Accounting Information System for Tax Agencies - myassignmenthelp

Question: Discuss about theAccounting Information Systemfor Tax Agencies. Answer: Introduction An Accounting Information System (AIS) is a structure that a business uses to collect, store, and retrieve financial data so that it can be used by accountants, auditors, consultants and regulatory and tax agencies. The various components of Accounting information consists of procedures, instructions, data, software, information technology infrastructure. The AIS system also incorporates a level of integrity between different departments of an organization leading to smooth and effective function of the organization (Romney and Steinbart, 2012). In this review, we will get in touch of cloud computing system and various form of cloud computing that are available in the market. In addition, we are going to evaluate challenges and benefits of the AIS system, with a brief literature review (Klemstine and Maher, 2013). Cloud Computing System Cloud computing provides people to share large amount of decentralized resources belonging to different organization. However, it poses a threat to the security dimension and data protection technology (Brazel and Agoglia, 2014). Cloud computing has developed from the grid computing technology. Cloud computing has led to coordination of diverse resource of various organization under a same roof which also caused various secreted information of different organization to be exposed to other organization. It posed a major challenge to data protection and data security. Users from diverse platform come together on a centralized scale to work together in an efficient way. Trust is a major tool in maintaining security and smooth running of the system. Eucalyptus- is an open source software framework for cloud computing system implementing Infrastructure as a Service (IaaS) system that incorporates the ability to control entire virtual machines deployed across variety physical resources. It makes the users to become familiar with the existing Grid and HPC system. As cloud computing has become a research hotspot among modern technology, it has led to revolutionary change in the field of education. It inculcates various e-learning, network and developing of software and hardware platform of e-learning system developing a huge business worldwide. Cloud computing is mainly based on networks, especially based on the Internet, whose task is to ensure the users use the computing resources on demand and pay money for their usage. E- Learning computer model includes the uses of different e-learning techniques through customization of e- learning frameworks encouraging scalability, feasibility and accessibility. The role of Information Technology has an adverse effect in the banking industry or financial markets compared to other sectors. AIS system provides prompt and reliable services to the users and serves users through delivering of appropriate service. Figure 1: Cloud computing (Source: Mather, Kumaraswamy, 2014) Challenges and Benefits Now that we have a fairly clear idea on Clouds based Accounting Information 1System, let us go over briefly the problems and the positive things that comes with the software. Since this is a newly introduced software, it costs significantly more. You have to pay much higher for online accounting package rather than what you normally churn up for desktop accounting package. But then again, this expenditure seems meaningful since you only have to spend this money every few years as updates are to be bought every 4 or 5 years. Whereas, manual accountings have be dealt with every single year without fail. Since the whole software operates via the internet, you will never have physically access to your own data. All data is stored online in different servers throughout the world. So, your data could be anywhere! In any of the continents. While not many are very concerned with this, there are some who are. And that panic does seem viable standing in todays world. Your online data could be accessed by the government or any other 3rd Your business data can be analyzed, audited again or just can be gone through by literally anyone. But the government can only do this if the rules and jurisdiction allows it to. This is a fully automated online system. So the software can only work on a number of definite algorithms. It has only few specific modes and ways to work and offers some specific bundles. You may not always get what youre really looking for. Something that has your special needs. No custom packages while desktop accounting system would absolutely cater to your personal requirements. The clouds based system has only what it offers now and its future software updates. Most clouds based accounting systems dont give you any option to backup your own data even if you want to take out prints of certain reports or to export it somewhere else. So if you change to a different accounting plan, your previous data gets all erased. Even if you dont get monthly subscriptions because you dont want to pay extra, you will have difficulties keeping your data. This is a serious flaw because some countrys rules specify it to keep records of businesses for a few years even after the business ends or stops. Despite all these obvious problems, clouds based accounting system still has some great advantages over manual accounting system that makes for a strong case in its favor (Hall, 2012). Since all data is stored online the business owner or any other employee can access the