Accounting information system
Executive summary
The importance and purpose of studying the application’s accounting management and funding partnership lies in the corporation’s stable sustainable development. Owing to application product’s specialty and social function, the investment can be help with the primary data base establishment, sample investigation and promotion. In the case study, the team has just gain $ 10 thousand’s awards and urges more channels for funding. The research has focused on operation mode, key decisions, information demands, and external parties’ relationship maintenance. In evaluating funding approaches, there are concerns on security, legal and ethical issues. In conclusion, the measurements in reflection to the investment should be multiple and the value chain can not break, the debt can be admitted to keep market leverage and the funding channels should be structured in case of sudden crash.
Introduction
With the development of global finance, the commercial logic has turned out to be mature. When it comes to one new 3D scanning application, the awarded fund $10 thousand is critical, in addition, the team has started for further funding activities in order to ensure the profitability and sustainability in 3D scanning application.
To start with the importance and benefits of the funding, the large share of market in 3D scanning application rather lie inside the adequate cash flow in marketing and promotion, the investment towards the potential market can open up the range of use in 3D scanning application. Since application is one kind of software, containing high-tech, the functions of the 3D scanning application should be carried out. However, it should take time. Usually the application is aligned to the mobile internet, and is coordinated to users’ outing scenarios. The functions should have environmentally friendliness with the users, yet if the functions do not endure the constant test, the users gain what is felt odd. A good product comes from abundant demands’ centralization and transformation, only through function design can it be a better production (Case, Fair, at al., 2016).
Secondly, the 3D scanning application has different periods. From the beginning, the funding is necessary because the team should make investment in targeted markets. The cash flow has inclination to out flow for later 10 months’ investment return and user accumulation. On the other hand, within 1-3 years’ period, the users’ habit and using application scenarios can have differences, the team uses funds to design out functions that can be in prevailing use. It can not skip the steps in operation, and the funding should keep constant and chronological as well (50MINUTES, 2015).
What is more, the corporation owns its developing circle. If the corporation is product oriented, the commercial logic is smooth with year-to-year target oriented contract. If the corporation is product packaged, the investor relationship tends to become complex, for example, some have finance relationship while some constitutes cooperation for exchange of long term investment return yearly, in other forms such as perks, bonus, program charges, proportion of dividends, common shares, issued shares or so forth.
What should be unavoidable is the life cycle of declining procedure. The corporation faces with legal or cultural pressure, when some information fraud, privacy, illegal medicine are applied in the 3D scanning application, it is possible that the business scale should be switched for stock market, internet market, e-commerce market, funding can include investment, reinvestment, commercial renting, property management, political charges or fees. Do not corporation think that some multiple markets are more proper on the basis of critical IT technology? When stakeholders are widespread, the result can turn out positive according to previous operation results.
Discussion
Operation mode
business processes
The corporation contains one structure, as ltd., most of the time, board of directors govern the operation out of their established funding at the beginning, switching into 100% proportion. Yearly after calculation, there should be half for restoration for further development. The chief executive operator can take charge of the 3D scanning application and he has to be in charge of the yearly profitability.
As for the category of the finance, first, the salary can segment the employees according to work time and job promotion, with regards to average enrollment principles within several months. Second the cash flow is critical, especially when it is in primary stage, CEO should be in charge of investor relationship maintenance, others are in charge of market. That is to say, apart from awarded $10 thousand, first, CEO can go to bank for mortgage within 3-4 years for fast cash inter flow circulation. Second, CEO make contracts with other partners on the finance perspectives for short term, for example, one years’ profit’s 20% can be paid for investors. Third, CEO can deal with merger and acquisition so that the finance structure can be simplified into program bonus as program surplus. Fourth, CEO can gather national policy favor to gain fund from government (Horngren, Sundem, at al., 2013). Fifth, CEO can take part in competition to win more awards.
key decisions
There are some solutions for funding and use of funding. Primarily, at least 20 thousand should be offered for operation. Assuming that the team has 4 critical members, who are contained in board of director, the product design contains 4 steps as PDCA principle has suggested. The primary design period can be generalized as 3-4 months.
At the same time, the product is user oriented, which means it can be purchased in business as third party’s device supplier. It can have large amount of revenue according to business demands. When the application undergoes the test and it can be put into market, the sales can be contained. CEO should offer new opportunities for about 10 thousands’ funding, if he is not confident about user mode. As the “to business” user is dominant, the 10 thousand can be used for marketing and promotion or client management.
If banking service is supportive as well as government announce about application industry, other 40 thousand can be provided for administration investment, within 2-3 years, the operation mode can be quickly copied. At the same time, the yearly accounts payable can reduce funding risks from temporary investors who search for their own profitability overly (Catty, 2012).
