Accounting Information System: PDF

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Accounting Information
System

AIS
Accountancy is one of the most traditional subjects of study. This field of study has been
directly derived from the practical methods of business. It is the very basic document storage
to making accounts and maintaining the books. These are the very traditional ways of account
keeping (Gillon, 2015). Vouchers, bills of purchases and sales, order books, requisition slips,
factory in and out slips, these are the basic documents which form a part of the initial basic
documents of the traditional accounting system. As a matter of fact, even the modern
accounting methods demand the recording of these documents, but the practice has been done
away with.
Next comes the journal entries. They are the first point entries recorded for any transaction or
any business activity involving money, i.e. activities which can be converted into monetary
terms. And after this, ledgers are prepared. These ledgers help in the preparation of trial
balances. However, these traditional, manual ways of recording transaction of accounts for a
business is acceptable if the scale of operations of the business is small and the accountant is
able to keep the numbers on the fingertips (Francen, 2014). As the business grows, keeping a
grip of numbers becomes increasingly difficult.
For Smith Brothers Auto Solutions, Julia Ryan is the bookkeeper, and she dedicates the best
of time and efforts to maintain the books for the company. But the fact remains that the
company is growing at a fast pace (Herr & Romanosky, 2015). Where the use of modern
techniques saves time, efforts and costs, it is more accurate, it has the privilege to have a low-
cost backup as well. However, we cannot also ignore the fact that a modern accounting set up
requires huge initial costs (Basta et. al, 2013). The contact point, or accountant so to say,
should be trained well before allotting to him, the task of bookkeeping using modern and
computerized automated techniques. However, the savings in times and costs may definitely
not overrun the initial costs. But the losses due to inaccuracy, mistakes, and redundancy, and
data losses can be a big hit, which modern techniques can guard against (Crosby, 2015).
2. The Smith Brothers should ideally move from the very conventional system of accounting
which is manual, to the more automated system. They can install computer machinery and
install soft wares that can record, classify and analyze transaction and give immediate results,
much faster and more accurately (Barney & Ray, 2015). This will ensure that the financial
data is efficiently managed. Also, diverging from the regular ledger, and journal bookkeeping
to more advanced techniques can also help in increased efficiency.
3. Netsuite and Sage Intacct software can used in the bsuniess
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AIS
Netsuite is a single and enterprise-wide integrated business software system. Netsuite is
provided as a service. It is a business management software suite. It performs the functions of
ERP (enterprise resource planning) and CRM (customer relationship management). It is
designed in a way that it can provide services to a wide range of users. The financial system
of a Netsuite can be employed and used in a variety of processes altogether (Gillon, 2015). It
can be taken into use in an organization’s back –office, sales and service processes.
The financials of Netsuite comprises applications for payment management, financial
reporting, financial accounting, inventory management, supply chain management and order
and billing management. One can use mobile device or web browser so as to access the
financial information through Netsuite. There are automated updates available and
availability of a lot of customization options for the system. Netsuite performs on series of
web browsers. It is completely web-based. Data export into IIF or CSV files is easy through
Netsuite. Netsuite’s data center ensures the security of data and controls and allows the built-
in security of the suite (Crosby, 2015).
There are many benefits derived from Netsuite. Netsuite does not only provide for a
legitimate balance of application between product depth and breadth but also serves as an
integrated business software system. It provides for a native-thin client solution structured so
as to cater on-demand internet delivery. It has super flexible digital dashboards. Enterprise
resource planning dashboards are one impressive showpiece. It is a role-based application,
navigation, and security. It is believed that role based application facilitates easy
differentiation from other enterprise resource planning systems. It is considered to be a
marketing powerhouse (Almunawar & Low, 2013). It facilitates and allows strong market
leadership. Netsuite, in order to expand its business and improve its operations, spends
around USD 100 million yearly in ruthless advertising, marketing, and media.
There are many drawbacks associated with Netsuite. The system is complex to use. The
organization should either uplift the product’s intuitiveness or it might lose its market share.
The customer support is of no use. Customer support costs were huge. The additional
recurring fees were increased to 37.5% from 22.5% for users who seek customer support via
emails and telephone. The company had a very bad reputation. It had a poor image in the
industry. It is noticed that the company is based on social media and public forums by its own
business partners, users and forum users for pathetic customer support, ruthless price
escalations, system downtime and product stability issues.
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AIS
Sage Intacct software
It is a software that provides cloud-based accounting software. It is desirable for not only
small companies but midsized companies as well. It has the capability to automate critical
processes. It provides its users with the basis of accounting principles such as accounts
payable, general ledger, accounts receivable, cash management and order management. Built-
in reporting and dashboards, time and expense management, project accounting, revenue
management and multi-entity consolidations are also included in Sage Intacct software.
Sage Intacct software can adjust with other business applications like CRM, POS or payroll
so as to allow its users to make a choice amongst all the available applications that they want
to use so as to enhance their business with the help of an open API structure.
The price of NetSuite resides on a number of factors like the product selection and its
configuration, add-ons that are needed and the duration of the contract. Considering the
overall situation, the base price for NetSuite will come at $999 and the general access will
cost at $99 per month. On the other hand, the Sage Intacct Pricing for the smaller companies
starts at $400 a month. However, the pricing for larger firms varies as it replaces the on-
premises software system like Microsoft Dynamics, Sage Lawson, Oracle and it costs approx
$10,000 a month.
5. Further, it needs to be noted that the application of excel or spreadsheet is a normal
functioning and does not need a specialized software. It can be used and implemented easily
and no costs are incurred. For the use of excel and spreadsheet, it should be noted that the
availability of data should be present that helps in providing an easy solution. The
implementation and the functioning are easy as it can be easily done with the help of
Microsoft office (Carroll, 2014). Small firms do not need a huge software package and can
ensure a strong business progress with the help of excels. Hence, the excel and spreadsheet
are easy to use, accommodate and does not lead to complexity. Further, it is cost effective in
nature.
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AIS
References
Almunawar, M.N., & Low, K.C.P. (2013). Open Source Solutions and CSR. Springer, Berlin:
Heidelberg.
Barney, J., & Ray, G. (2015). How information technology resources can provide a
competitive advantage in customer service. Planning for Information Systems [online]. 3(2),
444-460. DOI: 10.4236/me.2015.63038
Basta, A., Basta, N., & Brown, M. (2013). Computer security and penetration testing.
Cengage Learning.
Carroll, J.M. (2014). Computer security. Butterworth-Heinemann.
Crosby, M. (2015). Block chain technology. [online]. Retrieved from
http://scet.berkeley.edu/wp-content/uploads/BlockchainPaper.pdf [Accessed 24 May
2018]
Francen, E. (2014). The 5 W’s of Information Security [online]. Retrieved from:
http://www.frsecure.com/the-5-ws-of-information-security/ [Accessed 24 May 2018]
Gillon, K. (2015) Artificial Intelligence and the future of accountancy. [online]. Retrieved
from https://www.icaew.com/en/technical/information-technology/technology/artificial-
intelligence-the-future-of-accountancy [Accessed 24 May 2018]
Herr, T. & Romanosky, S. (2015). Cyber Crime: Security Under Scarce Resource. American
Foreign Policy Council Defense Technology Program Brief.
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