jobs without the need to carry the tools. Unlimited storage capacity is a huge benefit with the amount of big data a business can generate. Clients of cloud service providers can increase or decrease their capacity according to their requirements of cloud computing for IT service accounting which sometimes makes it more cost convenient. Its user-friendly and empowers businesses to share their information with their customers.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.