A&A Accountants are a well established accounting firm located in Sydney, New South Wales. Taylor Briggs, the manager partner, has read a number of journal articles on 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 A&A to review their client's accounting files and prepare financial advice and / or tax returns, their clients backup their accounting data and email the file to the firm. Taylor feels the Cloud accounting option should be considered when the business conducts its annual review of systems software. As such he would like you to undertake some research into Cloud Accounting and its impact. Due to the limited time the executive board has in its meeting, Taylor has asked you to prepare a presentation to the executive committee covering the following:
What is Cloud Accounting?
What are the benefits and limitations of using cloud accounting when compared to their traditional accounting systems from the perspective of: A&A's accountants? (3 marks) the clients of A & A?
Should A & A's accountants 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.