Professor Elias Konwufine
As long as this world have businesses and buying and selling within company to company accounting and Accounting Information Systems (AIS) will play a big role in financial management and decision making. The degree of value and how usable an AIS is depending on if the system is custom, outsourced or boxed. In this paper I will talk about just that. You will find out if the company should keep, change, modify or outsource and what will be the advantages and disadvantages of doing so. Analyze the need for changing to a new system and the potential benefits and risks associated with this. Identify three (3) advantages and three (3) disadvantages for each of the following choices. Make a recommendation to the CEO. Defend why you chose the option and rejected the others. Propose a system development life cycle (SDLC) approach for your recommendation.
The need for changing to a new system and the potential benefits and risks associated with this change. A company should change it system when several things that go wrong start to happen. If you system start to * Your company has always used manual accounting. And now you feel need to have accurate and fast flow of information. * You are a fast growing company and need a system that can grow with you? * Your company has out grown your current system.
* Your process has changed the way you do the business.
* You want to switch to an e-business solution with an integrated financial backend. * Your Company is geographically dispersed now and you need fully web-based solution. Properly installed and implemented accounting software can contribute many benefits to your organization, including: Efficiency-Computerized financial information systems are faster and more efficient in processing data. Situations that took the accounting department weeks to do can now get done within a day.
Cost Effectiveness-Accounting information system makes the maintenance of a bloated financial department irrelevant. The software does most of the work that would otherwise require several employees.
Disadvantages- A Company can lose information if the system is attacked by computer viruses. The other problem is power failure. When that occurs information could be lost if not properly saved. The computerized information systems are also prone to fraud if there are no proper internal and external controls (How To Choose An Accounting System, 2012).
Advantages and disadvantages for each of the following choices: ◦Purchase the AIS from Oracle and have it maintained by the company’s information systems group; Slow recovery time when a problem arises having to call report the problem. Having everything off site, higher cost associated with outsourcing, the threat of losing all your information and the threat of hacking taking you information. ◦Modify the company’s current AIS application and have it maintained by the company’s information systems group; and By maintaining the current system and upgrading so that the system would fit the company needs will save money in the long run. The company would have faster recovery time when a problem arises. Constant maintenance and upgrading of the system, Onsite IT help. ◦Outsource the AIS to Oracle and have Oracle maintain the system. Outsourcing can have many advantages but also can have disadvantages like the list listed below. Loss of Managerial Control
Whether you sign a contract to have another company perform the function of an entire department or single task, you are turning the management and control of that function over to another company. True, you will have a contract, but the managerial control will belong to another company. Your outsourcing company will not be driven by the same standards and mission that drives your company. They will be driven to make a profit from the services that they...