Common Mistakes to Avoid When Buying Accounting Software

It is not anymore uncommon for business owners to adopt the use of accounting software to make the business’s transactions easier, more free-flowing, and hassle-free. Its benefits are insurmountable. However, they are also being warned to not commit common accounting software mistakes.

Of the many accounting mistakes that owners commit, there is one that stands out among others. According to the Executive Vice-President of K2e.com, Randolph Johnston, this mistake is the decision of business owners to skip training their staff fully on the use of the software for accounting.


"This is an item that should be budgeted and not cut. Even though technology vendors will portray software as being easy to use, set up and integrate - it rarely is," said Mr. Johnston.

And so here is a rundown of these mistakes and the things that can be done to avoid them.

1. Many business owners immediately jump into researching for the best accounting software small business they can find without actually trying to assess if the company ever needs one. As a result, the needs of the business are not being delivered. So, it is best that business must first try to understand if there is ever a need for such software.

2. Business owners get to excited to get software for accounting on line in order to get rid of headaches and much paperwork. In the end, they are not able to get the software that is scalable. Scalable means that the software can cope to the changes and demands of the business’s accounting even if it triples or doubles its size. So before, getting that software, make sure this feature is present.

3. Business owners also neglect the fact that they need software that can be integrated with other software applications. This is necessary especially when there are applications which are necessary for the operations of the business.

These mistakes have to be taken into consideration so as not to commit them. Accounting is a very crucial aspect of a business to keep itself afloat in these times’ tough and fierce competition.

Mobile Cloud Computing Market to Grow by 2016

Cloud computing is off on a good start and it does not end there. And in the coming years, it will increase and get larger even more as it penetrates the mobile world.

Mobile cloud computing, still an accounting software, is expected to generate an income of $45 billion by 2016. This is according to the prediction of Visiongain, an independent information provider. This will be made possible with the enormous popularity of smartphones.

A “rapid growth stage” is being predicted for mobile cloud computing as invoicing software.

The development of cloud-based mobile applications will be encouraged by BONDI, OneAPI, and HTML5, which are all technology enhancements. This is seen to happen in 2014.

Many companies and small businesses are seen to join in the trend of adopting this software for accounting despite issues of feasibility, security, privacy, and accessibility.

In five years’ time, cloud computing is expected to be valued at $240 billion. This is a great rise from its current value of only $77 billion. And of course, it is the mobile market that will drive this much income.

With all cloud computing can do, it will surely change the way a desktop looks forever. This is according to Dr. Mick Grierson who is a computer lecturer at Goldsmiths, University of London.

Accounting Software Inflates Profits and Close Loopholes

Now, more than ever, there is a need to adopt accounting software by every business. This is after reports revealed that banks are actually making use of loopholes in accounting regulations to their advantage where they could alter results like profit levels and staff bonuses.

The Adam Smith Institute says banks utilize complex financial products that may conclude a profit value that is different from the actual one.

The blame can be put on the International Financial Reporting Standards (IFRS) according to Gordon Kerr, a former banker who authored the report. The IFRS allows banks to include in their current profits certain expected future income.


"The accounting regulation system needs radical reform so that banks are not encouraged to invest in risky assets to make themselves seem more profitable than they really are. Honest balance sheets are the cornerstone of a healthy financial system – right now, we don't have the transparency we desperately need to avoid a repeat of 2008," he said.

An example of this action is when banks buy CDS or Credit Default Swap. The CDS allows the banks to declare cash flow certainty despite the possibly of uncertainty.

"Accurate accounting is at the root of the legal and scrutiny framework; without accurate accounts basic laws are incapable of enforcement. As this report shows, banks have been using loopholes in these rules to inflate their accounts and create false profits to pay for bonuses and short-term gains for their shareholders," said Kerr.

So in order to get accurate and fair results, businesses must use software for bookkeeping or online accounting software. Accounting software business will definitely help avoid what had recently happened to Macomb County. It incurred a financial error that resulted to a $1.7 million hole to its budget. From that experience, there is truly a need for accounting software.

Australian Stocks Hits two-week Low over Europe Recession Fears

Attention customers of Australia accounting software and accounting software providers alike!

As poor data out of Asia and the bad news of the growing outlook of a recession in Europe are sending investors running for cover, the Australian stocks dropped to a two-week low.

Stocks have been closing lower for the fifth day out of six after more dismal news comes from Europe overnight which saw an increase of Italian bond to a euro-era record, which then has triggered a sharp selloff in commodities as investors were rushing to the perceived safe haven of the dollar.


Data revealed that China's manufacturing sector has continued to contract in December as exports slowed compounded fears that the euro zone debt crisis is already slowing growth in Asia.

According to CMC Markets sales trader Ben Taylor, a feeling of nowhere to hide at the moment is rampant among investors. And the once promised safety of gold has been hijacked in US dollar strength. US bonds in return give you little to no real return and equity markets are quickly losing their appeal.

At the close today, the benchmark S&P/ASX200 index has dropped by 50.7 points, or 1.2 per cent, at 4,139.8, while the broader All Ordinaries index lost 52 points, also 1.2 per cent, to 4,197.8.

On the ASX (Australian Securities Exchange) 24, the March 2012 share price index futures contract cut down 48 points or 1.2 per cent to 4,116, with 37,911 contracts traded while the December share price index futures contract, which expired at midday, dropped 26 points to 4,153.

Leading the market lower are the miners and energy stocks as the resource-heavy ASX became the worst performing index in the region.

The worst performers were the gold miners, shedding 3.8 per cent.

A 2.9 per cent to $30.88 loss was attributed to Newcrest Mining while BHP Billiton has showed a drop of 64 cents, or 1.8 per cent, at $35.06. The Rio Tinto shed $1.76 to hit $61.40.

According to IG Market's market analyst Stan Shamu, the huge drop in gold over the past few days has broken several support levels on the way down and if there is a break lower, there could be assumption that the gold super-cycle is over.

In Sydney, the price of gold was at $US1,567 by 1651 AEDT; down $US72.83 from Wednesday's local close of $US72.83.

Furthermore, banks have suffered a hit as ratings agency, Fitch, downgraded major French banks Credit Agricole and Rabobank on the back of escalating problems in Europe, along with France's Banque Federative du Credit Mutuel Denmark's Danske Bank and Finland's OP Pohjola Group.

