Flow of Accounting Information System - Free Solution

Question: Describe about the Accounting Information System for Cash Flow of Budget. Answer: Case Study 1 Introduction AIS is a framework that evaluates the financial data of any organization with the aim of making excellent financial or economical management accounting system. AIS keep the track of organizations fund flows and financial assets. The fundamental motive of the financial Accounting Information System is to accomplish the organizations financial necessities by using the latest techniques of accounting and business reporting and provides reliable services. The output produced through this AIS system includes the Cash Flow of Assets, Quality Accounting Reports, Employed Capital Reports and Capital Budget Reports. Accounting Information System The field of Accounting Information System has witnessed several changes in the recent time. AIS software modifies the accounting system of any organization from manual or paper-based ledgers and journals to purely automated or computerized as well as the paperless system. Although AIS system is very effective, even then the transformation of paper-based system into computerized system is done with great efforts. Development and growth of an Accounting Information System is not easy. Accounting Information Systems are commonly utilized by many organizations (Ciftci, 2010). It is because Accounting information System is configured as well as customized to fulfill the organizations requirement. AIS is the framework of records and files which a business utilizes to contol or mangage its accounting framework. Previously many organizations used traditional technique which was a paper-based procedure to accomplish its business reporting procedures with a lot of wastage of money and time. H owever with the introduction of AIS system the interest of organizations has increased towards this new technique to accomplish its business needs. Therefore the expansion of the AIS framework will converge into bigger as well as the more incorporated system like ERP (Collier, 2003). Nowadays, Enterprise Resource Planning framework (ERP) can effeciently perform a wide range of the organizations functions as well as help the organization to integrate its accounting or business reporting into a coordinated database. The ERP and AIS frameworks appear as the most effective weapon which can support an association to achieve the different organizational goals. Moreover, ERP framework can likewise give a wide accumulation of functionalities to a business, endorsed by characteristics like Adaptability of Reports, Quality Management of Reports, Finest Business Forms as well as Quality Accounting and Business Reporting (Fisher, 2007). Business Process Disk4U is the Sydney-based organization which offers CDs and also sells Vinyl Records to its customers. It's a small family enterprise with some outlets widespread across the Sydney city. Currently, Disk4Us main business is to sell products to its clients through different modes such as through shop front, by means of mail as well as through phone calls. Additionally some fresh and innovative methods, for instance, online channels have been presented by Ebay. This development has made it truly important for Disk4U to enhance its manual procedure of business reporting as well as to upgrade the accounting process of the organization. I, as a consultant also believe that the organization need to set up the suitable AIS for its association. Hence the process of selecting an AIS is also included in this report. Disk4U hired me as a consultant to help this organization to provide a report on how technologies are utilized to upgrade the firms operations particularly in the areas of accounti ng. Disk4U is allowed to consume only $150,000 for accounting information ssytem AIS so the chief executive needs a complete report in relation to broad details of AIS software and its vendor. System requirements Disk4U needs an Accounting Information System, which helps in recording, dissecting as well as the recording of the organizations financial data. Besides this, the reason to use AIS is to continuously capture the data that is present in the proceedings as well as to record the income and costs of Disk4U. Organizations choose to execute the AIS to enhance its financial accounting system and its reporting ability (Funnell, 2012). Therefore the organization DISK4U also requires an accounting information system which can support the organization to ensure that its financial data is collected and assembled in a precise as well as in a timely manner. The main aim of the organization to use an AIS is to recognize all the considerable activities which might impact the organization financially. The activities considered in it are loan lending, sales, purchases, investments made and so on. AIS likewise gives an appropriate approach to Disk4U to take care of, as well as monitor its monetary inf ormation, like all the information is arranged in journal ledger and entries. Therefore, it helps organizations to increase the interior checks within the organizations (Issue Information - TOC, 2016). Benefits of AIS: In this focused world, every business requires speedy, reliable, suitable, and satisfactory data for observing, analyzing, controlling diverse exercises those have a critical impact on the organization's performance. Through AIS, an organization can enhance its performance as well as control its assets in an exceptionally well manner (Information technology, 2012). Software Selection: Disk4U FreshBooks: Loved by approximately five million customers, FreshBooks accounting software lets organization to make a professional looking solicitations or invoices within few seconds, automatically it easily records the costs with ease as well as track Disk4Us accounting reports efficiently and quickly. Therefore, higher authorities of organization can concentrate more on some