Discuss about the AIS and ERP Frameworks.
The term Accounting Information Systems (AIS) apply to various IT related accounting tasks and standards. It is an innovative technique of accessing and recording the information regarding the accounting exercises those take place in the organization or within the business. Documentation along with the related exercises are utilized to be finished with paper as well as with pencils are finished with modern software and upgraded technology. The approaches to conducting the accounting may change, but the basics of any profession remain the same. Enterprise Resource Planning is such a model that helps in the execution of various procedures which are significant to enhance a business, such as inventory and request the administration, accounting, customer relationship management, human resource and even beyond. ERP models integrate these different functions into one framework in order to streamline the procedures and information on the entire association. This study includes the procedure of selecting the best AIS and ERP software which help Disk4U and Sungate to take an educated decision for the investment in the AIS or ERP to take the organization’s business to some other level. This study also includes the information framework and technologies those could be utilized to enhance the organization’s operations in the areas of business reporting and accounting.
AIS is the framework of collecting, storing as well as processing of accounting and financial data that is utilized by the leaders or decision makers. AIS framework is a computer-based strategy for following the accounting actions with the innovation assets of data. The subsequent budgetary reports can be utilized inside the Disk4U by the management and remotely by any interested individuals, including financial specialists, creditors, and assessment authority (Beheshti, 2006). AIS is designed or intended to support each function as well as activities including financial accounting, auditing, reporting, management, managerial accounting and tax activities of Disk4U.
Fig 1: General AIS Model
Source: slideshare.net
An AIS selection process contains six fundamental components. Every component contributes to maintaining and organize the exact calculations of financial data, and also manage the proficiency of working with AIS. The breakdown in any component becomes risky for the organization’s business, sometimes up to a greater extent. The individuals who are approved to utilize the framework represent the principal components. Sales staff, administrators, creditor liabilities and records receivable representatives are the basic users in the AIS (Yang, Miyawaki and Kanegane, 2012). Depending on the circumstances and on the individuals of the organization, the users may be customers or the auditors. The first component includes the methods and guidelines for taking care of the cover accumulation of accounting data, storage, recovery and handling (Bhimani, 2012). The second component of AIS might include directions for computerized and manual processes. The inability to follow directions can create inefficiency in the AIS, as well as it can prompt to expensive financial blunders. Careful documentation and efficient training enhance the viability of the second component. The third component of accounting information system is a data (D, 2016). Any data that is accessible for the money-related operations and functions of the organization, will be viewed as a relevant data. If it influences an organization financially, it ought to be represented within the AIS (Foydel, 2011). When relevant or important information does not go into the Accounting Information System, it could influence the financial well-being of a company (Chapman and Kihn, 2009). The fourth component of the Accounting Information System comprises of such a software which is utilized in the management of vital data. The software should precisely gather, process, store, as well as return data as, wanted. Smaller organizations typically utilize desktop software plans for handling the financial data. Mid-sized organizations often utilize software which is more vigorous than the desktop programs introduced to a single machine (Zencke and Eichin, 2008). Bigger organizations regularly utilize the enterprise-level software for the Accounting Information System. Frequently, the software is the segment of the bigger ERP framework. The software of much higher quality may be reused for the businesses that manage the cost of it. All the software programs should be reliable as well as have the adequate security level (Adams, Baker and Thornton, 2011). The Fifth component of the Accounting Information System is the Hardware. The IT infrastructure for the software of AIS might become a costly investment for the organizations, but accurate planning can prompt an ideal purchasing decision. Considerations will likewise need to include a software, which a business plan utilizes for its Accounting Information System. Security component is the last and the sixth component of Accounting Information System. Interior controls for the security guarantee the protection and respectability of data that moves through the Accounting Information System. Internal controls likewise incorporate the administration of the business, its social standards, and authoritative desires (Chen, Razi and Rienzo, 2011). Risk detection, as well as prevention, will likewise fall under this segment.
Detailed Requirements examination: Detailed Requirements examination is the procedure wherein all the people included in the framework are interviewed. The present framework is altogether comprehended, including issues and complete the documentation of the framework exchanges, reports and inquiries those should be answered are accumulated (Erp, 2013).
Systems Design: In this, the analysis is thoroughly reviewed and a new system is created. The system’s design is the most important part of AIS implementation. The information required to enter into the framework as well as how this data is going to be taken care of? What data required to leave the framework how this data is designed? If those organizations realize what requirements to turn out, they comprehend what they have to place in the framework. The project organizations select should suitably handle the procedure.
