ACCT407 Accounting Systems and Theory Part B Case Study 2 Sample
Assignment Details
Analysis of accounting information system case study requiring students to prepare a business report of 2000 words. The report should provide recommendations for the improvement of the analysed system by interpreting and transmitting professional knowledge.
Part B should follow the following subheadings:
• Introduction and Case Overview
- Brief introduction to the accounting information system (AIS) case study.
- Key objectives of the report.
• Analysis of the Current Accounting Information System
- Description of the existing AIS, its components, and functionalities.
- Strengths and weaknesses of the system.
• Identification of Issues and Challenges
- Analysis of system inefficiencies, risks, and limitations.
- Impact on business operations and decision-making.
• Recommendations for System Improvement
- Proposed enhancements in technology, processes, and controls.
- Justification of recommendations based on professional accounting knowledge.
• Conclusion and Implementation Considerations
- Summary of key findings and proposed improvements.
- Steps for implementation and potential challenges.
Solution
1. Introduction and Case Overview
1.1 Brief Introduction To The Accounting Information System (AIS) Case Study
An Accounting Information System (AIS) is the effective system of gathering, storing and processing financial & accounting data which are utilised by decision-makers (Mohsin et al., 2022). It is a computer-based method for tracking accounting activity in affiliation with information technology resources. In this study, the analysis will be made on the usage of MYOB (Mind Your Own Business) as AIS adopted by some companies for managing its accounting functions. This is in the form of tax compliance, bank reconciliation, invoicing, financial reporting and others. MYOB has a crucial role in ensuring the company’s operations are accurate, efficient, and streamlined (Aini et al., 2022). This system assists the Jiang Tutorinng Services in managing its financial transaction with great efficacy, simultaneously ensuring transparency in financial reporting.
With technology being continuously evolving, accounting software such as MYOB has become a significant tool for business specifically for SMEs (Hayes et al., 2022). This is because it simplifies the financial process as well as reduces the manual workload which was happening while performing bookkeeping, thereby permitting the firms to focus more on their strategic financial planning.
1.2 Key Objectives Of The Report
This report aims to:
? Assess the existing AIS system used by companies.
? Identify key strengths and weaknesses of the system.
? Identify issues and challenges related to using MYOB
? Provide recommendations with justification for improving the efficiency and effectiveness of MYOB.
2. Analysis of the Current Accounting Information System
2.1 Description Of The Existing Ais, Its Components, And Functionalities
Jiang Tutoring Services, Chic Advertising, CCS and others firm has the application of MYOB for financial transactions and management. Some of the key components of MYOB within the firm’s operation include:
MYOB plays an important role in managing Chic Advertising’s financial operations. One of the chief components is the General Ledger Management that ensures all the financial transactions are appropriately recorded as well as classified for university assignment help. This assists in maintaining accurate financial records & prohibits discrepancies (Birt et al. 2023).
Another feature of MYOB is Bank Reconciliation, which checks whether the records are matched with bank statements. This function of MYOB for Jiang Tutoring Services assists in identifying discrepancies and mitigating error risks along with fraudulent transactions (myob.com, 2025).
Likewise, the invoicing and billing feature of MYOB is used to automate invoice generation and enable payment tracking, which as a results increase efficiency in managing customer transactions.
Tax compliance is the another essential component of MYOB which helps the firm calculating as well as reporting taxes accurately. In a nutshell, from the Banking Reconciliation Report (31 May 2023) to the Tax Invoice Details, it is clear that MYOB successfully tracks deposits, withdrawals and outstanding payments, assuring that transactions are transparent and accurate.
2.2 Strengths And Weaknesses Of The System
Strengths:
Automation and efficiency are some of the strengths of MYOB. It reduces time-consuming manual bookkeeping tasks, which prevents mistakes and saves businesses a lot of operational time (Vagner et al, 2023). The bank reconciliation function in MYOB for Jiang Tutoring Services ensures financial record accuracy for the prevention of both fraud and discrepancies. A key advantage of MYOB is that it enables accurate financial reconciliation by matching transactions recorded against bank balances.
This prevents discrepancies and enhances financial transparency. The account balance as per the records on 31 May 2023 is $6,714.10, which is the same as the bank statement balance ($6,714.10). Total deposits reconciled: $1,800.00 (e.g., Card 4104 - $100.00 on 10 May 2023, TRF Lily Simpson - $150.00 on 19 May 2023). Total reconciled withdrawals: $585.90 (e.g., Subscription to Maths - $308.00 on 1 May 2023, Office supplies - $55.00 on 1 May 2023). Since MYOB ensures that all outstanding transactions are accounted for and there are no deposits or withdrawals that have not been recorded, the company experiences error-free reconciliation and up-to-the-minute financial precision.
The user-friendly features of MYOB make it an excellent software match for enterprises similar to Jiang Tutoring Services (Myob, 2019). The software helps Jiang Tutoring Services fulfill tax regulations through its GST calculation functions and automatic tax invoice creation capabilities.
