BIS 303 week 3 Cost control flow chart and summary

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Cost Control Flowchart and Summary

BIS/303

Point of Sale (POS) and Inventory Tracking Systems

The Point of Sales system is a computerized network operated by a main computer and linked to several checkout terminals. An electronic point of sale system is called a variety of names such as a sales register, cash register, or a till. POS software records each sale when it happens, so your inventory records are always up-to-date. POS packages frequently come with integrated accounting modules, which include general ledger, accounts receivable, accounts payable, purchasing, and inventory control systems.  In this summary, a flowchart is created to show how POS systems and inventory tracking systems integrate accounting operations and accounting systems.

Flowchart: Customer Transactions

Reporting capabilities available in POS programs include sales, costs, and profits. These reports can be categorized by individual inventory items, salesperson, or category for the day, month and year to date. Most POS systems can reports can report sales for any time period, including hourly. 

This flowchart gives a visual of how the IT system organizes customer transactions for accounting processes and reports.

Every transaction is recorded and reported. The POS system forms accounting and inventory reports along with cash and credit card sales reports and transactions.

Integrating Operations and Accounting Systems

As consumers increasingly go mobile, so too must business owners. Businesses need to have an up-to-date POS system compatible with the latest technology that allows them to work offline and across multiple devices.  An integrated POS system offers a ready-to-use configured touchscreen interface, which turns an iPad into a mobile cash register that takes orders, accepts payments, and tracks both inventory and customer accounts. The National Business Education Association states that “ Time-consuming accounting tasks take between two and three weeks of full-time work per year”. An integrated POS accounting system, such as QuickBooks Point of Sale, automatically syncs data daily from summary sales to inventory, which eliminates manual data entry and other human errors. It also saves valuable time and money.

Conclusion

POS systems are an “All-in-one” business necessity. Integrating operations and accounting systems provides a secure, easy business accounting tool that eliminates paperwork for the business and accounting departments. Keeping an up-to-date POS system is a must for a thriving business.

Summary

Accounting control strategies in the hospitality industry can be achieved but were highly labor intensive. Accounting clerks and data entry staff were needed to transfer data from front end hotel systems to back office controllers via spreadsheets and complicated reports. These tasks were time and payroll consuming. Now the hospitality industry uses the AIS (Accounting Information System) as a concentrated center for a now networked and functionally integrated HMIS (Hospitality Management Information System).

The AIS acquires accounting data from other departments, such as the Human Resources department, Inventory department, Front of the House (front desk). The data is then places into different account control tracking systems. These accounts include General, Accounts Receivable, Cash Accounts, Accounts Payable, and Payroll Account Ledgers.

The General Ledger is the primary tracking control system and center of the accounting database within the AIS. The AIS is a ledger that condenses data received from other ledgers that contain data from specialized accounting functions (D. Tesone, 2006).

The ARL (Accounts Receivable Ledger) keeps track of entries from credit/debit accounts. Customers whom may owe payments to business are stored in this system for future payments. The amount of money owed will reflect on the General Ledger and then post to Accounts Receivable where it can be monitored and tracked for compliance with the contract obligations. Credit sales for the business are considered cash transactions and will be reflected on the Accounts Receivable Ledger as cash accounts until the account is paid off.

The AIS services automatic account transactions with suppliers and vendors. Tracking production and supply levels, the AIS can determine any shortages in supply and process a claim through the network to the Supply Chain Management systems. Payments are tracked on the Accounts Payable Ledger. Any money the enterprise owes are tracked on an expense account or an Accounts Payable Ledger. Expense accounts also include tax accounts, debt accounts, and the Payroll Account Ledger. Employee wages are tracked by and received by AIS from hotel Human Resource Management Information systems.

Technology in the hospitality industry can impact accounting strategies negatively. Hospitality businesses are very expensive. Costly buildings and facilities cannot function properly without up-to-date technology. Technology changes often which can leave a hospitality business in debt to software companies to keep up with the constantly changing systems.

POS can be affected by accounting control strategies. POS can negatively change if the accounting control strategies are not managed properly. When the company fails the accounting control strategies, it can cause issues and a shortage of production for the company. In the event that the POS is not working properly, the business can lose sales during this down time. Inventory tracking is affected when there is disorganization, delivery schedule issues, and lack of shared information. “Inventory control (also known as inventory management) refers to the systems and strategies businesses use to ensure that they have adequate supplies of raw materials for production and finished goods for shipment to customers, while also minimizing their inventory carrying costs” (Hillstrom, 2011).

Disorganization of inventory tracking causes incorrect account information. A delivery delay causes issues when customers do not get what should be available to them. Production systems are affecting when there is a lack of production. The product and service decrease and the production weakens.

The businesses personnel becomes affected by the decrease in business which causes managers, employees, and vendors stop collaborating on the company production. The business is then affected from the personnel not working together to reach the short-term and long-term goals within the company.

It is the managerial responsibility to attain a competitive advantage by utilizing internal resources while utilizing external possibilities while avoiding external threats. This can be required by cautiously planning company structure, objectives, a mission, a vision, and an operational plan. Acknowledging the internally developed organizational attributes helps interact with the external competitive environment. This is key to successfully utilizing an implemented strategy which will eventually create profits (Boundless.com).

References

“National Business Education Association.” Encyclopedia of Education. Retrieved November 13, 2016 from Encyclopedia.com: http://www.encyclopedia.com/education/encyclopedias

Intuit QuickBooks (2016) Point of Sale: Automatically Connect Your Business to Books. Retrieved on November 13, 2016 from QuickBooks.intuit.com: https://quickbooks.intuit.com/point-of-sale/?cid=sbc_ccother_POSCTAPOSintegration

Boundless. “The Impact of External and Internal Factors on Strategy.” Boundless Management. Boundless, 31 May. 2016. Retrieved 14 Nov. 2016 from https://www.boundless.com/management/textbooks/boundless-management-textbook/strategic-management-12/strategic-management-86/the-impact-of-external-and-internal-factors-on-strategy-419-1549/

D. Tesone. (2006). Hospitality Information Systems and E-Commerce. Accounting

control and production systems. (ch.10). Retrieved 14 Nov.2016 from:https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx

K.Hillstrom. (2011). Inventory Control Systems. Retrieved 14 Nov. 2016 from http://www.referenceforbusiness.com/encyclopedia/Int-Jun/Inventory-Control-Systems.html




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