Objective of the new Accounting Information System
Establish And Maintain Accounting Information Systems
The Astra Plastics Private Limited Company is a manufactures plastic product in a factory at Mascot. The Company CEO Denise Ryan is decided to increase the sales and customer, so it seeks services as a system analyst to design the new company information system. The company information system is used to maintain the accounting information system for a company. This company recently established the company in Sydney. So, there are no current information systems. The Company CEO is trying to keep up with manufacturing from Sydney and supplies in china. The Company has the purchase manager, sales manager, marketing manager, book keeper and factory manager. This company needs to create new computer system to increase the customer and sales in a market.
Main objective of this company is to create the information system to maintain the data and accounting information system for a company because this company does not have the computer information systems. So, company CEO wants to introduce the centralized information system and it used to implement the data flow, maintain the backup, produce the monthly reports and maintain the system integrity for a company. The CEO also wants the system to provide the immediate information’s.
The Organization Chart for Astra Plastics Company is shown below.
The Accounting information system is a well structure secure medium of sending, gathering, processing and receiving both non financial and financial to the users. The accounting information system is divided into three categories such as time based, entity objective based and processing mode based accounting information system by using the accounting information system components like data, controls and checks, technologies, processes and procedures (“Characteristics of Accounting Information System”, 2018).
The accounting system is used to describing the steps in the process of system design and analysis. It is most commonly used system in enterprise. It is used to perhaps among the IT infrastructure in a business enterprise. It is the process of measuring, communicating and identifying the economic information to permit the informed decisions and judgment by users. The main characteristics of accounting information systems are listed below (“7 features of a good accounting system – 542 Partners”, 2018).
- Provide the reliable accounting information to the users.
- Protect the company from the possible risks stemming from the abuse of accounting data.
- It Deals with transactions which are financial nature.
- Understandability
- Comparability
- Relevance
- Usability
- Security
- Accuracy
- Cost Effective
- Timely
Recommended Operating System
- Windows – 7 or newer
- Linux – Ubuntu
Hardware Requirement
The hardware requirements are listed below,
Processor
- Minimum: 500 MHz Pentium III or compatible
- Recommended: 2 GHz Pentium 4 or compatible
RAM
- Minimum: 128 MB
- Recommended: 512 MB
Hard Disk Drive
- 300 MB – For Application Components
- Additional disk space is required for your database (“Hardware and Software Minimum Requirements”, 2018).
- Another 300 MB of free space is recommended for running the application efficiently.
- Recommended: Fast disk subsystem (7200 rpm)
The accounting software is used to describe the type of application software and it used to processes and records the accounting transactions within the functional modules such as accounts payroll, general ledger, accounts receivable, accounts trial balance and accounts payable. These functions are as accounting information systems. Generally accounting software may be online – based and it accessed anywhere at any time with any device (“Hardware and Software Requirements”, 2018). The technologies are improved, so software vendors are able to provide the advanced software at lower prices. The accounting software’s are including the advanced customization and scalable databases. The software requirements are listed below,
Hardware and Software Requirements
Office Suite
- Microsoft office 2013 for windows
Computer Security
- Windows requires the Spyware and Anti virus protection.
- It must be updated with the latest virus updates and definitions.
The network requirements are listed below.
- Wired Network connection – Ethernet LAN Port or USB Ethernet Adapter/Dongle
- Wireless Network connection- 802.11n
- Firewall – Firewalls should not prevent the server from being visible and accessible to workstations.
The feasibility study is used to measure of practical and beneficial an information system for an organization (“Feasibility Study Report – Information System for Western & Conventional Medical Systems (Group 09)”, 2018). It identifies the potential attempts and problems for accounting information system. It is divided six main criteria such as operational feasibility, schedule feasibility, economic feasibility, legal feasibility, technical feasibility and cultural feasibility. Here, we are discussing the economic feasibility to provide the cost and benefit information for an accounting information system.
The operational feasibility is used to identify the system requirement to create the nee computer accounting information system. It takes the advantage of the opportunities to identify the new accounting system opportunities during the problem analysis and scope definition phases.
The technical feasibility is used to measures the technical solutions and technical resources for an accounting information system.
The economic feasibility is used to measures the cost effectiveness of an accounting information system. The economic feasibility includes the cost benefit analysis to determine the benefit and cost for an accounting information system.
The new accounting information system costs are discussed in below.
- Computer and technical equipment costs
- Software costs
- Physical location expenses costs
- Administrative staff salary costs
- Expert payment costs
- Development costs
- The development cost includes the hardware, software and implementation costs.
Benefits
The new accounting information system Benefits are discussed in below (“Characteristics of Accounting Information System”, 2018).
- Very interactive user experience
- Provides the professional platform
- Loss cost compared to the existing systems.
- Provide very high levels of readable available information.