Documentation: As soon as the framework is composed, it is reported. The documentation incorporates seller documentation of the framework and more imperatively, the techniques or point by point directions that help the clients to handle every procedure in particular to the association.
Testing: Before dispatching, all the procedures are tried from a contribution by utilizing the documentation as an instrument to guarantee that all these procedures are completely reported and that clients can effectively follow the strategies (Fisher, 2007).
As the IT technologies for the frameworks of Accounting are increasing, the organizations are actually adapting the AIS in the Cloud Technology. A recent development in IT field includes the Cloud Technology. Cloud frameworks give flexibility to individuals who operate inside the AIS. While clients must stick to security strategies, cloud mobility permits adaptability of the operations for individuals. Organizations enjoy enhanced efficiency utilizing a cloud arrangement for their AIS, and Cloud Technology creates opportunities for the organizations geographically. The individual’s in the associations who are responsible for the infrastructure ought to be educated or knowledgeable about the innovative options accessible and how they provide advantages to the business. The kind of administration to utilize is among the choices made with respect to the accounting information systems working through Cloud Models. One major choice is the SaaS, cloud model. With a SaaS solution, the business buys the use of the cloud-based AIS. The provider keeps up the responsibility regarding support of the equipment and the product (Funnell, 2012). Data frameworks changed everlastingly the way bookkeeping undertakings are prepared. The times of green paper cushions are gone, and rather organizations have a unified spot where all bookkeeping exchanges are entered and spared. Not any more searching for paper diaries or including long segments, PC programming does that for organizations, mistake free. On account of sensibly estimated equipment and programming, even little organizations can profit by modernized bookkeeping.
Models of External Business Integration
Business-to-consumer Frameworks
Business-to-government Frameworks
Business-to-business Frameworks
Disk4U is a Sydney-based organization which sells Vinyl Records and CDs. Currently, the organization’s main motive of business is to sell products to customers through their shop-front, via E-mail and phone call orders as well as the fresh online channel has been developed through EBay. This expansion in the business has made really urgent for the organization to enhance their manual procedures of the business reporting and accounting (Gupta, 2008). This report is for the organization’s Disk4U to provide them information as to how the technologies in AIS used to enhance their operations especially in the areas of business reporting and accounting. As a consultant, I provided an Accounting Information System, which matches with the cost budget of Disk4U which is $150,0.
AIS helps workers of Disk4U to perform their jobs more productively by cutting down the barriers between the business units of different organizations. More specifically, Accounting Information System Solutions provides a worldwide and continuous view of the data which enables Disk4U to address the issues proactively as well as drives the improvements. It enhances financial consistencies with regulatory benchmarks and diminishes the risks of Disk4U (Hagoort and Brown, 2000). The AIS software automates the core operations of the Disk4U for instance; request to-satisfaction, lead-to-cash as well as procure-to-pay procedures. AIS improves the client services of the Disk4U organization by providing them one source billing as well as relationship tracking facilities (Tribunella, 2011).
NetSuite is the industry’s online business application which supports Disk4U’s organization to have better Customer Relationship Management and Enterprise Resource Planning to the Web capabilities. NetSuite software is the first as well as the only Internet-based application which offers everything within a single integrated solution for the organization. Additionally, NetSuite empowers the Disk4U organization to improve and make quicker decisions through continuous business intelligence (Johansson, 2012).
NetSuite is intelligent: This framework holds every single corporate data within the single database, giving better access to Disk4U’s key execution metrics on the real-time or customizable dashboard. Thus, NetSuite empowers Disk4U to make enhanced and speedier decisions in their accounting and business reporting operations.
NetSuite is an integrated Software: In a single, effective application, it is consolidated that complete customer-facing CRM as well as E-commerce capabilities with back-office Accounting or ERP are the self-service entries for Disk4U partners. Therefore, it permits Disk4U to join fragmented data as well as automate procedures from point-to-point and end-to-end (Khaparde, 2012).
NetSuite is effective: With the execution of NetSuite software in Disk4U, the implementations become both less expensive and faster than any other conventional business applications. Particularly NetSuite enables the phased implementations as per the needs of Disk4U. In addition, click not code as well as propelled customization supports business as the organization defines it. As NetSuite is the on-demand Web-based solution, therefore it significantly decreases the Disk4U (TCO) Total Cost of Ownership. With the extensive background in accounting the NetSuite, the AIS software understands the significance of the Disk4U financial data (Lin and Smith, 2006).