MYOB allows businesses to manage invoices effectively to track payment status, making it a notable feature of the software. Through this system, the business minimizes overdue accounts while establishing a stable cash inflow. Business users gain better financial data management with the cloud accessibility feature because it enables authorized users to review records from any location.
Weaknesses:
Though MYOB has many strengths, it also has some limitations. One of the limitations is the lack of customization options. It means the standardized financial reports in MYOB sort of render limited customization options, which negatively affects those who look for customized financial monitoring (community.myob.com, 2022). Cost factor is the another limitation which can restrict its usage. Though MYOB renders important features, the subscription fees may appear to be expensive for small businesses those having small budgets.
The integration between MYOB and advanced ERP or CRM systems causes business challenges that result in restricted workflow management capabilities.
The training demands present the main difficulty that prevents businesses from adopting the system. MYOB presents a challenge for employees who need basic training to understand the platform since this process raises operational expenses alongside initial onboarding periods (MYOB, 2022).
The main weakness of MYOB results from its restricted capability to grow larger with businesses needs. The target market for MYOB is mainly businesses under medium size therefore expansion companies frequently discover limitations in managing advanced financial complexity after using this system.
3. Identification of Issues and Challenges
3.1 Analysis Of System Inefficiencies, Risks, And Limitations
There are several inefficiencies, risks and limitations with the accounting systems of some businesses which are present in their financial reports for MYOB. Crazy Consulting's balance sheet and profit and loss reports contain no recorded transactions and thus suffer one main inefficiency – existing zero balance accounts and inactive financial records. That implies poor financial tracking or no business activity, which can lead to compliance issues and diminish financial decision-making. Just as Constance Conveyancing Services (CCS) had no recorded financial activity during May 2023, there was an aberration in numbers where it suddenly increased in transactions in the month of June, suggesting an inconsistency in the bookkeeping practices (Filippov, 2024).
Inadequate capital management is another important risk because of the cases of Gregory Garden Maintenance and Gus's Gas n Go, which were demonstrated by financial records that show their dependencies on short-term loans and capital contributions. Funding such firms through such methods can result in liquidity imperfections, particularly when the proceeds generated do not meet the repayment obligation of the funding. Additionally, Gus's Gas n Go has high expenditure for equipment and maintenance, which could adversely affect profitability if it is not properly managed. Banks can similarly observe that some businesses do not operate with much in reserves; hence, cash flow issues can arise to terminate operation for MYOB (Syifa, 2024).
Limitations in financial transparency and documentation also pose risks. Say, Chic Advertising's corporate card reconciliation is up and down; the balances are changing and the expenses are as well, but obviously you can't see the overall profitability of what you are doing. Outstanding balances with customers on Jiang Tutoring Services' invoices potentially indicate a cash flow problem with the accounts receivable management.
3.2 Impact On Business Operations And Decision-Making
Unexact business operations together with decision-making processes get directly impacted by the inefficiencies and risks detailed earlier. Businesses face challenges with financial assessment and investment planning because inconsistent financial tracking occurs in both Crazy Consulting and CCS. Management problems arise when reports lack accuracy or timeliness since they need these elements to make budgeting, expansion and operational changes. Companies operating with poorly monitored finances face higher prospects of tax compliance challenges together with audits which might result in penalties and reputation damage for MYOB (Global FPO, 2025).
The insufficient cash reserves at Gregory Garden Maintenance and Gus's Gas n Go affect operational daily activities because they restrict necessary expense payments. Firms dependent mostly on loans coupled with capital support from investors experience difficulties maintaining growth because they lack steady revenue streams. Insufficient monitoring of accounts receivable at Jiang Tutoring Services creates delays in cash receipts, which leads to financial instability. for MYOB
Chic Advertising cannot effectively determine profitability nor distribute resources appropriately because of its financial transparency constraints in ledger reports and reconciliation documents. Complex business choices emerge due to financial statements that fail to reveal true income flow expenditure patterns and net profit figures. Incorrect financial reporting and misrepresented business value can occur because of asset valuation and depreciation record inconsistencies detected at CCS.
4. Recommendations for System Improvement
4.1 Proposed Enhancements In Technology, Processes, And Controls
The following enhancements should be implemented by businesses that use MYOB software to improve their financial management processes:
? The MYOB system should include automated functions for transaction entries and bank match procedures because this consolidation enhances data accuracy while helping managers monitor cash flow conditions.
? Jiang Tutoring Services can optimise revenue tracking by uniting MYOB with invoicing and payroll systems, which will both minimise outstanding invoices and promote payment efficiency.
? Gregory Garden Maintenance and Gus’s Gas n Go can use real-time financial dashboards which combine automated alerts for following low cash levels and overdue invoices and significant expenses to improve liquidity management.
? Multi-level transaction approval processes applied to substantial payments function as internal controls to protect a firm with variable cash reserves by blocking unauthorised expenses and enabling better financial monitoring.
? The data system MYOB needs configuration for reliable tracking of asset depreciation schedules to prevent variations in asset assessments, as was recently discovered at Constance Conveyancing Services.