Meanwhile, on the local state, National Australia Bank chairman Michael Chaney has united with Westpac this week in giving out a warning that Europe's debt crisis is pushing up the costs of funding for banks and the problem is far from over.

The warning came as NAB closed down 38 cents, or 1.6 per cent, at $23.48.

Westpac has also showed a drop of 34 cents at $20.46, while Commonwealth Bank was down 75 cents at $48.63 and ANZ was down 19 cents at $20.78.

Why Cloud Computing is a Must for Businesses?

Cloud computing is increasingly becoming popular among business owners when it comes to their accounting software for business. In fact, Phil Wainewright, the vice president of Eurocloud, is saying that the norm now for businesses is cloud computing.

Therefore, it is necessary to adopt this accounting software for small businesses in order to get the best and maximize every company’s earnings.

Bill Claybrook who is the principal analyst of New River Marketing Research in Massachusetts says that cloud computing must be a technology that companies must explore. So why is this so?

1. Cost savings is a primary advantage. When a company buys data servers, coolers, and other equipment to save data, it spends too much compared to using cloud computing. Reviewing savings potential is also very convenient making profits even higher.

2. The business gains agility. There will be times in a company when it would need more servers and more data storage space. And only cloud computing can provide this instantly without having to spend that much.

3. Data center flexibility is another advantage. Existing data centers can be managed by cloud computing.

4. Security management of mobile devices is managed. This can involve the mobile devices that are being used by the employees.

5. Maximized time and workforce is an added advantage. While cloud computing can do a lot for a company, IT staff can be allowed to focus on new and more pressing concerns in the business.

Mr. Wainewright says "It's growing somewhere between - depending on who you talk to - 25 and 40 per cent a year. [It] is going to become mainstream very fast.” So every business owner has to use this accounting software.

Cloud Computing Will Take Over by 2016

It has been seen that cloud computing will continue taking the limelight even in the next 5 years. The conclusion was drawn after this said accounting software made it to the top 10 predictions for the IT industry. This was performed by the research body, Gartner.

By the end of 2016, more than 50 percent of Global 1000 companies will be storing their data and information in the cloud as their accounting software for business. This is a huge increase from the more than twenty percent who are already using the technology today.

However, there have been mixed reactions on this subject. According to Jignesh Shah, Vice President for Business Infrastructure Solutions of Software AG:

“In markets like North America it already accounts for 20 to 25 per cent (of IT data storage). Also, it is important to keep in mind that when talking about applications, it is not just to do with big chunky applications like Oracle, but a whole plethora of specialised apps.

“If you look at the entirety of Cloud computing infrastructure today, SaaS is the only layer that is really making money. And the margin is growing, both from an enterprise (consumer) and vendor point of view.”

Furthermore, he said that it will be difficult for companies to fully utilize cloud computing.

On the other hand, Andrew Bearsley of HP Application LifeCycle Management said:

“I look at things from an applications and transformational perspective, and the reason I strongly disagree with any suggestion that by 2016 over 50 per cent of all ISVs will be pure SaaS providers is, quite simply, the word ‘pure’.”

Today, many companies are already utilizing this cloud-based solution but are combining this with the traditional physical equipment in the office.

Survey: Small Business Owners Worried as Running Cost Rise

The soaring of running costs are driving small business owners to become more pessimistic. However, they are seen to bounce back according to a national happiness survey.

Only 48 percent of businesses are expecting an improved performance in the coming 6 months, according to Westpac Local Business Sentiment Survey. Furthermore, it said that this figure is 11 points down from the May survey. Among those that cause the biggest worries are increased costs and declining revenue.

From just 33 percent, there are already 40 percent of respondents who now believe that it is becoming more difficult to run a business.

From the survey, it has been found out that 20 percent of businesses are being affected by managing costs such as electricity. This is higher than the figure six months ago according to Westpac Victoria General Manager, Julie Rynski.

"It is being seen as one of the greatest challenges for small businesses. It has meant they are not feeling as confident as they were. The level of optimism has certainly declined but not as much as it has in other states,” said Rynski.

According to Narelle Telford, Red Parrot Café co-owner in Gippsland town of Nojee, customers are opting to share their meals or buy snacks that are a lot cheaper. As a result, his business is also going through a tough time.

"They are very nervous about spending and we don't know how long that is going to go on for, of course,'' Ms Telford said.

"We've still got customers coming in, which is lovely, but they are spending less. The bottom line is at the end of the day the till doesn't hasn't got as much money in it to pay our bills. When you are in small business you just have to make the most of it and just think of ways you can deal with any situation,'' said Ms Telford.

From ranking among the happiest businesses in the nation six months ago, Victorian businesses are now at rank 56.

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Shoebooks is a premium provider of accounting software for SME businesses in Australia. Check out Shoebooks accounting software for small business and experience the advantages of our bookkeeping accounting services for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

EU shake up Audit Market: Accounting Software users' Revamp Operations

The £600 million audit market is now under scrutiny as it faces a major shake-up.

As authorities attempt to make improvements on standards across the board, some of the audit industry's largest users of software for accounting may soon be asked to reorganize their operations.

With city firms, large companies and smaller accountants who have been using accounting software for small businesses have been expressing their concerns for several years of the "Big Four" - PwC, KPMG, Deloitte, Ernst & Young – and their stranglehold on one of the most important cogs of corporate British life. Michael Barnier, internal market commissioner at the European Union has told the “Big Four’ that splitting their European bodies could be the key to an upturn in quality and opening up of the market.


EU market commissioner Barnier will publish a draft law which, if approved, could result in the splitting of the “oligopolistic” networks of KPMG, PwC, Ernst & Young and Deloitte which check the books of nearly all blue chips in the world.

It is thought that the separation of the audit and consulting arms of each business may bring about an improvement in standards when it comes to working with accounts.

The proposal of Minister Barnier came soon after his plan of forcing the large firms to share their workload with smaller companies was shelved.

Rivals, such as Grant Thornton, BDO, Mazars, RSM and Rodl & Partner, have welcomed Barnier's aim of opening up the market.

Meanwhile, Barnier’s other idea of making it compulsory for organizations to change their auditor every six years has also been backed.

