Charles Sturt University ACC539: Cloud On-Line Accounting Report

This report, prepared for the ACC539 Accounting Information Systems course, focuses on cloud-based accounting using Xero for a start-up wholesaler named Gumm Drops. The assignment required the student to process transactions for February 2019, generate and analyze key financial reports, including the Profit & Loss statement, Balance Sheet, Trial Balance, Aged Payables, and Inventory Item Summary. The report also includes the setup instructions, chart of accounts, and opening balances. The report emphasizes the importance of these financial statements in making crucial business decisions. The student provides recommendations based on the analysis of the generated financial reports, highlighting their significance in financial management.

Running head: CLOUD ON-LINE ACCOUNTING
Cloud On-Line Accounting
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction................................................................................................................................2
Financial Reports.......................................................................................................................2
Profit and Loss.......................................................................................................................2
Balance Sheet.........................................................................................................................2
Trial Balance..........................................................................................................................3
Aged Payables........................................................................................................................3
Inventory Item Summary.......................................................................................................3
Recommendation........................................................................................................................3
References..................................................................................................................................5

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Introduction
Financial Reports provide the managements of the companies with the required
financial information that helps them in making different business decisions (Robinson et al.,
2015). The main aim of this report is to consider five specific financial reports and their
contributions to the decision-making process.
Financial Reports
Profit and Loss
Profit and Loss statement is an income statement that assists John and Jane in
measuring as well as reporting the expenses and revenue of their business for a specific time.
This helps in measuring the financial status and progress of the business of John and Jane.
This report helps John and Jane in making decision on the facts that whether they
need to reduce the expenses increase the revenue for increasing profitability (Levy, 2014).
Balance Sheet
Balance sheet assists John and Jane in summarizing their business assets, liabilities
and owner’s equity for a certain period and this will facilitate them in comparing the assets
and liabilities of their business with a different date for checking deviation in them
(Bobryshev et al., 2014).
By comparing the assets and liabilities, John and Jane will be able in making certain
business decision such as liquidity decisions, investment decisions, decision about line of
credit, decision about budget cuts and others (Bobryshev et al., 2014).

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Trial Balance
Effective preparation of a trial balance will help John and Jane in the prevention of
accounting mistakes that harm the business. Trial balance will facilitate John and Jane in
discovering and getting the root of errors in the double-entry accounting system.
Trial balance will help John and Jane in making decisions related to the detection as
well as correction of errors in the accounting system (Edmonds et al., 2013).
Aged Payables
The aged payable report facilitates John and Jane in the categorization of the payables
on the basis of time bucket. In addition, it will facilitate John and Jane in viewing the
balances they own to the suppliers, creditors and others (Mensah, Ayagre & Nyante, 2016).
This report will help John and Jane in making-decisions related to the outstanding
payments to the suppliers and creditors (Mensah, Ayagre & Nyante, 2016).
Inventory Item Summary
The inventory item summary report will facilitate John and Jane in effectively
managing their expenses with the minimization of the amounts of unnecessary parts and
products in the inventory. In addition, it will helps John and Jane in maintaining the optimal
level of inventory to meet the demand of the customers.
Inventory item summary will assist John and Jane in taking decisions on how to
manage their inventories in proper manner so that there is neither excessive stock not less
stock (Maskell, Baggaley & Grasso, 2016).
Recommendation
It can be seen from the above discussion that all these five statements provide major
benefits to John and Jane and they also help them in making crucial management decisions

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on financial aspects. For this reason, it is recommended to John and Jane that they should
refer to these financial statements while taking the crucial business and financial decisions.

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References
Bobryshev, A. N., Uryadova, T. N., Lyubenkova, E. P., Yakovenko, V. S., & Alekseeva, O.
A. (2014). Analytical and management approaches to modeling of the accounting
balance sheet. Life Science Journal, 11(8), 502-506.
Edmonds, T. P., McNair, F. M., Olds, P. R., & Milam, E. E. (2013). Fundamental financial
accounting concepts. New York, NY: McGraw-Hill Irwin.
Levy, J. (2014). Accounting for Profit and the History of Capital. Critical Historical
Studies, 1(2), 171-214.
Maskell, B. H., Baggaley, B., & Grasso, L. (2016). Practical lean accounting: a proven
system for measuring and managing the lean enterprise. Productivity Press.
Mensah, C. C., Ayagre, P., & Nyante, H. (2016). Fundamentals Of Financial Accounting 1.
Robinson, T. R., Henry, E., Pirie, W. L., & Broihahn, M. A. (2015). International financial
statement analysis. John Wiley & Sons.