Question

Question 1

1. Identify the capabilities of at least seven popular accounting software solutions. Included in your list should be software for small, medium and large enterprises, and both on-premises (i.e. traditionally installed) as well as cloud-based solutions.

2. Name the accounting software that you researched. What new understanding have you gained about Accounting Information Systems?

3. With accounting information systems being computerized, how does this affect the accounting professional’s ethical and legal obligations?

Answer 1

Instructions :

• Write the introduction to each of the accounting softwares and use the key points for elaborating their capabilities.
• Research about the software and write a short note about its introduction.
• Compile the introduction for AIS and use the key point givens in the answer below.
• For the compiltation of ethical and legal issues , kindly use the points given for reference.

The seven popular softwares providing accounting solutions are stated along with the details of the type of organisations they can cater to. The details regarding the premises they work on are also mentioned.

Sr No	Accounting software	Type of Enterprise	Premises
1	Xero	Medium & Large	Cloud based
2	Fresh Books	Small	Cloud based
3	Quick Books	Small, Medium & Large	Traditional as well as Cloud based
4	Wave Accounting	Small	Cloud based
5	Sage Intaact	Medium	Cloud based
6	Zoho Books	Small	Cloud based
7	Net Suite	Medium	Cloud based

The capabilities of the softwares listed above :

Xero :

· Customized pricing

· Easy to use

· Easy invoicing

· Facilitates project management

· Facilitates budgeting

Fresh Books :

· Specialized for small enterprises .

· High accuracy.

· Creation of invoices in a simplified and professional manner .

· Facilitates online payments.

· Continuous integrations with external applications.

· Mobile based application is available.

· Application design can be modified as per choice .

Quick books

· User friendly

· Tax management features

· Easy adaptability to newer technology

· Automated backup facility

· Suitable for all types of enterprises

· Cloud based as well as traditional softwares available.

Wave Accounting :

· User friendly

· Creates professional invoices

· Simple to use

· Accurate and reliable results

· Tax management

Sage Intaact

· Automates the manual processes

· Decision making capability

· Accuracy

· Customized pricing

· Best suited for service industry

· Extended functionalities to external softwares

Zoho Books :

· User friendly accounting application

· Reduced manual data input

· Offers data integrity

· Automated tax compliances

· Allows integration with other business applications

· Best suited for small enterprises

Net Suite :

· Comprehensive ERP solution providing software.

· No requirement of manual data inputs.

· High levels of accuracy.

· Expandable and customizable as per user needs.

· Helpful for financial planning.

· Best suited for medium sized enterprises

Name the accounting software that you researched. What new understanding have you gained about Accounting Information Systems?

Accounting Software: Quick Books

Understanding about Accounting Infornation system:

· The accounting information system (AIS) is used by companies.

· The main objective of AIS is to be a systematic and comprehensive system in nature.

· It helps in financial reporting.

· Helps in improving efficiency.

Optimization of company resources

· AIS can be used by all the finance professionals, auditors, tax professionals, regulators.

· Integrates the working of different departments within organisations.

Controls need to be activated for safeguarding of sensitive data.

With accounting information systems being computerized, how does this affect the accounting professional’s ethical and legal obligations?

· AIS is treated to be a one step solution for the accounting systems.

· It has multiple benefits as mentioned above.

· Due to upgradation of technology,the risk of data leakage, frauds etc also increases.

· A lot of ethical and legal issues crop up due to mishandling and misuse of data .

· Adequate controls need to be applied to put a check on all such activities posing a threat to the company security.

· Thus the responsibility of each person working in the environment and having access to the software needs to be ethical .

· Thus the company should provide appropriate control access as per the need of the job of the user.

· Continuous monitoring is required to detect frauds and security breaches.

· The enterprises should provide the guidelines to its employees, regarding the ethical and moral responsibilities and legal implications in case of breach of security.

· Technological advancements keep the pressure on the ASI systems to safeguard the security of the data.