Choosing The Right Cloud Application Vendor

Cloud Application Vendor

With the recent worldwide popularity of cloud computing, it is expected to gain more momentum with more and more industries making use of such technology. The accounting profession can experience the most benefits because the accounting field processes a lot of data which can be housed online through cloud computing. However, not every accountant knows cloud computing and it is but expected that they have doubts as to the integrity of the technology. As such, this article hopes to explain the advantages and disadvantages of cloud computing with regards to the accounting profession.



Accountants can benefit from cloud computing because it eliminates purchasing software and servers, and maintaining and running them. The old technology infrastructure which requires all software and servers to be housed in the accountant’s office is now being replaced with a more robust and inexpensive technology known as cloud computing. Cloud applications are run through the web. An accountant just needs a computer or a laptop and an internet connection to be able to run accounting applications.  The software and server are managed not by the accountant but by the cloud application vendor. Typical applications available for accountants include full ERP (enterprise resource planning), payroll, and tax software. The accountant need not purchase a license to use the software. He/she just needs to pay subscription fees.

Many accountants are hesitant to use the cloud computing technology because they don’t know the benefits of moving to a cloud environment. One of the benefits of cloud computing is that the accountant doesn’t need to install a software in his/her computer. He/she just has to remotely access his/her application anytime, anywhere. If he/she has employees, his/her employees can access the same application and data. As long as there is internet connection, the accounting application and data can be accessed wherever and whenever.

Instead of paying an annual fee or a license fee, an accountant can pay monthly subscription fees for the use of accounting cloud applications. Some vendors charge on a yearly basis and some also charge fees on a per user basis. Cloud applications are usually cheaper than the traditional applications because cloud computing allows a lot of users to share storage and server. It should be noted also that although several users can use the infrastructure, it is designed in such a way that users can only access their own data. Because of cloud computing, there is no need to maintain IT personnel and costly hardware in-house.

Accountants who switch to cloud computing also pay minimal, if not zero, maintenance or hardware costs because the responsibility of maintenance is shifted to the cloud application vendor. Because the vendors sell the service to a lot of users, the share of the accountant to the total maintenance cost becomes minimal.

The main concern of accountants, however, is the security not only of their data but of their clients’ data which is understandable because they are dealing with financial records of their clients. Therefore, an accountant must exercise caution in dealing with cloud application vendors. He/she must ensure that the vendor’s data center has the AICPA (American Institute of Certified Public Accountants) Service Organization Controls Report which provides the guidance for the data center’s internal control. A vendor which has been examined by AICPA is evaluated stringently on its service or system control that it offers to its users. The data center’s infrastructure, software, personnel, data, and procedures are all examined to ensure that each component pass the stringent measures of AICPA.

In choosing a cloud application vendor, the accountant must make sure to ask for a copy of the AICPA reports to ensure that the data center has passed all the requirements of AICPA. There are also applications available such as the Comodo HackerGuardian or McAfee Secure which can be used to check daily the cloud applications’ security. The vendor website must be able to show the logo of this third party monitors together with the date stamp which shows when the data center has last been checked.

The accountant must also check for the data center’s downtime and the ease at which users can have access to their own data. He/she must ask the vendor about unscheduled and scheduled downtime. Such downtimes are often included in the contract and vendors are often penalized if actual downtimes go beyond what is stated in the contract.

With the power of cloud computing, accountants will surely benefit a lot from it. Researching about cloud computing can help them get rid whatever apprehensions they have regarding cloud applications. It is the purpose of this article to somehow alleviate the accountants’ fears regarding the new technology.

By Florence G. de Borja

About CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as offer green/cleantech learning and consultive services around the world.

Our vision is to create awareness and to help find innovative ways to connect our planet in a positive eco-friendly manner.

In the meantime, you may connect with CloudTweaks by following and sharing our resources.

View All Articles

One Response to Choosing The Right Cloud Application Vendor

  1. It is a very major responsibility of an accountant to choose the best service provider for the hosted QuickBooks. A good service provider will keep on updating the accounting software timely and would not let a CPA face any threat. Testimonials from the existing clients is very beneficial in letting you choose the best vendor.

The iCloud Scandal – Who Is To Blame? –  ‘Cloud’ Security vs. ‘Internet’ Security

The iCloud Scandal – Who Is To Blame? – ‘Cloud’ Security vs. ‘Internet’ Security

How the iCloud Scandal Has Helped to Define the Difference Between ‘Cloud’ Security and ‘Internet’ Security Busting the myth that bad cloud security was to blame for Apple’s recent celebrity data disaster Overview: We discuss the ‘celebrity hacking’ iCloud saga and debate whether or not the breach was likely down to Cloud encryption issues or…

Three Factors for Choosing Your Long-term Cloud Strategy

Three Factors for Choosing Your Long-term Cloud Strategy

Choosing Your Long-term Cloud Strategy A few weeks ago I visited the global headquarters of a large multi-national company to discuss cloud strategy with the CIO. I arrived 30 minutes early and took a tour of the area where the marketing team showcased their award winning brands. I was impressed by the digital marketing strategy…

Dreaming of a Cloud Transition and Transformation Framework

Dreaming of a Cloud Transition and Transformation Framework

Cloud Transition and Transformation Framework Many years ago I was introduced to the concepts that comprise the visual architecture process. During the process of learning about the concepts and process of visual architecture, I adopted many of the concepts, ideas and tools to use in my own processes. In particular, there was a component that…

Are You Sure You’re Ready For The Cloud?: Connectivity

Are You Sure You’re Ready For The Cloud?: Connectivity

Cloud Connectivity Many times when we think of “cloud” we think of the elastic compute and storage, but we forget one very important thing, connectivity. Even though connectivity is no part of the cloud itself, it does have a direct bearing on how we access it, use it, and play around with it. If our…

Cloud-Enabled Managed Hosting: 5 Things A Cloud Provider Should Offer

Cloud-Enabled Managed Hosting: 5 Things A Cloud Provider Should Offer

Cloud-Enabled Managed Hosting The IT industry moves at light speed fueled by constant change and advancement. No area of IT has been affected more by this change than the hosting and managed service space. Advancement in the cloud and its delivery models of IaaS and SaaS have caused a monumental shift in the way IT…

The Cloud Is Not Enough! Why Businesses Need Hybrid Solutions

The Cloud Is Not Enough! Why Businesses Need Hybrid Solutions

Why Businesses Need Hybrid Solutions Running a cloud server is no longer the novel trend it once was. Now, the cloud is a necessary data tier that allows employees to access vital company data and maintain productivity from anywhere in the world. But it isn’t a perfect system — security and performance issues can quickly…

How Data Privacy Reform Is Wreaking Havoc In The Cloud

How Data Privacy Reform Is Wreaking Havoc In The Cloud

Data Privacy Reform Is Wreaking Havoc Nations around the globe are stepping up efforts to better protect the personal data of private citizens. In particular, cross-border data security regulations and legislative reform is on the rise. The laws must evolve in order to mitigate theft, abuse and misappropriation of personally identifiable information (PII), better guard…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor