ACC200 Accounting Information System

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Added on 2020-02-24

ACC200 Accounting Information System

Added on 2020-02-24

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Client Name: Goodie GumdropsYour name:Topic: Accounting Information SystemDate:Page 1 of 11Student Name and Student ID

Executive summaryThe cloud based accounting system is the new generation system of accounting whichprocesses the entire accounting process online and stores data in the server also called‘clouds’. Due to evolution of cloud based accounting, today it is possible for everyemployees, managers and owner of the company to get access to any accounting informationfrom anywhere in the world with the aid of internet service. The information and data that areentered into the system are stored in the cloud and those are also processed in such a mannerthat anyone having the authority can get access to those data in no time from anywhere.Unlike the traditional method of bookkeeping where a lot of time and resources are involvedin maintaining books of accounts, the new cloud based technology on the other hand ensureseffective utilization of both time and resources and also guarantees savings in the overall costof maintaining books of accounts and accounting techniques.From the case study it is evident that Goodie Gumdrops is a start-up business that haveallocated a dedicated hard drive for the purpose of storing and recording accountinginformation. Unlike traditional method of accounting, the cloud based accounting system notonly ensures security of those data but also ensures that those are properly backed up which isnot available in traditional method of bookkeeping.In today’s business world, cloud accounting is found as more rational process of accountingthan that of conventional accounting system. An important characteristics of cloud basedaccounting is that it is very much cost effective. The initial cost of installation of cloudaccounting system is very negligible and in long run also it saves a lot of money of thebusiness through the application of its various technologies. A cloud based accountingsoftware enable the user in performing multifunction tasks simultaneously and as all thePage 2 of 11Student Name and Student ID

calculation are already programmed in the software thus it also reduces the probability oferror by an employee to a great extent.Another important feature of Cloud based accounting system which makes it standout in themarket is its real time feature. At times when the owner and other stakeholders of thecompany are required to take any crucial investment decision then cloud based accountingwill be very helpful as with the help of cloud accounting the owners, manager, directors andother stakeholders can get access to the real time financial position of the company which isupdated till the last minute. This ensure that correct decision will be take in favour of thecompany by the stakeholders and advisors. This will not be possible in case the company usestraditional method of accounting as in that case the entire process will become much morelengthy and costly as well. Moreover as said earlier in the cloud accounting software, all thedata are automatically backed up at the end of the day. Thus it relief the entire work stafffrom the burden of backup which was present in the traditional method of accounting.Thus for a start-up business like Goodie Gumdrops which is in the growing, it is alwaysrecommendable to adopt cloud based accounting system over traditional accounting systemas the company is not in a state to invest a huge amount on accounting. Cloud accountingsoftware like MYOB, XERO might be an interesting choice for Goodie Gumdrops atminimum cost.Page 3 of 11Student Name and Student ID

Financial reports for Goodie GumdropsProfit and Loss Statement:Page 4 of 11Student Name and Student ID

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