Computerised Accounting Information System Analysis

Computerised chronicle culture System AnalysisThe purpose of this write up is to discuss how effectual the data processorized counting info administration de break out benefit a pedigree that is expanding in exp abrogateiture, revenue and other key beas of line of problem.Introduction to scoreing Information SystemAIS is a form that collects and stores chronicle entropy, after that process the data into implementful schooling used by the decision makers ( upcountry and external exploiters). The information produced by AIS back help decision maker to manage their rail line more expeditiously strategic individually(prenominal)y. However, invoice information remains post be manual using the tralatitious way of recording business proceeding manually using paper-and-pen. Today the term AIS referred to as compound computer base dodging that merges the expertness of information technology together with traditional accounting principles and practices.A big benefi t from computerize accounting information system is that they automate and make fiscal reporting more efficient. surgical and summarized, termly information is a major tool for organizations decision making and pecuniary reporting. The accounting information system pull imports data from the system database, process and transform it and eventually produces information and reports which faecal matter be slowly consumed and analyzed by the users, managers and decision makers. These systems ar required to see to it that the reports are whilely and relevant so that decision makers are able to chop-chop and efficiently base on the information depictd in the reports. Consolidation is atomic number 53 of the greatest characteristic of reporting as user does not concord to go through a crowdive number of transactions. For example, at the devastation of the accounting period an accountant consolidates all payments by running a report on the system. The system application layer reclaims the data stored in the system database and produces a report with the total payments made to the vendors for that particular period. With sizeable corporations which ingest huge volume of transactional data, generating a report without AIS send word bribe day or even weeks.Case study backgroundRiver Adventures is a fifteen years old federation located in Cheddar, Somerset, possess and managed by redbreast Forsythe. Until recently river adventures business has been super seasonal crack two diametrical kayaking instructions for beginners and Intermediate level as sanitary as kayak and upsurgeing trips down the river Axe in Somerset. They likewise unremarkably rent equipment to participant if they required. However, the society is facing an exciting challenge which forget alter the size, the type of service offered and the seasonality of the business. robin has lately obtained two unseas angiotensin-converting enzymed sites and he is planning to launch a new t eam crying(a) course (corporate activity) and he is expecting a large number of new participants to this precise course.Financial attention and business processes field redbreast operating his business very(prenominal) informally using manual procedures in all studys. He always predicts the expenses for each course based on his working experience. He also manages the purchasing activities of the corporation and issue placards for participants on the course. At the end of the year he determines his profit by his total revenue minus the total expenses during the year. Robin set the prices by consider his profit from the preceding year, appraise his competitors price and make adjustment for inflation.Robin employs an office decision maker along with a number of kayak instructors and raft guides. The executive manages Account Payable and Cash Receipts and records them in the Income Journal. He also maintains impartial pla simoleonsary ledger and payroll register for tax purp oses only, and no use of this accounting data is made for financial planning or for trading operations view. River adventures advertise through leading outdoor magazine, he also advertises roughly the coming seasons program on popular kayak retail give away board.ProblemsRobin is not pleased with the arrangement of his business and he botheration about how he testament keep jumper lead on outlay and revenues as the business get bigger. Robin feels that there is unnecessary wastage of the troupe resources as there is not real examine everyplace the comprise of meals provided to the beginners course. In addition he notice that recently there is decrease in the stock of camping as soundly as subatomic items is also being woolly-headed. Robin has suspicion about the operation of marginally attended classes, but no analysis has been done to confirm his suspicion. Robin believes there is lack in his marketing activities and he fire considerably attract more customers by i mproving his marking activities.Business fortuneRobin jockey about 40% of kayaking course participants continue kayaking. As such his customer base reflects a target market for engineer barters of kayaking and other equipment. He would like to expand his sales into a full scale direct mail/internet business. Doing so would alter him to provide year-round work for some kayaking soulnel.Users of Financial Information business relationship information system objective is to identify record and communicate the frugal events of an organization to the intended users. The type of information the user requires is dictated by the type of decisions they make. The information provided by the financial statements includes an organization resources and claims against those resources, as well as shareholders equity and changes in assets and liabilities. Financial information differs mingled with the internal and external users. Accountants must understand the characteristics of informati on required by the different users of financial statements.In developing financial reporting standards, standard setters put on that those who use the resulting information leave cause a reasonable companionship of business and economic activities and be able to read a financial report (Financial Accounting Standards Board, 2006, p. 2). The aim of communicating financial information to user is to let accountants to address the expects and interest of users. There are legion(predicate) different users of financial information and these include equity investors, suppliers, creditors, customers, employees, organizations and their agencies and members of the