other important factors such as serving the requirements of its customers. One day the president of FreshBooks organization accidentally redeemed its one old invoice, then he got to know that there is better and an appropriate way to handle of manage this reports by use of AIS software (Jiang, 2016). Throughout the following two weeks, Mike coded up an answer and finally transformed its business reporting procedure from manul to automated system which is now named as FreshBooks. Almost after one decade there are more than five million clients of FreshBook accounting software. The FreshBooks accounting software has become the cloud accounting expert for small entrepreneurs. FreshBooks is the software which is utilized by organization at any place and at any time (Mohd, 2005). FreshBooks accounting software is not a twofold bookkeeping program which is intended for each unpredictable accounting issue confronted by professionals, rather it is the customer confronting software which helps the Disk4U entrepreneur and its administrators to easily assemble and compose the information online with the help of effective or advanced format (Lin and Smith, 2006). This solution lets the Disk4Us accounting experts as well as its software assistance team to concentrate more on it and provide High Value Tax Advice and Accounting Services to its managers rather than a manual procedure in which organizing, entering, as well as analyzing of reports is done with lots of time and funds wastage (Nikitkov and Sainty, 2008). This application is likewise so profitable for customers that they can easily compose i ts accounting data and help Disk4U to accomplish its business goals.Thus Disk4Us team can transform its accounting reports from manual to this automated accounting software. Software Vendor FreshBooks accounting software is the cloud-based bookkeeping or accounting software, intended for proprietors of all sorts of business. Moreover for the organizations that send solicitations to customers as well as get paid for its expertise and time. The organization represents itself by providing its brilliant services to around five million clients. The Organization Freshbooks accounting software was initially named as 2ndSite accounting software (Peng and Janie Chang, 2010). The company rebranded the product in 2006 as FreshBooks based on burgeoning Web 2.0 form. Situated in Canada, Toronto, FreshBooks serves to pay clients in more than 120 nations. In July 2014, this organization declared that it had upraised its software rates to $30 million (Powner, 2012). FreshBooks is straightforward and instinctive, so accounting of records is effective and free from errors. Disk4U organization invoiced its customers by providing cost effective accounting and business report services in th e blink of an eye. FreshBooks saves clients time of its customers at an average of two days monthly from daily accounting tasks. With the help of the Freshbooks accounting Software, Disk4U spend less time on the paper-based work and focus more on the other important tasks of organization and spend time in performing tasks which matter the most. FreshBooks is gives a chance to Disk4US business owners in order to get composed and arrange its accounting services and get paid for quality services. The FreshBooks accounting software makes professional invoices, accept credit cards, log receipts. It also makes it speedy and simple to produce well-known reports like benefit and misfortune reports, tax summary reports, cost reports and a few more. Effortlessly, Sort and Filter, Reports taking a look who is slow to pay shared Journal ledgers to Disk4U accountant. Freshbooks software makes an effective recording and collection of Invoices in just a few seconds and helps Disk4U to take its bus iness to the next level (Romney and Steinbart, 2006). Conclusion In this study, it has been concluded that AIS plays a significant role in any organization to accomplish its goals and to take its business to the next level. Fast, reliable, proper and satisfactory data go through the top to bottom as well as from bottom to top through this accounting information system. It concludes that AIS supports in enhancing the Disk4Us performance by highlighting the several concerned areas of its trade. Therefore, AIS FreshBooks accounting software is the essential software for Disk4U to keep its accounting data safe and secure. Therefore, the organizations use FreshBooks AIS as per their needs and in a way that organizations can also modify them in the future. Case Study 2 Introduction Accounting Information system (AIS) offers a perfect financial data framework for the company to take enhanced nonfinancial as well as financial decisions. AIS and ERP provides a framework for easy accumulation, collection, and assessing of organizations financial data. AIS are utilized within the organization, before taking any sort of delicate accounting decisions. It is a computer-based system to complete organizations accounting tasks. This is a report for a Sungate organization to provide a detailed study of the procedures of selecting AIS to take some informed decisions in the field of accounting software to upgrade its business in future. AIS provide support to employees of Sungate to select suitable AIS software to accomplish its business fruitfully and overcome many issues which affect the organizations accounting system. Accounting Information System Accounting Information System (AIS) is a framework utilized to record a business and to keep-up its accounting framework. AIS consolidates the bookkeeping and updated field of the accounting data framework. The Data framework incorporates individuals, procedures, methods and data innovation in adaptable assets to handle information. Moreover, AIS is a subset of Management Information System (MIS) which is utilized in every stage of accounting administration in organization to help managers in decision-making