The benefits of cloud computing are many but it does have its hitches and issues. Some of the major issues are as follows. While using cloud computation applications there are always a difficulty in guaranteeing business continuousness and service readiness. To obtain better trustworthy products it costs more and these products have very stringent guidelines regarding the Service Level Agreement (SLA). This would lead to a decrease of the performance. This decline would cost the company its customer and potential new clients. In terms of implementing financial controls this would breach security of data, and more if the commercial versions of low rates are used (Granlund, &Malmi, 2002). However, using the ones with high rate, could lead to the possibility of business idea on cloud going insolvent. While using cloud computing there is easy access of a lot data the problem arises when people try to extract the information. It cannot be done easily. To transfer the data and to connect via cloud computing it costs significantly more. While it reduces the cost of infrastructure the cost of data communication and data transfer is higher while using this technology. This poses a financial risk to the entities involved (Zhygalova, 2013). When a company’s information is in a shared drive with other outsourced companies the company becomes overtly dependent on the service provider. This is not a safe strategy as the data will not be very secure. The legal terms defined may not always be obliged by the entities, which will cause conflicts.
The workers of the company also will develop a feeling that their job might be outsourced soon. This is not good for the overall morale of employees of a company. This poses to be a psychological risk as it might stop diffusion after adoption. In any development methodology, there are five phases which are the systems analysis, conceptual design, physical design, implementation and operations/maintenance. The role of the accountants in the development of these systems projects is critical. They determine the information needs for the project, they may be actively involved with the project development from requirements analysis to final implementation and they would also be involved in designing systems controls.