Cloud Accounting for Startups

This assignment examines the advantages of cloud-based accounting systems, particularly for startups. It uses the case study of Goodie Gumdrops to illustrate how cloud accounting offers cost efficiency, real-time data access, and streamlined processes compared to traditional methods. The document also delves into financial reports generated through cloud accounting, including aged payables, receivables, inventory summaries, and estimations for purchase and selling prices. Furthermore, it emphasizes the suitability of cloud-based software like Xero and MYOB for startups with limited budgets.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
It is seen that the process of cloud based accounting system has been discovered to the
new age process of accounting, which analyses the overall system of accounting system online
and records the data in the server that is even known as “clouds”. With the development of
cloud based accounting, it is currently possible for the each and every employees, the owners and
the managers of the firm to receive admittance to any kind of accounting information from
anywhere around the globe by taking help of the internet services. The data and the information
that have been typed in to the accounting tool are saved in the cloud and these are assessed in a
typical manner that anyone gaining the power can get the entry to the data within seconds from
anywhere. Different from the conventional accounting process, in which a lot of resources and
time are consumed in maintaining the books of accounts, the innovative technology based on
cloud on the other hand makes sure that efficient exploitation of the resources and time even
guarantees the savings in the entire expenses associated with the maintenance of the books of
accounts and the techniques used in accounting.
In accordance to the case study, it has been observed that Goodie Gumdrops has been a
start-up organization that have assigned an exclusive hard drive for the intention of recording and
sorting the accounting data. Unlike the conventional process of accounting, the cloud based
accounting process ensure the safeguard of the data but even make sure that these are accurately
backed up which is not seen in the conventional accounting process.
In the current global environment, the cloud accounting has been found to be a more
rational method of accounting rather than the traditional process of accounting. A significant
feature regarding cloud dependent accounting has been its cost efficiency. The primary expense
of the process Cloud Accounting installation has been very insignificant and during the long run

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it even curtails sufficient amount of capital for the organization with the incorporation of
numerous technologies. An accounting software that is cloud based aids users in undertaking
multifunctional jobs concurrently and due to the fact that all the computations are pre-
programmed in the software and in a manner decreasing the error of profitability by an employee
to larger extent.
Another significant characteristic of \cloud based accounting process that has made it a
standout in the economy is its present time characteristic. During the times, when the owner and
the other shareholders of the firm are needed to undertake actual financial condition of the
organization, which is updated till the last second. This makes sure that precise decisions will be
undertaken with respect to the organization by the advisors and the stakeholders. This will be
impossible in case the organization utilises the conventional accounting process because in this
scenario, the overall mechanism would be significantly long and expensive. Furthermore, as
mentioned before in the Cloud Based Accounting software, the information is recorded
automatically at the day end. Therefore, it respites the employees from the pressure of
maintaining a backup which was prevalent in the conventional process accounting.
Hence, start-up organizations like the “Goodie Gumdrops”, which is developing, it has
been often advisable to implement the process of cloud based accounting over the conventional
process as the organisation is not even in a condition to undertake large volume of investments in
the process of accounting. Cloud accounting software for instance XERO, MYOB can be an
appealing selection for “Goodie Gumdrops” at a minimal expenditure.

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Financial Reports for Goodie Gumdrops

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Aged Payable (details)
Aged receivable (details)

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Inventory Item Summary
Estimations:
The estimations that are utilised are as follows;
 The Purchase price is estimated to be $1 per unit
 The Selling Price is predicted to be $1.50 per unit
 The bank balance opening amount has been taken as Nil
 The missing date has been predicted to be 3rd August 2017

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Reference List
Bodnar, G. H., & Hopwood, W. S. (2013). Accounting Information Systems: Pearson New
International Edition. Pearson Higher Ed.
Du, K., Huddart, S., &Xue, L. (2015). Accounting Information Systems and Asset Prices.