Cloud Accounting System Report: Financial Analysis for Goodie Gumdrops

This report provides an executive summary of cloud-based accounting systems, highlighting their advantages over traditional methods, especially for SMEs like Goodie Gumdrops. It explores cost-effectiveness, remote access benefits, and data security considerations. The report analyzes financial statements, including a profit and loss statement, balance sheet, and trial balance, based on specific assumptions. It recommends Xero as an effective cloud-based accounting system for Goodie Gumdrops, emphasizing its dashboard, ease of recording, and cost-effectiveness. The report includes references to relevant literature and offers insights into the practical implementation and financial impact of cloud accounting. This analysis aims to guide Goodie Gumdrops in adopting a suitable accounting system to ensure success.

Client Name: Goodie Gumdrops
Your name: Shaker Ali Khan
Accounting Information System
Date:
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Executive summary
The Cloud based Accounting System has now been grasped by the larger part of business
capacities, and take-up is expanding. Regarding bookkeeping process, be that as it may,
there are various clear advantages to receiving it in the place of traditional accounting
system. There are likewise various things against doing it.
Cloud based Accounting System uses the Cloud to store bookkeeping information. It makes
money related data available to proprietors and workers anyplace with an Internet
association. Traditional accounting system, then again, requires an organization, like Goodie
Gumdrops to have a devoted hard drive on which bookkeeping programming is introduced
and money related information is recorded. New companies and SMEs like Goodie
Gumdrops have the most to pick up from embracing Cloud bookkeeping innovation, to
whom the adaptability and versatility are of specific significance. The Cloud gives slighter
firms the capacity to successfully use the sort of preparing power beforehand just accessible
to expansive organizations with a bigger spending plan. Cloud innovation thus can even give
favourable position to sole brokers hoping to better control their accounts.
All things considered, both cloud bookkeeping and customary bookkeeping rehearses have
its own particular qualities and shortcomings. Organizations which are searching for the
accompanying focuses remain to pick up the most by embracing cloud bookkeeping
administrations and arrangements.
1. Since cloud bookkeeping administrations and arrangements are exceptionally financially
savvy and proficient, organizations with a tight spending plan should consider cloud
bookkeeping methodologies for their organizations.
2. Organizations which utilizes remotes representatives can determine extraordinary
advantages with cloud bookkeeping arrangements as far as adaptability, comfort, and
openness.
3. Little and medium organizations, alongside growing organizations, which can't bear to
have in-house information safety efforts can profit military review information safety efforts
from cloud bookkeeping arrangements and specialist co-ops.
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4. Organizations which don't have talented labour to deal with IT-related issues and
catastrophe administration conventions ought to likewise settle on cloud bookkeeping
answers for guarantee the wellbeing of their valuable client information.
In any case, there are organizations out there which still like to rehearse conventional
bookkeeping techniques, regardless of monitoring the considerable included advantages of
cloud bookkeeping arrangements. Here are a couple of organizations illustrations which
need to stick to conventional accounting practices.
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
(522524456231) 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.
Ma, X. (2015). The adoption of cloud computing for small and medium accounting firm
Mageto, J. (2017). Accounting Softwares in Australia. An Overview.
Smith, H. (2017). Xero for dummies. John Wiley & Sons.
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