Cloud accounting provides real-time financial information that can be accessed from anywhere through an internet connection. While this offers advantages like low costs and unlimited access, cloud accounting also faces challenges regarding security, internet connectivity, and lack of awareness. Studies have found cloud accounting reduces costs and improves access and decision making, but also risks data manipulation. Overall, cloud accounting presents a new paradigm for accounting through its mobility and accessibility, though security issues must be addressed to fully realize its benefits.

1. Innovation of Cloud Accounting: Prospects and Challenges

2. Introduction
 Globalization, and rapid change of technology need development in traditional accounting
methods. From maintaining records on paper in journals and ledger books in manual
accounting methods environment has now already shifted toward computer accounting.
 Nowadays, the internet made us habitual of speed and real-time information at any time
whenever we want. With accounting software, like Telly, financial information as per user
requirement are available but these can be accessible by the accountant only at a
particular computer where all the related data is stored. It makes the decision-making
process slow and time-bound.
 Innovation in the accounting field was the need of the hour to fill the gap of data
processing and availability. Then the Cloud Accounting came into picture.

3. Cloud Accounting
 Cloud accounting is an internet-based program that works with Internet browsers for
accounting and maintaining data of a business on the cloud server. It drives by a cloud
computing program on the internet, which helps to process the data online, and store it
on cloud server without any specific computer hardware and software.
 Cloud-based accounting program provides real-time up to date financial information for
quick response to business opportunities with easy decision making.
 For using cloud service, a user needs to pay just a subscription fee to access cloud
accounting service. It also does not require any capital investment in purchasing software
for every computer.

4.  In the current situation of the ongoing pandemic of Covid19, all offices and
corporates are working in a very problematic situation, and people are working
from home for almost two years now. In this situation, cloud computing
accounting technology proves to be a boon.
 Shifting from computer accounting to cloud accounting was also a
straightforward process as the user does not need to worry about installing the
software or maintaining it. IT teams of companies also does not need to worry
about backing up the software and fixing the bug problems as service providers
give the user a ready to use the platform and maintain it by themselves.

5.  After the Covid19 pandemic, cloud accounting was enhanced because of working from
home. Hence, a study conducted by Esra Al-Nsour, Weshaha and Dahiyat found that the
main advantage of cloud accounting is reducing cost and the ability to access the system
from anywhere. They also find out that cloud accounting can also leads to limiting
manipulation of financial information. Confidentiality and interruption can be the major
problem with cloud accounting, so updating security procedures is mainly required
(Nsoura, Weshaha, & Dahiyata, 2021).
 A SWOT analysis done by Allahverdi found the strength of cloud accounting are low cost,
access easiness, use easiness, high-security standards, data transfer, data storage, backup
easiness, and weaknesses are need for online working, constraints in applications data
secrecy, data security, and performance. Outside opportunities for enterprises of using
cloud accounting are real-time access to data, integrations, use in mobile applications,
action flexibility, and threats of using cloud accounting are the system remains offline,
security violation, contract originated problems and legal barriers (Allahverdi, 2017).

6. Objectives of the study:
 To know an overview of cloud computing technology in
accounting.
 To know the significant difference between traditional accounting
and cloud accounting.
 To know the prospects and challenges in growing cloud
accounting.
 Descriptive and Exploratory research

7. Cloud computing technology
in accounting:
 With technology, advancement the cloud came as a platform where we can store data
and information and then access such data from anywhere in the world on any device
having an internet connection.
 So in cloud accounting, accounts of any enterprises are maintain so that user can
perform work from anywhere and use the accounting information at any time when
needed urgently. This cloud accounting works similar to traditional accounting software
but does not require any storage space on the device to use it or install the software.
 Cloud computing does not work on software; it works on an internet web browser which
takes the user to a particular web address of data storage in clouds. The cloud service is
of three types, namely Infrastructure as a Service(IaaS), Platform as a service (PaaS), and
software as a Service (SaaS).

8.  Infrastructure as a Service (IaaS): It is the most critical service in cloud computing
as it gives all the freedom to customize the server by itself. It provides basic Infrastructure
for the network based on the server, and the user of the service can develop the platform
by himself and perform the application. It gives all control on networking, computing,
storing and other services. Users have to maintain service by themselves. Example:
web service, Google compute Engine.
 Platform as a Service (PaaS): In this service provider offers less freedom about
designing, but it has the benefit of less maintenance as the service provider maintains the
platform and Infrastructure by himself. Users can customize the application based on the
platform and infrastructure provided by the cloud service providers. Cloud server
the storage virtualization and networking, but the client can manage the application,
operating system and runtime. It is more focused on designing the software rather than
managing the storage. Example: Google App Engine
 Software as a service (SaaS): It is a predesign cloud-based system that works like
software designed for specific purposes. It does not provide a designing feature as it is
ready to use service on a paid basis. The client can subscribe to the service when he
to use it by paying subscription fees. Cloud accounting is a SaaS service as it is designed
accounting purposes. Various companies have developed their cloud-based accounting
software to provide services on a subscription basis. They also offer customized
software on demand of the client for use only. Other examples are Gmail, Google Apps,
Microsoft 365 etc

