Financial and Production Records Making †Free Samples to Students

Question: Discuss about the Financial and Production Records Making. Answer: Introduction Accounting software is an important software application that is used to record and process accounting transactions within the organizational units such as receivable accounts, payroll, general ledgers and trial balance. Accounting software can be developed within the organization for use or may be purchased from another organization depending on the features that suit the organization using it. The best accounting software is on-line based that can be accessed and used conveniently from anywhere on any internet enabled device. Accounting software consists of various modules including but not limited to; account receivables where an organization records the monies received, general ledgers where the organization maintains and keeps its financial books, inventory where the company keeps control of its stocks, accounts payable where the company records its bills and pays out its arrears to the parties owed, sales order accounts where the company keeps the orders for supplies to the customers etc. Implementation of accounting software largely depends on the cost of its installation and configuration in the organization. Many midmarket and bigger applications are sold completely through the help of resellers and developers who pass on license fee to the software vendor and then charge the customer the installation, customization and other support services. Accounting to Jones, D. and Jones, M. (2016), software has several benefits to the users such as speeding up the process of information retrieval, faster bank reconciliation, automation in preparation of value added tax and also provides real-time position of the companys financial position. For example NetSuite accounting system. This system is a multi-facet business solution designed to make accounting lighter than before. The organization is, therefore able to capitalize on the production efforts. PricewaterhouseCoopers uses the benefit of its hands-on experience to provide a strong level of local understanding and support , in accordance with the international professional standards of the PricewaterhouseCoopers worldwide organization. However, it has been challenging using QuickBooks accounting system to update the accounts of PWC in the recent past hence the need to adopt NetSuite system for the company. Review of the current situation with regard to the benefits of the new system NetSuite was developed with a greatly customizable dashboard that is easy to use and highly navigable. It is loaded with important accounting tools and functionalities and does bring accounting jargon into the system thereby enabling even the beginners to use efficiently without trouble. NetSuite has several advantages that helps in then growth of the business With NetSuite, users can enjoy the following advantages: The suite software possesses a reputable balance of application breath and product depth, Elastic digital dashboards. The ERP dashboards are a striking masterpiece. Role-based application navigation and security, NetSuite accounting system is believed to provide a distinguishable difference from other ERP systems, several industry specific or vertical market solutions. Create customizable, specialized invoices in a matter of moments, and enable the customers to pay instantly and the companys Partner Relationship Management (PRM) module is well designed, thoroughly integra ted throughout the application and provides good lead distribution, joint forecasting, commission management and partner performance metrics. Therefore PWC is capable of overcoming the challenges of limited forecasting as posted by Quickbook system. Also it is capable of offering ring secured solutions to several specific industries, a thing Quickbook system is not able to handle in its current state. Procurements and expenses allow one to enter details of the money owed to suppliers, and money you are eligible to claim back through the company. Wide selection of financial reports, ranging from basic reports, such as profit and loss or balance sheets, through to more advanced reporting such as audit logs and trial balance reports. Enable access to ones online accounting files wherever you are with great convenience. With the use of NetSuite system, when a client places an order for stock, the system is localized to bill the clients orders within the shortest time possible and allow the customer to clear the bills instantly without delays. This is to the advantage of the organization, since it reduces the amount of time spent dealing with one customer hence many customers can be attended to within minimal time, saving the company on the unnecessary debts arising from deferred payment by customers. When making purchases and expenses, one is able to make entry of details of money owed to those who supply stock to the company in an organized system that calculates discounts received from the purchases hence the able to claim back the entitled money through the company without any stress and delays. Selection of financial report on a wide range is possible from basic reports to advanced reporting on the financial standing of the company. Reports on profit and loss, balance sheet, through to audit logs as well as the trial balance can be easily done and seen in real-time since the system is fed with the raw data and instantly calculates to give refined information for reporting purposes in the organization thereby aiding easy and faster decision making by the directors of the company. Because new system is online based, the users can access it any time anywhere; at the users convenience. It can be accessed through any device that is internet enabled therefore members of staff can work from office or at home without causing any inconvenience to the clients who are seeking to be served at any time of the day. This