processes (Simon, Stier and Reese, 2015). AIS accounting software is a conventional bookkeeping technique and contemporary model in bookkeeping practices. It is assumed as an essential factor to overcome the time waste during the dealing of the organization's accounting activities. Moreover, AIS is a system to collect as well as to record the information about the exercises and exchanges, planning, processing of the information and transforming it into data to be utilized for bas ic leadership. AIS helps the organization to automate the procedures of business bookkeeping performance and arrangement of expository data. The Procedures, Information and Exchanges accessible from Sage50c give clients with a data so that they arrange, control and do work as per their needs. In olden times, when the bookkeeping data was handled and recorded in monetary articulations physically, it was generally less demanding for the evaluator to watch the review trail created in a physical configuration. The Information System included in some parts of bookkeeping frameworks is used to mechanize the minor bookkeeping procedures, for example, payroll processing. After some time, bookkeeping and data frameworks began to coordinate and additional bookkeeping tasks were automated. The key hidden driver of advancement is just that bookkeeping no more drives the data framework; rather the data framework drives the bookkeeping (Suryanto, 2011). Accounting Information System is a smaller part of the entire Information System (IS) of the association and as associations keeps on increasing their dependence on PC technologies to process, record as well as report monetary data, reviewers will without a doubt need to depend on a fresh data innovation strategy in a conduct of its reviews. Benefits: Accounting records and files are investigated and reports are set up with the assistance of AIS. This builds the precision and reliability; quality of reports since AIS is well fitted for giving mistake free data. Business Process Sungate Foods, the Victoria-based organization, is the producer of rice as well as wild rice. It processes up to eighty tons every hour. In the year 2013, Sungate utilized a base of approximately hundred employees in three warehouse centers in Western Victoria along with a marketing office located in Melbourne. In the peak season, the process of organization reaches approximately eight tons every hour, where the employees tops Two-hundred per day, in a weekly shift. Employees worked weeks completing the business reports and financial data from the theory ISs and its configurations. In some specific circumstances, a few choices could not wait for the satisfactory data so the stock is generally kept very high to guarantee to complete the orders. The Chief Executive of Sungate organization hired me as a consultant to provide them a report regarding the AIS selection procedure to enhance its accounting as well as business systems under the budget which is $150,000. System requirements This IT Age characterizes electronic confirmation as data is transmitted, prepared, kept up, and accessed by electronic means and then it is utilized by an examiner to assess monetary articulation assertions. The idea of electronic confirmation made new difficulties for the advanced examiner as the customary review trail could not be observed again and again. This required examiners of Sungate to consider the utilization of PC review strategies and keep in mind the end goal to have the capacity to review tests on electronic proofs (Wang, 2008). The utilization of new procedures will, in the long run, enhance the viability and effectiveness of the review and Sungate's accounting examiner will be free from completing numerous conventional routine tasks and concentrate more on important tasks, for example, customer's needs. AIS works towards the achievement of Sungate's business profits when there is a consolidation of data and correspondence advances. Hence, it will drive towards the d evelopment of bookkeeping practices. Some of this responsibility generally is Procedure Administration and Operational Exercises Christensen, 2010). In modern associations, it becomes significant that the accounting information framework produces the information which is aligned or adjusted to a strategic point of view (Whittred and Zimmer, 2009). This are some requirements which Sungate need for its AIS model. Therefore, accounts division of Sungate will not only audit the internal operations, however, they will likewise work in producing information which provides benefits to Sungate by taking external decisions (Wild, 2005). Software Selection: Sungate Sage 50c: Sage50c accounting Software is the best solution for Sungates business. Sage50 accounting software is reliable and trustworthy desktop software with anywhere, anytime, cloud access. This accounting software is a perfect solution for Sungate to work within a accounting program. The organization runs this software from anywhere and at any place. Sage50, accounting software comes with some application such as accounting software should be installed in an accounting framework and have complete Internet access. Sage50c accounting software provides Sungate organization the best or appropriate accounting standards as well as affordable subscription program that give the prizewinning value for Sungate's business. With the help of Sage50c easy or effective business accounting software the Sungates invoices became more effective (Vasarhelyi, Kogan and Tuttle, 2015). The Sage50c accounting software provides best accounting guidelines, safe desktop installation and unqualified access t o help and provides subscription programs that provide the best esteem for Sungates business. When Sungate decides to move its business procedures to the cloud platform it need to keep its accounting information safe on the desktop as well as expand its potential on a cloud platform and online