Assignment on

Apollo Hospital VS Square Hospital

Submitted To
Mr. Mohammed Naveed Siddiquee
Lecture, Department of Accounting
Independent University, Bangladesh (IUB)
Corse Title: Accounting Information System
Section: 01
Course Id: 441

Submitted By
Nure Maksuda Shakila
Id Number: 1630221
Date of Submission: 7TH APRIL 2020
 Table of Contents

Serial No. Content Page No.

01 For the organization, compare the use/application 01
of accounting information system in the revenue,
expenditure and conversion

02 Advise the management so that how they can 05

integrate/use AIS within their organization. In
which area of their business?

03 Also what distinct advantage will be enjoyed by 06

the firm if they invest in Accounting System
infrastructure for their organization?
 PART-A
QUESTION 01
Apollo Hospital VS Square Hospital

Apollo Hospital

Apollo hospital is a private hospital in Bangladesh and part of the Apollo hospital Chennai,
Kolkata, Delhi, Hyderabad, Mumbai, Ahmedabad, Bengaluru. .Apollo hospital only provide
medical service but they have others branch out of Bangladesh and follow WHO healthcare
standard. Apollo hospital in Dhaka started its operation on April 16, 2005 with a mission to
provide high quality international standard healthcare that will meet the needs and exceed the
expectations of the people of Bangladesh. The hospital is the first and only in Bangladesh to get
accredited by the joint commission international accredited. Apollo hospital was fined 1.6
million for having contraband pharmaceuticals in September 2015.then in December 2015
Apollo hospital started online appointment and payment service too. They also do a lot of PR
activities. There are write-ups about them in newspapers on regular basis. Apollo hospital
provide lot of facilities world class lab medicine facility and external quality control program
with (BOI,RAD,USA),Appointment, Master health check ,Fax ,Emergency contact
number(hotline and ambulance).However, in recent days their Facebook page promotional
activities have increased in significant number. Basically online process part of E-commerce and
now Apollo Hospital becoming Evercare Hospital.
Square Hospital

Square hospital is a private hospital in Dhaka, Bangladesh.it is one of high-end private hospital
in Bangladesh, the other being Apollo hospital Dhaka and united hospital. Tapan Chowdhury is
the managing director of the hospital. Ensure the best healthcare service comprise of Professional
(clinical) service excellence with the outstanding personal service. Square hospital was founds
on 16 December 2006 by Samson h Chowdhury of square group. Square manufacturing their
medicine and provide own hospital and others pharma, hospitals.

Square hospital always use online services likes payment systems, consult by doctors, hotline.
Online basically a part of e-commerce. In recent days their Facebook page promotional activities
have increased in significant number.
Apollo Hospital is provide healthcare services to patients Heart, Orthopedics, Cancer,
Transplants, ICU Emergency Service.
Square Hospital is provide Square Child Development Centre, Diabetes & Endocrinology
Centre, Emergency Centre, Neuroscience and Intensive Care Centre.
Apollo And hospital are sales their services to customers or patients.
Revenue Cycle

Economic Enterprise, both for profit and not for profit generate revenues through business
processes that constitute their revenue cycle. In this form, the revenue cycle is the direct
exchange of finished goods or services for cash in a single transaction between a seller and
buyer.
As Apollo Hospital and Square Hospital are always part of e-commerce in Bangladesh so they
use AIS (Accounting Information system) for their revenue cycle activities.
View of Technological innovation in AIS as a continuum with automation at the end and
reengineering at the other. Automation basically involves using technology to improve the
efficiency and effectiveness. And on the other hand reengineering involves radically rethinking
the business process.

Sales order procedures

Service is only available for products (services) which are shown in available on their website.
The sales process begins with the customer contacting the sales department and placing order.
The clerk records the essential details.
Ordering policy:

• Service is only available for products which are shown in available on their website.
• Only one product can be booked in one order
• Orders that are paid cannot be cancelled

After the order place from the customer, the sales department release copies of the sale order to
the billing, warehouse and shipping departments.
Warehouse department clerk receives the stocks release copy of the sales order and uses this to
pick the products. And then inventory and stock release sent to the Shipping Department.
The shipping clerk reconciles the products received from the warehouse with the shipping notice.
A bill of leading is prepared and the product are packaged and shipped to the customer.
After that updated the sales order file, update program post and update accounts Receivable
subsidiary ledger.

Cash Receipts procedures:

Insert all checks, cash and a copy of the mailroom check receipt list into a secure interoffice mail
pouch. Have it hand deliver to the cashier in the accounting department. The cashier matches all
items in the pouch to the mailroom check receipts list, initials a copy of the list and returns the
copy by interoffice mail to the mailroom. The mailroom staff then files the initialed copy by
data.
Access the accounting software, call up the unpaid invoices for the relevant customer, and apply
the cash to the invoices indicated on the remittance advice that accompanies each payment from
the customer. If there is no indication of which invoice is to be credited, record the payment
system

Expenditure Cycle

We know a manufacturing company’s expenditure cycle involves ordering and receiving goods
and services. These goods can be inventory that the company plans to resell or internal supplies
to keep the business running smoothly. After ordering and receiving goods, the company must
approve vendor invoices and disburse cash payments square hospital uses AIS in the expenditure
cycle. As they are daily necessary production companies so at first, they order or collect their
raw materials to the suppliers. So, the purchasing department employee will approve the request,
choose a suitable supplier and create a purchase order .square hospital’ require a purchasing
agent to buy from an approved list vendor and require supervisor authorization for purchases. By
using AIS Square can order its materials automatically to the suppliers.
Organized by the purchasing department. After placing the order Apollo and Square hospital
receive and stores its purchase. As it is a computer-based system the receiving order notifies to
the receiving department. Then the receiving department updates the database of inventory. As
all the records are updated in the database so there is no scope of stealing the products. After
updating the inventory, the company’s account payable department has to approve the vendors'
invoice. By using AIS check all the record in the database. If everything is ok then AIS
automatically creates an invoice. To prevent the possibility of Apollo and Square hospitals are
generally have a different department or a different employee disbursing cash for vendor
invoices. However, Apollo and Square hospitals are using AIS so all the cash disbursement
system is done automatically. In the above discussion, my findings are:

1. Apollo and Square hospitals can control its inventory management effectively and efficiently.
2. Apollo and Square can analyze and manage the cost easily.
3. Also they prepare financial statement accurately.