creates customer confidence, trust, loyalty as well as business joy of being assured of quality service in real-time. This goes a long way to augmenting the market for companys products since the customer will flock for the products due to efficiency in service delivery. Involvement of the right people The information generated by the system is wholesome and is to be used by the entire organization not limited to a single department of the organization. Therefore bringing the right people on board is indispensable in realizing positive outcomes of the new system. People ranging from members of staff to the board of directors need to be involved in their rightful capacities so as to ensure successful implementation of the new program at hand. When every rightful individuals are involved, then success is realized right from the basic stages of the use of the system that is, from data entry, data processing, interpretation through to output as well as expertised maintenance and management of the new system at large. When the right people are involved, then very minimal system break-downs are realized. The accounting software does not operate on its own but it requires people who will use and manage it on a daily basis. Even though the users need to be familiar with the NetSuite accounting system, the software does not need to be complex and plug-in accounting jargon into the system making its use difficult and stressful. NetSuite system is a simple software to use since it has prompts that guides the user from one step to another; it does not allow the user to skip even a single step hence making it user friendly and logical in all its stages of operations. The efficiency of the whole system lies squarely on the role of the system managers. The managers assigned to supervise the use and the operation of the system need to be savvy with the financial accounting reporting. The technical how on financial information is important for those who are responsible for the management of the system? The managers need to acquaint themselves with the accounting standards of the organization as well as the recognized international standards. Reporting knowledge is also handy in making the system run smoothly especially when reporting on the accounting logs and trial balance of the company. The data generated by the new system is also used by the customers. The information produced by the system as summaries and reports are heavily relied upon by the clients who use them from time to time for sound decision making on whether to use or invest on the products of the company. Therefore, the summaries and reports need to be reliable, consistent and detailed to the extent that it can be depended upon by any existing or prospective client who wish to make decision. System Signoffs Before the acquisition of the new system, cost benefit analysis is required to ascertain to what extent the software will be beneficial to the company. This done by accountants to evaluate on the cost and assess its affordability by the company. The management is consulted then scrutinizes the requisition so as to approve the acquisition of the new system for the company. Stakeholder Consultation method Expected outcome System users Public engagement Provision of various ideas System managers Ongoing consultation Support Definition of challenge NetSuite accounting system is frequently used by most companies however, there are challenges that arises during its use, the following are the some of the challenges; loss of connection to the data file due to network connectivity problems, slow connection when multitasked, problems in coping file to another location, non-printing printer and sometime locating data files becomes hectic. Revenue leakage is the greatest headache since the payroll cannot be connected to financial management system. The negative impact on the organization on the use of NetSuite is that it does not keep track of the skills and employees of the company neither does it reflect to the current project they are deployed. Forecasting by management is also negatively affecting the organization due to limited functionality within the NetSuite system. NetSuite system is an online based software, therefore can be easily integrated to bring customers on board and allow them to use the system as well from their end in accessing any information required by them by creating a login feature so that they are able access the portal, download and print summaries. Loss of connection to the data file due to network connectivity problems, slow connection when multitasked, problems in coping file to another location, non-printing printer and sometime locating data files becomes hectic. Revenue leakage is the greatest headache since the payroll cannot be connected to financial management. Secondly, following have not been easy to achieve with the current system in place; forecasting, financial management and integration, revenue recognition and integration whereby payroll is connected to the financial management modules so that cash leakage is avoided. For instance gross profit and loss. Sales and financial ratios can be used to against the budget to make sound business decision in the company. The following data relates to a small trading company. The data can be computed as below to show the performance of the company for better decision making by the management. Profit ratio (GP ratio) of the company. Gross sales: $1,000,000 Sales returns: $90,000 Cost of goods sold: $675,000 Solution: With the help of above information, we can compute the gross profit ratio as follows: = (235,000** / 910,000*) = 0.2582 or 25.82% *Net sales = Gross sales Sales returns = $1,000,000 $10,000 = $910,000 **Gross profit = Net sales Cost of goods sold = $910,000 $675,000 = $235,000 The GP ratio is 25.82%. It means the company may reduce the selling price of its products by 25.82% without incurring any loss. Significance and interpretation: Gross