1.3 information needs
The information for different parties inside are different. As for the management layer, what they intend to govern is revenue (trading of application), expense (employee salaries, promotion charges), profit, tax, liabilities (accounts payable, shares of investors), asset (real estate, administrative facilities or machines), debt (investment return) and so on. As for the employee layer, they should operation and be in charge of marketing and operation, for example, if the employee understands how to put 3D pictures into view, he can gain bonus in salary out of technology favor (Buettnerab, Overeschc, Schreiberd, Wamserbe, 2012). If there are information leakage, he should bear fine, if the criminal issues are related to him, the corporation should bear for the responsibilities in technological illegal conducting.
As for the investor layer, they should understand the financial yearly report, highlighting profit, revenue, value addition. Quick ratio, current ratio, liquidity ratio, debt-asset ratio, asset-equity ratio, asset-turnover ratio. As for stock buyer layer, they look more on the prevailing market value, P/E ratio, and some other ratios.
External parties’ relationship maintenance
2.1 funding institution
The funding institutions should have tight cooperation. Since the funding is not only for the cash flow, but for capitalization, the 3D scanning application can take a leap through funding and capitalization. The corporation yearly finance report should be handled. There are 4 investment approaches: DDM, DCF, FCFE are applied. The present value and fair yearly value can be used for investment. The types of investors also vary. The short term investment tends to gain large amount of money and even take acquisition over profitable corporation because of finance surplus. The mid-term investment tends to quit and is easily exposed to finance market, sometimes can reduce funding or force cash outflow come into being. The long term investment has engaged in the operation, the proportion of dividends, or stocks are contained and offered to ensure that capitalization can reduce risks and straighten the profitability. The districts of investors also vary, some investors only provide finance resources for independent operation inside corporation. Some investors have corporation be sold or acquired with other partners in exchange for stock shares inside other partners. Corporations' R&D capital and subsequent stock returns are counted (Lev, Sougiannis, 1996).
2.2 finance market
The stock market or other finance market, containing second-finance market should endure audit. Because of financial risks, there are stock, bond, foundation, trust or other finance products for management demands. Beside the funding, when the corporation gains the cash flow in the procedure of operation, it also has to consider backup solutions. First, inside corporation, there are common shares listed, both among equity and inside stock market. These shares can be franked or can be not franked, they can be considered as tools in encouraging work. Second, the second finance market restricts the developing scale, which should be paid special attention to. Third, when bond is listed but cash flow is not adequate, there is even likelihood to go bankrupt. What is more, 3D scanning application itself can start to establish foundation and have conservative funding (Bhandari, Busse,at al., 2014).
2.3 banking service
The banking service has served corporation. Since there are different products, some support the mortgage with real estate or other properties owing equivalent values. Some support insurance and offer mortgage through the legal person. Some support entrepreneur’s operation, reporting yearly result to the banking service. If investors quit, CEO can go to banking service for assistance within 3-4 years. Other fiscal policies or favors vary (Kwan, Simon, at al., 1997).
2.4 clients
The clients contain the awards corporation, government policy maker, clients who purchase 3D scanning application (out of different version). The clients can purchase one function, or the whole application or different versions of application. According to their level of demands, the market price should be listed out. However some risks should also be listed, first when information is scanned illegally, or the picture has caused eye-sight threat, or the scanning procedure is not signed or protected by their unique identity, the compensation should be paid off or fine should be charged. The application is digital, the technological standard should also be obeyed.
Funding approaches
The funding approaches can be generalized as follows. First, the investment is used for corporation’s operation. $ 10 thousand can be paid in real estate management and basic operation.
Second, banking service can sign the contract and pay yearly accounts, the relationship is stable with interest. But the funding from banking service should not increase debt, which when banking service policy changes, the position of corporation may suffer from passive status. Some service fees are not necessary, which can accomplish by the corporation itself. It can also increase liabilities, the asset management can be multiple and the risks in assets can be reduced (Shore, Nasreddine, Kocher, 2012).
Third, the transfer of stocks consider the money and proportion of stock shares. In designing and operating the 3D scanning application, the third parties and operation entities are separated. For example, when it is in China, the team can engage CEO of 3D scanning application with certain proportion of shares, the premises are the independent operation right, the CEO’s bi-literal agreement, the coalition of board of director, the limited yearly contract of profitability and contribution to group corporation. Furthermore, the authorized VI, patent should be counted for $ 40 thousand or more at once with regards to market influence. The proportion of stock shares should be no more than 8-10%, for new entries or other partners, and so that the localization of the product can be smoother (David, Stein, Jeremy, 2019). After all, the capitalization turns investment into other rights, which reduce current cash flow risks and product development.
