The purpose of this report is to discuss how effective the computerized accounting information system will advantage a company that is growing in expenditure, revenue and other key areas of business.
Introduction to Accounting Information System
AIS is a system that gathers and stores accounting data, after that process the data into useful information utilized by the decision designers (internal and external users). The information made by AIS can help decision machine to manage their business more efficiently strategically. However, accounting information system can be manual using the original way of recording business transactions manually using paper-and-pen. Today the word AIS known as compound computer bottom part system that merges the ability of information technology as well as traditional accounting ideas and practices.
A big benefit from computerize accounting information system is that they automate and make financial reporting better. Accurate and summarized, well-timed information is a major tool for organizations decision making and financial reporting. The accounting information system move imports data from the machine repository, process and transform it and finally produces information and studies which may be easily consumed and examined by the users, professionals and decision producers. These systems are required to ensure that the reports are timely and relevant so that decision creators are able to quickly and proficiently base on the information provided in the studies. Consolidation is one of the greatest characteristic of confirming as user does not have to go through a massive variety of transactions. For example, at the end of the accounting period an accountant consolidates all repayments by owning a report on the machine. The system program layer reclaims the data stored in the machine databases and produces a written report with the total payments made to the sellers for that particular period. With large firms which have huge volume of transactional data, creating a report without AIS can take day or even weeks.
Case analysis background
River Adventures is a fifteen years old company found in Cheddar, Somerset, owned and managed by Robin Forsythe. Until recently river adventures business has been highly seasonal offering two different kayaking instructions for beginners and Intermediate level as well as kayak and rafting vacations down the river Axe in Somerset. They also usually rent equipment to participant if indeed they required. However, the business is facing a thrilling challenge which will adjust the size, the type of service offered and the seasonality of the business enterprise. Robin has recently obtained two new sites and he's planning to start a fresh team blinding course (commercial activity) and he is expecting a huge amount of new participants to the specific course.
Financial management and business procedures field
Robin working his business very informally using manual methods in every areas. He always predicts the bills for each course based on his working experience. He also handles the purchasing activities of the company and concern invoices for members on the course. At the end of the year he determines his gain his total earnings without the total expenses during the year. Robin set the prices by consider his benefit from the previous season, assess his rivals price and make adjustment for inflation.
Robin employs an office administrator plus a amount of kayak trainers and raft manuals. The administrator handles Accounts Payable and Cash Receipts and details them in the Income Journal. He also maintains simple basic ledger and payroll register for tax purposes only, no use of the accounting data is perfect for financial planning or for procedures control. River escapades advertise through leading outdoor magazine, he also advertises about the approaching season's program on popular kayak retail notice board.
Robin is not happy with the design of his business and he matter about how he will keep keep tabs on on expenditure and revenues as the business get bigger. Robin feels that there is unnecessary wastage of the business resources as there isn't real control over the expense of foods provided to the beginner's course. Furthermore he notice that recently you can find diminishing in the stock of camping as well as small items is also being lost. Robin has suspicion about the operation of marginally went to classes, but no examination has been done to verify his suspicion. Robin thinks there is absence in his marketing activities and he can simply draw in more customers by enhancing his marking activities.
Robin find out about 40% of kayaking course individuals continue kayaking. Therefore his customer base reflects a marketplace for direct selling of kayaking and other equipment. He'd like to increase his sales into a complete scale direct mail/internet business. Doing this would permit him to provide year-round work for a few kayaking employees.
Users of Financial Information
Accounting information system purpose is to recognize record and talk the economic events of an organization to the planned users. The type of information the user requires is dictated by the kind of decisions they make. The info provided by the financial statements includes a business resources and cases against those resources, as well as shareholders collateral and changes in possessions and liabilities. Financial information differs between the internal and exterior users. Accountants must understand the characteristics of information required by the various users of financial statements.
"In expanding financial reporting specifications, standard setters presume that those who use the resulting information will have a reasonable knowledge of business and economic activities and be able to read a financial article" (Financial Accounting Expectations Mother board, 2006, p. 2). The aim of communicating financial information to end user is to let accountants to handle the needs and interest of users. There are many different users of financial information and included in these are: equity shareholders, suppliers, creditors, customers, employees, government authorities and their businesses and people of the public. Those users are recognized as interior and exterior users of financial information.
Robin and his management use financial information to plan, coordinate and operate the business enterprise. And this includes the office administrator, the make, maintenance person and the kayak trainers.
There are quite a few types of external users of financial information and this includes lenders shareholders, tax authorities, general mass and advertising. Invertors use financial information to determine whether to buy, maintain or sell their shares. Whilst suppliers and lenders view financial statement to assess the fitness of an organization and to ensure timely repayment of credit. Other external users include collateral investors, customers, collectors, general public and governments and their agencies and regulatory physiques.
