Asatiani Case presentation

1. Asatiani Case
Move to the cloud – The risks and opportunities of cloud-
based accounting information systems
Group 9
Anna Catherin
Antony Johnson
Boya Lokesh
Dina Valapra
J S L N Ranganath
Nithya PT
Saurabh K
Shriraam Sahadevan
MS21A004
MS21A006
MS21A010
MS21A013
MS21A023
MS21A043
MS21A059
MS21A062

2. INTRODUCTION
•Kluuvin Apteekki - privately owned
pharmacy in Helsinki city.
•Owner and chief pharmacist - Pia Moksi.
•Company employs 16 people.
•Administrative work became burden.
•Cloud-based accounting services.
WHAT'S THE BIG DEAL?
•Pharmacy business in Helsinki is very
competitive.
•Highly regulated by the state.
•Drug sales and marketing are tightly
controlled.
•Need exceptional customer service.
•Want to keep operation costs down

3. Consists of five main groups of tasks: sales, purchases,
payments, reporting and payroll.
Each accounting task has its own specifics, and may
require a different information, workload, or expertise.
Pia Morski did all the accounting tasks here.
Alongside Excel, she uses software specialized for
pharmacies to manage product, client and supplier
registers, and to keep track of invoices.
Digitizing invoicing process hasn't been successful.
ACCOUNTING PROCESS IN
KLUUVIN APTEEKKI

4. Client register maintenance
Product register maintenance
Sending sales invoices
Handling of sales invoices
Sending note of complaint
Sales ledger maintenance
Sub-ledger in which purchases are recorded.
Shows purchases paid for and outstanding.
A transaction will record an account payable,
followed by a payment that eliminates the
account payable.
Supplier register maintenance
Receiving purchase invoices
Handling purchase invoices
Handling purchase, travel & other costs
Purchases ledger maintenance
Detailed itemization of sales made
presented in date sequence.
May contain credits issued that reduce the
amount of sales
Includes sale date, invoice number,
customer name, items sold, sale amounts,
freight charged, sales taxes,etc.
SALES
PURCHASES

5. Monetary transactions for the goods or
services or additional fees and payments due
Periodic VAT payments
Salary payments
Payments for purchases, travel
Monthly payroll tax payments
Periodic statements showing financial
position of a firm at a given time
Balance sheet and income statement
Sending of VAT
Sending of annual salary reports
Sending of annual pension insurance reports
Less frequent
Most difficult & complex
Precision and attention to detail
Vision of financials of the company
Trained yearly to keep up to date on
changes in tax legislation.
9 out of the 16 employees work part-time.
On average, part-time employees work three
six-hour shifts per week but varies.
Hours performed every day to be recorded
Overtime, holidays, evening hours, sick &
maternity leave need to be factored.
Complex & sensitive to inaccuracies,
PAYROLL PAYMENTS
REPORTING

6. ACCOUNTING SERVICES
Outsourcing financial administration
Cloud-based AIS
AIS connect with third party digital services such as banks
AIS services are utilized by accountant, client companies and auditor

7. CLOUD BASED AIS
Automating the process
Integration of all services
Real-time information
Third party outsourcing
SERVICE MODELS
Software as a Service
Platform as a service
Infrastructure as a service
DEPLOYMENT
MODELS
Private cloud
Public cloud
Hybrid cloud
WHAT IS CLOUD?
On-demand H/W and S/W
services
Distributed resources
Self-service

8. Add or remove services at ease in breadth
Might not need all the capabilities which also
gets charged
Can be accessed from anywhere.
Suitable for any type of firm
Can be the top of everything everytime
Real time inclusion of third parties
Need to share the data with a third entity
Misuse of customer data
High dependence on the software
provider
Issues with cloud integration
Scale the services in-depth as the company
grow
Might not be suitable for a small comapny
Scalability Flexibility
Accessibility

9. IS OUTSOURCING THE MOST EFFECTIVE?
PROCESS ARRANGEMENTS IN CLOUD
For cloud-based accounting services to be effective, proper process reorganisation is necessary.
PROS CONS
Flexible: Various ways of arranging the tasks with
the accounting service provider, you may
outsource all of your accounting or a specific
process like payroll.
Improve Core Competence: More time to focus
on core processes and thus reduces the
opportunity cost.
Professional : Accounting by professional
accountantsand the company could gain from their
expertise.
Multiple choices: Different approaches to
outsourcing need more time to make decisions on
which processes to outsource.
External Control: Risky as we must entrust
sensitive firm information, such as finances, to
outside parties.
Failure to Safeguard firm's Interest: External
sources may not always behave in the firm's best
interests or deliver high-quality services.

10. CONCLUSION
Cloud-based services can greatly aid
businesses growth
- focus on core tasks
- Scalability
- Flexibility
- Accessibility
Types of cloud based services
Users can choose the service they want
based on their need and capability
Privacy
Hidden costs
Technology awareness/confidence
User Satisfaction & experience
Business Risks - legal risks
Issues
- performance & conformance
risks
Cloud computing has great potential to empower SME businesses . However the
issues linked to cloud-based services need to be addressed to ensure greater
adoption

11. Thankyou