Accounting And Business System Software And Planning

Posted on May 27, 2023 by Cheapest Assignment

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ASS058-3 Assessment Guidance Template

Introduction:

These kinds of systems enable a business enterprise to collect, store, manage, and keep track of all the accounting management and operations that are carried out on a day-to-day basis. The nature of these systems depends on the nature of the business enterprise it gets deployed in. It enables the management of the respective departments like accounting, financial auditing, business analysts, etc. to perform various  For instance, a particular Accounting Information system that is being used for an organization that deals with the retail industry would differ significantly from the one used in a company that deals with warehousing (Al-Hiyari, AL-Mashre & Mat, 2013).

Primarily, account information systems form a subset of the accounting and business system class of software. A basic accounting and business system in the form of an Accounting information system can be used for a variety of functions that include book-keeping and maintaining a ledger on an online platform, auditing, reporting and financial report generation, data analysis, and assistance in final decision-making, taxation, etc. Many other functionalities can be added to this basic framework for incorporating additional features as per the business needs (Ismail & King, 2014).

Enterprise Resource Planning (ERP) software: This class of software has found commonplace in most small and medium-scale business enterprises and the popularity that it has garnered over the years can be attributed to a lot of factors as follows:

  • Effective resource planning in departments like HR, finance, accounting, etc. where traditionally manual labor was used for the same.
  • A well-designed ERP system has better security features that prevent unauthorized access and misuse of data.
  • Raises the quality and efficiency of various business operation
  • Through the use of business intelligence, a lot of basic as well as high-end functions are automated like report generation regularly, and tools for analyzing data to make better real-world business decisions.

ISSC 451

AIS System Design

The realignment of various attributes and business functionalities (operations) that are being carried out for keeping the business running is a part of the business process design. While designing an AIS/ERP system, the system developers and the board must understand the feasibility and the steps involved (Sari, SE & Purwanegara, 2016)

 

  1. Present process documentation: This includes the analysis and documentation of the various business processes undertaken. The existing working of the system presently in place is made along with the various demerits that it currently suffers from. Bridge these shortcomings in the new AIS/ERP system via a new software platform becomes the key to enhancing the functionality of the new system.
  2. Proposed process documentation: on this stage, changes are made to the existing business processes and operations that would be fundamental to the new system design. Before making any final changes to the system build to be incorporated d, the same is checked and cross-checked for any fault that might become crucial at a later point in time.
  3. Implementation of the new process and system build: This comprises the implementation of the finalized business process design and getting it ratified by those who are the decision-makers on the client side. The same is tested against test cases to judge their effectiveness and efficiency. In case of any discrepancy, adequate changes are made before final implementation.

The life cycle of AIS System development

As mentioned earlier, the overall design of the system is dependent on the nature of the business as well as the exact configuration and requirements as put forward by the client. The acquisition of the system requirements, based on which the accounting and business reporting system designed is furnished, happens at the beginning of the development cycle (Romney & Steinbart, 2015). The exact methodology followed in the system development life cycle is dependent on a lot of factors like whether the system is being built from scratch or not, the nature of the customizations that need to be carried out to make it deployable in an organization with a pre-existing system to perform the same business operations.

It must be understood that this step is the precursor to the execution of the actual software development (Alewine, Allport & Shen, 2016). Hence, care is taken that every attribute and aspect of the various business processes as well as the requirements that were furnished in the business process design stage is considered and taken care of. In the case of this AIS/ERP system, the following steps are followed to make the final documentation called SRS the deliverable at the end of this process:

  • Initial investigation: At the point when the client goes over an issue in the current framework or a new prerequisite for computerization, a formal demand must be submitted for framework improvement. It comprises three sections; ask for cancelation, practicality study, and demand endorsement (Dillard & Yuthas, 2013). A possibility study is led which incorporates the angles identified with specialized, monetary, and operational plausibility relying on the quantum and size of the necessities. Endorsements looked for from top administration to start the framework advancement.
  • System analysis: once the demand of the framework advancement is endorsed, an itemized necessity study is directed in close communication with the concerned representatives and administrators to comprehend the point-by-point working, deficiencies, and bottlenecks and to decide the elements to be incorporated into the framework obliging the necessities and prerequisites of clients. This procedure is named a ‘Framework Requirement Study (SRS)’ or framework investigation.
  • Design of the system: The movement includes a philosophy and ventures to be incorporated into the framework to address distinguished issues and prerequisites of the framework (Ibrahim, 2013). The investigator plans different strategies, reports inputs, documents, and database structures, and readies the far-reaching framework outline. These particulars are then passed on to the improvement group for program coding and testing.
  • Acquisition and development of software (AIS / ERP): Once the framework configuration points of interest are settled and SRS is acknowledged by the client, equipment, and programming subtle elements alongside administrations prerequisites are resolved and secured picking the best-fit alternatives (Muhammad & Kusuma, 2014). Therefore, decisions are made in regards to which items are to be purchased or to be gone up against rent from which sellers. The decision relies on upon many variables, for example, time, cost, and accessibility of developers. The examiner additionally works with clients to create documentation for programming and different technique manuals.
  • System testing: When every one of the projects involving the framework has been created and tried, the framework should be tried all in all. Framework testing is led with different accessible choices to guarantee that it doesn’t bomb in any condition (Reimers, 2014). The framework is relied upon to keep running according to the determinations made in the SRS and clients’ desires. Live test information is contributed for preparation, and results are inspected. On the off chance that it is discovered agreeable, it is in the end tried with real information from the present framework.

