Accounting Information System for Disk4U
Discuss about the Accounting Information System for Disk4U.
Within the study, the description of the investigations that are related to pre-stage development of the accounting information system is described. The study has been carried out in the context of an organization called Disk4U. Accounting information system can be referred to the system that is being used by an organization or business for gathering, storing, retrieving and processing financial data for making it useful for consultants, analysts, accounts, managers and many more (Moghadam et al. 2013). Within the study the organizational background of Disk4U along with its business processes has been described. In addition to that, the business requirements based on those data has been developed.
The primary business of Disk4U is CDs and Vinyl Records. The organization is situated at Sydney, Australia. The organization sells its products through various ways such as selling through the physical store, electronic mail, online channel like ebay and many more. At present the organization is concentrating on implementing a accounting information system that can easily maintain and facilitate its accounting and reporting related operations.
Business Process of Disk4U:
Disk4U is currently consists of four distinct outlets. This outlasts are main way for the organization for selling products to the consumer and it is the only way for selling the product physically. The consumer appears to one of the outlets and buys the products physically. The other way of selling the product is through electronic mail. The buyers send an e-mail to the organization with their information and the product they wish to purchase. Disk4U parcel the product to the consumer through courier services. Disk4U also sells the products to the consumer through the online channels. The consumer purchases the product through the website like EBay and the product is again sent to the consumer through the courier services. For any kind of purchase, the client receives an invoice. In terms of online channel, the payment is done through wither by cash on delivery or payment gateway like PayPal. Disk4U receives the payment and verifies the purchase. A certain amount of purchase has to be done by the client for receiving home delivery otherwise $2 will be charged for each home delivery. For paying the purchase cost through PayPal, the consumer does not need pay any extra money. So from the above discussion it can be derived that the business of Disk4U is B2C or business to customer type. The business to customer is the particular business pattern where the organization sells its products or services to the consumer or client directly.
For collecting and storing the record of all the purchase, an executive is appointed. The management gets assistance by the gathered information in terms of making better and effective decisions. The organization often faces from the issue of existence of wrong information. This situation occurs because the data is collected in the organization manually.
Developing Business Requirements:
Storing records: The first criterion of Disk4U is storing the records that are associated mainly with the transaction. Receipts, sales records, loan statements, bank information and past tax are the particular type of data that is required to be stored somewhere safe for assisting the business in every day operations (Fauscette and Perry 2014). The data will be also need to be stored in such a way that if the organization looses data then the lost data can be recovered immediately. In addition to that, providing security to the data against the disaster recovery is a crucial factor.
Inventory technique: For a retailer one of the most important parts of the business is the inventory. Disk4U is required to acquire a physical inventory. The capacity of the Disk4U will be immensely depend upon the physical inventory. There are some methods that can utilized for deriving the sales and inventory related information. Along with that, these methods can be useful for recognizing the theft or loss of product (Lambers 2015). The organization also needs to count the quantity of the product available in the inventory in a regular basis.
Invoices: Keeping track of the product sell and every detail associated with individual sell is very essential for storing. The most effective way for doing so is through generating invoices (Tayal 2015). From the consumer information to the product’s raw material distributer everything can be get if the data base is properly designed.
Accounting expertise: It is essential for Disk4U to appoint an appropriate employee who will be managing the account section. The employee must have proper skill and knowledge regarding the responsibility (Hinkka et al. 2015).
Determining System Requirements:
Accounting records: The system must have the ability for monitoring and storing the raw data and information of the accounts. Incomplete or error data can be a huge issue in terms of making decisions and carrying out critical tasks (Ismail and King 2014). The system should gave the capability of gathering the accurate data and make sure that the data does not get corrupted in its lifetime.
Leveraging standard: Regarding grids and other accounting services, the system must be able to minimize the interoperability effectively. Leveraging the current standards is the way of achieving minimal interoperability (Azad and Faraj 2013). For success, the key factor is that the grid and LCD is associated with the interoperability.
Reporting requirements: The reports are the fundamental aspect of the business. Each and every employee of the organization will be connected to the system as well as their activities. Not only the employees but also the each of the aspects of the business is connected to the system. Every single employee will be creating reports of their individual work in the system and this reports will be sent to the head of the department (Ismail and King 2014). Because of the established links between the deportments, verifying the reports will be very easy. This way the management can track the progress of the activities better way and the decision making will be more accurate.
Control, Audit and Reporting: The system needs to be capable of managing and processing several transactions simultaneously (Rouhani, Ghazanfari and Jafari 2012). Maintaining the regulatory and legal requirements that put upon the organization by the local, state and national government is crucial.
Performance: The performance of the system is the key for making the business grow. The system must be efficient enough to support all the processes that are related to enhancing the activates of account section (Rouhani, Ghazanfari and Jafari 2012).
Reliability: The system must be effective enough so that it can relied upon in terms of data, suggestion and verification (Sousa and Oz 2014).
Security: Security is essential aspect of any system. The system must be able to protect itself from physical and logical attacks (Rouhani, Ghazanfari and Jafari 2012).
Software Selection and Vendor Selection:
The software that will be proper for the organization is NetSuite. The software can efficiently and effectively handle the processes of the organization (Netsuite.com, 2016).
The NetSuite cloud software is provided by only NetSuite corporation.
It can be derived after analyzing the study that the need of an accounting information system in Disk4U is crucial. From the business process of Disk4U it can be understood that the system will need to work more in terms of leveraging processes of the accounts section. The NetSuite is an powerful cloud software that can minimize the effort of the management by making the background activities automated.
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