Conversion cycle

The conversion cycle consists of both physical and information activities related to
manufacturing products for sale. The central role of the conversion cycle is interactions with
other business cycles. Production is triggered by customer orders from the revenue cycle and by
sales forecasts from marketing. These inputs are used to set up production target and prepare a
plan, which drives production activities. Purchase requisitions for the raw materials needed to
meet production objectives are sent to the purchase procedures. Labor used in production is
transmitted to the payroll system. Manufacturing costs associated with intermediate work-in-
process and finished goods are sent to the financial reporting system and general ledger.
Depending on the type of product being manufactured, the Company will employ Batch
Processing. Batch processing produces groups (batches) of product. Each item in the batch is
similar and requires the same raw materials and operations. This is the most common method of
production and is used to manufacture products such the product. When the task is complete at a
particular work center, the supervisor or other authorized person signs to the move ticket, which
authorizes the batch to proceed to the next work center. Work centers also fulfill an important
role in recording labor time costs. An objective of inventory control is to minimize total
inventory cost while ensuring that adequate inventories exist to meet current demand. A
commonly used inventory model is the economic order quantity (EOQ) MODEL. Computer
aided manufacturing is the use of computers to assist the manufacturing process. The CAM
system monitors and controls the production process and routing of products through the cell.
Benefits from deploying a CAM technology include improved process productivity, improved
cost and time estimates, improved process monitoring and improved process quality.
 PART-B
QUESTION 02

Why Square Hospital management should use Accounting Information System (AIS)

Because AIS stores and provides such appreciated business material, reliability is vitally
important. The American Institute of CPAs (AICPA) and Canadian Institute of Chartered
Accountants (CICA) have recognized five basic principles important to AIS reliability:
Security - Access to the framework and its information is controlled and maintaining
properly, access in accountant department only financial and accounting department
employees.

Customer billing statement- If hospital use AIS they benefiting by record of customer
billing statement, recording the daily transaction(transaction process system)

Privacy – Profit or non-profit organizations most important things is information. AIS

record information all about organization relate

Payroll Information – Payroll is a list of organizations employees and the amount of

money they are to be paid.

Handiness - The system is available to meet operational and contractual obligations.

Tax information and Timekeeping

Cost Effectiveness - Accounting information system makes the maintenance of a
bloated financial department irrelevant. The software does most of the work that would or
else need several employees. The accounting software can journal besides prepare
documents for example the trial balance. Journals and ledgers are documented in the
computer data bases. There is also software that can perform functions such as billing
accounting and preparing payroll. Accounting information systems help cuts the payroll
for accounting system.
 QUESTION 03
What Distinct Advantage Will enjoyed by the firm if they invest in
(AIS)

Supply chain management

Supply chain management is management of the flow of goods and services and includes all
processes that transform raw materials, of work-in-process inventory, and of finished goods from
point or origin to point of consumption. Square hospital purchase their machines form different
country. They follow supply chain management policy. Any types of organization service,
manufacturing, profitable org. need to supply chain management for maintaining their goods and
services.

For generating invoices and basic accounting

Many companies have nearly perfected invoicing software, and a pre-programmed solution will
save you an immense amount of time compared to Excel.
Basic accounting
Accounting information systems is designing a data processing system using software. It can also
be done manually. The computerized systems make accounting job easier by the use of software
which can compile financial, tax and payroll data. It can perform other bookkeeping functions.
The system collects and processes transaction data way easily than previous. Not only this but
also it can generate the whole financial report, income statement by putting data in a single place.
Extensive research conducted by the Square hospital R&D (Research and
Development) Team
Another critical success factor that defines Square hospital in an effective manner is the
extensive research conducted by the R&D team. The Square hospital Case Study outlines how in
2019, the R&D department Square hospital had spent as much as $35.931 billion which was the
highest R&D investment ever made by a company .This organization has made effective use of
the relevant resources to meet up the business needs. Considering the statements by the Apollo
management, this an organization believes in offering diverse products at cheaper rates that
captured the commercial essence and magnified the opportunities for this organization.
Cost Effectiveness
In the era of digitalization and artificial intelligence, each organization is moving towards cost
cutting with the use of artificial intelligence. AIS has helped to reduce manual efforts and can
perform the same operation more cost- effectively. Square hospital needs to cost-effectiveness
advantage invest their organization.
Time Effectiveness
AIS has assisted business organization to reduce the amount of the time involved in recording,
classifying, reporting any financial information. A large quantum of manual work can be
completed by AIS with mush fewer efforts and time involved.
Easy to Access
AIS maintaining privacy and high level of security. Easy to access but no allow to everyone.
That’s why any organization need to invest AIS for easy to access but maintaining high level of
security.
 References
1. https://www.apollohospitals.com/
2. https://www.squarehospital.com/
3. https://www.apollohospitals.com/locations/international-hospitals/dhaka
4. https://www.wallstreetmojo.com/accounting-information-system/
5. https://bizfluent.com/list-6588708-benefits-accounting-information-systems.html
6. https://www.facebook.com/squarehospital/