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Advantages and disadvantages of AIS/ERP system:

Pros:

  • Cost-effective in the long run.
  • Allows a well-organized centralized system that brings together the functionalities of different departments in an organization in a single platform.
  • Superior technological edge over the traditional, manual operations
  • Better security features and configuration for the safekeeping and management of sensitive data
  • A reliable and consistent system that aims at a long-term usage of the system resources for the business enterprise.

Cons

  • High initial cost
  • Data migration of the existing data and documentation are required.
  • Personnel need to be trained and instructed before they can use the system in their respective departments.

Case study 1

The first case deals with Disk4U, a company that deals with CDs and Vinyl records, etc., and operates out of Sydney in four different outlets around the Sydney metropolis. The business uses channels like brick-and-mortar outlets in the city, orders placed via call and mail, eBay, etc to sell its goods (Abduljalil & Zainuddin, 2015).

The company has been planning an expansion for a while and would like to put in place a business accounting and reporting system to automate the functionalities that were carried out manually before. The budget that has been set aside to incorporate and deploy an accounting information system and ERP is $ 150,000 (Vanhoof & Aerts, 2014).

The implementation of the accounting information system in Disk4U:

An elaborate and comprehensive study was done on the existing system at Disk4U for all the business processes and operations that are carried out daily. The detailed analysis has given insight into forming the basis of the Accounting Information system and the Enterprise resource planning system (AIS/ERP). Needless to say, like every other business the processes being followed currently are complicated, and the installation and incorporation of an automated, digital system would help the business eliminate human interference and hence increase efficiency and effectiveness (Collier, 2015). Various turnkey ERP systems are already available in the market and one simply needs to ask the vendor to customize the same and make necessary changes to it so that it could be used perfectly in the case of Disk4U.

The business involves selling CDs and vinyl records to end users via different channels. The scale of operations of the business is a huge determinant of whether such AIS/ERP should be put in place or not. In this case, since the business has only four outlets and that too is located in a geographically limited region, the upfront cost of getting an ERP system installed would be too high. If a cost-to-benefit analysis is done, the cost outweighs the overall utility and benefit of the system (Dandago & Rufai, 2014). Suitable alternatives can be found for business reporting and accounting. The complexity and the nature of accounting taking place on a day-to-day basis also look very simple. Hence it can be said that the cost of getting an ERP system for a budget of $150000 looks more than enough. The company, if decides to go through with the initial plan of substituting the manual system for business processes could look into the tailor-made ERP software available from various vendors.

Here are some of the guidelines that need to be followed before finalizing any ERP system:

Selection of Vendor:

While selecting the vendor who could provide you with the ERP/AIS services, one must keep in mind that the previous portfolios of the work done by the vendor give an idea of the product and other deliverables one receives at the end of the development cycle (Bonollo, Lazzini & Merli, 2016). Also make educated research into the maintenance, support, and other customer services being provided after the deployment of the project at the client site.

Resistance – Sample

Case study 2

Case study 2 is about Sungate Foods which is a rice producer which is based in Victoria. It buys from 350 different farms which are packed and distributed and is sold domestically and also internationally. The financial transaction in this company is to be entered manually, which is creating a lot of errors and mistakes while making the updates in the system (Apostolou et al, 2014).

The company has approached the business systems team for the efficient updating of their accounts and the type of information systems to be used for the improvement of the operations of the company.

Details of Case 2

The following study emphasizes mainly the importance of the information systems which are to be managed for the performance of Sungate Foods in the corporate. There are various studies conducted previously which has been reviewed for validating the theories which are involved in explaining the Management information systems which will affect corporate performance (Abduljalil & Zainuddin, 2015). The management information systems (MIS) will be providing information that is related to the events which are going to occur in the future, the efficiency, the output rates, and distribution, it also gives information about the kind of effect it has on various events which is related to the kind of impact it has on the decision made by the employee on the performance of various departments. Further, the strategic performance would be of a high degree if the management information system is greater as it has that capability (Alewine, Allport & Shen, 2016). Many other various factors are suggested as the MIS critical features will be having an impact directly on the financial and strategic performance of the company.

