Taxation Administrations and Cloud Computing: A Brief Study

Cloud Computing has a history that dates back to the mid of the previous century. In 1961 a renowned American Scientist and one of the founders of Artificial Intelligence presented the idea that one-day computing would be public as we have telephone services now. Cloud Computing is currently the most accepted concept not only by companies but also by government departments worldwide. The liberties and easiness that it gives make it the most widely adopted application of modern-day information and communication technology concepts. For Taxation the benefits of cloud computing are real, practical, and secure. It eventually reduces the costs of high-end IT equipment and bulky salaries of technical personnel and professionals to operate these pieces of equipment.

 

Usually, organizations use certain tax software to fulfill their needs and wants and the teams familiar with these may find a reason to stick to present software systems but they cannot stay away for a longer time to enjoy the benefits of cloud-based Tax administration. The organizations that are moving forward with the technology-oriented approach to tax, for them cloud computing is the obvious choice as it liberates the organization from the many bulky expenses.

 

In the past, the clouds were not that much secure for companies but now cloud-based computing is much more secure. The vendors are following all the standard operations set by the international monitoring organizations. The code is continuously updated for any possible vulnerability because it is my experience that even a well-written and most secure code may have certain vulnerabilities. These are to be seen and checked by the vendor and network-level issues like all potential security breaches are also dealt with by them. This provides a sigh of relief to the organizations at large. Whereas at the local office premises it requires a lot of effort by the IT department because they need to monitor the system continuously, code and then install patches.

 

Organizations have to generally subscribe to the cloud-delivered tax software and these are usually hosted in data centers and can only be accessed by the internet. Cloud software has two basic architectures i-e; Multi-Tenant Cloud and Private Cloud. A multi-tenant cloud is a system that is commonly a single software application for many users and a private cloud system is single tax software installed on a single computer and specifically used by one organization only.

 

The last but the most necessary thing to be described here is that regulation of the law of the land may also affect the process and they differ from city to city, and country to country. Many IT giants are selling these services for taxation cloud computing. These big names sell at a high price whereas Alams Global is another cloud computing solutions provider with decades-long solid experience to provide state-of-the-art cloud computing software in all the different domains of businesses. Their cloud-based taxation software has the answer to all the questions or issues that may arise in your daily taxation operations.

 

Why Cloud Accounting is the Future of Accounting

Cloud Accounting is the Future and we should embrace it.  New innovations like cloud accounting, Ai, Blockchain and Mobile App will transform the end to end accounting process in a way that was not possible previously. You should consider modernizing your accounting infrastructure.

 

Industry Overview

The world of accounting is changing at an exponential rate. We’ve seen a complete change in the accounting process for businesses of all sizes.. Typical accounting procedures carry high barriers to entry, meaning only companies who are large enough to support an employee base  full time can afford to get them. This usually means that either big companies hire Full time accountants or use the services of accounting firms. The small companies and startups are forced to use conventional paper & pen methods or get a local digital setups, all of these are obsolete practices especially after the pandemic because every option requires physical personnel to be deployed on the ground. All of this also requires a lot of effort and time. The Accounting industry is expected to grow from $544.06 billion in 2020 to $573.29 billion in 2021. This means that an industry this big cannot rely on obsolete practices especially in this age of Cloud and Artificial intelligence.

Modern day Field of Accounting and what’s next? : Cloud Accounting

Cloud Accounting is the newest advancement in the field of Accounting. Cloud accounting is a process that aims to change the conventional accounting method which puts forward a solution where various operations are managed remotely. In recent times, cloud accounting has become the most useful tool for many businesses and companies who want a robust and reliable way of managing all accounting activities automatically and efficiently.

Businesses always require fast, accurate and transparent accounting information. While the chart of accounts is the foundation of financial reporting, accounting departments are now embracing Cloud Computing and Artificial Intelligence (AI) in order to enhance their key performance indicators (KPIs) and generally ensure faster processing of business transactions (such as Receipts). Cloud provides security and on the go connectivity whereas AI provides useful and error free insights and analytics.

The up and coming solutions

With the emergence of new technologies and customization capabilities not just businesses but Accounting firms themselves can benefit greatly from the deployment of Cloud/Ai based accounting platforms. One of the leading Cloud based and one of the only Ai based accounting platforms by Alams Global has been deployed by businesses of all magnitudes ranging from small shops, large supermarket chains, large scale commerce industries as well as Top accounting firms. A study found out that the analytics provided by Alams’ had an error margin of less than 0.01% in terms of accuracy. 

Another reason for saying that Cloud is the future of Accounting is the security that comes with Cloud. Cloud uses a highly encrypted storage platform which saves it from any risk of data leaks or losses. The information is always protected by 2 factor authentication and advanced encryption methods. You can also use the peer to peer protocol for a highly secured exchange. All of these are the reasons why cloud accounting software has unlimited potential in the future.

Cloud accounting will make accounting easier for accountants, reduce time and cost, and improve accessibility to clients. Accountants can enjoy these benefits using cloud based accounting platforms. It’s no longer a question of if you should use cloud accounting, but rather, how you can go about moving to the cloud efficiently?

 

Offline Accounting Practices and Technologically Enabled Backup Plans

Accounting is a science of keeping records of all business transactions throughout one fiscal year and using this record to monitor the milestones in the budget. In the past accounting practices were done offline which was full of tremendous effort, risk of data loss, fraudulent audits, and many alike massive complications. To cope with this accounting software was introduced and the code was written quite intelligently to tackle every possible loophole in such a sensitive system.

The History of Offline Accounting Practices:

The journey of offline accounting was started even before the industrial revolution but no exact date is available as its possible date of commencement. In prehistoric times Mesopotamia and Egypt are considered the founders of accounting and it dates back to between 3300 and 2000 BCE. In the 13th century, Europe happened to be responsible for book-keeping, and merchants used to keep records of transactions via book-keeping. In 1458 AD Benedetto Contrugli invented the double-entry accounting system, and this system furthered the book-keeping system. This was a revolution in the history of accounting because the system had changed forever.

The Age of Offline Accounting Practices and its Issues:

The double entry system opened a new era of making ledgers, journals, and business statements. This all was initially performed on paper and thus keeping records for a long time was difficult and no data backup option was available then. The advent of computer technology was a historic moment for the world absolutely. It revolutionized accounting as well and Software was to be coded to meet the accounting needs of the companies. These softwares are still acting today and many latest softwares have been coded as per the market trends. But, for these softwares a company has to have a robust IT department with equipment like servers, network switches, routers, bulky hardware and big data centers to save and store the data. Despite of many other like befits of offline accounting there needs to have big hard disks to store the backups on daily basis.

Cloud Computing for Accounting and Backup Plans:

Cloud computing has a miraculous impact on the businesses and has absolutely shaped up the global village. The personnel and professionals working for the same organization can work together under one umbrella anywhere. The cloud accounting softwares are usually based on AI principles. The backups are usually taken and saved in a big data center environment which provides the unique opportunity to store the big data for future planning and speculations. At data centers usually three copies are made. One is primary and the other two are the backup of the backups. This all is done in a well-managed environment with state-of-the-art hardware and software components.

Final Thoughts:

Many cloud storage companies are offering the services but most of them are expensive. Therefore, it is obligatory to go for economic but technologically advanced cloud accounting software companies. Our recommendation is Alams Global which has experience and good memories of happy clients. Alams offer generic, robust and flexible solutions for cloud accounting.