Hand holding digital tablet with global network connection technology and e-learning, education concept. Element of this image are furnished by NASA
With the help of science and technology, the world has become a global village. With globalization and development in many essential industries, creative and newer ways of economics is the primary need of the time. Information technology is used to overcome many of today’s business requirements and needs that help the economics of a market. Businesses are equipped with tools that enable more productivity and effective time usage and/or management among many other blessings.  Many of today’s corporations and market leaders use critical systems that help them communicate, connect and share several aspects of their resources by the adoption of cloud computing in regards to IT service accounting.

What is Cloud Computing?

Cloud computing is hard to clearly define. The broad spectrum application it is used under is generally vast and a certain perspective cannot be maintained. It is not a new concept but, still, much of it is beginning to have huge impacts on the businesses who adopt it. Cloud computing is a platform where all shared resources of a business can be utilized and serviced to users within a network. The practical implementation is evidently used in manufacturing, inventory and stock, accounting and finance, legal offices and libraries, universities and other such institutions… just to give an idea.

A more particular and generally agreed upon definition of cloud computing for IT service accounting is “a type of parallel and distributed system consisting of a collection of interconnected and virtualized computers that are dynamically provisioned and presented as one or more unified computing resources based on service-level agreements established  through negotiation  between  the  service  provider  and consumers” by Buyya R, Yeo C, Venugopal S. Market-oriented cloud computing: Vision, hype, and reality for delivering it services as computing utilities. 10th IEEE International Conference on High-Performance Computing and Communications 2008. Dalian, China.

Cloud computing uses software and hardware as a service provided to various users connected to the network. All of these users in cloud computing for IT service accounting environments are patched in through the internet. It allows the users to store data and use applications via devices situated remotely at multiple locations. All computing power is associated as resources and are bundled together and served to these users who need tools and applications to perform tasks or design integral software.

Cloud Computing for IT Service Accounting

Information technology plays a vital role in various areas of business operations such as finance and accounting. Business financial accounts are meant for public audit and are not part of the business itself. Accounting models have made financial accounting easier, where traditional applications were complex and expensive. They required a massive storage capacity, designated internet flows, specialized IT departments, among many other hassles. Upgrading such IT systems can be arduous, too. With recent developments, cloud computing has allowed accounting models achieve efficient use of the internet to ease access, customization, collaboration and drive cloud computing towards cloud accounting.

Cloud accounting, like cloud computing, has an IT service accounting approach or online accounting for professionals who use traditional accounting software which is installed on a remote resource connected via the internet. But, that remote resource is a server owned by a cloud service provider who charges users for using the software. This is done by cloud computing solutions and there is no definition defining “online accounting or cloud accounting”. It is theorized to provide functionality and advantages. Without the main need of owning or investing in costly supercomputers or an IT infrastructure, businesses can focus on other parts of their business and pay for the usage of software.

Impacts

Cloud computing solutions for IT service accounting environments reduce the amount of labor to provide and effectively address the multifaceted loads and several activities via an online system. It can automatically generate transactions and operations with accounting notes or details of a different nature. It can also review management and financial accounting of accounts participating and correlate them. Statements can be automatically generated as well as critical financial reports. A cloud accounting provider helps eradicate the need to use an in-house IT or accounting professional, thus making it a cost-effective method for many businesses. The services offered are that of a finance manager, virtually, but cloud computing is more diverse and covers many areas of implementation.

Cloud computing in regards to IT service accounting helps businesses reduce costs. No investment is required to buy equipment and there are no costs undertaken to set up an IT Infrastructure. It helps users connect no matter where their location is by providing remote connections. The internet is used by users worldwide to access platforms with tools and software to perform integral parts of their jobs without the need to carry the tools. Unlimited storage capacity is a huge benefit with the amount of big data a business can generate. Clients of cloud service providers can increase or decrease their capacity according to their requirements of cloud computing for IT service accounting which sometimes makes it more cost convenient. Its user-friendly and empowers businesses to share their information with their customers.

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