Using the Management information systems for improving the company operations

The operations that are carried out in Sungate Foods and the making of decisions are generally based on the information that is provided by the individual and the particular IT systems. These are the systems that are used to collect the information, harvest it, organize it appropriately, and then finally generate the output, which helps back up the data quickly and complete the business decision effectively. The new management techniques and the systems are employed by the organization Sungate Foods to enhance the processes of decision-making in terms of accounting for the financial systems, as a result, the results are improved, and the output costs are minimized (Sari, SE & Purwanegara, 2016). Hence, in this way, the operations of the company can be enhanced effectively. If Sungate Foods follow particular strategic priorities then the financial performance of the organization can be improved by using various techniques of management and accounting practices. From the studies, it is suggested that if the companies are using the techniques of accounting based on the traditional management then they are proven to be highly profitable when compared with the companies using NMTs.

Analysis of the Article

The concept of the MIS and its associated benefits

For making the accounting of Sungate Foods the Management systems would be used which are known to be the formal systems that are used for presenting the data of the management on a timely basis and the information that is suitable and necessary. This system is known to give information regarding past performance, present and the analysis that has been projected for future purposes, and the data related to the developments that have been designed for the organization both externally and internally (Al-Hiyari, AL-Mashre & Mat, 2013).  It can be described appropriately as the system that is integrated and organized for the collection of the relevant data, later transforming it into the exact information and replicating the same to the management executives when required. The main purpose for which the MIS is designed is to deliver the appropriate information to the respective people at the right time. For counteracting the development that is inefficient and the dynamic usage of the system the ideas of the management information system have been developed (Abduljalil & Zainuddin, 2015). The concepts of MIS are very crucial for its efficient usage in the computer for the business.

If a system is giving information to individuals who are not on the managerial staff, then that information will not be considered to be a part of the management information system. Such kinds of systems might contain an interface similar to that of MIS which is not included in this. Such kind of systems includes the acknowledgment of salary and the elimination of duty statements etc. in general. The MIS is known to be dealing only with information that is very systematic and is collected regularly concerning the set rules that are defined by the organization (Vanhoof & Aerts, 2014). Further, the Management information system is considered to be part of the network of formal information in the organization. Additionally, the information that is provided by the MIS is involved in helping the managers in making plans and controlling accounting system errors. Every individual company or organization if it has to properly maintain its functioning, then it should be able to carry out specific operations to provide jurisdiction to its area.

Types of the Management Information Systems

If the system is supporting the organizational goals, then the Management information system will be providing a competitive advantage. Most of the organizations are found to be structured functionally and the systems are divided into the Accounting management information systems, the manufacturing systems, the financial system, the distribution systems, and the Human resource system (Muhammad & Kusuma, 2014). When the accounting management information system comes into the picture all reports of accounting will be distributed by all the managers of the accounting levels. The managing of information at the Department of Accounting is considered to be one of the most critical factors as it is involved in determining the department and its efficiency. The entire information that is gathered will be including the documents of accounts, the invoice, the payments that are done, the drafts, and the documents of banking, etc.

The arrangement of the information and its management of the computer system when compared with the human power which is usually written in documents is done appropriately.  In accounting management, the type of software and the system that is used are the UBS system, the SQL system, and the various other associated systems which are involved in managing the information related to accounting files (Sari, SE & Purwanegara, 2016). For maintaining the information of the accounting department and for restructuring it the SQL system would be the most suitable software system. The entire information which has been gathered either if it is mixed or if is not properly organized and not in order then is very easily reorganized by the Management information system in the computer and will provide detailed information about it.

In the department of accounting, the most important element would be the information which will play a prominent role in running the operations of that department. The department of accounting will be dependent on the information from its source and also from the adjacent departments which have relied on this (Al-Hiyari, AL-Mashre & Mat, 2013). It is known that the Department of Accounting will be providing the exact information with accuracy to the organization along with the various other departments.

The other type of information system is the financial management information system which will be providing information related to the finance and the economic status of the organization to all the managers of the finance and the business within the organization along with the Chief financial officer. The current activity of the economy along with the history will be analyzed by the chief financial officer so that the future financial needs projected by him having control over it and by supervising the funding based on the information that has been developed by the department of the MIS (Muhammad & Kusuma, 2014). Based on the information that is gathered by the financial department the budget for the next needs will be determined and the planning will be by that of any organization. To establish the development and for directing the growth of the organization the information that has been gathered concerning the economy and the finance will be defining the volume of the organization. The financial situation of the company is also demonstrated by the information that has been gathered from the MIS department, which is concerned with the growth and development of the company. In the organization, the information should be secured by making sure that the information gathered is kept well and is appropriately delivered to the financial department to the correct individuals (Abduljalil & Zainuddin, 2015).  The assessment of the costs of the information system is considered to be very crucial in the concern of management. The estimations are made by considering the proposal made by individuals, scheduling the growth of the organization, properly supervising their advancement control, and assessing the estimators and also implementers.