However, the Office of Fair Trading suggestion that the present state of affairs is damaging the economy was noted to be a serious accusation at a time when Britain is in danger of slipping back into recession.

Jean Stephens, chief executive of RSM International, even told newspaper that it is important that Mr Barnier does not allow his plans for improvements to the accounting market to be "watered down".

Do you need bookkeeping software and accounting software for your Australian business? Look no further, try Shoebooks accounting software!

Australian Government Surplus-Saving: 10 Key Points

With the Mid Year Economic and Fiscal Outlook statement revealing a drop in the revenue for the next four financial years amounting to a whopping $20 billion, Wayne Swan, Federal Treasurer, has been prompted to put a halt to spending in order to save the 2012-2013 budget surplus promised to the Labor.

"We are experiencing the worst bout of global instability since the global financial crisis,” said Mr. Swan.

Though the economy of Australia is seen by the Treasury to grow by 3.25 percent in the financial year 2011-12, Mr. Swan is still trying to illustrate the global economy and its impacts on Australian economy using the MYEFO report.


"Global economic and financial conditions have deteriorated markedly in recent months, and the risks to global stability from the European sovereign debt crisis have intensified. Global growth prospects have been downgraded markedly in 2012, with the euro area expected to return to recession. This has led to a weaker near-term economic and fiscal outlook for Australia since the budget and substantial reductions to government revenues,” said Swan.

Here are the MYEFO’s ten key points:

1. The Australian economy is expected growth in 2011-2012 by 3.25 percent. This same rate will be followed until the next financial year. But for 2013-2014 and 2014-2015, this growth will drop to 3 percent.

2. In 2011-2012, there has been a deficit of $37.1 billion. But in 2012-2013, this is expected to return to surplus of only about $1.5 billion.

3. Employment will not be doing much good as it is expected to grow in 2012-2013 by just 1 percent. For the succeeding years, this will be grown by $1.5 percent each year.

4. There is a big hole to fill in the tax revenue as this will have fallen over the next four years by $20 billion.

5. There is a deferral of automatic tax deductions.

6. People working away from home are receiving living-away-from-home allowance which is costing the government a dear amount of money. If changes in this area will be enacted, a good $700 million will be saved by the government in the next four years.

7. The government reducing co-contributions on superannuation will help the government save about $1 billion over the next four years.

8. Middle-class welfare has been applied by the government. Baby bonus will be frozen at $5,000.

9. A good $436 million will be raised over the next four years by adapting better data matching.

10. A 2.5 percent cut in spending by public service is called upon.

With these key points, small businesses may also have to be on their feet and be ready for changes. It would be best if they utilize an Australian accounting software or any reputable accounting software for business.

Australian SME Businesses Not Happy with Federal Government

An MYOB report reveals that about half of Australian SMEs are now dissatisfied with the federal government. The rage of these small and medium businesses has reached a three-year high. From just 31 percent during the last three months, the number of dissatisfied SME’s has soared to 56 percent recently.

Only 14 percent of the 1000 surveyed business owners in October say they are happy. This shows a decrease from the 27 percent last August.

According to Tom Reed, MYOB Chief Executive, business owners are a pragmatic group and they may be appeased if the government takes some straightforward measures.


“Business owners... go into business because they are passionate about delivering a product or service better. They don’t tend to have ideological views, but support clear policies that will strengthen the economy and remove red tape,” he added.

The state that has the highest dissatisfaction rating is Queensland at 65 pecent. Last March, this was only at 46 percent. On the other hand, Victoria has the lowest dissatisfaction rating of 41 percent which is still nine percent higher than the previous survey results.

"We call upon all political parties to stop ignoring the SME sector and start developing policies that will genuinely make business life easier," is the call of Mr. Reed.

The MYOB also found out that small business owners want some immediate action in the following:

• A good 69 percent want policies that simplify GST/BAS reporting processes

• Another 66 percent want more government investments in transport infrastructure in cities and states

• 63 percent want more funding for innovation, research, and development

• 61 percent want a “Buy Australian made” policy for procurements in the government

• And 61 percent want the carbon tax abolished.

“It needs to shore up business tax revenue shortfalls if it’s to meet its surplus promise, while at the same time stimulate non-mining sector business investment and growth,” said Reed.

“With the carbon tax legislation off the immediate agenda, the Gillard Government can take back the policy initiative and positively respond to the recent tax forum,” he added.

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Shoebooks is a premium provider of accounting software in Australia for SME businesses. Check out Shoebooks bookkeeping software and experience the advantages of our bookkeeping accounting services for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515 begin_of_the_skype_highlighting              +613-9818-1515     

VMware Releases New Cloud Computing Solution

The release of a new cloud computing solution has been confirmed by VMware, a leading virtualization company.

The new vCloud Connector 1.5 is aimed to make public and hybrid clouds a reality for businesses. This was stated through the company’s official blog. Among its top features is being able to transfer between cloud-based portals certain company data with such ease, efficiency, and speed.

More specifically, the vCloud Connector 1.5 features include:




1. Blocking tasks and notifications. The vCO can dynamically respond to vCloud Director tasks and notifications if the plug-in is combined with the AMQP plug-in.

2. Query service. This allows the software to collect information about numerous objects with speed.

3. 142 new actions as well as 47 new workflows allow complex automation to happen in less time.

4. From 160 objects before, there are already close 500 new objects with the support of the 1.5 API.

When businesses opt to use this vCloud 1.5, they can already do the following:

1. Efficiency through utilization and automation
IT performance can be increased with resource pooling and a dynamically optimized environment.

2. Agility with control
End-users are given the power to ensure security and preserve IT authority with the use of the vCloud. With this solution, businesses can now be able to address and respond to business concerns brought about by changing demands of time.

3. Freedom of choice
With the use of this solution, IT can still support traditional systems and still have that same flexibility.

Perhaps the best feature of this vCloud is that it is also compatible with other VMware products. This enables users to move from one solution to another in a seamless and hassle-free way.

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Shoebooks is a premium provider of accounting software in Australia for SME businesses. Check out Shoebooks bookkeeping software and experience the advantages of our online accounting programs for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

Former Dragons' Den James Caan Talks Cloud Computing

The amazement that cloud computing brings is not only felt by small and medium-sized business owners but even by celebrities and big business people alike. This time, no less than James Caan was pleasantly surprised when he was offered to invest in the online accounting software.

