Case study analysis on Accounting Information System for Andrew West

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Executive Summary

Andrew West started SurfZone in Bondi with the goal of providing good quality surfing equipment to his customers. To ensure year round business, Andrew sells both Surfing and Snow Ski products and he also has a lucrative snow ski hire department that is strongly patronized by school groups and families. Business has been brisk and he has established a sizeable client base over the last five years. The Andrew thinks that it could be the time to spend in Computers to record details about the sales, payroll process and offer more details about the inventory. Andrew thinks with the implementation of the Computer in each store would help the store in capturing of the sales information & managing of the hiring details, capturing the details of the customer would help the store manager in forming a targeted marketing campaign in the future, the computer would help the store to capture the details about the stock sold so that exact stock levels could be known, the Computer offers the way to calculate the wages & to electronically pay staff and the implementation of the Computer provides useful & relevant data for sales forecasting. In last, some recommendations have been given in order to improve the resolve the problems for the accounting & payroll problems (Collier, P & Venables, 2007)

Description of the Problem

It can be seen that Andrew believes that it will be possible to modernize some of the business process for reducing the amount of time, which it is taking for data processing. Andrew believes that it can be time to spend in Computers to record more details about payroll process, sales and the details about the inventory. It has been analyzed that the Andrew wants to open up six further stores throughout the next three years & any systems used should be capable of supporting these developments (Bigsten, 2004)

It has been analyzed that no details are captured about the customer only provide details about the purchased goods, the method of payment, member of the staff , purchased quantity, price & totals.

It has been analyzed that levels of stock are recorded by using the stock card. It can be seen that the details of the new inventory are entered into the cards when the new stock and details of sold units are changed at the termination of each trading day. It is very clear that when things become hectic, marketing off stock sheets can be forgotten and hence they are not very exact. To know the level of the stock item, the physical check is needed. It has been observed that the stock take is conducted at random times when Andrew thinks it may be better to know what is in each of the stores.It has been analyzed that when the user return the hired items, the member of the staff retrieves the duplicate from the file comprising both the details of the docket & the information of the credit card. This can be viewed as the process of time consuming as sometimes dockets are misfiled & users become worried for the delay. It is very clear that no of complaints have been made by the user on the number of occasions. At the end of each & every week, the spreadsheet was sent to Andrew who used it for forecasting of sales & also offers the information to various accountants for completing the statements of the Business Activity.

 Solution Objective

The objective of the solution is to provide assistance to Andrew in solving of various issues like maintenance of customer details, maintenance of marketing off stock sheets, collection of useful data for sales forecasting and accurate calculation of wages & to electronically pay staff. It has been analyzed that the implementation of the Computer in each of the three stores helps in capturing of sales information, customer details, maintenance of marketing off stock sheets, collection of the data for sales forecasting and helps in calculation of the wages for employees. It is very clear that in recent times, Computers help the Company in operations & controlling function (Greenwood & Jovanovic, 1990). Computer helps the Company in maintaining of operations like calculation of wages, maintenance of ledger and invoicing etc. Another important feature of the Computer helps in analysis of the sales, credit control & budgetary control. The Solution is provided to the Andrew to implement those changes in existing three stores and open further six stores in the next three years with those changes & developments. For e.g. In this case each of the three stores, captures sales at the point of purchase by the cash register machine. There are two machines in each store operated by the sales counter. The implementation of the Computer in each store helps in capturing of sales information without the cash register machine which would help the Ski Zone & Andrew in minimizing of the cost.Constraints

It has been analyzed that there is a computer for the assistant and Andrew has a laptop computer that he uses to prepare details for the accountant to complete the Business Activity Statement. He also carries out some analysis on spreadsheets for sales forecasting. It can be seen that the accountant of the each store was maintaining details about the sales, purchase and inventory manually not on the Computer. The Andrew had decided to implement the Computer in each store which became difficult for accountants to make reports on Computer as they were in the habit of making reports manually. It can be said that change in technology may also be the factor which made the accountant & employee of the Company resistant to change. In general, it is very clear when the company goes for any kind of changes then employees show reluctance to change (Cooley & Smith, 1998)

Developmental Plans

The first & foremost development plan is implementation of the Computer in each of the three stores.

