Accounting for Information Systems Managing the Move to The Cloud Case Study
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Answer the following question 5 and question 8 from the case study using the guidelines provided. The outline has been provided of how you need to use the infomation from the case and answer the question.
5. What is the optimal division of work between Pia and the accountant? Should Pia outsource all the accounting tasks, use selective outsourcing, or keep all tasks to herself? Evaluate each accounting task on their suitability to outsourcing in the cloud context. Use Table 3 provided in Appendix 1 and discuss the implications of your choices.
Answer:
- Start with outsourcing 2 lower risk (payroll and reporting), build a relationship and trust with cloud provider, if they do a good job then switch everything to them in year 2 or 3
- For long term better to outsource as much as possible
- Payroll and reporting should shift a lot of time-intensive processes to the accountant, but still allows Pia to maintain control over the majority of the process
8. What about long term strategy? Reflect on the implications of your choices in the future.
Answer:
- Able to make real-time and more informed business decisions with an integrated system (across other key business systems i.e. sales system)
- More time to think about and concentrate on the core competencies of the business, growth opportunities, strategy, and management
- Long term: want either system 2 or 3→ efficient interface→ less accounting costs and higher profit margins (accountant as user)
- Going to need to adjust to a new system either way, so user-interface isn’t as attractive in the long term
- System 3 = no transaction fees, run the numbers (more efficient because it integrates with the accounting services too)
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