Utopia accounting technological project

Document Type:Research Paper

Subject Area:Accounting

Document 1

The expansion is quite significant and provides an exciting opportunity for my colleagues and me to expand our scope in technological accounting. However, to maximize on the benefits of new technology proper judgement and planning is of essence. Below is my report that covers all standards and qualification required for the project. The introduction covers potential challenges when acquiring homeowners. The most challenging is how to incorporate new employees to different environments. Nonetheless, the Utopia homeowner association can outsource the collections bit, but will still be exposing itself to several risks. After the outsourcing section, the report discusses a backup accounting system in case the primary one fails. It is always good to expect the best but prepare for the worst.

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Automated systems are human-made and just like in any other sector they sometimes do fail. Thus, it wise for Utopia to have another system apart from our proposed systems if the automated systems fail to work or to handle specific tasks. The CPA firm also boasts of a dependable office manager and proprietor. The accounting firm has been successful over the years’ despite handling a few clienteles. Plans are underway to expand the business scope to cover other areas apart from the tax and advisory services. The firm has acquired a new client (Utopia Homeowner Association) who forms part of the expansion strategy. Utopia Homeowner Association (UHA) currently has one thousand homeowners and expects the number to increase to three thousand after they sign new homeowners to their association.

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A universal automated system will allow for optimal production. In that, it ensures maximum output with minimum input. It will also guarantee a greater control of operations. PROPOSED SYSTEM REQUIREMENTS Billing Requirements Input Requirements Input for this section must generate an itemized bill for each of the 3000 households. The bills vary depending on the size and location of the home. If house = townhouse then $100 base, if house = reduced location add $. Customer forms are the only forms needed for inputting billing. Every single form must contain all the required homeowner’s information. Homeowner’s name can act as the primary key which will identify them separately. Output Requirements Billing output is generally a printable report for homeowners. The next crucial control is that of ensuring that the homeowner’s information is always up to date.

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For instance, a homeowner can request to receive their bills by mail, and the firm sends electronically. Controls will ensure bills sent to homeowners are consistent and error-free. Collection Requirements Input Requirements The firm provide three option for homeowners to make their payments; make payment directly to the main office, make payments electronically, or via mail. The three methods will function appropriately under the automated information system. On the total balance, the system will be showing the total amount received against the total billed amount. Control Requirements One of the essential controls is the one that ensures figures are reconciled. With three channels of payment, the figures might to reconcile. Thus, the first control will ensure that the figures within the system are properly normalized.

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To minimize fraud in cases when payment is paid directly to the main office, the system will have an online portal where clients can log-in and see their arrears or overpayments. Control Requirements First control on payment is a confirmation of receipt by the service provider. The vendors must confirm that they were paid what was owed to them. This will ensure that the payments made and what the vendors invoiced concur. Constant charges that do not vary from one month to another can always be paid automatically. Additionally, control will be in place to ensure that we are invoiced the correct figures. Additionally, the system will be running error-checking reports often which will highlight items that are not in line with the normal distribution.

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Addition controls will include; calculation verification system, pay change approval, and update signature authorization. OUTSOURCING CONSIDERATION Opportunity cost plays a critical role deciding whether to outsource specific functions of a company. Functions that can be easily be undertaken by other companies at lower cost is usually outsourced. Outsourcing also helps a company cut on unnecessary costs and reduces government controls. CHALLENGES TO AUTOMATION One of the biggest challenge of transitioning to the new system is training and ensuring employees adapt to the new system. The new system will bring additional employees onboard but at the same time, will make other employees to be laid off. System bugs and glitches also poses a big risk for the transitioning process. Maintaining security of information is a critical challenge that the company will have to grapple with.

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