The businessman and entrepreneur who stars the hit BBC show, Dragon’s Den, spoke to the Ahead in the Clouds event in London where he was quoted for saying that he was won over by the cloud’s technology earlier this year.

”It (cloud computing) has changed the landscape quite significantly. Companies no longer need to have large bulky archives with all their databases written on papers. Cloud computing enables all this information to be stored online in a digital format, with little limitations on size,” he said.


“What’s also very important is that cloud computing enables infomation and data access anywhere in the world, as long as there is an internet connection. My private equity firm Hamilton Bradshaw uses cloud computing and I’m still amazed how efficient the system is.”

Caan said he was recently abroad and decided to show some large documents to his colleague. He was truly amazed to have been able to access the information with speed.

However, Caan also admits that there are risks associated with using the accounting for small businesses. But the administrators of this online accounting programs are putting at the top of their agenda the solutions to such concerns.

“Business owners are typically so swamped with everyday tasks and issues they tend to push their business security to the bottom of their priority list. However, I believe that a company’s information is one of their most valuable assets and should be at the top of every entrepreneur’s agenda,” added Caan.

Almost Half of SME Businesses are Using Cloud Computing

At present, half of firms are already adapting cloud computing in their business processes after being convinced of the technology’s benefits. According to a new research by Spiceworks, a social business network company, a good 46 percent of the total 1,200 small and medium-sized businesses is already using this online accounting.

In CloudPro’s report, this figure reflects an increase from what only used to be 28 per cent who were using the Australian accounting software earlier in 2011.

"Despite market fluctuations, 2011 proved to be a great year for disruptive technologies as SMBs increasingly adopted tablet computers, cloud services and virtualisation technology," says Jay Hallberg who is the co-founder and vice-president of marketing at the research study.


This development may be attributed to the cloud’s easier IT management with the use of the internet as well as its secure off-site storage of data which are deemed necessary by business enterprises.

Setting cloud computing apart from other hosting services is the fact that data are being stored and handled independently by the service provider. This also further means that the data are kept confidential.

"Cloud computing has been on the business radar for some time and our report proves that we are at the tipping point for mass adoption among small and medium-sized businesses.” This is according to Chris Stening. Managing director of Easynet Connect.

The only concern seen by the same study is that some firms are neglecting to take steps at raising their security levels to cope with the demands of cloud computing.

It may be recalled that there was a prediction by Rob Lovell, Chief Executive at ThinkGrid, that 2010 was going to be a year for cloud computing providers to grow and reassure businesses of the technology’s safety and features.

Cloud Computing Services for SME Businesses

Cloud computing has been considered helpful and efficient by many small businesses. This is because IT functions such as database servers, file servers, document storage, and application development are given an alternative.

There are many advantages that can be achieved by any business that engages in cloud computing. The following is a rundown of these.

1. Savings on infrastructure
Instead of businesses buying additional computers and database servers, they can opt to utilize cloud computing by paying a monthly fee. The savings are enormous considering that one server with OS and applications is tantamount to thousands of dollars.


2. Saving on Set up and Management
Once a new OS or application is purchased, the IT staff will have to know how to install and manage it. This is time-consuming. However, if the small business uses the cloud as its small accounting software, this part of management and maintenance is already taken care of. There are administrators whose main task is just to support specific applications.

3. Saving on Utilities
When a business uses its own data center, it may be under-utilized due to the fact that it is too big for the small operations. This means that the company is paying for something that is not maximized. But when utilizing accounting online through cloud computing, the costs to run the business’ operations are smaller.

4. Better performance
Since cloud providers cater to many small and big businesses, they buy high-performance systems to provide nothing but the best services.

5. Increased agility
Even external contractors, partners and customers may also be served by cloud providers. This feature will allow the small business to respond more quickly and efficiently to changes in the needs of the customers.

6. Increased fault tolerance
When using an in-house server, technical problems are taken care of by the IT people themselves. And sometimes, this gets to be too tough that it would need more time and money to troubleshoot. However, when utilizing the cloud as accounting software, faults are addressed more efficiently such as power outages and nightly backups.

It is no wonder that bookkeeping online is the choice among many small businesses today.

SME Business in Queensland Slammed $7 Billion Charges Annually

As the government red tape is increasing more than 30 per cent over the past five years, a total of $7 billion a year in taxes, fees, and other charges are slugging small businesses in Queensland.

Family businesses in Queensland are struggling through 90,000 pages of regulation that govern the sector.

Burgeoning paperwork and some extra cost of taxes are being blamed by a huge chunk of operators as the reasons behind slumped growth and progress. These paper works include mandatory permits and licenses, calculation methods, audits by payroll tax officials, and the fear of what might be brought about by the carbon tax next year.


An operator feels the pressure and has decided to bring his operations to China.

It has been found that 93 percent of businesses think that Queensland has become a “nanny state” by a report from the Chamber of Commerce and Industry Queensland. Due to regulation, 70 percent of businesses were prevented from investing.

The state government had increased red tape cost by 6.6 percent. This has driven the overall burden growing to 31.6 percent according to the Blueprint for Fighting Over-Regulation Report.

To add to this, the 2011 National CEO Survey by the Australian Industry Group revealed that it is the Queensland businesses that faced the largest direct cost of compliance that averages 6.5 percent in total expenses.

"During a period when there has been concerted effort to reduce the regulatory burden on business and claims by government of regulatory burden targets being achieved, the compliance costs have increased, not decreased. These costs are expected to further increase in the next three years," said the AiGroup.

Queensland has lost its way and that its government is “all talk, no action” on the matter of cost reduction as stated by CCIQ President, David Goodwin.

"We've gone from being the leader to being the cellar dweller from being low cost and low regulation to now being the highest regulated and no longer the lowest cost. We need the Premier to actually find her voice and stand up for Queensland business," he said.

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Shoebooks is a premium provider of Australian accounting software for SME businesses. Check out Shoebooks small accounting software services and experience the advantages of our bookkeeping online software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515 begin_of_the_skype_highlighting              +613-9818-1515      end_of_the_skype_highlighting

Gartner Explain the Future of Cloud Banking

It has been seen that more and more Financial Services providers will be using cloud computing in the years to come. This is according to the new research by Gartner, an independent analyst body, that says a rapid shift is occurring in the banking industry.

