Automated Process of Accounting Information Systems

Automated Process of Accounting Information Systems

University of Phoenix

ACC 542 / Accounting Information Systems

Instructor:

Memorandum

To:Kudler Fine Foods Management

From:Learning Team “D”

Subject:Automation Process for Accounting Information Systems

Date:September 18, 2013

Introduction

Kudler Fine Foods, a gourmet food company, offers the best quality of products to its customers in gourmet foods and fine wines. The company operates in three locations: La Jolla, Encinitas and Del Mar California. To strengthen company growth, minimize accounting expenses, and maintain accounting processes, improved technology is essential. Information systems can help all kinds of businesses improve the efficiency and effectiveness of their business processes, managerial decisions, and workgroup collaboration, thus strengthening their competitive positions in a rapidly changing marketplace (O’Brien & Marakas). The decision that is at hand is that Kudler must eliminate the manual accounting system to either industry-specific software or customized software. By moving to an accounting information system Kudler will increase efficiency in payroll, accounts payable, accounts receivable and inventory processes.

Explain the rationale for decision and recommended course of action

Kudler has options to use industry-specific software or customized software. Customized software tends to be expensive. If the project is difficult, it can take multiple years for a programmer to complete the software customization. Frequently, programmers must work in teams to customize software, adding to cost. Problems with customization often require developers to make further expensive upgrades (James, 2013). Industry-specific software typically is a fraction of the cost of customized software. Industry-specific software has the advantage of software vendors establishing working relationships with businesses. The business can mold software to the business needs versus molding the business to the software (Peck, 2013). The recommendation Kudler should implement is the current industry-specific software. While no one software is perfect, this recommendation has the advantages of meeting the needs of the business and less costly.

Explain the characteristics of the system that support the recommended course of action

Nonetheless, the recommended course of action to purchase industry-specific software appose to customized software is a smart business decision because Kudler Fine Foods is an industry-specific type store. The goal of Kudler Fine Foods is to offer clients the best of global fine foods in their metropolitan area. The recommendation of industry-specific software will improve the accounting process, control expenses, and provide a better inventory analysis. This will prepare the company to move forward to a clear path for growth.

Furthermore, Kudler Foods have certain characteristics that make specialized AISs work in its favor. The characteristics of Kudler Fine Foods are emphasis on customers, unique merchandise inventory, and suppliers. The specialized AISs will give Kudler information on customers about purchasing habits. In addition, supplier’s information will be readily available for staff, and customers who choose to shop online. Kudlers’ mission of providing the best quality fine foods gives them an inventory of unique merchandise, which can be costly for a medium size business. However, through industry-specific software Kudler Fine Foods can manage its inventory with every purchase, keep expenses low by purchasing closer to as needed, and maintaining closer communication with its suppliers to ensure timely products.

Describe how the accounting information systems incorporating the recommended changes add value to the accounting operations

Changes are necessary in any business to succeed; Kudler Fine Foods is no different. The changes recommended by our team will improve sales and purchasing processes by eliminating time used currently by Kudler’s employees doing these processes by hand. The new accounting software will improve Kudler Fine Foods accounting department, and the company overall, by allowing a faster and more streamlined processing of accounts payable, accounts receivable, inventory, sales, purchases, and payroll. This software will be valuable to Kudler by allowing easier communication between CFOs and accountants as well as the accounting information to be stored together. By storing all of the information together, decision-making will be easier and there will be better communication between suppliers, distributors, and customers as well as the employees and there will be less chance of vital information being overlooked.

Conclusion

Kudler Foods wants to provide the best gourmet foods to their customers. The accounting information system is lacking and using an industry-specific software will best serve the company. Accounting information systems need to be decided by the company based on what is going to be best for the specific company. Growth is the major goal for companies and to have a better accounting system, they can proceed with goals for growing the company. Cost and strategy are two areas to look at when deciding upon a system to use.

References

Bagranoff, N. A. (2008). Core concepting of accounting information systems. Documenting accounting information systems. John Wiley & Sons, Inc.

James, T. (2013). The Disadvantages of Customizing Software. Retrieved from http://www.ehow.com/info_8727326_disadvantages-customizing-software.html

O’Brien, J. A. & Marakas, G. M. (2008). Management information systems (8th ed.) Boston, MA: McGraw-Hill.

Peck, T. (2013). 5 Advantages of Using Industry Specific Software. Retrieved from http://ventureinformationsystem.com/wordpress/?p=55