4.2 Justification Of Recommendations Based On Professional Accounting Knowledge.
The system improvements follow principles of accounting methods that focus on precision and reporting speed together with control enforcement. The implementation of automation for transaction recording and reconciliation adheres to the best financial reporting procedures, which decreases human mistakes and fulfils accounting standards. Organisations benefit from combining invoicing and payroll systems because this integration helps avoid revenue recognition problems, therefore supporting accrual-based accounting systems and enhancing accounts receivable management practices. Enhanced internal controls which follow corporate governance principles help organisations decrease the risk of fraud together with unauthorised transactions (Henderson, 2024). The process of improved asset tracking allows organisations to fulfil depreciation and fixed asset management standards, which results in enhanced financial reporting reliability. The recommended implementation will strengthen MYOB's financial management capabilities to enhance decision-making quality within the company.
5. Conclusion and Implementation Considerations
Financial reports from MYOB demonstrate various operational inefficiencies affecting transaction processing and reconciliation routines cash flow management and internal control systems. A wide range of operational risks exists in businesses because they struggle with unreliable financial monitoring and insufficient capital handling along with inadequately managed receivables and limited real-time visibility of data. Pointless financial statements inadequate decision-making and potential difficulties in complying with regulations arise from these issues. Businesses can reduce current operational challenges by implementing three main procedures:
transaction recording automation, payroll and invoicing system unification through integration, and both real-time financial alerting and internal control strengthening and asset tracking improvements. The proposed system modifications will boost accounting standards compliance and enhance both financial decision-making processes and operational accuracy and operational efficiency. Businesses need to set up MYOB software first to make automation possible for transaction logging and the process of reconciliation and for establishing real-time system alerts. A training programme for staff members becomes essential to achieve proper utilisation and acceptance of new systems. Financial processing becomes more efficient through invoicing and payroll system integration despite possible issues that arise from operating with third-party software. Companies should implement security-enhancing procedures through approval workflows despite procedural resistance which often builds among staff. Efforts should address resource limitations to provide full-scale training and support because these programs will help users transition smoothly. Future preparations of these obstacles will enable businesses to maximise MYOB's features while improving financial control, which leads to better operational stability and lasting success.
6. References
Mohsin, H. J., Alfartoosi, A., & Ahmed, S. A. (2022). The effect of the characteristics of AIS on the decision-making process. Indian Journal of Economics and Business, 21(3), 1-12.https://www.ashwinanokha.com/resources/1.%20AIS%20ALI%20%26%20HUSSEIN.%20last%20edit%20
DONE%20(2).pdf
Aini, O. N., Salman, K. R., & Djunaedi, A. Z. (2022). Preparation Of Financial Statements Based On MYOB Accounting Plus V. 18 At PT Wahana Mitra Perkasa. JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi), 6(3), 331-344.http://journalfeb.unla.ac.id/index.php/jasa/article/view/1941
Hayes, S., Freudenberg, B., & Delaney, D. (2022). Work ready graduates for Australian small and medium Accounting firms. Journal of Teaching and Learning for Graduate Employability, 13(1), 1-19.https://search.informit.org/doi/abs/10.3316/informit.549443388898119
Birt, J., Safari, M., & de Castro, V. B. (2023). Critical analysis of integration of ICT and data analytics into the accounting curriculum: A multidimensional perspective. Accounting & Finance, 63(4), 4037-4063.https://onlinelibrary.wiley.com/doi/abs/10.1111/acfi.13084
myob.com, (2025). Myob.com. https://www.myob.com/support/myob-business/banking/reconciling-your-bank-accounts?productview=Desktop
Vagner, I., Sarakhman, O., & Shurpenkova, R. (2023). Analysis of the development of cloud technologies in accounting. Technology audit and production reserves, 5(4/73), 21-26.https://www.zbw.eu/econis-archiv/bitstream/11159/631612/1/1868815218_0.pdf
Myob. (2019). Business software and solutions by MYOB. MYOB. https://www.myob.com/au
community.myob.com (2022). Myob.com. https://community.myob.com/discussions/bus-sales/invoicing-layout-problems/827929
MYOB. (2022, June 7). Everything you need to know about employee onboarding. Myob.com. https://www.myob.com/au/resources/guides/workforce-management/employee-onboarding?srsltid=AfmBOoo-5i8Jdy9Y-oFJy8znykljYGiA-xHsq0cnUL9il2ZYOwowfSN2
Syifa, F. (2024, January 31). Challenges in Implementing MYOB Accounting Software. BusinessTech. https://www.hashmicro.com/blog/myob-accounting-software/
Henderson, A. (2024, February 26). MYOB Review: A Comprehensive Breakdown of Elite Accounting Mastery - Work Management. `. https://work-management.org/accounting/myob-review/
Filippov, N. (2024, November 17). MYOB - Accounting Platform Detailed Review. ANNA Money. https://annamoney.au/blog/guides/myob-review/
Global FPO. (2025, March 29). Features and Benefits of Using MYOB Accounting Software. Www.globalfpo.com. https://www.globalfpo.com/blog/features-and-benefits-of-using-myob-accounting-software
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