Management Systems and Techniques in Business Operations

The provided document is an assignment that delves into the various types of systems and techniques used by companies to manage and execute different business operations. The three main systems discussed are the purchase system, cash disbursement system, and payroll system. Each system follows a systematic flow of instructions, which can be understood through flow chart diagrams. These systems play crucial roles in business transactions, settlement of payments, and employee remuneration, respectively. However, they also come with weaknesses that can lead to associated risks if not properly handled.

Accounting Info Systems

EXECUTIVE SYSTEM
This assignment has made a discussion of strategic information system where,
different types of diagrams and flow carts are formulated to execute operations of a
company. It includes cash disbursement purchase and payroll system that helps in
analysing the procedures need to accomplish major duties for attainment of corporate
goals. As every technology and information system covers with various benefits and
risks. Therefore, to incorporate such system, it is essential for Bell Studio to take under
consideration of these weaknesses and formulate strategic plans for betterment of
business.

Table of Contents
EXECUTIVE SYSTEM.................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Purchase and cash disbursement system.......................................................................2
CONCLUSION..............................................................................................................................10
REFRENCES...............................................................................................................................11

INTRODUCTION
Strategic information system are generally development in a company to
response for business initiatives, for attainment of higher competitive advantages. It
helps in mechanising operations in order to get better efficiency and effectiveness of
same for increasing corporate profitability (Maskell, Baggaley and Grasso, 2016). For
this purpose, management of a company formulate different flow charts like purchase,
payroll system, cash disbursement and more, to analyse the procedure need to
complete an activity. The aim of this assignment is to describe the concept of different
transaction cycles, management reporting system and financial reporting. For
understanding risks inherent in computer-based system, including e-commerce, the
company chosen here is Bell Studio. It deals business in wholesaler market and supply
inventories of branded manufacturing companies in many countries (Rainer and et.al.,
2013). To overcome from risks of ERP and other system, here some strategies are also
discussed for computer fraud and security measures in e-commerce under this
assignment.
MAIN BODY
Information system strategy refers to an essential feature in today's corporate
business and information technology sector. It helps organisation in allocating, storing,
processing data and moving the same in different departments. For betterment of data
management and organised procedures of conducting an operational activity, in
systematic manner, this system provides various tools and services (DRURY, 2013). It
includes purchase system, payroll system and more that give advantages to apply the
metrics as well as analytical tools within information repositories function. It also allows
corporations in recognizing the resourceful opportunities in order to expand in more
simple ways, which enhance efficiency of operations and supply chain procedures. In
context with Bell Studio, which is a wholesaler and Adelaide based supplier and
supplies products of Australia, Japan, China, New Zealand and more in other countries.
Currently, its business analyst has asked to prepare a report and present in front of
chief operating officer (Zadek, Evans and Pruzan, 2013). It covers entire aspects related
to evaluation of processes, risk as well as internal controls for the expenditures cycle of
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respective company. This firm has a centralised accounting system which includes
networked terminals at various locations (Schaltegger and Burritt, 2017). This report
presents the business information by using different data flow charts and diagrams,
including weaknesses as well as risk associated with same.
Purchase and cash disbursement system
The main objective of expenditure cycle of Bell Studio is to minimize and reduce
the total cost required for maintaining and acquiring inventories, as well as supplying the
same (Correia, Jorge and Antunes, 2014). Therefore, it includes three basic activities
like ordering for goods and supplies; receiving the inventories and storing properly;
making payment for same. In this regard, requirement to purchase inventories include
purchase system which is an electronic form that identifies the goods, where it to be
delivered and more. While cash disbursement system is especially needed to handle
cash payment and different business transactions, more efficiently and securely. Here,
account payable is tied closely with this system in case of cash payment (Demski,
Alewine and Stone, 2013). Therefore, a proper documentation and presence of
systematic internal control, are needed for conducting this cash disbursement function
effectively. With this assistance, business analyst of Bell Studio has represented the
data and information through flow chart and diagrams in following manner:-
Data flow diagram of purchase and cash disbursements system:
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It has been interpreted from this flow chart that purchasing clerk of Bell Studio
