Advancements of Information Technology - Assignment Example

PRISTON. by Student’s name Code+ course name Professor’s name University name City, State Date PRISTON. Advancements of Information Technology (IT) has increased the urge for the accountants to acquire the modern skills since it requires them to have quality, technical and high level of computer literacy to perform the accounting process. Computer skills have currently become the basic knowledge and the fundamental ability of any accounting professional (Dillon, Kruck, 2004). Q. A Discuss the information that the Management Accountant (MA) would need from the new system explaining its usage. The Management Accountant for Preston Components Manufacturing plc is accountable for making sure the firm manufactures and sells made products efficiently and profitably (Pelz 2003). When enacting this role, the MA must work on Costing, Budgeting and Monthly Management Accounting (Stenzel 2010).  The advancement of technology eventually has facilitated the manipulation of cost and management accounting measures (Pelz 2003). Just-In-Time (JIT) manufacturing system is a tool that is quite competitive. Therefore Preston Components Manufacturing plc should apply this system in order to maximize inventory levels and timely giving goods and services to the clients (Stenzel 2010).  Development in IT has will facilitate the company to make use of JIT manufacturing system appropriately. The Cost/Management Accountants will need computers which determine the productivity of JIT system. Computerized Accounting Information Systems and development in the technology has led to computerization of information systems too (Pelz 2003). Consequently, the former manually performed accounting information systems transformed into computer performance currently Data input function should be known to the Management Accountant so that he/she can be able to feed the computer with machine-readable data (Stenzel 2010).  Like in manual AIS, the information is retrieved and directly transferred to journals and ledger account. Similarly, computerized AIS, the data should be changed into machine readable structure. Example is bar code scanners which are used in retail shops to record the selling operation (Pelz 2003). Apart from the data scanned, the accountant should also be aware of data bases that keep the records for future processing. For instance, database comprises of data entities i.e. the information of an existing customer like account number, credit limitation and balances therefore reduces the instances of confusing one customer with the other (Stenzel 2010).  Data processing is much essential to the management accountant. The data should be processed after is collected and fed to the computer. Data maintenance is the most common data processing action used. Immediately after the sales transaction has taken place, the information is fed to the computer and as a result the computer updates the sales and account receivable files (Stenzel 2010).  The updates are done by the primary keys that distinctly classify each record. Example, if a sale transaction is done, the related customer is definitely updated hence the chances of the accountant to go to wrong customer’s master file is very rare. Information output is another factor the MA should know (James 1998). After the data input and data processing/maintenance process, the final information should generated to satisfy the users tastes. The information is produced in three structures: a document, a report, or a response to a question. The document are printed or stored in electronic figures in the database (Pelz 2003). Computer-incorporated manufacturing process is very significant in Preston Components Manufacturing plc since it is entirely automated. Thus the computers are the ones responsible for controlling the whole manufacturing process (James 1998). In Computer-incorporated manufacturing process, the expenses incurred by the producer is higher than that attained by the traditional manufacturing environments (James 1998). The MA should have a correct knowledge of Software Tools in the Accounting Process. Accountants must familiarize with the software tools for effectiveness and efficiency in accounting process. Such software’s includes; accounting software that has basic accounting keys like input, processing and output (Stenzel 2010).  Graphic software produces and prints graphic presentation on slides. It also graphs the data in fiscal declaration and reports. Electronic data interchange (EDI) software enables the Preston Components Manufacturing plc communicate electronically (Pelz 2003). A computerized network facilitates purchaser and supplier to pass out the orders and invoices, make payment and collection electronically. Accounting information systems capable of technologically sophisticated tools can now carry out accounting purposes more effectively and reduce costs. The Managerial Accountants come together to create an information system that would cover both the external and internal operations of the company (James 1998). The MA is expected to have the information of the inter-functional team so that to be able to interpret that information and analyze the deductions of the decision alternatives (Pelz 2003). The cross-purposeful managerial panel should gather the manufacturing and operating managers including those in marketing, and purchasing sectors, the quality executive expert and the managerial accountants so that they can contribute their expertise and experience in the issue of the incorporation of the new Computerized Accounting Information System (James 1998). A computerized accounting system keeps records of the accounting communication by use of both computers and accounting software. This system is database-oriented program because the transactions are recorded in systematically arranged database. The rudiments of computerized accounting comprise the basic requirements for the computer applications which work under database. Therefore the system simplifies, assimilates and shapes the company’s manufacturing processes, and cost efficiency is enhanced. It presents the correct representation of the company’s activities to customer’s financial report Q. B The Financial Accountant is responsible for both the General Ledger and all reporting to External Stakeholders. Financial Accountant (FA) need to progress fully as financial investigators/auditors who can manage any situation necessitating financial (Stenzel 2010).  