The Functions, Features and Reports of UBS Accounting Information System
UBS Accounting Software
Since Robin is eager to increase his business activities, UBS Accounting software will permit him to handle and increase all accounting functions in his business. UBS has the function to handle multiple company transactions. By putting into action UBS Robin will be able to examine the performance of the three sites that he possesses successfully and effectively. UBS gets the function to see all accounts and records of each site separately. The program will also provide him with a consolidated consideration where he can assess the performance of the complete business. In addition UBS accounting has the function to compute good and service required by federal agencies, so the office administrator is no longer required to spend time with the overall ledger computing tax liabilities and he can concentrate on other aspect of business instead. UBS accounting software is very adaptable; it is competent to manage up to 1. 5 years transactions therefore, the business won't have any difficulties to implement the program at any time they would like to.
UBS Accounting produces pre define reports. However the majority of the accounts can be improved to match any business requirement. THE PROGRAM standard reports are:
- General ledger Listing
- Trial balance
- Trading, Profit & Reduction Account
- Balance Sheet
- Fixed Assets Depreciation Statement
- Manufacturing Account
- Trading, Earnings & Loss Take into account individual job
- Cash Flow
- Budget & Variance Reports
- Gain/Reduction on disposal of Fixed Assets
- Bank Reconciliation
- Debtors & Lenders Statements
- Debtors & Creditors Listing and Labels
- Debtors & Creditors Aging Report
- Receipts printing
- Payment Vouchers producing and management reports
- UBS Stock Control Software
UBS Stock Control is a real time system that changes the stock soon after entries. In addition, it performs as an invoicing system whereby Robin can printing invoices and delivery requests. A simple yet powerful Costs of Material component has been included to enhance the machine.
Four approach to stock valuation are given in the machine, namely Preset Cost, First in First out (FIFO), Once a month Moving Average and Moving Average. If required, a picture of stock item may also be inserted. By applying UBS Stock Control, Robin will have superior control over his stock because the software can control and keep tabs on all the movement of inventory in the company Besides the software has potential to take care of multiple company orders therefore they can control the inventory of every arm of business individually.
UBS Stock Control produces the following reports:
Print Delivery Order / Invoice / Cash Sale
Print Sales Order / Purchase Order / Debit Word / Credit Note
Re-order / Stock replenishment recommendation
Month as of yet stock position reports
Stock aging accounts
Multi-sorted sales analysis statement by :-
Gross profit evaluation accounts by :-
Yearly sales & purchase report
Top 25 revenue by number and sales value
Item graded reports
Serial number reports
UBS Payroll Software
UBS Payroll for Windows fulfills all government requirements such as KWSP Borang A, SOCSO Borang 8A / 2 / 3 and TAX EA Form, CP8D, CP22, CP22A, CP39 and CP159. It is becoming a powerful payroll system for everyone kind of businesses and sectors because of its capability of processing monthly, weekly, daily, hourly part rating. It has 3 function of repayment- regular, daily and hourly. In addition it compute allowances stand, user described overtime as well as tip point and piece rate computation.
Reports made by UBS Payroll:
A. Statutory Accounts:
IR8A / IR8S
SDL / FWL
B. Management and operational reports:
Payroll Summary - Basic Pay / Allowances / Deduction / Overtime / CPF / SDL / FWL
Personal and Payroll reports
Leave taken / given reports
Work drive / Turn over analysis
Net pay by cash / bank
Yearly employee pay summation
C. Records to be submitted via computer diskettes:
Employees contributions / online pay can be output to diskette and sent to lender, EPF, Socso and IRD for accounts to be kept up to date.
The System Requirement
Pentium II 266 MHz or higher
128 MB recollection or even more
800 MB or more disk space
1 floppy drive drive
1 CD Rom Drive
Windows 98, Gain2000, WinXP and above
Users and Stakeholders Requirements
AIS aim to provide information for both interior and external users-primarily for exterior information users. Considering that external users have a range of information needs, financial accounts need to comply with certain standards in order to fulfill them. Compared to that end, the recognized users of financial accounting information should have their information needs addressed. In that way, one can determine the framework where accountants produce financial records.
In the situation of River Experience, Robin is the only shareholder of the business. Robin will be able to base his financial commitment on the financial position and success of the business which is provided by the new accounting system. The information provided by the AIS can also be helpful for potential investors in the event if Robin want to grow his business in the future and sale shares of the business to other buyers. Robin would be matter about the viability of the company or his profits on return, while potential shareholders want to know that they are investing in a strong company.
The highly summarized character of financial accounts provided by the new system, allows Robin and his management to determine if the company's proper and tactical aims are being attained. Knowing the position of the business allows these to fine-tune the day-to-day running of the business with understanding of the impact with their decisions on the business's power and viability.
Creditors like banking companies and financial institutions have a preference to cope with a economically well company with a solid cash flow because they're worried with personal debt repayment and recovery.
Employees like the raft guides, camp cook, trainers and the office administrator are concerned with if the company will continue a heading concern and if they might face and whether can require wage raises. Trade unions usually take notice of the financial position of your organizations to make wage increase requirements as well.