NetSuite is a leading provider of the Cloud CRM, AIS, ERP and E-commerce technology. About 24,000 organizations and subsidiaries across the world is based on the NetSuite’s single as well as an integrated business administration suite to expand the visibility, efficiency, as well as competitive advantage of the organization. In the year 2015, NetSuite was easily able to maintain its development in the field of Cloud-based Accounting Information System applications in the market with approximately thirty-three percent growth in the subscription revenues, with thirty-four percent in the year 2013 (Lintz, Pennell and Yasutake, 2000).
Sungate is a rice producer in Victoria. Sungate’s data and ISS need multiple hand-operated re-entries of every order as well as of financial transactions with which a lot of time is wasted and created a number of errors. As the business systems and an accounting consultant, I submit this report to Sungate to help them to select what information system they use to enhance their company’s operations in the field of accounting as well as in business reporting (Palmer, 2009). The organization is eager to accept a technology which eliminates many issues that Sungate encounter in the accounting area of the organization, but because of low budget of Sungate which is only $150,000 as a consultant, I provided the report for a software that is affordable for Sungate.
AIS helps the diverse offices inside Sungate. For instance, the administration can build up deals objectives for which staff can then request the proper measure of stock. The stock request, advises the bookkeeping department of another payable. At the point when deals are made, business individuals can enter client orders, bookkeeping invoice customers, the stockroom can gather the request, the delivery office can send it off, and the bookkeeping division gets told of a new receivable (Pamungkas, 2009).
SAP software is being executed as a major aspect of re-engineering as well as it gives an end-to-end answers for logistics, financial distribution and inventories for operations of Sungate’s organization. Sungate surely utilizes SAP software for their daily business operations. As SAP provides successful applications such as CRM, SRM, along with maintaining the standards of the SAP by providing tighter integration of core ECC software within Sungate. The innovative version of SAP is SAP ECC 6.0.AP which stands for the framework of applications as well as products in the Data Processing.
Accounting software, SAP is a financial accounting as well as a reporting software in which Sungate records its transactions and reports the operating data every month. It also analyzes the financial data of the organization. SAP software has remodeled the mechanization of the bookkeeping system, enabling Sungate to upgrade its financial processing and data handling capabilities. Schedules of the SAP software include reporting, accounting and Accounts Receivable Management of the operations of the Sungate organization (Sheldon, 2005). The enlarged efficiency permits easy entrance to data and facilitates managers of Sungate to take improved business decisions. SAP software is smoothly learned from Sungate’s staff specifically those with information technology and accounting fields. Initially, SAP vendor and representatives will execute the software, comply it to the Sungate’s specific requirements and then train the employees to use it. SAP software is also required to renew continuously to higher variants. Consequently, the Information Technology framework of Sungate needs to be capable of backing these data needs and must be upgraded timely (Shields, 2001).
As a merchandise leader in accounting information System, SAP becomes the significant part of today’s business as well as it appears as a technology revolution. SAP support Sungate to streamline the organization processes, providing them the ability to utilize the live data or information to anticipate client’s trends. SAP organization innovative models to help approximately 320,000 clients worldwide. The SAP organization provides the capability to Sungate’s employees to work together more conveniently and utilize business vision more effectively (Suryanto, 2011).
Conclusion
This study concludes that managing the information of entire organization cannot be completed manually. Within today’s expanding economy, many procedures are required to be computerized to save money as well as time. Sungate and Disk4U have many objectives in mind, for instance, profit and improved customer services. Hence it has been concluded that both Sungate and Disk4U use Accounting Information Systems to improve their accounting and business reporting systems. The execution of AIS has put a large impact on the business performances of both the organizations, especially in the accounting field that supports to make the process of accounting transactions easier as well as manageability, therefore both these companies can also really review the implementation of Accounting Information System to enhance the efficiency and productivity and maintain the competitive advantages of both the organizations. It has also been concluded that AIS framework will have to face some faults if the execution procedure does not regulate accurately. If Sungate and Disk4U needs an outstanding implementation of AIS, top management ought to plan time saving and cost effective AIS with the help of expert consultation and training is surely provided to the organization’s staff.
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