Financial statements are much imperative to FA since they should analyze the data provided on the statements and offer a comparison with sources (Pelz 2003). The balance page returns statement, statement of owner's equity, and proclamation of cash flows are the four significant pecuniary proclamations that FA. E-Business, the Intranet and the Extranet information. The internet is significantly used by the accountants to execute major manufacturing processes in the company. The electronic business gives room for the accounting process to synchronize activities for the firm management via digitalized networks. The Intranet distributes information like company policies, and plans to workers. The intranet features applications like e-mail, code of ethics etc for the conveyance of the information. Extranet communicates Accounting information to the outside the company eg. to the customers. Electronic linkage improves the efficiency and reduces the travelling cost and consequently lowering the operational cost (Laudon, 2006). Transaction processing systems must be known to the FA. Transaction processing systems are responsible for dispensation and outputting roles for the operations, storage, and data compilation in Preston Components Manufacturing plc. The obligation of this organization is to gather input and later produce the output. Is any computer appliance that aids the process of manufacturing transactions (Pelz 2003). This makes the financial accountant to use order entry systems, payroll systems, and accounting systems which are the major categories of TPS. Order entry systems records order data. For instance, when buying goods from Preston Components Manufacturing plc’s website, your order is documented automatically through the automated order entry system (James 1998). A payroll system is one of TPS types that organize and compute the issues of paychecks. The system automatically deducts the taxes and other deductions correctly. Accounting systems records financial transactions between the buyer and the seller (Pelz 2003). General ledger systems are systems proficient of positioning together account figures to make financial reports A customer relationship management system (CRM) is much important to the Financial Accountant of Preston Components Manufacturing plc since it keeps records of activities taken by the customer (Stenzel 2010).  Such activities include; procuring trends, product imperfections, and customer’s inquiries. CRM systems promote good communication between the company and the consumers which would boost the responsibility designated for the FA. The Financial Accountant needs Business intelligence systems which enables one to predict purchase pattern in Preston Components Manufacturing plc. The system collects the data from various companies and studies the sale pattern (Pelz 2003). The system creates acknowledgment risk representation that examines the number and amount of provision offered to the sector. Input and output processing information is too required by the accountant. The accountants need software courses that could keep the clients information efficiently. Therefore, the accountants hand in hand work with system programmers so that to create a modernized process that synchronizes the history of the clients and their respective documents (Laudon, et al, 2006, p.16). The program is hence stored in the hard discs and the information prepares the taxes of the client (Torgerson, 2007). Financial Accountant requires Knowledge management systems to systematize the knowledge within Preston Components Manufacturing plc Company and then spread it (James 1998). A knowledge management system brings modernism, exclusive performance, incorporation, and know-how to the organization. This is convenient since it respond to the customers and partner’s questions and issues quickly. .An enterprise system is an incorporated information system created to hold up business development, information surges, reporting, and information analytics in multifarious organizations. Therefore the financial accountant of Preston Components Manufacturing plc Company needs this expertise to coordinate major progression of the organization and incorporate those progressions into the various units of the organization (Stenzel 2010).  These application progressions include transaction and distribution, economic accounting, speculation management, substance management, manufacture planning, preservation, and human resources. Q.C The needs of each accountant must be satisfied for the compatibility of the new Computerized Accounting Information System in Preston Components Manufacturing plc. The management accountant is responsible for managerial accounting within the company while financial accountant is designated for external users like inventors and creditors and external financial reporting. Firstly, to satisfy the wants of the two accountants, they should understand their obligations and shape the responsilities to achieve the roles given (Fridson & Alvarez 2011).  Management Accountant should be concerned with internal management of the company for instance the people who are within the firm and giving directions and the control of their operations. The Financial Accountant on the other hand is involved in external environs of the company. For example, giving advices to stockholders, creditors and customers. With respond to Ray W Garrison & Eric W. Noreen, Managerial Accounting 4 (8th ed. 1997), Financial Accounting gives the scorecard where the firm’s reputable performance is criticized. Management Accounting is widely applied by many corporations such as manufacturers, retailers, service industries, agri-business, and non-profit firms’ therefore creating stiff competition (Fridson & Alvarez 2011).  