Business Plus Advisors (BPA) are a well established accounting firm located in M

Question

Business Plus Advisors (BPA) are a well established accounting firm located in Melbourne, Victoria. The Managing Partner, Brady, has read a number of professional articles talking about cloud accounting and its impact on accounting firms and their clients. At present, all of the firm’s clients use more traditional accounting systems where their accounting software is located on computers within their offices. When it is time for Business Plus Advisors to review the accounting files and prepare financial advice and / or tax returns, their clients backup their accounting data and email the file to the firm. Brady would like you to undertake some research into Cloud Accounting and its impact. He is very limited in time and has asked you to prepare a PowerPoint presentation to the executive committee covering the following: What is Cloud Accounting? (1 mark) What are the benefits and limitations of using cloud accounting when compared to their traditional accounting systems from the perspective of: Business Plus Advisors? (3 marks) the clients of Business Plus Advisors? (3 marks) Should Business Plus Advisors encourage their clients to transition to a cloud accounting system when compared to their current system? Justify your recommendation, which should be consistent with the benefits and limitations you have identified above. (1 mark)

Explanation / Answer

1. Cloud accounting software has the same features as that of a traditional accounting software, with the only difference that this software is hosted on remote cloud servers. Data is sent to the cloud where the processing takes place and the result is returned to the user.

2. Perspective of Business Plus Advisors

Disadvantages of using cloud accounting software:

Perspective of Business Plus advisors clients:

3. Business plus advisors should encourage their clients to switch from traditional accounting to cloud accounting. The reason behind this is that cloud accounting is quite flexible, generates accurate reports quite fast as well as data handling becomes easy as the platform supports scalability.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.