needs to concern on inventory subsidiary to ensure that check is paid efficiently for
legitimate transaction through computer terminal (Libby, 2017). When any inventory is
purchased from manufacturers of Australia, China or other countries, they must ensure
that to take invoice, along with purchase order including a proof of receipt, before
making any payment on transaction of inventories. In this case, missing details of any
transaction could be a sign of fraudulent activity. Along with this, when any quantity of
an inventory item is deemed to be low, then purchasing clerk selects a vendor using
valid vendor file in order to prepare a digital purchase order (Schaltegger and Burritt,
2017). Furthermore, they print two hard copies where, one is sent to vendor and other
one will be filed in department of purchasing. After then after arrival of goods the
receiving clerk will then inspect and reconciles every item as per digital purchasing
order and packaging slip, to ensure the error free products and gives report to account
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payable clerks. They will pull the receiving report from initial file then print a hard copy
and last reconciles the documents and send to cash disbursement department.
As per the receipt of documents, the cash disbursement department after then
files the same until payment due date (Worrell, Di and Bush, 2013). Furthermore, on
due date clerks of this department will prepare a check for invoiced account then send
to treasurers, who will sign it and main to vendor. In final attempt, receiving clerk them
file invoice then purchase order copy, cheque copy and receiving report in department.
System flow chart of purchase system:
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The given flow chart of purchase system states that purchasing clerk of Bell
Studio analyse inventory subsidiary in order to determine that quantity of purchased
items meets the demand criteria or not (Maskell, Baggaley and Grasso, 2016). Here,
decision statement shows that if quantity is not low as per expectation then no action
will be taken. While in case of low then they follow certain steps such as checking of
valid vendor file where best vendor is selected. Furthermore, digital purchase order is
then placed and sent the receipt to Bell Studio’s purchasing department, including a
hard copy to accounts payable division also (Rainer and et.al., 2013). Finally, after
completion of all detailed information related to transaction is then send to cash
disbursement division in order to final settlement of payment.
System flow chart of cash disbursement system: Cash disbursement system is
mainly prepared to make settlement of payment against purchasing orders within
Studio.
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This mentioned flow chart of cash disbursement system depicts that after
receiving receipt from purchase department, account receivable department will carry
out the further process. Clerks of this division of Bell Studio then file documents till the
payment is due, then meanwhile cheques are being prepared which are further sent to
treasurers to get their signature on same (DRURY, 2013). These signed cheques then
mailed to vendor for final settlement of payment. After ending up the complete
procedure, necessary documents are prepared and updated which includes details of
cheque register, purchase order copy, accounts payable and receivable subsidiary
ledger, receiving report, invoice report and more (Libby, 2017).
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Weaknesses in purchase system: There are various weaknesses in purchase system
of Bell studio that are required to be focused by high authority. All of them are as
follows:
 Monetary resources are wasted by managers and clerks by taking hard copies
on different documents (Zadek, Evans and Pruzan, 2013).
 Valid vendor file can confuse clerk as it has end number of vendors from which
one is required to be selected to place a purchasing order.
 Process of placing an order is very complex which can result in inaccuracy of
information.
Risk associated with weaknesses: All the weaknesses that are identified have
risk factors which can result in huge losses for Bell Studio (Worrell, Di and Bush, 2013).
Risks associated with such weak points are as follows:
 As different types of hard copies are printed by clerk which can result in
overspending of budgets can create financial crisis in future (Correia, Jorge and
Antunes, 2014). It is vital for them to take control over this issue in order to ignore
situation of lack of funds for business operations.
 There are end number of vendors in valid vendor file and one of them is selected
by clerk in order to place a purchasing order. While performing this activity they
can ignore the best suitable vendor due to lack of proper information. It can result
in low profits or higher prices for goods.
 The process which is followed by bell Studio to place an order is very long and
complex (Demski, Alewine and Stone, 2013). While following this procedure clerk
can make mistake because it is not possible to follow all the steps properly.
Weaknesses in cash disbursement system: Cash disbursement system of
Bell Studio is having various weaknesses (Libby, 2017). All of them are as follows:
 Filing work in cash disbursement system of Bell Studio is very complex. Clerk is
required to file different documents according to the process.
 Skilled employees are required to accomplish all the tasks of this system
because they require knowledge of computer and technology to keep detailed
information of activities.
Risk associated with weaknesses:
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 Workload of clerk in cash disbursement system is very high because the filing