9. Traditional Accounting v/s
Cloud accounting
 Some of the differences between traditional accounting and cloud accounting are as
follows:
Traditional Accounting Cloud Accounting
Need to Purchase Software No need to Purchase Software
rather pay subscription fee
Limited by location as install in a
computer system
Free from all geographical
boundaries
Storage capacity needed Stores data on cloud server
Maintains cost need to pay Free form all other expenses
Limited by number of users Limitless number of users

10. Prospects in Cloud Accounting
With cloud accounting, a new aspect of accounting emerged from traditional accounting that
facilitates the user to access all the financial information to everyone who has complete
access password and can use the information at different locations. Some of the
prospects of using cloud accounting are as follows:
 Reduced Cost
 Boundary less Access
 Performance Improvement
 Unlimited Storage
 Up-to-date Setup
 Share Real-Time Data

11. challenges in Cloud
Accounting
Any program or software is not perfect in all ways. Cloud accounting also has its challenges
that need to focus on improvement. The user of cloud accounting also needs to pay
attention to these points while using the cloud accounting system. Some of them are as
follows:
 Security Issue:
 Lack of Awareness:
 Internet Connectivity:
 Training Needs

12. Findings and Conclusion
 Cloud accounting is web based program that uses cloud servers to store financial data. It makes
financial information available to every person of the enterprises with the access of login ID and
passwords.
 However, as above discussion and literature review, there is some limitation in using the cloud
accounting, but there are many significant points to consider as advantages of using cloud
accounting.
 Features like remote access is very vital for accountants in current time as of the effect of
pandemic people are working from home. It is the only convenient way for maintaining the
accounting data continuously, even in the COVID19 pandemic.
 Besides that, rapid technological advancement also requires updating the traditional accounting
methods to cloud accounting because it is crucial to have access to financial information at any
time in the current economic environment.
 It can be recommended to the students of the accounting profession to cop up with the
technology and be prepared for the future of innovative accounting. It can also recommend to
the government to make policy regarding the use and security of data in cloud computing to
encourage the development of cloud accounting.

13. References
 Allahverdi̇, M. (2017). Cloud Accounting Systems And A Swot Analysis. Journal of Accounting & Finance.
 Christauskas, C., & Miseviciene, R. (2012). Cloud–computing based accounting for small to medium sized business. Engineering Economics, 23(1), 14-21.
 Dimitriu, O., & Matei, M. (2014). A new paradigm for accounting through cloud computing. Procedia economics and finance, 15, 840-846.
 Dimitriua, O., & Mateia, M. (2015). Cloud accounting: a new business model in a challenging context, Emerging Markets Queries in Finance and Business. Romania.
https://www. researchgate. net/publication/289993037_Cloud_Accounting_A_New_Business_Model_in_a_ Challenging_Context https://doi. org/10.1016/S2212-5671 (15),
01447-1.
 Egiyi, A. M., & Udeh, N. S. (2020). Overview of Cloud Accounting in Nigeria. International Journal of Academic Management Science Research (IJAMSR) , 81-88.
 HAMUNDU, F. M., HUSIN, M. H., BAHARUDIN, A. S., & KHALEEL, M. (2020). Intention to Adopt Cloud Accounting: A Conceptual Model from Indonesian MSMEs
Perspectives. The Journal of Asian Finance, Economics, and Business, 7(12), 749-759.
 Khanom, T. (2017). Cloud accounting: a theoretical overview. IOSR Journal of Business and Management, 19(6), 31-38.
 Marsintauli, F., Novianti, E., Situmorang, R., & Djoniputri, F. (2021). An analysis on the implementation of cloud accounting to the accounting process. Accounting, 7(4), 747-
754.
 Master, S. (2018). Cloud accounting-the game changer in digital economy. Voice of Research, 7(3), 43-44.
 Al-Nsour, E., Weshah, S., & Dahiyat, A. (2021). Cloud accounting information systems: Threats and advantages. Accounting, 7(4), 875-882.
 Prichici, C., & Ionescu, B. (2015). Cloud accounting–A new paradigm of accounting policies. SEA-Practical Application of Science, 3(1/7), 489-496.
 SAHA, T., DAS, S. K., RAHMAN, M. M., SIDDIQUE, F. K., & UDDIN, M. G. (2020). Prospects and Challenges of Implementing Cloud Accounting in Bangladesh. The Journal of
Asian Finance, Economics, and Business, 7(12), 275-282.
 Shkurti, R., & Muça, E. (2014). An analysis of cloud computing and its role in accounting industry in Albania. Journal of Information Systems & Operations Management, 1.
 Sobhan, R. (2019). The concept of Cloud Accounting and its Adoption in Bangladesh. International Journal of Trend in Scientific Research and Development, 3(4), 1261-1267.
 Wyslocka, E., & Jelonek, D. (2015). Accounting in the Cloud Computing. Turkish Online Journal of Science & Technology, 5(4).
 Zhang, C. (2014). Challenges and strategies of promoting cloud accounting. Management & Engineering, (17), 79.

14. This Photo by Unknown Author is licensed under CC BY-SA