Cloud Accounting As a New Business Model and Its Influence on Accounting Process

With cloud computing transforming the Information Technology industry, the business sector has equally received a major boost coming from the creation of cloud accounting. The idea of having a smart system manage finance and accounting has been traced to New Zealand, where in the year 2006 an emergent company, Xero demonstrated the possibility of having accounting done in line with the cloud computing frameworks. Looking at the vicious competition in the market today, it has become necessary for businesses aiming to achieve their goals to carry out both internal and external analyses to enable smooth transition with the ever dynamic market trends. Accounting, as a critical area behind the growth of any business has not been left behind in this evolution, with technological innovations availing unimaginable accounting software that were unimaginable in the past years. This is basically; a cloud technology based accounting system, which avails numerous services, revolutionizing the account industry as all the traditional and cumbersome paper work oriented system is replaced by a more convenient and equally reliable cloud based accounting set up. This wake in accounting, despite being new in the market has received positive feedback with close to half of modern business setups embracing the approach. This paper aims to revisit cloud accounting from spectrum possible spectrum as illustrated herein.