Cloud Accounting for Goodie Gumdrops

This assignment delves into the advantages of cloud-based accounting systems over traditional methods, specifically within the context of the fictional company 'Goodie Gumdrops'. Part A outlines key financial statements including profit and loss, balance sheet, trial balance, aged payables and receivables, and inventory summary. Part B focuses on comparing cloud-based accounting with traditional systems, highlighting benefits such as cost-effectiveness, accessibility for remote teams, enhanced security, and reduced IT management burdens.

Running head: CLOUD ONLINE ACCOUNTING
Cloud Online Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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Table of Contents
Part A:..............................................................................................................................................2
1. Profit and loss statement:.........................................................................................................2
2. Balance sheet statement:..........................................................................................................3
3. Trial balance:...........................................................................................................................4
4. Aged payables (detail):............................................................................................................5
5. Aged receivables (detail):........................................................................................................5
6. Inventory item summary:.........................................................................................................6
Part B:..............................................................................................................................................6
Advantages of cloud-based accounting system over traditional accounting system in the
context of Goodie Gumdrops:.....................................................................................................6
References:......................................................................................................................................8

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Part A:
1. Profit and loss statement:

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2. Balance sheet statement:

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3. Trial balance:

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4. Aged payables (detail):
5. Aged receivables (detail):

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6. Inventory item summary:
Part B:
Advantages of cloud-based accounting system over traditional accounting system in the
context of Goodie Gumdrops:
The greater part of business capacities have grasped cloud-based accounting system and
there is diversifying take-up. In relation to the process of bookkeeping, certain benefits are
inherent that could replace the traditional accounting system. Cloud-based accounting system is
involved in utilising the cloud to store accounting information (Asatiani et al., 2014). With the
help of this system, the staffs and proprietors could avail the accounting-related data in the
presence of internet access. On the other hand, traditional accounting system needs Goodierr
Gumdrops to install a hard drive on which the programming related to bookkeeping is initiated
along with recording of monetary information. The cloud-based accounting system provides the

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ability to utilise the kind of developing power beforehand accessible to diversifying
organisations with a greater spending plan.
 As cloud bookkeeping arrangements and administrations are financially proficient, the
firm having a tight plan of spending needs to consider cloud bookkeeping methodologies
(Geerts & O'Leary, 2015).
 The firms that use distant representatives could ascertain additional benefits with the
arrangements of cloud bookkeeping in relation to comfort, adaptability and openness.
 The small and medium-sized organisations not having the capability to possess in-house
information safety efforts could gain from information of military review with the help of
cloud-based accounting system.
 The organisations, which lack in proficient staffs for dealing with the information
technology issues and conventions of catastrophe administration aim to settle with the
answers of cloud bookkeeping in order to ensure the value of client-related information.

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References:
Asatiani, A., Apte, U., Penttinen, E., Rönkkö, M., & Saarinen, T. (2014, January). Outsourcing
of disaggregated services in cloud-based enterprise information systems. In System
Sciences (HICSS), 2014 47th Hawaii International Conference on (pp. 1268-1277).
IEEE.
Geerts, G. L., & O'Leary, D. E. (2015). A note on an architecture for integrating cloud
computing and enterprise systems using REA. International Journal of Accounting
Information Systems, 19, 59-67.