For Capturing of the sales information It can be seen that analysis of the forecasting indulges the usage of the Computer Software. It has been analyzed that the software of sales forecasting would have a format of dashboard in which statistics & charts are clearly visible on the single page.

For Maintenance of sheets of marketing off stock The system may be designed which it activate orders when level of stock arrives point of order for distinct items of the material and test items that are moving slow and provides record of various stock items.

For Computation of wages It is very clear that in recent time, Computers help in operations of the Company like computation of wages, ledger maintenance and invoicing etc. With the implementation of the Computer in each of the three stores it enables the accountant of the store to calculate accurate wages by using excel feature and spreadsheets Potential Solution

It can be seen that with the implementation of the Computer in each stores then the manager of the store would be able to solve the various problems like it has been viewed that no details had stored about the customer and provides only details about the goods purchased, payment methods staff members, price and purchased quantity. The implementation of the Computer would enable the each store in storing the useful & relevant information about the customer whether it is existing or prospective. It is very clear that customer’s details are stored to reach them anytime. It can be seen that Customer relation type of software enables to store all the details of the consumer in the similar place that can be used by anyone throughout the business who has accurate permissions. It can be analyzed that customers would likely to turn repeat customers (Rubin & Rubin, 2004). It is very clear that using of customer software in each store would show that customers are really matter for them and store manager would contact them when any new equipment comes in the store.  At last, it can be say using of Computers in each store would enable the manager of each store to capture the details of customer with the details of  purchased goods, the method of the payment, member of the staff , quantity purchased , price & totals. It has been analyzed using of the Computer in each store would enable the store manager to upload CRM software in Computer which helps in maintaining all the details of the Consumer in the same place which may be used by anyone throughout the business who has true permissions.

Another problem faced by Ski Zone is that levels of the stock are maintained by using the stock card. The main problem was when things became hectic, sheets of marketing off stock can be forgotten and hence the stocks were not showing the accurate value. Andrew thought that the implementation of the Computer in each of the three stores would help in maintaining of sheets of marketing off stock and this will lead to give the good impression among the supplier. The budgetary& costing control can be influenced with the Computer, because the Computer shall make the alterations from the intended performance. There are 3 basic reasons to maintain the inventory such as time, uncertainty and Economies of Scale. The lags of the time showing in Supply Chain, at each stage from supplier to customer shows that the Company maintains some amount of stock to implement in the lead time. The second feature of maintenance of the Inventory is uncertainty in which stocks are kept as buffers to convene demand uncertainties, movement & supply of goods. The third feature of the maintenance of the inventory is economies of scale and this feature can be maintained with the help of bulk buying & movement in the Inventory. The Computer assists to use the kind of inventory control required by the Company. It is very clear that the Computer helps in maintaining the sales date, purchases records, finding out optimum level of reorder for various numbers of items and helps in taking out print out of the inventory when it is desired (Patton, 1987)

Another Problem is when the user returns the hired items; the member of the staff retrieves the duplicate from the file comprising both the details of the docket & the information of the credit card. This can be viewed as the process of time consuming as sometimes dockets are misfiled & users become worried for the delay. It can be analyzed that the implementation of the Computer in each of the three stores would help in minimizing of the time as dockets are misappropriate & customers become  tensed for any delay. It can be seen that Management Information System would help each of the three stores in generation of reports like financial statements, reports on inventory status, and reports on performance that are required for the purpose of routine & non routine.

Another issue for the Andrew is he wants useful & relevant data for forecasting of sales. It can be seen that analysis of the forecasting indulges the usage of the Computer Software. The software of sales forecasting includes various categories of sales management & it also maintains record of various departments. It has been analyzed that the software of sales forecasting would have a format of dashboard in which statistics & charts are clearly visible on the single page. The Dashboard Software enables the manager of each store to look the sales information in graphical & chart representation rather than looking at lengthy reports. For e.g. the goals of the sales can be located on the similar page as the feature of the chart to track the progress. The flows of Quarterly revenue would be showed with future predicted revenue for immediate status of the progress. The forecasting of sales would help the Andrew to open up the six further stores throughout the next three years or not. Even, with the usage of forecasting software the performance & efficiency of the staff of the sales can also be maintained.