All of these have the plan for profit, good quality and leadership proficiency relying on the managerial accounting. To win the competition race, the Preston Components Manufacturing plc Company management accountant should organize the goals well with the aid of management. The personnel should acquire the resources, hire prominent and skilled personnel. The knowledge of production, environment and legal areas should be known to the accountant. Appropriate decision determine the fate of the completion, hence decision making process for the Preston Components Manufacturing plc Company is very important (Stenzel 2010).  The management team under management accountant should decide the most favorite and readily available substitute. Proper decisions help the company to attain its goals, aims and objectives efficiently despite the competition. The management team’s work includes decision-making process, planning, directing the working activities and finally controlling the company. With such responsibilities, the accountant has an assurance in consistent working and achievements of the set goals. Assessing the company’s competitive situation is another way of curbing the competition. The management accountant constantly should assess the trend of the company’s comparison with the competition with an insight of improving the position. Therefore, evaluation of the financial and intrinsic performance of the company, the customer contentment, and the modernization with comparison to other companies is very essential (Stenzel 2010).  The financial accountant should plan the operations of the Preston Components Manufacturing plc Company by developing a comprehensive financial and running description of the predictable operations. He should too direct the operational activities that are running the day-to-day activities of the company. The financial accountant should analyze both financial and non-financial data which help not only in strategic planning of the company but also its decision making program (Fridson & Alvarez 2011). The accountant critically analyzes the cost of the products, cash inflows and outflows and also budgets. The analysis assist in directing and controlling the daily operations within the company and setting the fees and prices of the manufactures (Fridson & Alvarez 2011).  The General Ledger and all reporting to External Stakeholders work of the Financial Accountant would be achieved effectively when good measures on the control operations are applied (Fridson & Alvarez 2011). The management evaluates the authentic costs incurred by analyzing the actual performance with comparison to those in the budget plan. Motivation to managers and the employees will much contribute to the good performance and narrow the degree of deviation of the competition. Motivations enforce the employees to show their efforts and trains in achieving the company’s set goal (Stenzel 2010).  The financial accountant therefore should communicate the plans of the company, provide the extent of good the plan was attained and without delay explaining the changes from the plan. Budgeting is one way of ensuring that the competitions and the needs of the accountant goal are achieved. The budgets clearly show the highest management need and thus allocating the resources effectively with positive emphasis on some special activities (Fridson & Alvarez 2011).  When a deviation occurs on the budget plan, explanation is offered for the negative consequences. The act improves the quality of production in the next attempt. Time-based competition is much applicable when almost every firm is producing the same commodity. At international competitive level, time is very crucial for the company success. When the time taken by the manufacturer to produce finished goods to the market is very small, therefore the company attains a significant benefit over its competitors (Pelz 2003). The delays on the production stage must be minimized or done away with for efficiency and product quality. Product’s life cycle and diversity is a factor that can be improved or embraced to emerge the competition. Technology is growing at high rate and therefore the durability and efficiency of many of the products shortens (Pelz 2003). To win the competition, the company or the manufacturer must keep up with diversifying marketplaces that is, to produce the products which give room for advancement with the expansion of the technology (Fridson & Alvarez 2011).  References. Pelz, G. (2003). Mechatronic systems modeling and simulation with HDLs. Hoboken, NJ: J. Wiley. James Hall (2015) Accounting Information Systems USA press America. Firewall – 2006 Computer Accounting with Tally New York, NY: McGraw-Hill Education. Stephen Marley, ‎Jeffrey Pedersen - 2009 Accounting for Business: An Introduction James A. O'Brien – 1998 Introduction to Information Systems: An Internetworked ‎Snippet view Stenzel, J. (2010). Lean Accounting Best Practices for Sustainable Integration. New York, NY: John Wiley & Sons. Heagy, C. & Lehmann, C. (2011). Accounting information systems: a practitioner emphasis. Australia Mason, OH: Cengage Learning. Brewer, P., Garrison, R. & Noreen, E. (2016). Introduction to managerial accounting. New York, NY: McGraw-Hill Education. Fridson, M. & Alvarez, F. (2011). Financial statement analysis a practitioner's guide, fourth edition. Hoboken, N.J: John Wiley & Sons. Dillon, T. W., & Kruck, S. E. (2004, Spring). Management accounting quarterly Business services industry. Gibson, C. H. (2007). In R. Dewey (Ed.), Financial reporting & analysis (pp. 51-53). Mason, OH: South-Western Cengage Learning. Laudon, K. C., & Laudon, J. P. (2006). In B. Horan (Ed.), Management information systems. Upper Saddle River, NJ: Pearson Prentice Hall. Citation. The emergence of accounting information systems programs. Retrieved fromhttp://findarticles.com/p/articles/mi_m000L/is_3_5/ai_n6272118/ Torgerson, S. (2007, May). Partnering with customers for success. Accounting technology, 8,1. Retrieved fromhttp://access.sjcny.edu:2090/pqdweb?index=29&sid=2&srchmode= 2009 Product & service guide searching for technology for your firm or your client. (2009, August). CPA & NSA technology advisor industry newsletter. Retrieved fromhttp://www.cpata.com/PSG/2009/2009Guide.pdf Read More