Fletcher Tax Accountants Business - New Cloud Computing - Case Study Example

ACCOUNTING IN THE CLOUD Name Date Table of Contents ACCOUNTING IN THE CLOUD 1 INTRODUCTION 3 SUMMARY 3 CRITIQUE 4 ANALYSIS 5 PROBLEM FACED BY BUSINESS 7 CLOUD COMPUTING IN AUSTRALIAN ENVIRONMENT 8 CONCLUSION 9 References 9 INTRODUCTION New technology of the cloud computing has captured the attention of a huge number of businesses and corporate sector in offering more reliable and less complex business management structure. The new technology arrangement of cloud computing has completely transformed the traditional practice of the business and corporate information and operational management. This report will present a critical review of some of the main aspects of the cloud computing regarding the accounting functions management. In this scenario this paper will discuss and analyze some of the main areas of the Fletcher Tax Accountants business new cloud computing business management systems application for the overall digitization of the customary business practices. In this scenario this paper will investigate the issues surrounding cloud computing in particular within the Australian environment. SUMMARY The new technology based arrangement of the cloud accounting is actually a mash up of 2 main schemes and has been attaining extremely high attention and interest in current years. A lot of small businesses are currently adopting new web based systems and tools to manage their business accounting requirements. In case of specially accounting software, that is some computer application that facilitates us by means of several structure of accounting processes. Additionally, this can be as straightforward as a small sales ledger application to whole means to a business level complete accounting package. Consequently cloud computing based accounting application is fundamentally a technique to run our small business accounts completely online without requiring offline data and information storage and software. As a result there is no resident installation on our own computer as well as we are able to access our accounts from anywhere by means of an Internet connection. This still means accessing our business accounting data by means of our Smartphone like that Blackberry or iPhone. Such a huge facilities and applications of the cloud computing have offered a much better support to accounting business as our company. However, with the overall transformation of the traditional business practices to the new business arrangement we can have some problems and issues regarding effective working and handling of business as performed through the customary business practice (Walsh). This report is also aimed to discuss and analyze some of these aspects and areas. CRITIQUE Establishment of IT technology and Cloud computing based operating model for private or public business and organization is completely be a dominant method to recognize cost savings, however merely if our businesses recognize precisely what the Cloud Computing technology is replacing. In this regard, the Cloud Computing technology is a new and more enhanced step-forward to traditional SaaS (software as a services). Rather than hosting the user and their information/data on a specifically established server, the application host frequently has numerous servers in numerous locations, as well as a user is able to in fact carry out operations on diverse computers at each time they call. The unlucky truth is that the majority or corporations have effectively established IT cost management systems however a small number of them have some foundation in real use. In simple words, we are able to assertively articulate that our IT bill imitates how a great deal or little we make use of something? Conventional techniques and methods to IT chargeback combined the net IT cost, and assigning it proportionally to business units foundational upon on server count, head count or a number of extra replacements intended for assigning real cost. This technique (occasionally affectionately referred to like ‘peanut butter' we extend it around) has advantage in its ease, however cannot be permitted to continue as we move in the direction of Cloud operating models (Houghton). As I have stated the establishment of cloud computing brings a lot of advantages and facilities for the business however like any other technology that technology is creating some issues and problems regarding the enhanced working and performance. Such type of issues has been outlined in the section below regarding our company initiative for the new technology based arrangement. ANALYSIS The Accounting applications are essential for medium to small businesses in case of handling and managing the business operational bookkeeping and financial management. As financial management offers strategic spotlight to a company, obtaining small business applications, comprising financial management software is vital intended for business efficiency and competence. Cloud hosting offers a lot of advantages such as easy to utilize, on need and scalable IT arrangement obtainable like a service giving benefits to the small business by changing the fixed IT arrangement "capital costs" into "outfitted spending. A number of advantages of cloud hosting intended for medium to small businesses are