AIS Report: Cloud Accounting Implementation at Goodie Gumdrops

This report serves as an executive summary and detailed analysis of a cloud-based accounting information system (AIS) designed for Goodie Gumdrops, a start-up wholesaler. The report, prepared from an accountant's perspective, demonstrates the practical application of cloud computing in managing financial transactions. It showcases the creation of essential financial statements, including profit & loss, balance sheet, trial balance, aged payables and receivables, and inventory item summaries. The advantages of cloud computing over traditional methods are highlighted, such as increased accessibility, remote work capabilities, enhanced accuracy, and cost-effectiveness. The report emphasizes the benefits of cloud-based systems for start-ups, particularly in effectively managing financial transactions for sustainable growth. The report also details the processing of client transactions, the structure of current asset accounts, and the development of online platforms for verifying client balances. It concludes with a strong recommendation for Goodie Gumdrops to adopt a cloud-based accounting system to streamline business processes and improve operational efficiency. The report references several academic sources to support its findings.

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

As depicted from the balance sheet developed through the use of cloud based computing
system, the accounting software system has helped in developing the structural make-up of the
current asset accounts. The balance sheet developed through the use of cloud computing system
has helped in realizing the accurate amount of accounts receivables and inventories. The Goodie
Gumdrops is an accounting firm and thus need to determine accurately the financial figures of its
accounts receivable. The accounts receivable accounts help the business firms to analyze and
examine its credit policies or determining the use of leasing for replacing the accounts
receivables (Mageto, 2017).
Trial Balance

The trail balance developed through the use of cloud computing devices will provide an
online platform to the Goodie Gumdrops for verifying the client balances and sending the tax
return. The software features helps in handling of import and export accounts easily with instant
onscreen validation. Also, the software enables to develop multiple journal types and multiple
views of trail balance within a short-span of time. Thus, the use of cloud-based system will
provide an easy platform to the firm and enable it to attain superior tax results with its trial
balance report (Liguo, 2014).
Aged Payables & Aged Receivables

The use of cloud based computing system for developing the aged payable and
receivables account will enable the firm to get rid of manual tasks such as maintaining a general
ledger and calculating the amount of fixed assets, inventory and other accounting data. The
software provides advanced features for automating the routine tasks and provide single-entry to
double-entry program that help in calculating accurate information about the fixed assets,
invoicing, inventory and other features. The software enables the accountants to increase their
efficiency by connecting the ledger to the clients and thus synchronizing the information flow.
Also, it enables to gain a complete control over financial transactions related to the accounts
receivable and payable for ensuring accuracy through working with clean and timely data (Hall,
2015).
Inventory Item Summary

The cloud based accounting system help in gathering reliable information about the
products in hand by providing an adequate knowledge of the warehouse items and thus helps in
maintaining optimum level of inventory. As such, the system is highly beneficial for reducing the
unnecessary capital expenditures by providing a proper match between demand and need of
products. The management can make decisions about the inventory processing very easily by the
accurate information obtained from cloud based computing system about the inventory items. It
helps in inventory management though accessing the daily needs of products and thus enabling
the management to plan for future by maintaining an adequate inventory level (Curtis, 2015).
The Goodie Gumdrops can benefit from cloud based accounting system through integrating its
various functions such as demand planning, financial and logistics and thus providing real-time
visibility for inventory level. The accounting software system provides the function of using
spreadsheets that helps in better managing of inventory through providing solutions related to
inventory problems through providing scalability. Also, it improves the speed and precision
required for reporting the inventor level by providing features such as quantity-based pricing, lot
and bin management and landed cost calculations. It also provides improved visibility through
depicting seasonal or unexpected changes in demand of inventory (Buttle and Maklan, 2015).
Conclusion
Thus, it can be said from the overall discussion held in the report that cloud based
accounting system will help in improving the efficiency of business operations of Goodie
Gumdrops. It will help in achieving accurate financial figures thus reducing the chances of error
occurrence. Also, the improved visibility and flexibility provided by this system will help the
firm to better manage its resource and expenditures and thus achieve increase profitability. The
Goodie Gumdrops is an accounting firm and thus the sue of accounting software will enable the
firm to integrate and co-ordinate the functions of its various department thereby streamlining its
business processes.

References
Buttle, F. and Maklan, S. 2015. Customer Relationship Management: Concepts and
Technologies. Routledge.
Curtis, V. 2015. MYOB Software for Dummies – Australia. John Wiley & Sons.
Hall, J. 2015. Accounting Information Systems. Cengage Learning.
Liguo, Y. 2014. Overcoming Challenges in Software Engineering Education: Delivering Non-
Technical Knowledge and Skills: Delivering Non-Technical Knowledge and Skills. IGI
Global.
Mageto, J. 2017. Accounting Softwares in Australia. An Overview. GRIN Verlag.
Rangaraju, M.S. and Kennedy, H. 2012. Innovation in Management Challenges and
Opportunities in the next decade. Allied Publishers.
Terkper, S.E. 2008. Accounting Challenges for Semi-Autonomous Revenue Agencies (SARAs) in
Developing Countries, Issues 2008-2116. International Monetary Fund.