I. Introduction
Accounting information system is playing an important role in the business operation, and the cloud computing has a great impact on the revolution of accounting information system. This research paper aims to discuss the new trend of cloud based accounting information system in business. The whole text is divided into three parts:
First part gives an overview of the cloud computing and accounting information system; second part analyses the benefits and challenges of the accounting information system's move to the cloud; and third part gives the recommendations on key success factors of the adoption.
II. Cloud-based accounting information system overview
i. Cloud computing
According to the definition given by the NIST (National Institute of Standards and Technology), “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of five essential characteristics.”
The NIST also identified the following five essential characteristics that cloud computing has:
(i) “On-demand self-service”. With the time and network stored in the cloud server, cloud computing dramatically reduces consumer’s human interaction with the service provider.
(ii) “Broad network access”, which enables services to be provided through Internet on a variety of client platforms.
(iii) “Resource pooling”. Multiple consumers can be served together by the pooled computer resources based on different remote data centers.
(iv) “Rapid elasticity”. The scale of services can be adjusted rapidly according to the consumer’s demand.
(v) “Measured service”. The usage of computing resources is measured by the cloud systems automatically, thus