profit is very important for any business. It should be sufficient to cover all expenses and provide for profit. Generally, a higher ratio is considered better. The ratio can be used to test the business condition by comparing it with past years ratio and with the ratio of other companies in the industry. A consistent improvement in gross profit ratio over the past years is the indication of continuous improvement. When the ratio is compared with that of others in the industry, the analyst must see whether they use the same accounting systems and practices. Forecasting and cash flow control Cash is the throbbing heart of any operating business in the world, therefore great care need to be taken to ensure its control. Sales, customer orders and purchases need to be keenly tracked at all levels since they provide vital information regarding future cash inflows and outflows in the business. Information on purchases if tracked, can give a predictable future cash outflows. Sales and customer orders helps to predict cash inflows into the business. Consistency in these factors provides an accurate forecasting of cash flow in the business. Also, monitoring customers credit accounts and establishing a deposit policy for activities in progress can without doubt help in cash flow control. Manufacturing workflow also helps to track cash flow by outlining flow of activities in the business. The companys Partner Relationship Management (PRM) unit is well planned, thoroughly integrated throughout the application and provides good lead distribution, joint forecasting, commission manage ment and partner performance metrics. This specifically ensures cash flow control by PWC. Management of assets in the business may seem too insignificant but very important so as to save the company on frequently replacing assets. To manage the assets, an inventory of assets needs to be taken frequently and the account of receivables also need to be properly maintained. Work in progress inventory, finished good inventory and merchandising inventory need to be maintained separately. The total number of assets bought for sale but not yet sold to the customers, total number of finished products in the warehouse and assets still being worked on. These information need to be recorded and maintained for reference. The organization flexibility is measured on its ability to adapt to changes in in the environment regarding software solutions to the emerging accounting challenges so as to increase service delivery to the customers as well as efficiency in the management of accounting system in the company. Flexible digital dashboards that can be adjusted to meet on demand internet delivery by PWC. Consultants are people with specialized expertise who help in seeing hidden things as far as business success is concerned. They are instrumental in evaluating best accounting software for any business especially NESUITE. For PWC, NetSuite Software would be helpful in evaluating and providing the best accounting software. It is a respectable company that works with both large and small business firms with negotiable pricing of their services. It is efficient and simple to install in any internet enabled device. Flexible digital dashboards that can be adjusted to meet on demand internet delivery. It is also capable of addressing most challenges of the company as highlighted above. It is recommendable that new software be used by only those who have in-depth knowledge of accounting despite its simplicity to use so as to avoid errors resulting from incompetency. Evaluation Performance of the Software NetSuite software is a renowned application that is known for its great efficiency. It is a feature rich software that performs well and user friendly. It is capable of handling all accounting matters including the small sized accounting experiences. It is respected for its ability to support online filings and Construction Industry Scheme. Its scalability is to the extent that it can handle decent sized Small Market Enterprises. It has numerous modules in accounts payables, general ledger, purchase orders, billing, inventory etc. there is a 30 day free trial for users, a two year subscription, with 20% discount. Initially priced at a low $4.95 per month per user, NetSuite has a history of continual significant price increases which results in considerable resentment within the user base. In relative terms, NetSuite is valued well above comparable on-demand competitors like Intact and Alticor however much lower than traditional on-premise software competitors like Microsoft, Sage and Epicor. Offers many languages and does perfect blend data when installed thus no data is lost. The software has not been negatively mentioned anywhere by the users. This can auger well with PWC firm to provide qualified assistance to both private and public institutions. The NetSuite Business Operating System (NS-BOS) offers software customization and scalability capabilities to NetSuite solutions. NS-BOS is a knowledge podium for customizing and extending the business software to meet individual company or industry specific requirements relative to personalization or business processes. NetSuites customization tools enable partners to develop their own products including modified versions of the Netsuite application, therefore, Pwc firm can easily scale the software to meet customers tastes and changes in the accounting environment. In just but a short matter of time, the software can installed and be ready for use. NetSuite was developed in the year 2008 with a greatly customizable dashboard that is easy to use and highly navigable. It is loaded with important accounting tools and functionalities and does bring accounting jargon into the system thereby enabling even the beginners to use efficiently without. It supports all the languages, deployment, models of payments and all customers. It offers phone call, email, training and ticket support thereby