Another issue for the Andrew is calculation of wages and to electronically pay staff. With the implementation of the Computer in each of the three stores it enables the accountant of the store to calculate accurate wages by using excel feature and spreadsheets. It has been analyzed that the implementation of the Computer in each store would help the accountant in enhancing the utility for the purpose of the accounting. Spread Sheet Software would assist the accountant to create & form the vertical & horizontal column on the same type of paper. The breadth & length of each column may be adjusted as per the suitability. It can be seen that when column is drawn, this may be changed by increase or decrease of extra column and existing column may be deleted. It is very significant for professionals & businessman (Maggio, Paul & Powell, 1983). It enables the accountant to examine the data multidimensional at the single sheet and assists in appearing at relevant decisions. It is very clear that in recent time, Computers help in operations of the Company like computation of wages, ledger maintenance and invoicing etc. The other important feature of the Computer is, as it helps in Controlling of the Company like control of the budgetary, analysis of the sales and control of the credit etc. It can be seen that the Computer is the only tool that’s helps in storage and information of the data. In current time, the industry of the Computer is the greatest industry globally, & has a wider effect on the community. Nowadays, the Computers become famous due to the following features like Reliability, Versatility, Diligence and the Speed. The computation of salaries & wages comprises a no. of variables that associate to the details of every employee like gross pay, job rate, deductions for the individual and tax obligations of employees. These all types of facts are stored in the Computer & developed each month pay slips for the number of employees. At last, the implementation of the Computer in each of the three stores would help the assistant manager of the store to calculate accurate and fair wages for employees. The implementation of the Computer would enable each store manager to pay electronically to staff with the help of Electronic Fund Transfer and E payments (Hoffmann & Greenwood, 2)

Recommendations

It has been observed that Payroll concentrates on major issues of accounting of payroll inclusive of overall procedures, better practices & computations which comprise a system of payroll, the process of particular transactions, encompassing benefits of Compensation, tax, deduction & related issues. The account closes with discussions of government, laws, Sources of Internet &dictionary of terms of the payroll. The detailed procedure & policy for the functions of the payroll that can be simple adopted to suit the circumstances of the individual. The Computation & associated regulation for the deduction of the payroll in relation to purchase of the asset, contribution to the charity, support for the child, pay advancement, tax levied & other items.

The Company should review & verify the outcome & enter appeal for the sums in relation to incentives, salary & benefits for various employees (Bencivenga, & Smith, 1991)

The Company should make ROE form for retired employees and maternity leave for number of employees.

The Company must reconcile the accounts of the payroll included accounts of the expense, accounts of the remittance, register for the payroll from the service provider of payroll. The Company prepares, reconciles & distributes to employees for T4’s & T4A’s. It can be seen that the accounting of the payroll enable the customer to sort out the accounting of payroll in the more cost efficient manner. The accounting of the payroll offers the more reliable information on the whole process of the payroll. At last, it can be said that if the Store follows proper rules & regulations regarding payroll & accounting then it would help the manger of each store in minimizing of payroll & accounting problems.

Conclusion

It has been concluded that the Computer is being used significantly in the administration of the office to carry out the daily routine work. In recent times, the medium & large size Companies are dependant on the computers (Levine, 1991). The Computer helps in billing, accounting, Software for the inventory Control with the help of Management Information System and Customer Relation management. It has been viewed that in recent times, Computers are widely implemented in the accounts area. Hi tech type of financial accounting software is one which had customized for customers in various segments in products & services. It can be seen that the Computer helps in maintaining the records of payroll & personnel. The accounting of the Payroll was the business area to become broadly computerized. The computation of salaries & wages involves various variables that relate to the details of the employee like gross pay, job rate, deductions for the individual and tax liabilities for employees. The Computer helps the store to calculate the kind of stock control required by the Company. The implementation of the Computer helps the each store in maintenance of the sheets of marketing off stock. At last, the implementation of the Computer helps each store in improving the performance and efficiency of the store. It can be analyzed that after done the relevant changes in the existing system, it would help the Andrew to open up the six further stores in the next three years & any systems implemented should be capable of supporting these developments. The Computer would help in maintenance of accounting records. At last, the implementation of the Computer would help in finding out of default debtors & determining the exact limit of credit for the debtor and keep stores ledger.

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