AIS Report: Chempax Pvt Ltd - Factors, Issues, and Recommendations

This report provides a comprehensive analysis of the Accounting Information System (AIS) for Chempax Pvt Ltd. It begins with an introduction to AIS and its importance in financial data management, followed by a detailed examination of crucial factors to consider when selecting an accounting system, such as user-friendliness, multi-currency transactions, integration with other business software, secure data storage, and customer support. The report then evaluates QuickBooks as a suitable system for Chempax Pvt Ltd. Furthermore, it identifies potential security issues, including cybercrime and data protection vulnerabilities, and suggests practical recommendations to mitigate these risks. The recommendations emphasize implementing multiple layers of security, unique passwords, and continuous monitoring to safeguard financial data. The report concludes by highlighting the significance of accounting software in business expansion and the necessity of addressing security concerns to ensure smooth and error-free operations.

Finance and Accounting

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Important factors to be accounted for before selecting a system...........................................3
Potential security issues.........................................................................................................4
Recommendations..................................................................................................................4
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
The Accounting Information System (AIS) is the system which is being used by the
organization for the purpose of collection, storage, managing, processing and reporting of the
financial data of the company. These reports can be easily prepared using AIS quickly
without any manual task. This report is on Chempax Pvt Ltd and provides an insight into the
key aspects which should be covered in regard to selecting a system along with the potential
security issues attached with it. At last, certain ways are recommended to mitigate the
potential issues.
MAIN BODY
Important factors to be accounted for before selecting a system
Some of the important and crucial factors which should be accounted for before
making a decision in respect to implementing an accounting software.
User-Friendly Software: The ease to use is considered to be the major factor while
purchasing an accounting system. the user-friendly software helps in carrying out the
required task in an easy way. It also provides various other useful options such as the
dashboard which states the charts giving the financial status to the company.
Multi-Currency Transactions: Today, even the small firms are serving the oversea
customers and if the company is having such customers, then it becomes important to note
that the accounting software is having the facility of multi-currency transactions. it should
manage exchange rates and the conversions as per the requirements (7 Factors to Consider
When Choosing Accounting Software for Small Business. 2020).
Integration with Other Business Software: It is important to select the software that
integrates seamlessly with the other business applications and software. Without taking into
consideration, the grave implication about the choice over the business. This might have an
implication of affecting the smooth flow of business operation.
Secure Data: The market is trending towards the web-based accounting software and
therefore, Chempax Pvt Ltd should make an investment into such type of software only rather
than on desktop based. Through this, the financial business data can be stored and saved on
the external servers which is safe there from the physical hazards it is exposed to.
Customer Support: On switching to the new accounting software makes it little bit
uncomfortable for the people who are associated with it. There are situations in which the
staff might be requiring support from time to time from an expert. The product’s manual
provided with the software is not sufficient enough to provide answers to all the questions.

The level and the type of customer support which is being offered by the manufacturer
pertaining to the accounting software is considered to be the most important factor while
selecting a software package. If the staff is not satisfied with the new system, then it delay the
transition.
Selection of suitable system for business
After analyzing the various accounting software available, QuickBooks is
considered to be more suitable as it automatically and securely downloads the transactions
which helps in keeping the accounts up to date. The data is stored in the cloud on Amazon
Wbe Services (AWS). It is based upon the industry recognized security and virus safeguards
in order to secure the financial data. It involves password protected sign-ins along with the
firewall protected servers with the usage of encryption technology.
Potential security issues
Cybercrime: In respect to the cyber crime, QuickBooks have faced earlier the targets of the
cybercriminals which mainly targeted the financial data of small and midsize businesses as
per the research. This is mainly done by attackers with two types of phishing (Demirkan,
Demirkan and McKee, 2020). In the 1st, the attackers usually send a PowerShell command
which is run in a malicious email. While in the second, a word doc is sent by the attackers in
the email. This event is the major security issue associated with the QuickBooks.
Data protection: The company has undertaken various critical steps in overcoming the
cybercrime issue. The data has been stored in the AWS which means that the data is being
protected from the multiple layers of the network, storage along with the physical access
security (De Donno and et.al., 2019). In addition to this, the system is being backed up for
redundancy.
Online fraud: The chances of online fraud has is very minimum due to the multiple layers of
protection being provided (Privacy and security in QuickBooks. 2021). Also, QuickBooks
can read the data but cannot process the payments or extract the personal data from the
transactions which helps in minimising the chances of online fraud.
Recommendations
Based upon the above analysis of the potential security issues associated with the
accounting software being selected by the company Chempax Pvt Ltd, that the company
should apart from the security provided by the accounting software company should also
implement various levels of security which makes it difficult for the hackers or the attackers
in capture the financial data of the company. the major risk to which the company is exposed
to is cybercrime which is increasing at the high rate which creates a sign that it is the

responsibility of both the company using the software and company which has developed the
software to undertake relevant and crucial steps in order to avoid or mitigate such type of
accounting issues. Various forms of passwords or a unique number should be implemented
which is can only be accessed by the authorized person’s which results into creating better
protection of the data.
CONCLUSION
It can be concluded from the above that accounting software have an important role
to play in within a business organization under the situation of expansion. Manually it
becomes difficult to keep track of everything and it becomes complex and time taking.
Therefore, by implementing accounting system assists in making the work simple and quick
and without making an error. But there are certain key aspects which are required to
considered in the process of undertaking the decision of selecting the software. In addition,
there are certain security risks associated with the software which are needed to be accounted
for based on which certain recommendations are made.

REFERENCES
Books and Journals
Demirkan, S., Demirkan, I. and McKee, A., 2020. Blockchain technology in the future of
business cyber security and accounting. Journal of Management Analytics. 7(2).
pp.189-208.
De Donno, M., and et.al., 2019. Cyber-storms come from clouds: Security of cloud
computing in the iot era. Future Internet. 11(6). p.127.
Online
7 Factors to Consider When Choosing Accounting Software for Small Business. 2020.
[Online]. Available Through:<https://www.sbsgroup.com.sg/blog/7-factors-to-
consider-when-choosing-accounting-software-for-small-business/ >.
Privacy and security in QuickBooks. 2021. [Online]. Available Through:<
https://quickbooks.intuit.com/learn-support/en-ca/banking/privacy-and-security-in-
quickbooks-self-employed/00/262549>.