Kudler Fine Foods
Natalie L. Gilliam, Janel Morrison-Luna, Roslyn Updegraff, Boris Woodson
ACC/542
January 27, 2013
David Phillips
University of Phoenix
Automated Process of Accounting Information System for Kudler Fine Foods
Learning Team D is responsible for reviewing the accounting information system of Kudler Fine Foods in the areas of payroll, accounts payable, accounts receivables, and the inventory process. Learning Team D will review and provide recommendations to Kudler on the most efficient direction the company should peruse for to the accounting information systems.
Rationale and Analysis
Implementing an accounting information system in each …show more content…
of the four main areas with the capabilities as described will allow the company to use advanced technology to their advantage. Companies need to expand, and must use the most current technology. This will reduce the time in each main process identified in the payroll, accounts receivable, accounts payable, and inventory departments. As the departments are able to save time and resource, it will produce a greater efficiency which will increase productivity. As productivity increases, workers are then available to work on additional processes, which have the overall effect of maintaining an efficient organizational structure that becomes more profitable.
The company should implement software tailored to both the business and the company 's main processes.
Using customized software developed from a variety of specialty software vendors, would reduce the error rate of misinterpreting data entries that should be handled differently due to the given business. Combining four departments onto one system will save time by having direct access to the records from all departments. This will reduce the amount of time required and will streamline activities. The documents will automatically be processed from each department and sent via the system to the necessary documents. The free-flow exchange of information back and forth will serve as one of the main advantages of the …show more content…
system.
Characteristics of the System
“An accounting information system is a collection of data and processing procedures that creates needed information for its users” (Bagranoff, Simkin, & Norman, 2010, page 5) through a computerized accounting system.
A good accounting information system (AIS) will help create, maintain, and distribute the financial reports as well as perform tasks in payroll, accounts receivable, accounts payable, inventory, and budgeting (Bagranoff, Simkin, & Norman, 2010). Management will be able to set up controls in the system allowing staff to have access to what is necessary and appropriate for their job. They will be able to call up and modify this information electronically without searching or filling out new paperwork. Data entry will be mainstreamed, allowing for less key strokes, and integration of information. This will allow for better accuracy in accounting and accounts will be able to be managed more efficiently, including processing of bi-weekly payroll. Payroll will then be sent directly to processing and reports to the correct managers. Accounts receivable will be able to track when customers use the POS system and update the sales information. Accounts payable will track when a vendor payment is due, allowing for payment processing, and appropriate management and accounting reports. The inventory system will be more accurate saving Kudler time and
money.
Value Added Recommendation
Kudler Fine Foods is in a business situation that requires an innovative accounting information system to increase efficiencies, provide progressive management decision-making tools, and promote value added benefits to the existing accounting operations of the business. Learning Team D recommends an industry specific software product to accommodate the needs of a small to mid-size retail business. Interfacing an accounting software system with the upgraded POS and REMS systems will provide the accessibility to manage and create the necessary financial reports of the business.
The inclusion of an industry specific software product and upgrades for the POS and REMS systems will increase the efficiency for obtaining business information. The information pertains to the four processes of accounts payable, accounts receivables, inventory, and payroll. Kudler 's current financial position does not warrant purchasing a customized software program.
The growth potential is most feasible with the use of a product already designed on the market. Kudler will need to establish a routine maintenance and audit schedule to ensure the new process is operating efficiently. This schedule consists of quarterly reviews for the first year and semi-annual reviews the next year.
Conclusion
The recommendation to obtain industry specific software and upgrading the POS and REMS will accommodate the financial reporting needs as well as offer future expansion opportunities. By executing this combined process, Kudler will have the opportunity for growth potential and development of an efficient accounting information system.
References
Apollo Group, Inc.. (2013). Virtual Organization Portal. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/index.asp
Bagranoff, N. A., Simkin, M. G., & Norman, C. S. (2010). Core Concepts of Accounting Information Systems (11th ed.). Danvers, MA: John Wiley & Sons, Inc.