Suppliers such as Rustic Retreats, local butcher, grocers and camping and sport equipment suppliers are worried with if they provide you with the company on credit conditions and may aspire to contract with the company as a heading concern.
Customers/Clients (and financial advisers/analysts)
Customers like company desperate to send their employees on team development course and specific students, would also get worried with the business being a heading concern.
Tax specialists like Inland Revenue, Yearend dividends and Taxes liabilities need to examine chargeable income of entity to determine whether the right amount of taxes is being levied in a specific year.
Government includes all federal or state businesses like the Central Standard bank. These firms would use financial claims to ensure conformity, especially with the representation of the financial position of the business enterprise and accounting benchmarks. The government also uses information from financial accounts for national information such as Gross Home Product.
"general public" simply identifies the rest of society. Business actions impact society and the environment where River Experience operates its business, therefore the public, which includes lobby group, would assess the entity as a commercial citizen.
Business process models
The revenue routine - Sales
The sales segment of the earnings cycle begins whenever a consumer places an order. If the purchase order is received, a worker of the company enters the mandatory data into the accounting system keying the order into an suggestions screen. With the available online data files, the type data can be revised, the customer's credit statues can be examined, and inventory level can be examined. Also a customer's credit limits will be assessed such that it does not go over and keep tab of the available inventory items.
The customers' accounts details and sales records can be up to date using the order processing. Relevant documents had a need to fill and deliver the order are branded. These documents include a find list, a packing slip, an invoice, and expenses of lading. The pick list functions as a list for warehouse employees to choose items from the warehouse shelves. The packing slide is utilized by the shipping personnel to ensure right items are loaded. An agreement between the common carrier and the business comes in the proper execution of the monthly bill of lading. The invoice is then delivered to the customer.
Towards the end of the month, customers are given the bill in line with the statement. Regular regular monthly information would include sales reports, inventory status studies, and account receivable reports.
The expenditure cycle
To keep the payroll in check, an electronic time clock gathers time and attendance when employees put their time sheet in to the clock. Enough time clock then reads the pub codes on the employees' time sheet. The system thencollects data through-out the period and automatically calculates batch totals. The data batches are then used to prepare paychecks and the payroll register.
The purchasing division order items from a merchant and a worker must type in a purchase order into the accounting software by keying data in to the fields of an purchase order form on the screen. The receiving office receives the goods and compares the packaging slide with the purchase order to verify part amounts and volumes. A receiving survey is made by an employee filling in the appropriate areas in a getting screen in the software and inventory data are updated, the individual completing this display screen must choose the purchase order that matches this receiving record. When owner name or ID number is inserted, the machine will list available purchase order get back vendor. Following the vendor has provided an invoice, the invoice must also be entered into an entrance screen in the accounting software. Again the proper purchase order must be chosen from a list to wide open purchase orders. In case the purchase order, getting report and invoice match as to part numbers, amounts and prices, the liability is approved for repayment. At the deadline of the invoice, a designated person must choose certain invoices to pay and also have the system make a batch of investigations.
How the outputs of the new accounting information system will help River Adventure to resolve their problems.
The new accounting software has the capacity to generate earnings/loss and balance sheet at any time required thus Robin will keep track on his business costs and income as the business expand.
The new accounting software also has the ability to produce break-even point studies so Robin and his management can validate their dubious about the functional marginality of every course.
The sales records, and bank account receivable reports produced by the new accounting system will solve the condition of cash sales being vanished from the business accounts.
After applying UBS the business will have an effective control over the price of meals professional to the beginner's course as the software possess the facilities of budgeting process within an company as well as management handles of business activity. Unneeded wastage of food material will never be happened as the unused bulks of food will noted as Work HAPPENING Inventories by the new software.
UBS Stock Control real-time upgrade of stock with each receipt and problem of items, the business will not have the situation of inventory item being lost as the program can trail the stock via unique serial code. The business can make a much better control over the stock whereby the program will provide thorough inventory report at any time required.
After implementing UBS payroll any office administrator won't have the difficulties of computing the wages and bonuses to be paid for his trainers since UBS Payroll relieve the duty of stuff payroll computation and obligations.
Since the new accounting software will save lots of time and effort to the employees of River Experience, the management will have significantly more time to give attention to other aspect of business and to improve their marketing activities.
Also We Can Offer!
- Argumentative essay
- Best college essays
- Buy custom essays online
- Buy essay online
- Cheap essay
- Cheap essay writing service
- Cheap writing service
- College essay
- College essay introduction
- College essay writing service
- Compare and contrast essay
- Custom essay
- Custom essay writing service
- Custom essays writing services
- Death penalty essay
- Do my essay
- Essay about love
- Essay about yourself
- Essay help
- Essay writing help
- Essay writing service reviews
- Essays online
- Fast food essay
- George orwell essays
- Human rights essay
- Narrative essay
- Pay to write essay
- Personal essay for college
- Personal narrative essay
- Persuasive writing
- Write my essay
- Write my essay for me cheap
- Writing a scholarship essay