It is during the Gartner Symposium/ITxpo 2011 where the said research will be discussed. It will happen on November 7 to 10 in Barcelona.

According to Peter Redshaw, managing vice president at Gartner, cloud computing “should be innovative, dedicated to this industry, and transformative”.



The research further revealed that global FS CIOs consider the cloud as a top priority. Furthermore, a good 39% of the respondents believe that more than half of all their transactions will be supported by the cloud infrastructure and software.

Some 44% of FS CIOs in Europe, Middle East, and Africa (EMEA) are also expecting the same thing. That is that more than half of their transactions will be supported by cloud computing by the year 2015. It also added that 33% are hopeful that majority of the transactions of their companies will be processed thru SaaS by the year 2015.

“Early cloud adoption, especially in the FS sectors, may have been limited to non-core areas and proofs of concept, but it is set to go mainstream, moving the heart of the business, transaction origination and processing, into the cloud,” Peter Redshaw said.

“Cloud banking has the ability to drive ‘creative destruction. As well as helping to improve or optimise an existing service or process, cloud banking can provide the wealth – or the freedom – to try completely new services and processes, such as reverse auctions and third-party core banking systems, maybe even running them in parallel. Successful new cloud services can displace the existing and dominant process for design, distribution or transacting in a disruptive way, rather than just incrementally improving them,” he added.

Cloud banking is seen to be able to deploy the “champion-challenger model” in an economical and feasible way. This is also considered as the most attractive benefit of cloud banking. With this, banks will be replacing people progressively in the value chain with algorithmic operations (AO) for processes and decision-making; however, the intellectual property resides in these said algorithms.

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Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks online accounting software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

Research found Cloud Computing to Drive Future IT Spending Upward

An October 21, 2011 report by the industry researcher International Data Corporation (IDC) positively confirms what IT developers and IT development followers’ previous prediction of an immense increase in the use of cloud-computing systems.

The new forecast entitled, “Worldwide Enterprise Storage for Public and Private Cloud 2011-2015–Forecast: Enabling Public Cloud Service Providers and Private Clouds” reveals that overall spending by public cloud service providers on storage hardware, software, and professional services will increase at a Compound Annual Growth Rate (CAGR) of 23.6 % from 2010-2015, while enterprise spending on storage for the private cloud will experience a CAGR of 28.9 %. By 2015, combined spending for public and private cloud storage will be $22.6 billion worldwide.



According to Richard Villars, Vice President on Storage Systems and Executive strategies at IDC, both public and private cloud service providers are among the most expansive spenders on IT products and services as they continue to build out their facilities worldwide and expand service options. And as more firms realize the potential benefits that can be derived by using virtualized data storage, they will begin to invest more in the associated infrastructure to make the systems effective.

Likewise, accounting software for business, and also invoicing software, or even bookkeeping accounting online do utilizes a cloud computing system.

The following are some of the most important realities in IT industries as pointed out by Richard Villars:

• The most significant driver of storage consumption over the past 3 years has been the emergence of public cloud-based applications and infrastructure providers.

• Many of these cloud-based service providers, such as, iTunes, Netflix, YouTube and Facebook, act as contents depots, which are primarily in the business of gathering, organizing, and providing access to large content of digital content.

• Other cloud-based service providers have emerged with a focus on delivering IT infrastructure and applications in an “as a service” model, such as salesforce.com, WebEx Connect, Amazon Web Services, among others).

• Over the past several years, these companies have undertaken massive storage build outs as they have expanded their service offerings, entered new markets, and extended their geographic reach.

• Many organizations have started to deploy their own private clouds for application, compute and content (archival) storage.

IDC also pointed out 5 Information Requirements that drive current storage demands. These are the following:

1. Enabling more efficient delivery of information/applications to Internet-based customers.
2.  Reducing upfront infrastructure investment levels, such as cutting cost and time associated with deploying new IT and compute infrastructure.
3. Lowering and/or distributing the on-going costs associated with long-term archiving of information.
4. Enabling near-continuous, real-time analysis of large volumes and wide varieties of costumer-, partner-, and machine-generated data (Big Data).

All these require that data management processes at many firms will need to have been completely re-thought. Villars also adds that the challenge facing storage industry will be to balance public clouds service providers’ demand for low-cost hardware while boosting demand for “advanced software solutions in areas such as object-based storage, automated data tiering, Big Data processing, and advanced archiving services.

Cloud Computing: A Cost-Effective Choice for Businesses

Cloud computing is amazingly making waves today with many small businesses availing it as their software for accounting. This Australia accounting software has allowed companies to enjoy higher efficiency at a lower cost. Cloud computing also allows companies to recover data, manage data and information, as well as ensure security.


BBC declared last year that the software for accounting has “gone mainstream” as many businesses have transferred their businesses to the cloud.




Some advantages of cloud computing are the following.

• Instead of a small business purchasing an accounting software, they can utilize a third party-owned software that they can download into the computer. Since it is online, an internet access and computers are the only requirements to access the servers.

• This software allows all employees who have account information to access the servers. They will be able to work and collaborate from anywhere using Word, Excel, and other programs supported by Google.

• The provider of the accounting software secures data given to them and backs it up as well should something go wrong with the system.

• There is no need for constant upgrading.

• A company is able to save some significant amount since it does not have to spend on ICT personnel.

According to Richard Shaw, a BDC Consultant in Toronto, “It’s a huge cost saving.”

He added that as a rule of thumb, about 65 per cent is saved by a company when it implements the “cloud” as compared to the conventional software.

In fact, cloud computing was identified to be “among the top technologies for both cost reductions and growth” based on a recent internal BDC study.

Shaw understands that people have some difficulty entrusting their data on remote servers. However, he is also believing that these data are more secured on the “cloud” since it offers back ups and security.

SME Business Sales Raise in September, Eurozone Up Bailout Fund

According to the recent ANZ small business sales trends report, small business sales lifted for the fifth consecutive month in September. The report shows small business turnover increased by 5.2% year on year.

Based on ANZ data on the value of credit, debit and Eftpos transactions through its merchant terminals and ANZ card transactions processed through other systems for businesses, at least two-years-old with annual turnover less than $5 million.


