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.

Where Is The Tipping Point For The Flying Drone Market?

Where Is The Tipping Point For The Flying Drone Market?

The Flying Drone Market In the past year I have written a number of articles here on CloudTweaks about Drones. I enjoy flying drones. One thing I’ve used my drone for is proving I didn’t need to do the worst fall maintenance job ever. Cleaning the gutters of the house by flying the drone around…

Digital Transformation: Miracle and Wonder

Digital Transformation: Miracle and Wonder

Digital Transformation These are the days of miracle and wonder. I’ve been leading a small, global research team at the Tau Institute for the past few years to examine the dynamics of IT adoption in more than 100 countries throughout the world. We’ve developed several indices that show how well these nations are doing on a relative basis. We ranked the nations…

Principles For Data Protection In The Cloud In 2016

Principles For Data Protection In The Cloud In 2016

Data Protection In The Cloud 2015 ushered in the start of a data economy. As organizations amass more detailed consumer profiles they have begun realizing that data could equal or surpass the value of the products and services they sell, especially in the Internet of Things era with its constant and very personal streams of…

Protecting Devices From Data Breach: Identity of Things (IDoT)

Protecting Devices From Data Breach: Identity of Things (IDoT)

How to Identify and Authenticate in the Expanding IoT Ecosystem It is a necessity to protect IoT devices and their associated data. As the IoT ecosystem continues to expand, the need to create an identity to newly-connected things is becoming increasingly crucial. These ‘things’ can include anything from basic sensors and gateways to industrial controls…

Dissecting Mr. Robot TV Series: Spotlight On Burning Online Privacy Risks

Dissecting Mr. Robot TV Series: Spotlight On Burning Online Privacy Risks

Mr. Robot And Burning Online Privacy Risks Despite the rapid development of web tools and computer security systems, online privacy remains a serious issue for most web users. According to some statistics provided by isaca.org, the total number of online security incidents worldwide grew to 42.8 million, leaving a great number of victims behind. As one…

How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles
Optimizing Digital Marketing Through Accessibility & Aesthetics

Optimizing Digital Marketing Through Accessibility & Aesthetics

Optimizing Digital Marketing In The Cloud Marketers are constantly looking for better ways to tantalize and engage customers, and there’s no space more competitive than the digital universe. Deliberating over pleasing layouts, effective calls to action, site responsiveness, and much more, digital marketers have more than enough to keep themselves busy without understanding the intricacies…

Featured Sponsored Articles

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