71204 Accounting Information Systems Assessment Answer

Assignment

Part A

Provide short answers to each of the following questions. Make sure your answers are in your own words and are your own work. 

Question 1

Define accounting information system in your own words.

Question 2

Explain how moving to a computerised accounting system should affect a firm’s ability to generate a range of reports

Question 3

Explain the difference between analysis and creating a summary. 

Question 4

Define SaaS and briefly explain the benefits of using a SaaS accounting system.

Part B

1. data flow diagram of the subsystem

2. flow chart of the subsystem.

Part C

Deana runs a small popup craft shop which retails completed crafts such as quilted bags and wall hangings along with craft supplies. Deanna runs the shop at regular markets and in pop up shops in short term rented premises (Deana usually rents empty stores for 2 to 3 days in nearby towns). As she becomes more widely known the business is growing with increasing sales of crafted items and craft supplies. This is making her manual accounting system more time consuming and she has approached you to identify a computerised accounting system to help save administration time. Deana is not registered for GST. 

Deana has heard of MYOB and Xero so wants you to start by providing some examples of the reports each produces and to provide some evaluation of the programmes. 

Required

You are required to complete the following steps using Xero computerised accounting software.

1. Enter the business name as your name and student ID.

2. Set up the chart of accounts needed in your system. Ensure you remove any unneeded accounts and edit account names to fit the case.

3. Enter the provided opening balances into your selected system.

4. Process all of the provided transactions for the first week in May, including importing the provided Deana’s Bank Feed file.

5. Using Xero, produce and print the following (ensure all reports have the entity name included in them by the software – that is, your name and ID).

(a) Chart of accounts for your business.

(b) Income statement (profit and loss report) for the period 1 May to 8th May.

(c) Balance sheet (statement of financial position) as at 8th May. 6. Produce a brief explanation, in terms a non-user of accounting systems can understand, of the key steps Deana would need to complete in setting up Xero for her business.