Cloud Based Accounting System Report for Goodie Gumdrops: Analysis

This report provides an executive summary of the benefits of implementing a cloud-based accounting system for Goodie Gumdrops, a startup company. It contrasts the cloud system with traditional methods, highlighting cost savings, accessibility, data backup, and real-time financial tracking as key advantages. The report also acknowledges potential drawbacks, such as the need for internet access and skilled employees. It recommends that Goodie Gumdrops adopt a cloud-based system, and suggests software options like MYOB and XERO. The report includes example financial reports like profit and loss statements, balance sheets, and trial balances, along with assumptions and a reference list of relevant sources. The student's report underscores the efficiency and cost-effectiveness of cloud accounting in modern business environments.

Client Name: Goodie Gumdrops
Your name:
Topic: Accounting Information System
Date:
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Executive summary
The accounting is an essential process of any organization. The growth of any business
depends upon the effective utilization of accounting tools and processes. In current advanced
business world, Cloud Based Accounting System is playing a vital role over traditional
accounting system. A system where accounting transactions are process and stored in the
servers/ clouds by using a network system and internet is called Cloud Based Accounting
System. Where traditional accounting system uses books, registers, slips and lots of paper
work to complete the accounting process, at the same time Cloud Based Accounting System
is using internet and network to process and store all the data and transactions in the cloud
and thereby making the whole accounting process a lot more easy, flexible and immediate.
Moreover the cloud based accounting system is also reducing the burden of cost to a great
extent.
For a start-up company like Goodie Gumdrops, cloud based accounting system can be very
much beneficial in many ways. Firstly, the cost of running a cloud based accounting system
is quite low in the long run when compared to the traditional accounting system where the
employees needs to maintain a lot of paper works, registers, files, etc., which not only
consumes a fair amount of space but also it is quite expensive process. Whereas the Cloud
Accounting System requires only one time installation charge which is very much reasonable.
Secondly, in traditional system of accounting the data and transactions can be accessed by
one user only at a time from the machine installed at the workspace. But in case of Cloud
Accounting System any transaction can be assessed from any place or from any device and
by multiple users simultaneously. Any user can enter or get access to the records on the go
from any device that is having an internet connectivity. The third and a vital characteristics of
cloud accounting is Backup of data. In traditional accounting system, to make a backup of the
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transactions the staff would need to manually record all the records and transaction several
times which is a very painful work to perform. But this problem now has a better solution.
Data once recorded in the books through accounting software gets automatically backed up in
no time. This save both time and cost on the part of the company. The employees can utilise
those valuable hours in other jobs of higher values. The important feature of Cloud
accounting is that the owners of the business and the advisors can track the business
proceedings on real-time basis. That means at the time of making any crucial decision the
owners and advisors can get access to the real time financial position of the company with
updated records and transaction until the last second with the help of cloud accounting
system.
It can be seen that despite of having many advantages, the cloud accounting system also have
some drawbacks as well. It includes facts such as internet without the presence of which one
cannot get access to the data or records. Secondly, this system requires highly professional
and skill employees to execute the operation. Knowledge of IT and computer system is
necessary in this case.
Considering all the above facts it is recommendable for companies is Goodie Gumdrops to
adopt Cloud based Accounting System in place of traditional accounting approach which will
not only save a lot of time but will also help them to work more efficiently than before.
Moreover it will also reduce the cost of maintaining accounts and performing accounts
related works. Some Cloud accounting software that Goodie Gumdrops can target are
MYOB, XERO, etc.
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Financial reports for Goodie Gumdrops
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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
Assumptions:
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The assumptions are given below:
 The assumtion is that purchased item is of cost at $1 per unit;
 The selling value is $1.50 per unit;
 The begining bank balance is taken to be 0
 The 3rd August 2017 is taken as the date that is missing;
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Reference List
Hoyle, S. (2016). Focused on expansion with AZNGA. Professional Planner, (87), 14.
Jenkins, J. (2016). Learning Xero. Packt Publishing Ltd.
Kosalge, P. U., & Ritz, E. (2017). Identifying the antecedents to ERP adoption. International
Journal of Business Innovation and Research, 13(3), 344-362.
Mageto, J. (2017). Accounting Softwares in Australia. An Overview.
Wyslocka, E., & Jelonek, D. (2015). Accounting in the Cloud Computing. Turkish Online
Journal of Science & Technology, 5(4).
Yigitbasioglu, O. M. (2015). External auditors' perceptions of cloud computing adoption in
Australia. International Journal of Accounting Information Systems, 18, 46-62.
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