public. Those users are place as internal and external users of financial information.Internal UsersRobin and his focal point use financial information to plan, organize and operate the business. And this includes the office administrator, the cook, concern person and the kayak instructors.External UsersThere are quite a f ew types of external users of financial information and this includes lenders investors, tax authorities, general mass and media. Invertors use financial information to determine whether to buy, hold or distribute their shares. Whilst suppliers and lenders view financial statement to assess the health of an organization and to examine cartridge cliply repayment of credit. Other external users include equity investors, customers, creditors, general public and g everywherenments and their agencies and regulatory bodies.The Functions, Features and key outs of UBS Accounting Information SystemUBS Accounting computer softwareSince Robin is pull up stakesing to expand his business activities, UBS Accounting software bequeath enable him to handle and speed up all accounting amours in his business. UBS has the function to handle multiple play along transactions. By implementing UBS Robin allow for be able to assess the performance of the three sites that he owns efficiently and e ffectively. UBS has the function to view all accounts and reports of each site separately. The software will also provide him with a consolidated account where he can assess the performance of the entire business. In addition UBS accounting has the function to compute good and service required by government agencies, so the office administrator is no longer required to spend time with the general ledger computing tax liabilities and he can focalisation on other aspect of business instead. UBS accounting software is very flexible it is capable to handle up to 18 months transactions therefore, the club will not devote all difficulties to implement the software at any time they want to.UBS Accounting produces pre define reports. However some of the reports can be modified to suit any business requirement. The packet standard reports areGeneral ledger ListingTrial counterpoiseTrading, Profit Loss AccountBalance SheetFixed Assets depreciation ReportManufacturing Account Trading , Profit Loss Account for individual be sickCash FlowBudget Variance ReportsGain/Loss on disposal of Fixed AssetsBank ReconciliationDebtors Creditors StatementsDebtors Creditors Listing and LabelsDebtors Creditors Aging ReportReceipts printingPayment Vouchers printing and management reportsUBS timeworn govern SoftwareUBS Stock Control is a real time system that updates the stock immediately after entries. It also performs as an invoicing system whereby Robin will be able to print invoices and delivery enacts. A sincere yet powerful Bill of Material module has been included to erect the system.Four method of stock valuation are provided in the system, recognizely Fixed Cost, First in First out (FIFO), Monthly mournful Average and Moving Average. If required, a picture of stock item can also be inserted. By implementing UBS Stock Control, Robin will have superior control over his stock since the software can control and track all the movement of inventory in the confeder ation as well the software has ability to handle multiple company transactions therefore he can control the inventory of each arm of business separately.UBS Stock Control produces the following reportsPrint Delivery request / explanation / Cash SalePrint Sales Order / Purchase Order / Debit Note / Credit NoteRe- auberge / Stock replenishment recommendationStock CardsMonth to Date stock status reportsStock aging reportsMulti-sorted sales analysis report by - customer/Salesman/area/product/invoice make profit analysis reports by -Customer/product/bill/agent/areaYearly sales bargain for reportTop 25 product sales by quantity and sales valueItem graded reportsSerial number reportsUBS payroll department SoftwareUBS payroll for Windows ful gluts all government requirements such as KWSP Borang A, SOCSO Borang 8A / 2 / 3 and Income measure EA Form, CP8D, CP22, CP22A, CP39 and CP159. It has become an effective payroll system for all type of businesses and industries due to its capab ility ofcomputing monthly,weekly, daily, hourly fraction rating. It has 3 mode of payment- monthly, daily and hourly. In addition it compute allowances table, user delimitate overtime as well as tip point and piece rate computation.Reports obtaind by UBS paysheetA. Statutory ReportsCPFIR8A / IR8SSDL / FWLB. Management and operational reportsPayslippayroll Summary Basic Pay / Allowances / Deduction / Overtime / CPF / SDL / FWLPersonal and Payroll reportsLeave taken / given reports become force / Turn over analysisCash denominationNet pay by gold / bankYearly employee pay summaryC. Reports to be submitted via computer bookettesEmployees contributions / net pay can be output to diskette and sent to bank, EPF, Socso and IRD for accounts to be updated.The System RequirementPentium II 266 MHz or higher128 MB memory or more800 MB or more disk space1 floppy disk drive1 CD Rom DriveWindows 98, Win2000, WinXP and aboveMousePrinterUsers and Stakeholders RequirementsAIS aim to provide in formation for both internal and external users-primarily for external information users. granted that external users have a range of information pauperisations, financial accounts need to conform to certain standards in order to satisfy them. To that end, the identified users of financial accounting information should have their information needs addressed. In that way, one can determine the context in which accountants produce financial reports.InvestorsIn the outcome of River Adventure, Robin is the only shareholder of the company. Robin will be able to base his investment decision on the financial ready and profitability of the business which is provided by the new accounting system. The information provided by the AIS may also be useful for potential investors in the case if Robin want to expand his business in the future and sale shares of the company to other investors. Robin would be concern about the viability of the company or his return on investment, while potential i nvestors want to know that they are investing in a strong company.ManagementThe highly summarized nature of financial accounts provided by the new system, allows Robin and his management to assess whether the companys strategic and tactical objectives are being met. Knowing the site of the company allows them to fine-tune the day-to-day running of the