Essay on Accounting Information System

Submitted By sairajee2
Words: 1176
Pages: 5

This report is set out to inform management about what sort of useful information available in sage to help them to understand various aspects of the business and how this information can be used to improve profitability of the company.
The Sage system is widely used to generate a wide number of reports out with the basic accounting related statements such as profit and loss and balance sheet.
Various product, supplier and customer reports can be generated to enable management to further analyse main aspects of the business with a view to highlighting areas of concern or profitability. These reports can give in depth insights into which products or customers generate the best net profit as compared to gross profit allowing a company to evaluate their cost of sales with the aim of reducing or discontinuing products or customers due to not being wholly advantageous to the business. . Invoice reports and aged debtor/creditor reports allow us to assess customers on their reliability and timeliness of payments and also keep track of our own payments to suppliers which can be essential for good relations and of great importance to continued business with them.
This report will attempt to look at these areas in detail and see what pacific information can be generated, which can help management to run their business successfully and improve profitability of the business.
Customer
There are several reports in sage relating to customers which can be used to identify the best customers of the business. I. Top customer list The details of all customers ,who have spent the most money with the business is contained within this report. It also highlights if they have exceed their credit limit. II. Customers Sales (Net) Report:
This report is really useful tool to to highlight the net profit generated from each customer. This information enable to form good business relations with customers who provide high net profit, perhaps in the form of discounts offered, to ensure a continuing and successful business relationship with these customers. This report also break down net profit from these customer into monthly data. This data can help management to identify if perhaps there was an exceptional order resulting in high profit, maybe the result of a seasonal trend, or if there is a increase or decrease in orders and profit amounts each month with a particular customer. This monthly data will be useful to management when preparing monthly, quarterly or yearly budgets and forecasting revenue for the company based on this data. Which can also be helpful to adjust their work force and stock requirements according to these trends.
There are other customer reports which is important for credit control and debt chasing. For example customer invoice due lists all the outstanding invoices up to the current system date. Aged debtors report analysis (detailed) report provides the most detail on who owes money to the business. it is important for management to use this report when chasing debts.
Supplier
Within sage, a serious of supplier reports are provided in order to keep a track of the money a business owes to its suppliers. I. Aged creditor analysis This report contains different variations ranging from the summery reports to detailed reports. This information can be used to calculate how long business have held debts with their suppliers. II. Supplier invoice Due
This report lists all outstanding invoices up to the current date, which helps management to decide which supplier is needed to be paid first. III. Supplier invoice within settlement terms
This report indicates the date a business must make payments to its supplier in order to qualify for their discount for paying early. it is also a vital tool to find out how much money can be saved by paying supplier early. This money can be use to decrease creditor balances.
Financial reports for the company
Sage helps management to produce financial…