SWOT analysis of Accounting & Information Systems

1. SUBMITTED BY:
Tanjin Ferdous
MBA, 7th batch
Accounting & Information Systems
Jagannath University, Dhaka

2. SWOT Analysis
SWOT analysis is a process that identifies an organization's strengths,
weaknesses, opportunities and threats. Specifically, SWOT is a basic,
analytical framework that assesses what an entity (usually a business,
though it can be used for a place, industry or product) can and cannot do,
for factors both internal (the strengths and weaknesses) as well as
external (the potential opportunities and threats). Using environmental
data to evaluate the position of a company, a SWOT analysis determines
what assists the firm in accomplishing its objectives, and what obstacles
must be overcome or minimized to achieve desired results: where the
organization is today, and where it may be positioned in the future.

3. SWOT Analysis of AIS
Strengths:
1. Information technology
2. Accounting software – Tally
3. Produce relevant, reliable, comparable and consistent information for users
4. Transaction processing cycles – revenue, expenditure, payroll, production cycles
5. Inbound and Outbound logistical support
6. Maintain a proper value chain and supply chain
7. Enterprise Resource Planning (ERP) system
8. Proper documentation (by using software) – source document, turnaround document etc.
9. Strong Report
10. Customer Relationship Management – customer loyalty
11. Data flow diagram and flowcharts
12. Strong internal control systems
13. Database Management Systems – data normalization, interrelated data files, logical and physical
view of data
14. Online analytical processing
15. Strong organizational culture and values
16. Encryption system – transfer normal content into unreadable gibberish, protect confidential
information
17. Access controlling software – information right management software, data loss prevention
software, digital watermark, firewall
18. Information Systems audit- gives assurance that all programs performed accurately.
19. Inventory Management System – perpetual inventory control system, periodic physical counts of
inventory, bar code of Radio Frequency Identification
22. Time card and Time sheet – increases value added time
22. Balanced scorecard – shows performance measurement of customer perspective, internal business
process, learning and growth perspective
23. Software based preparation of financial statements
24. XBRL (Extensible business reporting language) – facelital the communication of business
information.
25. REA (Resource Events and Agents) data model and diagram – used to design AIS databases.

4. 26. System Development Life Cycle (SDLC) – helps to analyze system, design concept and physical
shape, implement system and maintain
27. Planning Techniques – PERT, CPM, Gantt chast
28. Capital Budgeting Techniques – NPV, IRR, ARR, PBP
29. Canned software – program for sale on the open market
30. Application Service Provider (ASP) – Deliver software via the internet
Weakness:
1. Goal Conflict
2. Mistake to give input
3. Lack of proper decision
4. Logistic in support or shortage of logistic
5. Information overload-cannot take proper decision
6. Incomplete database
7. Improper coding technique
8. Time constraint in ERP system-High risk of project failure
9. Incorrect database data—bad decisions, embarrassment , angry users
10. Unskilled personnel
11. Information risk
12. Inconsistent data in database
13. Identify theft- unauthorized use of one’s personal data
14. Improper management of inventory and assets-stock out or process inventory
15. Failure to collect cash from A/C
16. Failure to pay supply A/P timely
17. Failure to create loyal customer
18. Failure quality of product or service
19. High training cost of employees
20. Low performance by employee
21. Don’t maintain proper entry system of employee
22. Failure to make required payment

5. 23. Delay to pay employee
24. Agency problem-conflict of interest between shareholder & agent
25. Expectation gap- Gap between what the shareholder want & actually what they get
26. Financial weakness they get-problem in going concern assumption
27. Logic & Development error
28. Inefficient system
29. System Incompatibilities
Opportunities:
1. Reducing cost of products or services.
2. Improving quality, productivity and efficiency.
3. Improving the internal control structure.
4. Improving the efficiency and effectiveness of supply chain.
5. Reducing the uncertainty and choosing the best alternative.
6. Competitive advantage.
7. Mechanical system in lieu of manual system.
8. Value of information.
9. Less ATM POS bad code, scanner.
10. Manage activities and resources properly.
11. Graphical presentation of data.
12. Create rational database queries.
13. Find any data easily.
14. Reduce data redundancy and inconsistencies.
15. Data independence.
16. Updating file easily.
17. Data warehouse and data mining.
- Users are free to analyze.
18. Remain partial and sensitive dependences.
19. Minimizing fraud triangle elements
-reduce fraud.
20. Digital signature and digital certificate.

6. 21. Forecasting sales and expenditure.
22. Develop clear specification.
23. Maintain accurate record.
- Asset misrepresentation can reduce.
24. Main account decrease.
25. Improve billing, shifting and warehousing efficiently.
26. Incentive for employees.
27. Change master data.
28. Remaining petty cash as imports fund.
29. Lower price of products or services.
30. Using special inks and watermark.
31. Backup and disaster recovery system.
32. Employee maintain for mass work.
33. Audit trial and review.
34. Relationship between entities.
- One to one.
- One to many.
-Many to many.
35. Feasible the system.
36. Reducing the error and save tine.
37. Higher user involvement and satisfaction.
38. Faster development time.
39. Benefit of outsourcing the system.
40. Versatility and ease to use system.

7. THREATS:
1. Inaccurate or invalid master data
2. Unauthorized disclose of sensitive information
3. Loss or destruction of master data
4. Poor performance
5. Incomplete or inaccurate or invalid order
6. Uncollectable accounts receivable
7. Stock outs or excess inventory and loss of customers
8. Picking the wrong items or the wrong quantity and theft of inventory
9. Shipping errors (delay or failure to ship, wrong quantities, wrong items, duplication)
10. Failure to bill goods and services
11. Billing errors
12. Posting errors in accounts receivable
13. Inaccurate or invalid credit memos
14. Theft of cash and customers checks
15. Cash flow problems
16. Inaccurate inventory records
17. Purchasing items not needed
18. Purchasing at inflated prices
19. Purchasing goods and services of inferior quality
20. Unreliable suppliers
21. Purchasing from unauthorized suppliers
22. Kickbacks

8. 23. Accepting unordered items
24. Mistakes in counting
25. Verifying receipt of services
26. Theft of inventory
27. Errors in supplier invoices
28. Mistakes in posting to accounts payable
29. Failure to take advantage of discounts for prompt payment
30. Paying for items not received
31. Duplicate payments
32. Theft of cash
33. Check alteration
34. Cash flow problems
35. Poor product design resulting in excess costs
36. Overproduction or underproduction
37. Theft of fixed asset
38. Suboptimal investment in fixed assets
39. Loss of inventory or fixed assets due to fire or other disasters
40. Disruption of operations
41. Inaccurate cost data
42. Inappropriate allocation of overhead costs
43. Misleading reports
44. Hiring unqualified or larcenous employees
45. Violations of employment laws
46. Unauthorized changes to payroll master data
47. Inaccurate updating of payroll master data
48. Inaccurate time and attendance data
49. Errors in processing payroll
50. Theft or fraudulent distribution of paychecks
51. Failure to make required payments
52. Untimely payments

9. 53. Inaccurate payments
54. Inaccurate updating of general ledger
55. Unauthorized journals entries
56. Inaccurate adjusting entries
57. Unauthorized adjusting entries
58. Inaccurate financial statements
59. Fraudulent financial reporting

10. 53. Inaccurate payments
54. Inaccurate updating of general ledger
55. Unauthorized journals entries
56. Inaccurate adjusting entries
57. Unauthorized adjusting entries
58. Inaccurate financial statements
59. Fraudulent financial reporting