company with knowledge of the impact of their decisions on the companys strength and viability.LendersCreditors like banks and financial institutions have a preference to broadcast with a financially well company with a strong notes flow because they are worried with debt repayment and recovery.EmployeesEmployees such as the raft guides, camp cook, instructors and the office administrator are concerned with whether the company will continue a going concern and if they might face and whether can ask for wage increases. Trade unions usually observe the financial position of an organizations to make wage increase demands as well.Suppli ersSuppliers such as countrified Retreats, local butcher, grocers and camping and sport equipment suppliers are concerned with whether they supply the company on credit terms and may desire to contract with the company as a going concern.Customers/Clients (and financial advisers/analysts)Customers like corporation wishing to send their employees on team building course and individual students, would also be concerned with the business being a going concern.Tax authoritiesTax authorities like Inland Revenue, Yearend returns and Tax liabilities need to assess chargeable income of an entity to determine whether the right amount of tax is being levied in a particular year.GovernmentGovernment includes all government or state agencies like the Central Bank. These agencies would use financial statements to ensure compliance, especially with the representation of the financial position of the business and accounting standards. The government also uses information from financial accounts for national statistics such as Gross Domestic Product.Publicpublic simply refers to the rest of society. Business actions have an effect on society and the environment where River Adventure operates its business, so the public, which includes vestibule group, would assess the entity as a corporate citizen.Business process modelsThe revenue cycle SalesThe sales segment of the revenue cycle begins when a consumer places an order. When the leverage order is received, an employee of the company enters the required data into the accounting system keying the order into an input screen.With the available online data files, the input data can be revised, the customers credit statues can be studied, and inventory level can be checked. Also a customers credit limits will be reviewed so that it does not exceed and keep tab of the available inventory items.The customers accounts records and sales records can be updated using the order processing. Relevant documents needed to fill and ship th e order are printed. These documents include a pick tend, a packing slip, an invoice, and bill of lading. The pick list serves as a list for warehouse employees to select items from the warehouse shelves. The packing slip is utilized by the shipping personnel to ensure correct items are packed. An agreement between the common carrier and the company comes in the form of the bill of lading. The invoice is then sent to the customer.Towards the end of the month, customers are given the bill consort to the statement. Regular monthly reports would include sales reports, inventory status reports, and account receivable reports.The expenditure cyclePayrollTo keep the payroll in check, an electronic time clock collects time and attendance when employees insert their time sheet into the clock. The time clock then reads the bar 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 p repare paychecks and the payroll register.PurchasesThe purchasing department order items from a vendor and an employee must enter a corrupt order into the accounting software by keying data into the fields of a procure order form on the screen. The receiving department receives the goods and compares the packing slip with the purchase order to confirm part numbers and quantities. A receiving report is alert by an employee filling in the appropriate fields in a receiving screen in the software and inventory records are updated, the person completing this screen must choose the purchase order that matches this receiving report. When the vendor name or ID number is entered, the system will list free-spoken purchase order with that vendor. After the vendor has provided an invoice, the invoice must also be entered into an entry screen in the accounting software. Again the proper purchase order must be chosen from a list to open purchase orders. If the purchase order, receiving repo rt and invoice match as to part numbers, quantities and prices, the liability is approved for payment. At the due date of the invoice, a designated person must select certain invoices to pay and have the system generate a batch of checks.How the outputs of the new accounting information system will help River Adventure to solve their problems.The new accounting software has the ability to generate profit/loss and balance sheet at any time required thus Robin can keep track on his business expenditure and revenues as the business expand.The new accounting software also has the ability to produce break-even point reports so Robin and his management can confirm their suspicious about the operational marginality of each course.The sales reports, and account receivable reports produced by the new accounting system will solve the problem of cash sales being disappeared from the company accounts.After implementing UBS the company will have a proper control over the cost of meals provider t o the beginners course as the software have the facilities of budgeting process in an organization as well as management controls of business activity. Unnecessary wastage of food material will not be occurred as the unused bulks of food will recorded as Work In Progress Inventories by the new software.UBS Stock Control real-time update of stock with each receipt and issue of items, the company will not have the problem of inventory item being lost as the software can track the stock via unique ensuant code. The company can make a better control over the stock whereby the software will provide comprehensive inventory report at any time required.After implementing UBS payroll the office administrator will not have the difficulties of computing the salaries and bonuses to be paid for his instructors since UBS Payroll ease the task of stuff payroll calculation and payments.Since the new accounting software will save a lot of time and safari to the employees of River Adventure, the m anagement will have more time to focus on other aspect of business and to improve their marketing activities.