Cloud-Based Accounting System

Running head: CLOUD-BASED ACCOUNTING SYSTEM
CLOUD-BASED ACCOUNTING SYSTEM
Name of the Student:
Name of the University:
Author Note

1CLOUD-BASED ACCOUNTING SYSTEM
Table of Contents
Answer to Question 1:-..............................................................................................................2
Answer to Question 2:-..............................................................................................................3
Answer to Question 3:-..............................................................................................................6
Answer to Question 4:-..............................................................................................................7
Answer to Question 5:-............................................................................................................10
References and Bibliography...................................................................................................12

2CLOUD-BASED ACCOUNTING SYSTEM
Answer to Question 1:-
MEMO
To: - Mr and Mrs Spot
From: - [Your Name]
Subject: - Inventory Management System
Date: - 14th May 2019
This memo is prepared to explain the different concept and method of the inventory
management. This memo explains the periodic method and the perpetual method and Fist in
first out and the weighted average cost.
Periodic method is the method of the inventory management is which the only one
purchase entry is passed at the time of purchasing inventory. Further, in the end of the period
the combined entry passed in respect of cost of goods sold.
Perpetual method is another method of controlling the inventory of the firm. In this,
the cost of goods sold is passed along with the purchase entry at the time of purchasing
inventory.
The first in first out is the one of the system of recording the transaction of the
inventory in the firm. In this the transaction related to the inventory is recorded in the first in
first out basis means the earlier purchased goods will be sold first.
The Weighted average method is the another system of recording the inventory in the
books of account. In this, the transaction of the inventory is recorded by using the weighted
average method.

3CLOUD-BASED ACCOUNTING SYSTEM
The paper concludes that there is various method and system available for recording
the transactions related to the inventories. The company can use any of them as per there
requirements.
Answer to Question 2:-
Introduction
The report titled “CLOUD-BASED ACCOUNTING SYSTEM” is prepared to
explain the concept of the cloud based accounting systems to the Mr and Mrs Spot for their
company named Spotty Ltd. As the business of the Spotty Ltd is growing faster and the
company already increases its inventory line to twenty, hence the company is in the need of
the proper inventory system to manage and control the inventory of the firm properly. In this
regards, this report explains the concept of the cloud based accounting system as well as the
suitability of the Xero cloud based accounting system. Further, this report explains the
advantages and features of the Xero that can be beneficiary for the company.
Discussion
Cloud- based accounting system
The cloud based accounting systems are the accounting system that works based on
the online cloud server. These are totally based of the internet and the technology of the new
generation. By using, the latest technology this system provides ease of doing the accounting
entries and provide result that is more accurate based of the entry (Binde, 2017). This type of
the system provides the ease in preparing the accounting report in less time and with more
accuracy. The main advantages of this type of accounting system is that this system records
all the transaction in the online cloud, which is more secure and easily accessible from
anywhere and anytime. This system also provides the flexibility in the as the business
requirement as well as more security in the storing the data.