Fourth, funding can come from the property transfer, for example, 3D scanning application can establish two or more corporations to release debt or to diversify the functions for corporations, one corporation dedicates to business among different industries such as media or architecture, the client management can be outsourced, the legal arbitration can be independently applied in international trading problems. There are one corporation which is in charge of capitalization and cooperation with stock market, or other finance market. Only then can the capitalization be limited and there is less likely to go bankrupt.
security, legal and ethical issues
security concerns
In case there are dangers inside operation. The 3D scanning application can be faced with fake product or fake patent, the similarities among different 3D scanning application or core technology’s variation can cause market price flotation. The investor’s prediction over investment is focused on current technological bounders, however when time passes by and technologies grow advanced, it is easy for the profitability to be diluted. Furthermore, when the application loses in fierce competition because of price oriented trading mode with users, the investment can not really play a role in high investment return.
However, when investing in application, the stability is much better than it is in real estate or other industries. When it comes to investment, if the investors do not recognize the circulation of application or other commodities, according to previous experiences, the real estate’ ROI should be 8-10 years, or even 10-20 years, while small commodities’ ROI can lie with 1-3 years, but platforms’ ROI can lie in 0.5-2 years.
legal concerns
Some investors put finance resources as property transfer in the name of application to switch risks or to cheat users or other parties. The investment is only for credit management and can not survive through its accounting management, or would rather to say to gain investment return over different programs. Some investors uses different business entities to invest in one application program with more stock shares so that they can temporarily transfer the cash flow or even renovate or alternate the whole program’s operation. Some investors invest in the background of visual market. The bond is stable than the stock, or the private stock, the foundation is conservative than direct investment. However when internet develops, the visual money, visual bond, visual block, visual mortgage, oil, metal, futures or other forms are not yet legalized in trading procedure, which can never be directly applied. Some investors deliberately uses some old programs to exchange for stock shares without disclosing the complicated information with regards to some previous programs’ fair value prediction or their discount rate.
4.3 ethical issues
As for ethical concerns, the investors should focus on the 3D scanning application’s legal issues, when such 3D scanning application is put into practice, the picture data base, the behavior data base, data base circulation, data base backup, document management, function test, and the other statistics could be likely to cause privacy violation, physical or psychological cognition violation, business confidentiality. Even if the 3D scanning application can be vulnerable to visual efforts or audio efforts, if the social or criminal damages can not be comparable to economic compensation, the investors, the corporation should endure the criminal punishment or administrative punishment with regards to investigation over the amount of victims as well as information or property.
Conclusion
In conclusion, when the team came up with a great idea for a new 3D scanning application that they think will make lots of money. The business plan has own amout of funding. There are more funding approaches that can be structured in capitalization in operation and to help them to develop the software application and have a successful business. The important decision making should never be ignored in investment prediction, finance report writing, yearly finance performance audit, commercial certificates, and other valid documents with relevance to the contracts. When listing in stock market or purchasing finance products, the trading should under the evaluation over committees or other third party institutions.
Recommendations
The recommendations are applied to the corporation in 3D scanning application’s funding. First and foremost, when the product is to enter market, the market analysis should be investigated for the targeted customers’ identification and labeling, which can gain profitability. It is the economic value chain that guide and drive the 3D scanning application to be fit into market, the suppliers, employees, technologies, and promotion or design are the sections of operation, which should be maintained and evaluated so that the value chain can gain users, continue business and gain profits. The user groups have to be industries who intend to have 3D modes in trading, the PPT can switch into 3D movies with special skills, the videos can gain visual or audio reality, causing artificial intelligence’s sheding new power in automatic presentation and communication with those potential clients or investors.
Second, in the funding procedure, the business modules are divided or segmented according to the diversified programs, 3D scanning application is just one of the brand in operation, the funding can be related to public infrastructure so that when it goes on investment, the goodwill can be included in prediction. The leverage of the corporation can also be admitted for further funding. Otherwise, the constant funding can never gain market shares, even the stock market or finance market accept the corporation, it is still easy to go bankrupt.
Third, the capitalization in different periods of the application vary. If 3D scanning application quickly absorb large group of users in low cost and low revenue with more discount or promotion measurements, the investment should be in a large scale. While if 3D scanning application is targeted to corporation users in trading, the investment should gain dominant position and the requirements for cash flow should also be high enough to form flexible turnover as one kind of product.
Above all, the importance and purpose of studying the application’s accounting management and funding partnership lies in the corporation’s stable sustainable development. Owing to application product’s specialty and social function, the investment can be help with the primary data base establishment, sample investigation and promotion. Some have already gained business plan for structured funding activities, and when they apply for further funding, they are likely to repetitively apply in the same name out of different business programs. It instantly requires legal institutions to go over punishment over administrative investigation. Since the timely fair value is serious on behalf of the corporation, any unaccomplished or middle period should never be counted or included. At the same time, any third party finance relationship should be figured out, credit, deposit, accounts payable, short term debt or long term debt. No matter what the measurements it will take, the current properties and finance conditions should be tested.
