Organizational Competencies and Dynamic Accounting †Free Samples

Question: Discuss about the Organizational Competencies and Dynamic Accounting. Answer: Introduction Accounting information is looked upon as one of the essential economic data for a business entity. It directly reveals and administers the business scenario of an organization and thereby provides a key foundation for the purpose of undertaking business and management decisions (Kong, 2017). Hence, it is essential to ascertain the efficiency of the overall accounting system technique. This report would summarize the outputs, participants and inputs of the case. Thereafter, the present business mechanism framework would be provided and the report will summarise the existing strengths and weaknesses that are available within the present accounting system. At the end, the new and the advanced business evaluation framework will be summarised and the associated weaknesses and strengths will be addressed. Ismail, King (2014) constructed a framework of cognitive implementation to the modifications in the accounting information system and even examined the hypothesis regarding whether entities implement their decision making system in order to make transformations in the accounting information system, which is ascertained by the interface of the tasks, precise knowledge, cognitive capability and influences in order to make suitable decisions. Khairi, Baridwan (2015) undertook a study on the examination of a methodology in order to construct information systems related to GAAP. The intended process recorded GAAP in the format of an electronic text and is retrieved by the theoretical area. The research that is undertaken by Diatmika et al., (2016) assesses the inter organization impacts on accounting information system of the small businesses when the Electronic Data Interchange (EDI) is incorporated at the request of the renowned partners of trade. Understanding the Business Process in the organization In accordance to this scenario, GMAS has been incorporated in order to create a group of management accounting services that is outsourced and is constructed in order to satisfy the needs of the medium and the small scale businesses. Therefore, GMAS needs to make sure that the overall process is effective and clear. The exploitation of the information technology would in a precise manner raise the level of productivity. Prasad, Green (2015) have addressed that GMAS provides a collection of outsourced management accounting services, so the participants are inclusive of all the units during the process of accounting. Hence, in this case the applicants are the accounts receivable, collectors of debts, and department of accounting process, the clients, payroll department, compliance team, the management and the IT department. The present model of the business process is efficient and to the point. In a summary, when a client signs the agreement with GMAS, the system would be assessing. In the initial stage, the accounts receivable would receipt the consumer and compute the commission for the sales executive in accordance to the agreement and thereafter the payroll department would gather the data in order to recognise the salary of every individual employee. At the end, the accounting information process would obtain all the information and thereafter the IT department would publish a report that is dependent on the information of the management. The overall system is very clear and short. Problem Analysis of the organization In accordance to GMAS, there are two elements that might reduce the efficiency. In one of the aspects, the entire mechanism would be associated to a third party organization, who is the debt collector. It is a very general plan in order to outsource the businesses is non-core and then thereafter preserves the central business activities. Islam et al., (2017) explains that debt issues would have an impact on the wages of the salaries. The process of outsourcing the collection of debts to a third party organization would be helpful in assisting human resources of the organization in order to ensure that the human resource would concentrate on the pivotal businesses. Ismail, King (2014) cited that every organization have their own working flow when a new debt is forwarded to the debt collectors and they will assess the business in their own manner. This process is helpful in reducing the effectiveness of the service. However, Fitriati, Mulyani (2015) addressed that the accounting depa rtment would provide a report to the management on a monthly basis, which is a lower level of efficiency in order to administer the organization. Patel, (2015) explained that monthly and weekly statements would not be able to ascertain the relevance for the data and this would lower the efficiency. The incorrectness of the information would not provide the commission to the employee on time and they may have to wait for weeks or months in order to receive the commission. The developed business assessing framework has enhanced the utilisation of information technology and amended the issues related to debt. In a summary, when the consumer signs an agreement with GMAS, they would be assessing the technique. The accounts receivable would provide a receipt to the customers and compute the commission for representatives of sales in accordance to the agreement and additional steps would be taken if the applicant does not pay for the service. Bai et al., (2018) addressed that at the conclusion the accounting information system would gather the information and then the department of IT would publish a report that is on the basis of the information and this report is effective as they can directly gather the information from the database. The utilisation of the technology of database would be helpful in gathering the information at any course of time and this would effectively raise the efficiency of work. Reference List Bai, L., Koveos, P., Liu, M. (2018). Applying an ontology-augmenting XBRL model to accounting information system for business integration. Asia-Pacific Journal of Accounting Economics, 25(1-2), 75-97. Diatmika, I. W. B., Irianto, G., Baridwan, Z. (2016). Determinants of Behavior Intention Of Accounting Information Systems Based Information Technology Acceptance.Imperial Journal of Interdisciplinary Research,2(8). Fitriati, A., Mulyani, S. (2015). Factors that affect accounting information system success and its implication on accounting information quality.Asian Journal of Information Technology,14(5), 154-161. Islam, K., CH, A. R., Bilal, A. R., Ilyas, M. U. H. A. M. M. A. D. (2017). Accounting Information Systems: Traditions and Future Directions (By Using AIS in Traditional Organizations).The Journal of Internet Banking and Commerce,22(2), 1-13. Ismail, N. A., King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms.Journal of Information Systems and Small Business,1(1-2), 1-20. Ismail, N. A., King, M. (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms.Journal of Information Systems and Small Business,1(1-2), 1-20. Khairi, M. S., Baridwan, Z. (2015). An empirical study on organizational acceptance accounting information systems in Sharia banking.The International Journal of Accounting and Business Society,23(1), 97-122. Kong, L. (2017, May). Risk Evaluation Scheme for Accounting Information System Based on Analytic Hierarchy Process. In Smart Grid and Electrical Automation (ICSGEA), 2017 International Conference on (pp. 556-559). IEEE. Patel, S. (2015). Effects of accounting information system on organizational profitability.International Journal of Research and Analytical Reviews,2(1), 72-76. Prasad, A., Green, P. (2015). Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance.Journal of Information Systems,29(3), 123-149.