information from anywhere anytime. They dont have to be physically present in the location which at times can be a huge advantage to curtail logistics and transportation costs of a small business. On clouds based accounting system, accessing a document is as easy as taking a call. Online data can prove to be an enormous help when it comes to maintain a good relationship with the vendors and distributors. Any discrepancies regarding delivery of goods or unpaid bills can be looked over at immediately, from anywhere and be sorted with rather ease than what one has to go through if the whole process is done physically going to places. This also makes collaboration works that much easier! Clouds based systems have an integrated platform which enables you to access data and tools from other clouds software and apps if you buy any one clouds based accounting technology. It saves massive amount of time by curbing manual data entry. All the data is updated constantly. So one can have a clear view of the financial situation of the company almost everywhere anytime. The updates are automatic which means the business owner doesnt have to worry about updating the software or getting the latest version installed. Also, the updates are free. So no more upfront business costs. Clouds based accounting system is a great way to support and care for the environment. Everything online helps you to go paperless which in turn ensures a greener planet. Less paper also helps you to do away with paperwork in your office and keep the place clean. Another great thing about clouds based accounting systems is that the whole software grows with your business. So you never feel that your software is technologically inferior to handle all the data and information when your business grows to become a larger entity. (Mather, Kumaraswamy and Latif, 2009) Recommendation Accounting Information System is an integral part within the information systems that require high quality data. The success factors in the AIS system mainly include service quality, data quality and system quality. From literature review, these qualities mark significance in AIS success factors for increasing organizational competency (Salehi, Rostami, and Mogadam 2010). The AIS system is a major contributor in IT revolution, decision-making process and strategic planning and financial monitoring. AIS has helped many commercial banks in maintaining their administrative activities such as maintaining financial position, performance and to keep an eye on the liquid transactions. The study revealed that AIS maintains the characteristics, and meet requirements of an informative system. The uses are vast including data storage, data entry and processing meaningful output assisting both financial and non- financial administrative decision making process. Therefore, AIS is a managerial dec ision-making aid. AIS system supports internal control mechanism of the industries employing ERP system. In todays world, there is a huge need of a computing tool, which is effective in widespread information to different organization. Effective decision making helps in increasing organizational efficiency. Now a days due to revolution in the computer sector the banking sector has also decided to make an investment on e-technologies. Due to the development of e-banking and m-banking application, the users got the added advantage of making transactions sitting at home and led to the era of cashless transactions. The main tools of organizational performance are information quality, data quality and system quality. It is evident from a recent survey it is evident that the commercial banks which has adopted AIS system has got competitive advantage among others by achieving financial stability, real time update of client banking activities. Therefore, we conclude that the adoption of AIS system has led to vast advantage in the computing world, and so it is of great importance in the banking and commerce industry. Conclusion Despite all of the disadvantages of the clouds based accounting system, it does also has certain perks to it that makes for a strong case in favor of the software. The system helps small businesses to flourish with seemingly non-existent physical work and very low cost. The free updates and online backup storage systems ensure a business owner can access the relevant data from anywhere and anytime which can prove to be a huge relief in emergency situations. Thus we can conclude that clouds based accounting system is the thing small businesses should switch to. Reference List Brazel, J.F. and Agoglia, C.P., 2014. An examination of auditor planning judgements in a complex accounting information system environment.Contemporary Accounting Research,24(4), pp.1059-1083. Hall, J.A., 2012.Accounting information systems. Cengage Learning. Klemstine, C.F. and Maher, M.W., 2014. Management Accounting Research (RLE Accounting): A Review and Annotated Bibliography. Routledge. Lambert, R., Leuz, C. and Verrecchia, R.E., 2012. Accounting information, disclosure, and the cost of capital.Journal of accounting research,45(2), pp.385-420. Mather, T., Kumaraswamy, S. and Latif, S., 2009.Cloud security and privacy: an enterprise perspective on risks and compliance. " O'Reilly Media, Inc.". Romney, M.B. and Steinbart, P.J., 2012.Accounting information systems. Boston: Pearson. Salehi, M., Rostami, V. and Mogadam, A., 2010. Usefulness of accounting information system in emerging economy: Empirical evidence of Iran.International Journal of Economics and Finance,2(2), p.186.