Accounting System Report: Analysis for Goodie Gumdrops' Finances

This report provides a comprehensive analysis of the accounting system implemented for Goodie Gumdrops, a start-up wholesaler. It explores the benefits of cloud-based accounting systems, specifically focusing on Xero, and compares it with traditional accounting methods. The report includes an executive summary highlighting the advantages of cloud-based systems, such as easy access, integration capabilities, and reduced costs. The report also includes financial statements like profit and loss statements, balance sheets, trial balances, aged payables, aged receivables, and inventory item summaries. Additionally, the report references relevant literature and makes assumptions for financial transactions, such as a starting bank balance and the prices of items purchased and sold. The report aims to provide a detailed overview of the accounting system and its implications for Goodie Gumdrops' financial management.

Client Name: Goodie Gumdrops
Your name:
Accounting Information System
Date:
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Executive summary
In the contemporary market palace, the demand for cloud based accounting information
system is gradually increasing and till date it has grasped a large part of business capacities
over the traditional accounting system. While a number of benefits are there; it has also few
backdrops.
It has seen that the cloud based Accounting System mainly incorporates the Cloud facilities
to store respective organisation’s accounting information. As all the information are stored
in cloud system, wherever internet connection is available, the stakeholder can access
relevant information at any point of time. Unlike this, in case of traditional accounting
information system, organisations needs to have a devoted hard drive on which accounting
information is recorded manually.
In case of traditional accounting system, most of the cases data in the system is not up to
date neither the software. There is necessary to keep a backup of all information to work in
contingent situation like hard drive crash or while system is non-functional. Further, the
customer support is cooperatively costly and service delivery time is slower in most cases.
Unlike this, the use of cloud based accounting system made small organisations like Goodie
Gumdrops to stay connected with all date. Further, this system can be integrated with
existing system and thus there is no need to take extra burden for existing system. In
addition to this the system is available in subscription basis, which supports the start-up firm
or small organisation by reducing the initial invested amount.
The organisation like Goodie Gumdrops is a start-up wholesaler and thus, it needs minute
monitoring to attain success in the longer run. The factors like dashboard, easy recording,
minimum cost, appropriate financial statements indicates that Xero will be an effective
cloud based accounting system.
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Financial reports for Goodie Gumdrops
Assumptions:
1. For the purpose of financial transaction, a bank account named Goodie Gumdrops has
been established, where opening balance was 0.
2. All items were purchased @ $1.00 per unit;
3. All items were sold @ $1.50 per unit;
4. In case paid date is missing, it was set as 3rd August 2017;
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Profit and Loss Statement:
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Balance Sheet
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Trial Balance:
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Aged payable (details)
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Aged receivable (details)
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Inventory Item Summary
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Reference List
Hicks, D. (2014). State of the art engagement. Investment Magazine, (107), 33.
Khaneja, S. (2015). E-Accounting in the Current Scenario: Impact of Information Technology.
The International Journal of Business & Management, 3(9), 290.
Liu, T., Mathrani, A., & Mbachu, J. (2016, December). Hunting the Popular Construction
Apps. In Computer Science and Engineering (APWC on CSE), 2016 3rd Asia-Pacific World
Congress on (pp. 205-211). IEEE.
Ma, X. (2015). The adoption of cloud computing for small and medium accounting firm
Mageto, J. (2017). Accounting Softwares in Australia. An Overview.
Powell, R. (2015). Xero founder warns of public growing pains.
Smith, H. (2017). Xero for dummies. John Wiley & Sons.
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