Download as PDF, PPTX
Asatiani Case presentation.pdf
- 1. Asatiani Case Move tothe 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 fivemain 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 Productregister 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 forthe 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 financialadministration 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 Automatingthe 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 removeservices 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 THEMOST 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 cangreatly 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.