Accounting Information System Assignment Project

Added on -2020-02-19

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Accounting Information System
Part B: Executive Summary
The present report has been developed for demonstrating the use of cloud based
accounting system for managing the accounting transactions of a regional accounting firm, that
is, ‘Goodie Gumdrops’, a start-up wholesaler. The report is prepared on the perspective of an
accountant working in the firm having the responsibility of establishing the AIS (Accounting
Information System) and entering the first month accounting transactions into the system. The
report has developed and presented the profit & loss, balance sheet, trial balance, aged payable
and receivables and inventory item summary though the use of AIS for assisting the business
start-up for the client.
The use of information technologies and devices are rapidly transforming the ways
through which businesses operate and mange their operational activities. The accounting field
cannot make an exception for considering the progress realized by the businesses through the use
of computing technologies. The Goodie Gumdrops can achieve various benefits through the use
of cloud computing systems over traditional accounting. The use of cloud computing can
increase the accessibility of the financial information via an internet connection. On the other
hand, traditional accounting system will requires the business firm to possess a hard drive for
storing and recording the financial data. The cloud computing also enables the employees to
work from distant locations and communicate with each other through the use of AIS system that
is not possible through the use of traditional accounting. There is also increase in the accuracy,
backups, and speed of accounting operations through the use of cloud based accounting system
as compared to the traditional approach. The cloud based accounting system will also prove to be
cost-effective for the Goodie Gumdrops in long-run in comparison to the traditional accounting
system (Rangarajun and Kennedy, 2012).
This is because traditional accounting system requires manually recording and storing of
accounting data that requires upfront fees for hardware packages and requires a contract
commitment. Thus, on the basis of above benefits provided by cloud computing system it is
recommended to the Goodie Gumdrops to adopt the cloud based computing system for managing
its accounting transactions smoothly and easily. The business firm is a start-up and thus it is
essential for it to manage its accounting transactions effectively for achieving growth and
sustainability. As such, cloud based accounting system will help the firm to record its financial
transactions properly and ease up managing its business processes.
Part A
This part of the report depicts the processing of client transactions through the use of
cloud based accounting system. The financial reports developed through the use of computerized
based accounting system for July 2017 are as follows:
Profit & Loss
As depicted, the use of cloud based computing system has aggregated all the sales and
expenditure in a small number of rows for enhancing the visibility of major issues. The cloud
computing system has enabled the grouping of accounts of sales and expenditure thus
streamlining the preparation of financial statements. The sales and expenses are divided into
separate categories for ensuring that each row is easily understood by the end-users. The use of
cloud based system has enabled the development of an effective reporting structure for depicting
the profit and loss statement that can be used at customer, department or a business unit level.
The accounting software system also proves to be largely useful in fostering the changes in the
reporting structure due to restructuring, new product lines or mergers and acquisitions (Terkper,
2008).
Balance Sheet

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