- Rare comparison among solutions
- Higher flexibility
- Cost reductions
- Error Reductions
- Increased throughput
- Improved operations
The accounting information system is used to collect and processes the transaction based data and financial information for company. These are documented and it is evidences of the transaction (“Inventory Accounting – ERP China- kingdee- ABiC information systems (Shanghai) Co.,Ltd”, 2018). To determine the accounting information by uses the transaction with financial statement. Journal, ledger, worksheet and trial balance. The implementation of accounting system is requires the necessary documentary evidences of information, installation of necessary equipment and process of methods to be activated. To implementing the accounting information system by using the various methods like
- Payback analysis
- Net present value analysis
- Return on investment analysis
The testing methods for accounting information system are included in function testing. The functional testing is uses the task orient functional tests to check the application can run or not. It consists of a positive test cases and it designed to verify the system features and functionality of the applications based on application requirements. The functional testing methods also uses the forced error tests and it has the negative test case to find the incorrect conditions that are untreated and undetected. It is used to list the error message that may occur on the system design. So, the functional testing is used to provide the enhanced accounting information systems (SULARTO, 2018).
Feasibility Study
Types of data for the new accounting information system to delivers the function of accounting information system that contains the effective and efficient data collection and storage of data concerning for a company with financial activities. The financial activities include the transaction data and that information is used to make the decisions to producing the financial statements and managerial reports. Types of data are listed below,
- Tax information
- Purchase requisitions
- Inventory data
- Sales orders
- General ledger
- Sales analysis reports
- Timekeeping
- Payroll information
- Customer billing statement
- Check registers
The Accounting information system is used to make the controls to accurately process and record the data in a company.
The Flow chart of processing accounting data for accounting information system is shown below.
The centralized accounting subsystem is used to provides the more control and more flexibility for a company (“Centralized Accounting”, 2018). It is used to create and manage the payment by using the legal entity that will be handle the all the financial payments. It saves the company times, because the processes for editing open and closed transaction, settlements and proposal for centralized payments are streamlined. The centralized accounting subsystem is shown below.
The simple chart of accounts is includes the following aspects,
- Assets
- Liability
- Expenses
- Revenues
- Owner’s investment and Withdrawals
The Asset are includes the cash, computer, office supplies, office furniture and accounts receivable. The liabilities are contains the chart of account is payroll taxes payable, accounts payable and salaries payable. The owner’s investment and withdrawals includes the capital and drawing equity for chart of accounts. The revenues include the consulting revenue for chart of accounts systems. The expense includes the utilities expenses, payroll expenses, office supplies expense and rent expenses for chart of account information system. Chart of account for general ledger contains the all the company accounts with balances. It is shown below.
The flow of document for new accounting information system contains the functions like delivery accounting, receipt accounting and automatic voucher generation based on accounting documents, provision for inventory, end of period close, locking account, voucher template and reconciliation with the general ledger. IT is used to ensure the synchronization between the capital flows and logistics for accounting system (“Types of Business Reports for a Manufacturing Firm”, 2018). It will be work with inventory management, sales management and purchase management to provide the complete solutions to the company. It is shown below.
The new accounting system provide the below reports,
- Inventory reports
- Salary reports
- Production reports
- Sales reports
- Purchase reports
- Analysis report based on Assets
- Voluntary reports
- Statutory reports
Conclusion
The Astra plastics private limited needs for new accounting information system. So, the CEO decided to create the accounting information system to increase the sales and customers. The CEO hired you to create the new accounting information system. The created accounting information system provides the effective and efficient system design for a company. It uses the effective hardware and software for accounting software. The accounting software provides the effective information for accounting information system.
References
4 Steps of Developing Accounting System for Businesses. (2018). Retrieved from https://iedunote.com/developing-accounting-system-for-businesses
7 features of a good accounting system – 542 Partners. (2018). Retrieved from https://542partners.com.au/2014/09/7-features-good-accounting-system/
Centralized Accounting. (2018). Retrieved from https://www.profact.com/centralized-accounting-0
Characteristics of Accounting Information System. (2018). Retrieved from https://hubpages.com/business/Characteristics-of-Accounting-Information-System
Feasibility Study Report – Information System for Western & Conventional Medical Systems (Group 09). (2018). Retrieved from https://sites.google.com/site/systemanalysisdesign09/feasibility-study-report
Hardware and Software Minimum Requirements. (2018). Retrieved from https://www8.gsb.columbia.edu/itg/students/laptopoptions/requirements
Hardware and Software Requirements. (2018). Retrieved from https://www.mhcc.edu/OLHardwareSoftwareRequirements/
Inventory Accounting – ERP China- kingdee- ABiC information systems (Shanghai) Co.,Ltd. (2018). Retrieved from https://www.abic-is.com/erp/?type=detail&id=91
SULARTO, L. (2018). Refinement and User Acceptance Test of Accounting Information System for Restaurants SMEs. Retrieved from https://www.icommercecentral.com/open-access/refinement-and-user-acceptance-test-of-accounting-information-system-for-restaurants-smes.php?aid=73166
Types of Business Reports for a Manufacturing Firm. (2018). Retrieved from https://smallbusiness.chron.com/types-business-reports-manufacturing-firm-40499.html
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