GMAS Accounting Information System: Process Analysis & IT Use

This report provides an analysis of an accounting information system within the context of GMAS, a company offering outsourced management accounting services. It begins by outlining the current business process framework, identifying key participants, inputs, and outputs. The report then delves into a problem analysis, highlighting inefficiencies related to third-party debt collection and the frequency of management reporting. To address these issues, the report proposes an improved business assessment framework that leverages information technology and streamlines the debt collection process. The recommended changes emphasize the use of a database to facilitate real-time information gathering and enhance the overall efficiency of the accounting system. The report concludes by referencing academic literature to support the analysis and proposed improvements.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................2
Understanding the Business Process in the organization................................................................3
Problem Analysis of the organization..............................................................................................5
Process Improvement and the use of IT..........................................................................................6
Reference List..................................................................................................................................8

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Introduction
Accounting information is looked upon as one of the essential economic data for a
business entity. It directly reveals and administers the business scenario of an organization and
thereby provides a key foundation for the purpose of undertaking business and management
decisions (Kong, 2017). Hence, it is essential to ascertain the efficiency of the overall accounting
system technique. This report would summarize the outputs, participants and inputs of the case.
Thereafter, the present business mechanism framework would be provided and the report will
summarise the existing strengths and weaknesses that are available within the present accounting
system. At the end, the new and the advanced business evaluation framework will be
summarised and the associated weaknesses and strengths will be addressed.
Ismail, & King (2014) constructed a framework of cognitive implementation to the
modifications in the accounting information system and even examined the hypothesis regarding
whether entities implement their decision making system in order to make transformations in the
accounting information system, which is ascertained by the interface of the tasks, precise
knowledge, cognitive capability and influences in order to make suitable decisions.
Khairi, & Baridwan (2015) undertook a study on the examination of a methodology in
order to construct information systems related to GAAP. The intended process recorded GAAP
in the format of an electronic text and is retrieved by the theoretical area.
The research that is undertaken by Diatmika et al., (2016) assesses the inter organization
impacts on accounting information system of the small businesses when the Electronic Data
Interchange (EDI) is incorporated at the request of the renowned partners of trade.

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Understanding the Business Process in the organization
In accordance to this scenario, GMAS has been incorporated in order to create a group of
management accounting services that is outsourced and is constructed in order to satisfy the
needs of the medium and the small scale businesses. Therefore, GMAS needs to make sure that
the overall process is effective and clear. The exploitation of the information technology would
in a precise manner raise the level of productivity. Prasad, & Green (2015) have addressed that
GMAS provides a collection of outsourced management accounting services, so the participants
are inclusive of all the units during the process of accounting. Hence, in this case the applicants
are the accounts receivable, collectors of debts, and department of accounting process, the
clients, payroll department, compliance team, the management and the IT department.
Accordingly, the present business processing framework for GMAS is given as follows:

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Table 1: Current business framework for GMAS
The present model of the business process is efficient and to the point. In a summary,
when a client signs the agreement with GMAS, the system would be assessing. In the initial
stage, the accounts receivable would receipt the consumer and compute the commission for the
sales executive in accordance to the agreement and thereafter the payroll department would
gather the data in order to recognise the salary of every individual employee. At the end, the
accounting information process would obtain all the information and thereafter the IT department
would publish a report that is dependent on the information of the management. The overall
system is very clear and short.

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Problem Analysis of the organization
In accordance to GMAS, there are two elements that might reduce the efficiency. In one of the
aspects, the entire mechanism would be associated to a third party organization, who is the debt
collector. It is a very general plan in order to outsource the businesses is non-core and then
thereafter preserves the central business activities. Islam et al., (2017) explains that debt issues
would have an impact on the wages of the salaries. The process of outsourcing the collection of
debts to a third party organization would be helpful in assisting human resources of the
organization in order to ensure that the human resource would concentrate on the pivotal
businesses. Ismail, & King (2014) cited that every organization have their own working flow
when a new debt is forwarded to the debt collectors and they will assess the business in their own
manner. This process is helpful in reducing the effectiveness of the service. However, Fitriati, &
Mulyani (2015) addressed that the accounting department would provide a report to the
management on a monthly basis, which is a lower level of efficiency in order to administer the
organization. Patel, (2015) explained that monthly and weekly statements would not be able to
ascertain the relevance for the data and this would lower the efficiency. The incorrectness of the
information would not provide the commission to the employee on time and they may have to
wait for weeks or months in order to receive the commission.
The overall method can be enhanced by making use of the information technology and
the development of the work flow and this explained in the figure below:

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Table 2: Recommended use of IT and development of workflow
Process Improvement and the use of IT
The developed business assessing framework has enhanced the utilisation of information
technology and amended the issues related to debt. In a summary, when the consumer signs an
agreement with GMAS, they would be assessing the technique. The accounts receivable would
provide a receipt to the customers and compute the commission for representatives of sales in
accordance to the agreement and additional steps would be taken if the applicant does not pay for

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the service. Bai et al., (2018) addressed that at the conclusion the accounting information system
would gather the information and then the department of IT would publish a report that is on the
basis of the information and this report is effective as they can directly gather the information
from the database. The utilisation of the technology of database would be helpful in gathering the
information at any course of time and this would effectively raise the efficiency of work.

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Reference List
Bai, L., Koveos, P., & Liu, M. (2018). Applying an ontology-augmenting XBRL model to
accounting information system for business integration. Asia-Pacific Journal of
Accounting & Economics, 25(1-2), 75-97.
Diatmika, I. W. B., Irianto, G., & Baridwan, Z. (2016). Determinants of Behavior Intention Of
Accounting Information Systems Based Information Technology Acceptance. Imperial
Journal of Interdisciplinary Research, 2(8).
Fitriati, A., & Mulyani, S. (2015). Factors that affect accounting information system success and
its implication on accounting information quality. Asian Journal of Information
Technology, 14(5), 154-161.
Islam, K., CH, A. R., Bilal, A. R., & Ilyas, M. U. H. A. M. M. A. D. (2017). Accounting
Information Systems: Traditions and Future Directions (By Using AIS in Traditional
Organizations). The Journal of Internet Banking and Commerce, 22(2), 1-13.
Ismail, N. A., & King, M. (2014). Factors influencing the alignment of accounting information
systems in small and medium sized Malaysian manufacturing firms. Journal of
Information Systems and Small Business, 1(1-2), 1-20.
Ismail, N. A., & King, M. (2014). Factors influencing the alignment of accounting information
systems in small and medium sized Malaysian manufacturing firms. Journal of
Information Systems and Small Business, 1(1-2), 1-20.

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Khairi, M. S., & Baridwan, Z. (2015). An empirical study on organizational acceptance
accounting information systems in Sharia banking. The International Journal of
Accounting and Business Society, 23(1), 97-122.
Kong, L. (2017, May). Risk Evaluation Scheme for Accounting Information System Based on
Analytic Hierarchy Process. In Smart Grid and Electrical Automation (ICSGEA), 2017
International Conference on (pp. 556-559). IEEE.
Patel, S. (2015). Effects of accounting information system on organizational
profitability. International Journal of Research and Analytical Reviews, 2(1), 72-76.
Prasad, A., & Green, P. (2015). Organizational competencies and dynamic accounting
information system capability: impact on AIS processes and firm performance. Journal of
Information Systems, 29(3), 123-149.