REFLECTION – Empathy and identifying the problem

The overall performance of the Management information systems

By analyzing the effects of the MIS on the results the success of the management information systems is known to be achieved. Various authors agree with the concept as it directly confirms the goals made by the management information systems as it is involved in obtaining the improvement and in enhancing the financial performance of the organization. For example, the authors will be saying that the management information systems should be helping the companies in taking the decisions more appropriately so that the financial performance will be comprehensively improved. The overall financial performance of the organization should be enhanced as the main objective of the management information systems, not just to obtain the most detailed costs (Alewine, Allport & Shen, 2016). For obtaining the advantages the firms will be utilizing the innovation which either has a direct or an indirect impact on the indicators of the economic performances. Improving the overall financial performance of the organization by enhancing and improving the potential roles of the system is the principal objective of the management information system. All of these findings together including the conceptual model will be having substantial research and managerial implications. The management information system is known to be serving as the connection between the planning of the manager and the controlling and assembling. The various processes, the storage and the retrieval, their evaluation, and the distribution of the information. The capacity of the management to analyze the data, make evaluations, and overall performance of the company is improved (Bonollo, Lazzini & Merli, 2016).

Conclusion

The above research that was undertaken about the Accounting information system and planning by the two business enterprises, gives an idea of the wide range of utility that a system of that sort can cater to. It also speaks about the relative advantage and disadvantages of the accounting information system and how it can add to the holistic quality of business operations. It can be concluded that the initial investment that goes into such projects is a major determinant of whether an AIS system should be incorporated into an organization or not.

BHO0239 LEADERSHIP PROCESS AND ORGANISATIONS IN CONTEXT

References

Abduljalil, K. and Zainuddin, Y., 2015. Intrinsic and Extrinsic Motivation as Attitude Factors towards Adoption of Accounting Information System (AIS) In Libyan SMEs. International Journal of Academic Research in Accounting, Finance and Management Sciences5(1), pp.161-170.

Alewine, H.C., Allport, C.D. and Shen, W.C.M., 2016. How measurement framing and accounting information system evaluation mode influence environmental performance judgments. International Journal of Accounting Information Systems23, pp.28-44.

Al-Hiyari, A., AL-Mashre, M.H.H. and Mat, N.K.N., 2013. Factors that affect accounting information system implementation and accounting information quality: A survey in University Utara Malaysia. American Journal of Economics3(1), pp.27-31.

Apostolou, B., Dorminey, J.W., Hassell, J.M. and Rebele, J.E., 2014. A summary and analysis of education research in accounting information systems (AIS). Journal of Accounting Education32(2), pp.99-112.

Bonollo, E., Lazzini, S. and Merli, M.Z., 2016. Innovations in Accounting Information Systems in the Public Sector. Evidence from Italian Public Universities. In Strengthening Information and Control Systems (pp. 199-216). Springer International Publishing.

Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.

Dandago, K.I. and Rufai, A.S., 2014. Information Technology and Accounting Information Systems in the Nigerian Banking Industry. Asian Economic and Financial Review4(5), pp.655-670.

Dillard, J. and Yuthas, K., 2013. Critical dialogics, agonistic pluralism, and accounting information systems. International Journal of Accounting Information Systems, 14(2), pp.113-119.

Ibrahim, A., 2013. Impact of Accounting Information System on the Quality of Financial Information-An Applied Study of the Ministry of Finance and National Economy (Doctoral dissertation, Sudan University of Science and Technology).

Ismail, N.A. and 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 Business1(1-2), pp.1-20.

Muhammad, R. and Kusuma, H., 2014. The Need for Accounting Information System to Facilitate Partnership Contracts in Islamic Microfinance Institutions: The Case of Baitul Maal wa Tamwil (BMT) in Indonesia. International Journal of Academic Research in Business and Social Sciences4(7), p.592.

Reimers, J.L., 2014. Financial Accounting: Business Process Approach. Pearson Higher Ed.

Romney, M.B. and Steinbart, P.J., 2015. Accounting Information System Thirteen Edition.

Sari, N.Z.M., SE, M. and Purwanegara, H.D., 2016. The Effect of Quality Accounting Information System in Indonesian Government (BUMD at Bandung Area). decision-making7(2).

Vanhoof, E. and Aerts, W., 2014. Guidelines to design evolvable multiple GAAP accounting information systems.

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