ANZ Head of Australian Economics and Property Research, Ivan Colhoun, said year-to-date growth is "fairly flat" at 1.7%. "And with headline inflation running at around 3.5% y/y in 2011, this implies real (inflation-adjusted) small business sales growth is still relatively weak in September," says Colhoun.

The report also shows that it is because services and trade sectors outperformed retailers, with small retailers recorded 2.6% year on year growth versus 6.8% annual growth for non-retail and services small business.

Meanwhile, the Eurozone is set to shore up its bailout fund, with German MPs saying the plan could boost the fund's lending capacity to more than one trillion euro ($A1.34 trillion). A document obtained by The Associated Press shows the currency zone wants to boost the 440 billion euro ($A587.65 billion) bailout fund by offering sovereign bond buyers an insurance against possible losses and by attracting capital from private investors and sovereign wealth funds.

Eurozone governments hope that the enhanced European Financial Stability Fund, or EFSF, will be able to protect countries such as Italy and Spain from being engulfed in the debt crisis. To do that, however, it needs to be bigger or see its lending powers magnified. Leading German opposition MPs, who were briefed earlier on Monday by Chancellor Angela Merkel on the plan, said the fund's lending capacity will be boosted "beyond one trillion" (euros).

But the draft document by the eurozone working group - which Germany's government was sharing with key MPs on Monday - did not provide a headline figure for the bailout fund, stressing "a more precise number on the extent of leverage can only be determined after contacts with potential investors" and rating agencies.

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 Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks accounting online software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

Australia: Popular Place for Cloud Computing

Not many countries have grasped the advantages and benefits that cloud computing offers like Australia.

In the new survey conducted by Forrester on behalf of VMware, Australia’s fondness for cloud computing, the accounting software for business, has once again been emphasized. This was according to the report of itWire.

Cloud computing has been perceived as a strategic business investment by some 47 per cent of businesses in Australia. This is in comparison to other markets as its number one benefit is cost reduction.

Compared to over a year ago, there has been an increase of seven percent in small businesses in Australia that already use the accounting software for business. This is shown with 67 per cent of them using cloud computing.


"What is clear from the survey is that Australian companies are ahead of the game when it comes to cloud computing," says Duncan Bennet, Managing Director of VMware Australia and New Zealand.

Solid financial results have been enjoyed by VMware in the third quarter of this year.

Cloud Computing Users Should Ensure Good Relationship with Provider

With many companies now using cloud computing solutions, companies using these latest cloud computing solutions have been urged to make sure that they have a good relationship with the manufacturer that is providing them.

According to Seth Robinson, one of the authors of the CompTIA second annual Trends in Cloud Computing report, the so-called Service Level Agreements, or SLA, is a key factor in any deal to purchase and secure a cloud computing contract.

Robinson further said that a SLA is "very important" and an agreement must be reached prior to any investment in technology taking place. This is so because there are so many companies that go directly to the internet and just pick up services and sign off on things and begin using them.

Likewise, with the cloud, many companies are trusting a significant portion of their IT to third party provider which increases security risks if not done properly. So it is at times like these that it is a must that companies focus on having a healthy relationship with the cloud computing provider.

Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility (like the electricity grid) over a network (typically the Internet).

Cloud computing provides computation, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services. So it can store information derived from software for accounting like information input into invoicing software or any other accounting software for business.

Robinson’s comments emerged as James Peel, the product manager at Opsview – an open source platform, stated that in order to ensure that the cloud computing service is being deployed in an efficient manner, companies in the UK must monitor the way staff use these services.

UK vice-chairman of EuroCloud, Phil Wainewright, had recently praised cloud computing for its offer of high levels of security and how difficult it makes it for outsiders to access stored information.

Auditor-General Could Spell Trouble for SME Businesses

According to the opposition, it could mean disaster for businesses as there is a move to sharpen the teeth of the auditor-general.

The private member’s bill of independent MP Rob Oakeshott that targets to give the auditor-general greater powers to follow money trails and to ensure the government gets its money is being debated by the Senate.

The audits will be extended to government business enterprises such as NBN Co. should the bill be passed.

Furthermore, the bill will also allow the investigation on how federal money has been used by states and territories and assess the performance of contractors such as home insulators.


Due to the risks of audits, many small and medium sized enterprises may already opt to avoid government contracts. This was told to the Chamber by Liberal Senator Mathias Cormann. With this, those who will tender for such contracts are only those companies that have resources that are enough to comply with an investigation.

"It will get rid of the pesky competition from small and medium tier businesses who will just give up because there is so much red tape involved," said Cormann.

On the other hand, Senator Nick Xenophon believes in the importance of improving the scope of the auditor-general particularly in ethics, and effectiveness of government programs.

According to Labor Senator Mark Bishop, the bill contains the appropriate restrictions of the extent of power of the auditor-general.

"It's not a frolic on its own by the auditor-general. It's not able to cavalier and investigate near and far, the audit is limited,” he said.

The Commonwealth is the primary focus of the auditor-general.

For now, debates continue on the Auditor-General Amendment Bill 2011

Source: www.smh.com.au

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Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks accounting online software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515 begin_of_the_skype_highlighting              +613-9818-1515     

Fair Tax Scheme: Lift the GST

Despite the Australian government's edict of the Goods and Services Tax (GST) issues as taboo subjects in the recently held tax summit, business groups are still set to ignore the edict by advocating for the lifting of the GST and changing the mining tax.

Moreover, accountants, Australia accounting software providers and the common Australian citizens stated that the lifting of the GST rate could help make the Australian tax system fairer.

The Goods and Services Tax (GST) is a broad sales value added tax of 10% on most goods and services transactions in Australia.


According to yourmoney.com.au survey, data showed that there is a strong demand for the simplification of the tax system. Some common suggestions were the introduction of a low flat rate of tax, lifting of the GST, and compensation of low income earners – who are typically spending a much bigger percentage of their money on basic goods and services.

According to a research by CPA Australia, one of three professional accounting bodies in Australia, if the GST is increased to 15 or 20 per cent and along with cuts to business and personal tax rates, this would improve the economy and raise the standard of living.

Moreover, according to the Australian Industry Group, increasing the rate of the GST - or a broadening of its application to more goods and services is a way to pay for the removal of inefficient state taxes.

The Gillard government has flatly decided changing the GST. They even declared it off the discussion at the recently held week's two-day tax summit in Canberra.

