Week 3 Assignment: Establishing An Ais

Week 3 Assignment Establishing An Aisweek 3 Assignment Establishin

Week 3 Assignment - Establishing an AIS

You plan to open a small business and want to establish an accounting information system (AIS) to help you in day-to-day operations. In a 3–4 page paper: Describe the business you want to open, the types of products you will sell, operational activities, whether you will operate a traditional store or online. Explain two accounting software selection options, describing clearly which functions would help you be more successful in your operations. Explain two areas in which new IT and AIS would help you achieve your business goals (such as sales, costs, efficiency, audit, turnover, and so on). Use three sources to support your writing.

Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source slide at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides. This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions. The specific course learning outcome associated with this assignment is: Examine the role, purpose, and importance of an accounting information system.

Paper For Above instruction

Introduction

The establishment of an effective accounting information system (AIS) is essential for the smooth operation and success of any small business. With the increasing reliance on technology, choosing the right tools and understanding their impact on operational efficiency and strategic goals are critical. This paper outlines a hypothetical small business, presents suitable accounting software options, and discusses how new IT and AIS can help achieve business objectives.

Business Overview

The envisioned business is a boutique specialty coffee shop located in a bustling urban area. The shop offers a variety of high-quality coffees, teas, baked goods, and related accessories. The target market includes coffee enthusiasts, local residents, and office workers seeking a cozy environment to socialize or work. The operational activities involve inventory management, sales transactions, supplier payments, employee payroll, and financial record-keeping. The business will operate primarily through a physical storefront, complemented by a robust online ordering platform for pickup and delivery services.

Accounting Software Selection Options

Two suitable accounting software options for this business are QuickBooks Online and Xero. QuickBooks Online is widely used among small businesses due to its user-friendly interface, comprehensive feature set, and strong integration capabilities with other business tools. Its functions include expense tracking, invoicing, payroll processing, and financial reporting, which streamline daily operations and enhance accuracy (Intuit, 2023). On the other hand, Xero offers similar functionalities with an emphasis on cloud-based collaboration, making it easier for multiple users to access and update records simultaneously. Its advanced bank reconciliation features and real-time dashboards facilitate better cash flow management and financial oversight (Xero, 2023). Both options support the business’s needs, but the choice depends on specific operational preferences and integration requirements.

Impact of IT and AIS on Business Goals

Implementing modern IT and AIS solutions can significantly advance the business’s strategic aims. Firstly, improved sales and customer engagement can be achieved through integrated point-of-sale (POS) systems linked directly to the AIS, providing real-time sales data and inventory updates. This integration reduces manual errors and ensures stock levels are optimized, thereby enhancing customer satisfaction and sales volume (Brynjolfsson & McAfee, 2014). Secondly, AIS enhances operational efficiency by automating routine tasks such as payroll, expense management, and financial reporting. Automation reduces administrative overhead and allows staff to focus on customer service and business growth initiatives (Romney & Steinbart, 2019). Additionally, a robust AIS supports compliance and audit readiness by maintaining accurate, organized financial records, reducing risks associated with regulatory penalties and fraud.

Conclusion

In summary, establishing a well-designed AIS tailored to the specific needs of a small business such as a boutique coffee shop can promote operational efficiencies, better decision-making, and achieve strategic goals. Selecting appropriate software solutions like QuickBooks Online or Xero, coupled with integrating advanced IT systems, will enable effective management of sales, costs, and compliance processes. As technology evolves, continuous assessment and upgrade of AIS ensure the business remains competitive and resilient in a dynamic environment.

References

  • Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W. W. Norton & Company.
  • Intuit. (2023). QuickBooks Online Features. Retrieved from https://quickbooks.intuit.com
  • Romney, M. B., & Steinbart, P. J. (2019). Accounting Information Systems (14th ed.). Pearson.
  • Xero. (2023). Xero Features & Benefits. Retrieved from https://www.xero.com

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