about the flexibility of the IT arrangements. The technology of the cloud computing based hosting executes on the twin ideas of distributed and virtualization computing that outline approximately infinite IT resources obtainable on demand. This as well outlines that that provisioning and scalability intended for future IT requirements as well as linked upfront costs are able to be evaded through the small business. Outsourcing IT arrangement management is also main advantage of Cloud Computing. Cloud hosting services as well means that the medium to small companies outsourcers IT arrangement troubleshooting, administration plus up-hold to 3rd party service suppliers that in the end can enhance business attention plus costs proficient IT administration. Cloud computing also offers high level collaboration among all business areas. This offer sharing plus on the distant and off-business-site fly access. By means of cloud hosting services one is capable to access the systems in a multi-user situation that adds the reason of real time communication and collaboration between varieties of users (Smith). In case of the accounting applications business is able to have facility of hosting QuickBooks accounting application or some other application like that MyOb or Peachtree cloud hosting service offers a number of extra advantages (Smith). http://www.sooperarticles.com/technology-articles/software-articles/accounting-applications-cloud-hosting-some-benefits-72546.html PROBLEM FACED BY BUSINESS In this section I will assess some of the main problems those are in the way of the successful establishment of the cloud computing at our company setup. In case of new cloud computing technology setup establishment the main and biggest problem at the company is about the proper and effective establishment of some security mechanism. Here such business arrangement is more open to business data hackers and security breakers. Here another problem is about defining and customizing the business authorities in case of business setup. Here defining un-limited business authority for the business executive and offering some restricted access to some business staff member. In case of large and complex business system such transformations and customizations are more problematic. On the other hand each business setup and business organizational structure varies from business to business. In such conditions changing such systems for each new coming business is also a really complex problem for cloud services providers. The next main problem that is assessing in our company case is the overall transformation of the traditional business practice to new technology based arrangement. In this scenario the new technology based system is harder to handle and manage in case of adoption to new business working and operational practices. In case of our business transformation to new cloud computing based structure is causing some problems regarding the data transformation. In case mounting the old historical business data to the new cloud computing business solutions. Another main and most serious problem regarding the transformation to new cloud computing arrangement is the problem of the business staff working skills. In case of new technology based arrangement that is quite new for our business and working staff the main problem is facing is about the learning and working on the new technology based arrangement. CLOUD COMPUTING IN AUSTRALIAN ENVIRONMENT At internet scale Cloud computing is a rising working and technology platform of significance to Australia’s communications and information technology capability and the competitiveness of its modernism capability. For this cause, ATSE recognized an unofficial research and Working Group to report on applicable areas and aspects of this disruptive technology. Australia discloses that this technology has a great deal to offer. As Australia does not frequently have the widespread broadband connections, large-scale data centers plus necessary regulatory setting, these are potential in the near future. There are important openings intended for Australia in cloud computing, intended for researchers, government plus business. Though, action through the Commonwealth Government is required to make sure that these prospects are managed and avoidable difficulties removed (Mudge). CONCLUSION This paper has presented the analysis of establishment of the cloud computing arrangement for our company. In this scenario I have discussed and analyzed some of the main aspects and issues and main advantages and problems brought by this technology at the business arrangement. In this scenario I have comprehensively analyzed all these areas. I hope this analysis will offer a detailed insight into the overall areas and aspects of the cloud computing arrangement for our company and also in case of the Australian environment. References Houghton, James. Accounting for the Cloud. 19 August 2010. 10 January 2011 . Mudge, J Craig. CLOUD COMPUTING: Opportunities and Challenges for Australia. Melbourne, Victoria: The Australian Academy of Technological Sciences and Engineering (ATSE), 2010. Smith, William. Accounting Applications And Cloud Hosting: Some Benefits. 28 May 2010. 10 January 2011 . Walsh, Matthew. What Is Cloud Accounting? 29 November 2010. 10 January 2011 . Read More