The 2-day Federal Tax Summit in Canberra held last October 4 and 5, 2011 had focused on its own agenda, including helping businesses hit by the two-speed economy. Moreover, Prime Minister Julia Gillard and Treasurer Wayne Swan have marked changes for businesses squeezed by the patchwork economy, with plans to alter tax treatment of losses.


The summit was attended by 184 people, which includes delegates from business, unions, community groups, and state and federal politics. It was held as part of the post-election deal with country independents to support Ms. Gillard's minority government.

5 Key Cloud Computing Ways Revolutionizing the Business World

What initially started as a simple tool is now becoming a very popular accounting software for businesses as it offers businesses a way to save money. Companies are already doing their working practices in ways that suit the cloud computing technology.

Eighty percent of the 900 organizations surveyed by KPMG are saying that they have plans of adopting the cloud computing technology. Ten percent of them are already using the accounting software at present.

Basically, cloud computing is “the process of sharing IT resources to achieve more power and productivity with fewer costs and roadblocks”.



Here are the five key ways as to how cloud computing revolutionizes the business world.

1. Breaks down barriers to entry

Cloud computing basically removed in-house implementations and large capital outlays. New technologies and innovations are no longer limited to big companies that have the resources to create such. Furthermore, companies no longer need to purchase expensive server equipment since cloud computing, as a bookkeeping software, will take care of keeping data and information and only charges a fee for the resources used.

Google, Amazon, and Microsoft also make use of cloud computing to extend their services.

2. Allows businesses to react with agility

Business operations will always include changes in situations needed to address business demands. This is where cloud computing helps businesses. Should a business need to be over specified due to peak usage or if it is underspecified in order to manage heavy load sessions, cloud computing provides the services. Businesses are able to access their IT resources using flexible and dynamic systems.

With cloud computing, the instant and unexpected cyclical demands of businesses are addressed more effectively and efficiently with cloud computing.

3. It uses pay-per-use cost model

IT functions of businesses mean the need to pay for spaces whether or not the space is needed or is too big for the demand. In most cases, companies have to buy more desktop computers, machines for internal server rooms, as well as space for offset servers. What’s worse is that, as the demand increases, so does the need to add more of these expensive materials and equipment.

Cloud computing has changed the trend. Since it operates on a need basis, businesses only need to pay for the space that it uses. They only need to pay more when the need for greater space arises. With cloud computing, no idle space is being paid for.

4. Less maintenance, more innovation

It is said that around $8 for every $10 is used by businesses for maintenance rather than innovation. With cloud computing, this maintenance cost is reduced as the maintenance operations are already shouldered by the technology which is being done offsite. The pay-per-use scheme already includes upgrades and maintenance.

5. Being able to build products that are adaptable to today’s fast-moving businesses.

Conventional methods of storing and accessing data of businesses include purchasing software in boxes and installing it on all computers in the office. With cloud computing, applications are hosted by a central server and are used by businesses via the internet. Security of data is ensured with the said accounting software.

Cloud computing is very beneficial to businesses for their accounting software needs.

"What's remarkable about the cloud is you can do this type of work on demand. We've never had information ability like this before,” said Eugene Kolker, Chief Data Officer at Seattle Children’s Hospital.

Factors for a Successful Cloud Computing

Cloud computing is a new accounting software for small business that deploys information in the “clouds”. This helps a business save space as they no longer need many computers to store data and information. The data are stored in a data center and web servers provide the information.

However, much as it is considered advantageous, there are users still who fail even after they have used the said online accounting software. In order for a successful cloud accounting operation to happen, then the following factors have to be considered.




1. As opposed to cloud computing focusing on infrastructure, it would be better to focus on the four key areas namely: strategy, business processes, technology, and people skills.

The usual mistake people make is focusing on infrastructure first and then checking if the deployment has met the overall strategy or not. What must be done instead is to invest in business management, people, and processes before using the technology in order to ensure success in the cloud computing. The strategy has to be built first and then technology and people skills are checked to see if they are aligned with the overall strategy.

2. According to the report of the SearchCloudComputing by Intel, a computer parts manufacturer, the right application software, storage, network connectivity, data and processing must be put together for the creation of an efficient system.

This is known to result to a large pool of storage space that will eventually lead to higher levels of utilization and efficiency.

The report added that making all components of cloud computing work in a flexible manner is the key to a successful cloud computing.

Recently, the cloud is said to be recording huge take-ups at this current time.

CIOs Embrace the Benefits of Cloud Computing

While majority are convinced of the advantages of cloud computing to companies, Chief Information Officers (CIOs) are giving their thumbs-up to the new accounting software for business.

According to the research conducted by Xantus, an independent management consultancy, 23 percent of CIOs are presently using the technology as reported by ComputerWeekly.com.

In addition to that number, the accounting solution will be adopted by another 53 percent in the next 12 months.

However, there are still a number of companies that are unsure of the benefits of cloud computing which makes them hesitant to use it.

Agility was named as one of the key draws of cloud computing wherein the increase in storage offers them new options overnight.

Among the other findings of the survey include:

• 23% of CIOs are currently using cloud;
• 53% plan to use cloud in the next 12 months;
• 90% have conducted a feasibility study into cloud;
• 50% say integration of cloud with existing systems is a potential show-stopper;
• Security only ranked fifth in the list of CIO concerns;
• Most CIOs expected an ROI of 10-25% on the cloud;
• Public sector more bullish than private sector.

The benefits of cloud computing include:

• Reduced cost- as cloud computing is paid incrementally
• Increased storage- the cloud offers greater storage data than any computer system.
• Highly automated- IT personnel no longer have to worry about updating software
• Flexibility- more flexible than past methods
• More mobility- since it is online, it can be accessed from any computer, anywhere, anytime
• Allow IT to shift focus- server updates are no longer necessary.

Cloud computing continues to serve businesses today as far as data storage is concerned.

With today’s competition and risks for hacking, using business accounting software can be very beneficial. It saves a company time and effort, as well as money for hiring an employee to perform accounting processes. Cloud computing is undeniably a very efficient business accounting software and must, therefore, be adopted by business owners.

Businesses Informed to Back-up Cloud Computing Systems

While so many companies today have adopted the use of cloud computing, they are forgetting an essential thing to do—creating back-ups. Data that are sent to the clouds have to be adequately backed up.

