Accounting for International Business Management- myassignmenthelp

Question: Discuss about theAccounting for International Business Management. Answer: Introduction The issue that has been identified in the question is that the business firm Core 7 Fitness had been carrying out the financial transactions via a manual accounting system. The management of the gym in the recent times had been considering substituting the manual accounting system by the implementation of an online accounting software. This is particularly due to the fact that the business has been facing growth in terms of sales. Moreover, the management of the company has been reported to look after five businesses at once. This had made it urgent for the required substitution of the accounting system to an online accounting software. It must also be noted here that the utilization of a manual accounting system may be prone to issues like human errors and issues of fraud. Therefore, these identified issues have initiated the management to take the decision of implementing an accounting software in the business unit. The particular accounting software that has been chosen for this p articular study is MYOB (Daru 2016). This particular study aims to look into the advantages that have been perceived by Core 7 Fitness after the implementation of MYOB in the firm. The summary table The problem faced by Core 7 Fitness before the implementation of MYOB The advantages perceived by the company post the implementation of MYOB 1. Consumption of excess time - The proceedings of the financial transactions of a business unit via manual accounting system results in the consumption of excess time. An accountant working with the help of a manual accounting system will have to mandatorily check the journals and ledgers before making an entry into the financial statements, which will result in the excess consumption of time (Ma 2015). 2. Human error the utilization of a manual accounting system makes the financial statements prone to human error. Moreover, the facility of internal checks and balances is absent in case of a manual accounting system which make it more prone to human errors (Ma 2015). 3. Breach of security the use of manual accounting system makes the financial information exposed to the risk of breach. Moreover, sensitive customer data is exposed to the risk of fraud or embezzlement (Ma 2015). 1. Access not restricted by time The implementation of MYOB has proven to be very useful for the particular business concern of Core 7 Fitness. This is because the executives of the business firm are now able to access the particulars of business from anywhere at any point of time. It must be noted here that the particular accounting software of MYOB facilitates the essential feature of remote working capability (Sriyono 2017). 2. Quick execution of the financial transactions the utilization of the online accounting system make the process of financial proceedings quick by synchronizing the financial information and making the entire process automated in nature (Sriyono 2017). 3. A higher degree of accuracy the implementation of MYOB has ensured the accuracy in the financial information that has been reflected in the financial statements of the business concern. Moreover, MYOB also facilitates the security of the client as well as crucial business information (Sriyono 2017). Economic Transactions of the small-scale business In the small scale business certain economic transactions do certainly occur and are mentioned below: Investments made by the business owners Initially to start up the business and later for any improvement or expansion of the business owner make investments. To acquire assets on cash The purchase that are made on cash to acquire assets. To acquire assets against future liability Sometimes the small business firms acquire assets for the business on credit on a promise to meet the future liability. The payments that are made to clear the Liability The small business owners later pay the liability that has been incurred. Revenue Incurred revenues are mandatorily recorded by the business and hence are economic transactions. Accounts Receivables The payments due to be collected are considered as the credits is referred as the accounts receivables of the business. Expenses Irrespective of any size, some important expenses are made by any business to carry out the operation of the concern. Advantages of using software tool to maintain accounts In the current period it is almost a common practice for any business concern to use some software to maintain accounting records. Some important benefits are enumerated below: Records are maintained in lesser time In comparison to the manual maintenance of records, software take much lesser time to keep the accounting records. For instance in software system the accounting and product descriptions are easily selected from the list instead of writing them each time (Perrin and Pabst 2016). Chance of human error is curtailed - Further the chances of human errors are further curtailed to keep more accurate accounting records. Duplication of accounting entries and redundancy can be easily avoided by using accounting software. It means that the business concerns by using software tool can maintain more accurate accounts in a better way (Perrin and Pabst 2016). Accounting information can be easily transported In keeping pace with the modern business requirement the different staff operates from various locations. Software provides ready information to all such users which is beyond any human capacity (Perrin and Pabst 2016). The recorded accounting information is secured By using any software tool for the accounting purpose the business concern can easily achieve security. Manual records are more prone to any kind of natural damage viz. water, fire, etc. Further in the manual keeping of records improper and unauthorized alteration by any staff or employee can be made but in software by utilizing proper security password the tampering of accounting information is easily prevented. In addition to this some software system for instance MYOB do not allow any embezzlements or frauds (Madurapperuma 2015) Difficulties faced by Core 7 Fitness in Manual Accounting Operation The basic disadvantage of manual accounting process is that even any efficient accountant takes a huge time to maintain accounting records. Further common human error inhibits proper and accurate maintenance of accounts. Along with these limitations in the case of manual keeping of accounting records the information is highly exposed to unauthorized personnel. Privacy of the accounting information is more than difficult and at any time business concern may face immense loss for improper outflow of any information. The economic transactions of Core 7 Fitness There three basic economic transactions are as follows: Accounts Payable the accounts payable transactions are a common set of economic transactions that take place in the firm. These transactions might be in regards to the payments that are due on the part of the company Accounts Receivable the accounts receivables transactions refers to the payments that are due on the part of the customers visiting the gym The Purchase of various fitness equipments the purchase of various fitness equipments is another common economic transaction that might take place in the gym. Drawbacks of MYOB As an online software MYOB is highly exposed to hackers and unknown frauds. This is because MYOB being an online software is exposed to all kinds of virtual threats (Lew 2018) The utilization of MYOB will require effective and detailed training for enabling the staff of the business firm to acquire the benefits of the training. Without proper training of the staff, the software cannot be implemented in the business unit (Lew 2018) If not matching with the requirements and size of the business, MYOB can be highly expensive. This is because the continuous updates that are received by this particular software makes it expensive to implement in case of a small-scale business (Lew 2018) References Daru, M.U., 2016. Outsourcing Accounting function: A global Strategy for Competitive Advantage. International Journal of Research in Finance and Marketing, 6(6), pp.12-18. Dimitriu, O. and Matei, M., 2014. A new paradigm for accounting through cloud computing. Procedia economics and finance, 15, pp.840-846. Lew, K., Sawant, R.R., Dehlwes, M.W. and Ramanathan, R., Intuit Inc, 2018. Determining time histories for financial information. U.S. Patent 9,904,904. Ma, X., 2015. The adoption of cloud computing for small and medium accounting firms. Madurapperuma, M.W., 2015. The impact of embedding information and communication technology content in accounting courses and its effect on overall students performance. Mageto, J., 2017. Accounting Softwares in Australia. An Overview. GRIN Publishing. Pai, Y., Subbiah, T., Vittal, S.B., Ng, R.M., Battula, R.N. and Motz, J.P., Intuit Inc, 2017. Technique for collecting financial information. U.S. Patent 9,817,679. Perrin, B. and Pabst, W., 2016. Accounting with MYOB 2015. Sallem, N.R.M., Nasir, N.E.M., Nori, W.M.N.W.M. and Kassim, C.K.H.C.K., 2017. Small and medium enterprises: Critical problems and possible solutions. International Business Management, 11(1), pp.47-52. Sriyono, H., 2017. Effect of Tutorial Instructional Strategy and Drill in Using MYOB Accounting in Vocational High School Bekasi West Java Province. repository, 7(4). Yaftian, A., Mirshekary, S. and Mihret, D.G., 2017. Learning commercial computerised accounting programmes: Perceptions and motivations. Accounting Research Journal, 30(3), pp.312-332.