ensuring customer satisfaction. Review of the program The software has the following module features; banking, purchases, reports, tax, invoicing and other advanced tools, however it seemingly lacks the following; Drill down Journals Departmental accounting Support for value added taxation Calculation of statutory holdback. NetSuite does not offer high-end solutions that takes too long to install and customize to fit the consumers taste hence to meet benefits that come with high-end solutions like tailored specifications of individual company. Meeting this cost is expensive however many serious companies would resort to have their software tailored according to their specifications. NetSuite application has the ability to offer e-business by closely knitting with other internet software. It supports windows, androids and iPad. Therefore it with great belief the NetSuite accounting system can auger well with any company to realize economies of scale in e-commerce. NetSuite packages allow one to grant access to limitless number of users and one can limit access for each user. You can also grant access to the auditor with an auditor friendly feature setting. Staff can use from office or even at home since it is online based it logged into from anywhere even oversees without any problem thereby enabling globalization or distant trading. It has also provided client portal for easy access by customers. It cover geographical areas of United States of America as well as Latin America meaning that NESUITE Company is already covered by the applications coverage. Their data centers process 800,000 plus transactions per second and the company points that it produces exact audience measurement to over 100 million web destinations. NetSuite vends its product through direct sales and indirect business partner channels. The company has offices and business partners in North America, Latin America, Europe and the Asia Pacific region, luckily, PWC operates int ernationally. Reporting capability NetSuite accounting system has currently the undoubted capability of producing management report by creating an attractive PDF report with a complete overview of the business. Currently it produces reports ranging from cash flows, balance sheet, accounting logs to trial balance with graphs that would most probably be required by any company including NetSuite Company. Alphanumeric can easily be in-put in the software efficiently with clear guiding prompts for the user and be quickly run to give the required output. During data entry, the user must be keen to avoid typing errors however procedural errors cannot be run the system. The software have encryption mode for the processed data to avoid sensitive data getting into the wrong hands. The system has established a safety policy for guarding the clients data. NetSuite is accommodated and conveyed from a Level 3 Communications, Inc. (Nasdaq: LVLT) data center located in the San Francisco Bay area. NetSuite is SAS 70 audited which may provide some comfort to SEC governed enterprises in the United States for their Sarbanes Oxley, section 404 compliance requirements. By this, PWC can assure its clients of data security. NetSuite software is an American cloud computing company that sells groups of software used to manage financial services and client relations. It runs the business of 40,000 plus companies, organizations and subsidiary companies in 100 plus countries. Similar software providers like NetSuite adds worthwhile uses and training. It suppliers are able to update the software frequently so as keep abreast with the technological changes in the accounting environment. They have a strong technical team to support customer, working 24 hours a day, seven days a week with a free toll call center. Other additional support for customers including preview tests of at least 10 processes. System Implementation For successful implementation of the accounting system, organized training of the staff as well as software management team. Holding meeting reviews to enable members of staff to familiar with the system. Customization of the software to align with the companys products and tailor the system to meet the specifications of the company. Carry out evaluation of the system according to the desired procedures and use of embedded methods to assess applicability of the software. Since there are various software solutions, those companies offering high-end solutions are not preferable in this case. Rather buying software service is cheaper compared to buying the software license. Software package size with corresponding monthly payment would be preferable ranging from $ 80 to $ 100 every month. Below is the fee schedule for newly implemented software. Module Cost in $ per month Commissions management 199 Inventory 199 Revenue Recognition 450 In summary, NetSuite management software, if implemented in PWC firm, it will offer a service that performs enterprise resource planning (ERP) and customer relationship management (CRM) functions. It has a horizontal package approach for a wide variety of businesses. ERP cloud based is cheaper than the oracle solution, the software can be accessed from any device even from cell phones. It can be used for most company activities like sales, manufacturing control, purchase orders, inventory and invoicing. However it its disadvantage in spite of being cheaper than oracle initiative, it could still be very expensive for small businesses. The starting cost is very high even though it is not expensive for individual user. References Jones, D. and Jones, M., 2016. Using QuickBooks Accounting Software to Improve Financial and Production Records for Better Decision Making. In 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas (No. 229772). Southern Agricultural Economics Association. NetSuite. [online] www.netsuite.com/portal/aboutus.shtml. Available at: https://www.netsuite.com/portal/aboutus.shtml [accessed 13September, 2017]