You work in an accounting firm as a business advisor. The partners of the firm are conservative and advise their clients to use traditional server based accounting information systems (AIS). The firm's clients are small to medium sized businesses, in a variety of industries including retail and service. Recently a number of your clients have approached you about moving from a traditional accounting system (in-house server based or computer based) to a cloud based accounting system. You mention this trend to the senior partner. The senior partner has now asked you to provide more information on cloud accounting systems, in the form of a 750-1,000 word business report that can be distributed to both the partners and clients.
You have been asked to do some research and address the following:
• Define and explain the differences between a cloud based accounting system and a traditional accounting system
• Identify potential risks or limitations in adopting a cloud based accounting system
• Based on your findings make a recommendation outlining which size and type of businesses would benefit from moving to a cloud based AIS. Within your business report, present the differences between cloud based and traditional AIS in a table.