applications. Sage50c accounting software is a well-known project as it incorporates an assortment of imperative and easy to understand features. While utilizing this accounting software, windows as well as data entry screens, match its genuine paper partners; for instance, Sales Journal screen matches a paper receipt. The Sage50c accounting software is an easy to learn software, providing Sungate with icons, menus as well as toolbars and keyboard excited commands (Zhang, 2008). With the help of Sage50c accounting software, Sungates payroll entry system become straightforward and eliminates the requirement of the manual payroll system. This accounting software helps Sungate to keep suitable tr ack of its inventory (Penno, 2008). Software Vendor If Sungate association is looking to grow and thrive, Sage organizations accounting software helps it at any time and at any stage by providing best accounting software. Sage provide the solution for Sungate to keep its accounting process on track. Achievement in the field of accounting software is simply ahead of Sungate. Sage offers straightforward, practical, solutions for organizations like Sungate whether it need its information on-site or within the cloud (Warren, Moffitt and Byrnes, 2015). Sage helps Sungate to bring its business to a higher level. It's not only about providing Sungate with a solution however, Sages accounting software provides a system to help Sungate to succeed and give some tips and exhortation to Organization's business managers to take its accounting system to the next level. More than Six million clients globally trust Sages Thirty years of brilliant experience. Sages accounting software manages the accounting of Human Resource, ERPs, payrolls, payments, resources as well as real estate organizations (Collier, 2003). Sage Organization covers Sungates business needs from simple cash management to billing procedures as well as provide full accounting or inventory management of accounting reports. Conclusion This study concludes that the role of AIS in Sungate organization is to address the requirements of the Sungates Accounts division and provide aligned organizational requirements. It has also been concluded that the modern association will fail to take decisions in the absence of effective accounting information frameworks. Hence, AIS will empower in providing data that modern associations can utilize to take suitable as well as sound decisions. Furthermore, it differs from one accounting business to another. It also concludes that AIS should help every organization to achieve its goal by enhancing its accounting models and improves its decision-making processes. References Bhimani, A. (2012). Management accounting system implementation success: is reporting useful information sufficient?. International Journal of Accounting, Auditing and Performance Evaluation, 8(2), p.115. Chapman, C. and Kihn, L. (2009). Information system integration, enabling control and performance. Accounting, Organizations and Society, 34(2), pp.151-169. Ciftci, M. (2010). Accounting Choice and Earnings Quality: The Case of Software Development. European Accounting Review, 19(3), pp.429-459. Collier, P. (2003). Accounting for managers. West Sussex, England: J. Wiley. Christensen, J. (2010). Conceptual frameworks of accounting from an information perspective. Accounting and Business Research, 40(3), pp.287-299. Fisher, I. (2007). A prototype system for temporal reconstruction of financial accounting standards. International Journal of Accounting Information Systems, 8(3), pp.139-164. Funnell, W. (2012). The information master: Jean-Baptiste Colbert's secret state intelligence system. Accounting History Review, 22(1), pp.100-103. Information technology. (2012). [Washington, D.C.]: U.S. Govt. Accountability Office. Issue Information - TOC. (2016). Australian Accounting Review, 26(1), pp.1-1. Jiang, X. (2016). Biases in Accounting and Non-Accounting Information: Substitutes or Complements?. Journal of Accounting Research. Lin, P. and Smith, L. (2006). Using a Web Based Accounting System for Teaching Accounting System Design and Implementation. Journal of Information Systems, 20(2), pp.65-79. Mohd, E. (2005). Accounting for Software Development Costs and Information Asymmetry. The Accounting Review, 80(4), pp.1211-1231. Nikitkov, A. and Sainty, B. (2008). Designing and Implementing an Information System for the Dental Office of Branckowitz Young. Accounting Perspectives, 7(4), pp.341-352. Peng, J. and Janie Chang, C. (2010). Applying XBRL in an Accounting Information System Design Using the REA Approach: An Instructional Case*. Accounting Perspectives, 9(1), pp.55-78. Powner, D. (2012). Information technology. [Washington, D.C.]: U.S. Govt. Accountability Office. Penno, M. (2008). Rules and Accounting: Vagueness in Conceptual Frameworks. Accounting Horizons, 22(3), pp.339-351. Romney, M. and Steinbart, P. (2006). Accounting information systems. Upper Saddle River, N.J.: Pearson Prentice Hall. Simon, J., Stier, B. and Reese, S. (2015). Numerical analysis of layered fiber composites accounting for the onset of delamination. Advances in Engineering Software, 80, pp.4-11. Suryanto, S. (2011). Design and Analysis: Payroll of Accounting Information System. CommIT (Communication and Information Technology) Journal, 5(1), p.24. Vasarhelyi, M., Kogan, A. and Tuttle, B. (2015). Big Data in Accounting: An Overview. Accounting Horizons, 29(2), pp.381-396. Warren, J., Moffitt, K. and Byrnes, P. (2015). How Big Data Will Change Accounting. Accounting Horizons, 29(2), pp.397-407. Wang, Q. (2008). Software Defect Prediction. Journal of Software, 19(7), pp.1565-1580. Whittred, G. and Zimmer, I. (2009). Accounting Information and Joint Arrangements. Accounting Finance, 26(1), pp.1-12. Wild, J. (2005). Financial accounting. Boston: McGraw-Hill/Irwin. Zhang, L. (2008). Software Architecture Evaluation. Journal of Software, 19(6), pp.1328-1339.