ACCOUNTING

Assignment - Implementation of New AIS in VolksFolks

Table of Contents

Introduction1

Discussion2

Critical Analysis of Existing Systems and Processes2

Requirement of the New System3

The Accounts Circle4

The Business Case - Implementation of new AIS6

Functional and Operational Requirements7

Objectives8

Functions and Features of AIS10

The System Requirements Including Control and Security Measures11

Conclusion12

Assignment - Implementation of New AIS in VolksFolks

Introduction

Accounting system is a structure which is organized by the information gathered from a company as a result of its operations, using resources such as forms, reports, and books that are submitted to the management that will allow it to make financial decisions. An accounting system is nothing more than standards, guidelines, procedures and so on. For an accounting system running efficiently requires that its structural configuration meets the objectives outlined. This network of procedures should be so closely linked that integrates scheme of the company that may be possible to make any major thereof (Hicks et al. 1981: pp. 33-45).

Accounting Information System is used by accounting firms and businesses for cost-effective information and decision support systems. With efficient computer operations and automated paperwork preparation, the tasks of budgeting and scheduling are achieved more easily than through traditional methods. Accounting Information System can be used to record transactions, classify and sort them in a systematic manner, and summarize information to enhance its usefulness. The system is also useful in interpreting results so that significant changes or developments can be explained and projected and used later in decision-making processes (Clark 1986: pp. 25-36).

The aim of this assignment is to plan the implementation of AIS in VolksFolks. The functions of AIS include editing raw data in an account, creating chart, opening a new account, deleting an old account. It also has the capability of showing trial balance, balance sheet, and income statement which are the major financial statements in financial accounting. The AIS has a friendly user interface. The user can retrieve, add, delete, insert and update data in an account table and analyze the data which will reveal the company's current finical status.

Discussion

Critical Analysis of Existing Systems and Processes

The company, VolksFolks is current selling a range of merchandise to Volkswagen car and camper van enthusiasts. They currently sell their goods at a number of shows throughout the UK. Since all of the companies accounting operations are done manually. It has resulted in serious issues and errors for the management. In addition, the market for Volkswagen merchandise is growing and the owners are concerned of their current manual procedures that are not enabling them to keep accurate records or statistics which would help them in their decision making, planning and control activities. This problem will be severely worsened next year with the opening of their mail order and retail shop expansion plans.

We have critically analyzed the current system and procedures of the company and we have come to know that company's purchases are currently on a cash basis. In addition, all sales are currently made on a cash basis. Accounting records are also manual and reporting is limited to the end ...