This is according to Andrea Simmons, a writer for the BCS, the Chartered Institute for IT.

Just recently, Amazon Web Services had a huge outage after its European cloud services were knocked out by a lightning strike in Dublin, Ireland last August. As a result, Springpad, one of its products, was out of use for two days.




The consequences of the said accident were devastating to the company and served as a wake-up call for BCS and all other companies that have information in the cloud. The problem of BCS was not just the consequences but also of the lack of a back-up system.

What can be done?

Though not everything can be backed-up, a lot of things can still be backed-up. Google apps can be used for calendars, mails, and documents. Notes should also be backed-up too.

The importance of having a back-up system is that it enables a business to still have access to these data even in the absence of an internet connection. These back-up systems may be placed locally on a computer or hard drive.

Cloud computing is not an evil thing or practice. Just like other applications, it is not perfect. Though it can securely keep data and other records, unexpected accidents happen and so the business owner using it should take the responsibility of keeping its back-up system.

Just recently, cloud computing was mentioned in the report of IBTimes that it can be a great environmental option against carbon, according to the research of the Carbon Disclosure Project.

Source: Codestone.net

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Shoebooks is a premium provider of online accounting software for SME businesses in Australia. Check out Shoebooks small accounting software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

Cloud Computing: Efficient and Ideal for Business

There has been a recent advice for those companies that intend to adopt the cloud computing technology, an online accounting software. By doing so, businesses will be doing their share for the environment.

It has been found that using this new technology is a guaranteed way to slash carbon emissions. This is according to the new research of the Carbon Disclosure Projects as reported by the IBTimes.

The report, entitled Cloud Computing: The IT Solution for the 21st Century, has stated that there can be a cutback of 85.7 million metric tonnes of carbon dioxide output in the US alone.



With cloud computing, businesses can make their energy last longer, save more money, and enhance business efficiency.

By using this accounting software for small businesses, it is just like not using 200 million barrels of oil.

Cloud computing has been found be revolutionizing the way the outsourcing of IT works with the flexibility it offers companies. This is according to the findings of the K2 Advisory.

Source: Codestone.net

PM Julia Gillard Flags a Business Tax Shake-Up

After receiving criticisms against her government, Prime Minister Julia Gillard vows to bring new flexibility into the tax system.

Just last night, Julia Gillard made more changes to business tax rules in response to calls for the reduction in company tax from 30 per cent to 25 per cent.

Although Gillard did not give specific details as to the changes, she wants delegates during next month’s two-day forum in Canberra to discuss options for a tax system that would better support businesses.

According to Gillard during the Australia Industry Group dinner in Canberra, the aims of the changes include "removing distortions, lifting barriers, delivering flexibility ... (and) encouraging enterprise."



Though Gillard does not share the values of British Prime Minister, Margaret Thatcher, she quoted the latter by saying, “there is no alternative”.

The keys to boosting economic growth in the non-mining sector include lower company tax rate, reduced red tape, and greater focus on entrepreneurship.

"We need to keep investing in and developing our skills and capabilities. The Australian economy is at a turning point. We are paying for a lack of emphasis and effort given to lifting productivity over many years,” he said.

According to the Prime Minister, "no system of policy settings is more central to business planning than business tax."

Source: Perthnow.com.au

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Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks Australian accounting software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515.

Accounting Software Ensures Smooth Operation of Large-Scale Projects

Problem on accounting and budget processes hits Newcastle Knights’ Ausgrid Stadium.

According to a Newcastle local tabloid newspaper, the Newcastle Herald, Ausgrid Stadium, formally known as Newcastle International Sports Centre --- a multi-purpose sports stadium located in Newcastle, New South Wales, Australia and the home ground of the Newcastle Knights (National Rugby League) and the Newcastle United Jets (A-League) teams and owned by the New South Wales government and administered by the Hunter International Sports Centre Trust --- has been having significant problems during a scheme.

The said problems is said to relate primarily to a series of errors that has been made in the accounting and budget processes --- which is said to have been resolved with an engagement of a specialist technology, particularly a software for accounting.

The difficulties came to light after an audit was carried out on the venue's western grandstand redevelopment.

According to the audit report that the given that from March 2011 there were no finance personnel on staff, for this reason there is a reason for the heavy reliance on a third party for budget preparation and monitoring.

The way the projects’ financial chiefs allowed a budget deficit to run up was extremely critical.

Bosses overseeing large construction and redevelopment projects might now be wise to ensure they have access to accounting software so as not to encounter similar problems with the Ausgrid Stadium scheme.

Ausgrid Stadium is currently undergoing a dramatic facelift with the redevelopment of the Western Grandstand. This state of the art facility is due for completion prior to the start of the 2011 NRL Season and will provide Newcastle and the Hunter Valley with a sporting facility to rival any across the country. It has a current capacity stands at approximately 23,000, with a target of up to 35,000 when the ground is complete.

Source: Codestone.net

Cloud Computing Storm Drives Business Industry

A new Sand Hill Group survey reveals that over the next 12 months, it would be cloud computing and Software-as-a-Service (SaaS) that will be driving the largest amount of spending in the software industry.

There were more than 100 software company CEO’s and CFO’s who were interviewed for the Software CEO/CFO Outlook 2011study. They are expecting that their companies will grow by at least 20 per cent in 2011. Accordingly, hiring is also expected to increase.

After the economic recession in 2008 and 2009, the accounting software for businesses industry still continues to pull itself out of the meltdown. But there is a vibrating positivity as the survey respondents are seeing that more than three quarters of them are already back to pre-recession growth levels in 2011.

To increase efficiencies and reduce costs are among the biggest reasons why there will be an increased spending on online accounting software.

This news has led to the question of whether private equity groups should also jump in.

Though there is still not so many cloud computing applications available for private equity companies, the construction industry is starting to store some of its applications into the cloud.

Should there be a go-signal to do the same, one thing that has to be decided upon is the owner of the primary license for the cloud software or service. Should the Private Equity own the license, the investment companies may have the sublicense to the same package. This is called private equity owned.

On the other hand, if it is the investment companies that own the license, it will be called investment company-owned. In this case, the control will be in the hands of the investment companies and not in the private equity.

However, it is seen that the more beneficial set-up is the private-equity owned.