work is repeated again and again (Schaltegger and Burritt, 2017) . It can result in
decreased work quality due to end number of job responsibilities. It is very
important for top authority to reduce workload of clerks so that issues that are
taking place in the cash disbursement system get resolved.
The work which is performed in cash disbursement system depends upon
computers and clerks that are performing tasks for it should have proper knowledge of
technology (Rainer and et. al., 2013). Timely up gradation of information and documents
is done by clerk in order to keep detailed information of each transaction which is
performed by organisation. In order to assure qualitative work, it is vital for higher
authority to hire such employee who are having knowledge of latest trends in market so
that all tasks can be accomplished successfully (Maskell, Baggaley and Grasso, 2016).
If such clerks are hired by business entity who are not aware of computer technologies,
then it can result in inappropriate work.
Payroll system
This system refers to a complete plan of employees’ payment and filing up of
employment taxes (Worrell, Di and Bush, 2013). For this purpose, management of a
company keep track on working hours of each employee, calculate wages, pay
employment taxes to regulatory bodies, print and deliver check etc. In other words,
payroll system defines as total amount of money which a firm pay to its staff workers
and labours (DRURY, 2013). This system includes complete records a workers’ salaries
and wages, including their bonuses, incentives as per performance and withheld taxes.
In context with Bell Studio, its management follows the given procedure to develop and
manage payroll system:
Data flow diagram of payroll system:
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As per this mentioned flow diagram, it has depicted that about payroll system of
Bell Studio that its management used to monitor working hours of each worker in a
proper time card. After completion of tracking further procedure is carried out by human
resource department where they use computer terminal software by connecting it with
central payroll system. In this software, management submit checked time cards of
each worker then forward to payroll department (Zadek, Evans and Pruzan, 2013). It
contains two main hard copies of each printed cheques where upper level of
management then cross checks the same by using digital record technique. Further,
then the payroll register is given to department of account payable from payroll division,
where they transfer the register as well as disbursement voucher to general ledger
division who is make payments of salary of each employee.
Weaknesses and risks associated with payroll system: As payroll is considered as
most critical operation for a company where any error may impact on performance of
employees negatively (Correia, Jorge and Antunes, 2014). Therefore, it is essential for
management of Bell Studio to pay attention to payment procedure related to wages of
staff accurately, in order to avoid poor performance which may happen due to low
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morale and create legal difficulties also. Here, using a good computerised payroll
system may help in carrying out pay run of business with greater speed, higher
efficiency and confidence. The main drawback of payroll system is that it is highly
dependent upon time cards where any mistake may create issues in giving out proper
wages to workers. It also consumes much time for preparing payment report of each
employee as per working hours (Demski, Alewine and Stone, 2013). In this regard,
passing file from one department to another for just giving a payment may arise various
types of risks like data security, loss or theft by supervisor. Along with this, information
access, make control, cyber security and fraudulent activities etc. are some another
risks associated with payroll system because it makes payment by using digital
software, where such type of issues may happen generally.
CONCLUSION
From this assignment it has been concluded that in order to manage and execute
different operations of business, management of a company use various types of
systems and techniques. It includes purchase system, cash disbursement system and
payroll system where each activity upholds a systematic flow of instruction, which can
be understood by using flow chart diagrams. Here, flow charts will show in what manner
activities are being proceed out to conclude a result. In purchase system, order and
purchase of inventory is carried out for business transaction. While cash disbursement
system concerns on settlement of all cash payments to associated vendors and
suppliers for purchasing and selling inventories. Similarly, payroll system is also
considered as one of the important function carried out by accounts and HR department
for updating and providing salaries, proper wages and incentives to workers as per their
working hours and performance in achievement of business objectives. But all such
system includes some weaknesses also which arise associated various kinds of risks
for operating functions in desired manner. In this regard, it is vital for organisation to
identify such weaknesses and formulate plans to handle the same appropriately.
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REFRENCES
Books and journals
Alewine, H. C. and Stone, D. N., 2013. How does environmental accounting information
influence attention and investment?. International Journal of Accounting &
Information Management. 21(1). pp.22-52.
Correia, G. H. D. A., Jorge, D. R. and Antunes, D. M., 2014. The added value of
accounting for users’ flexibility and information on the potential of a station-
based one-way car-sharing system: An application in Lisbon, Portugal. Journal
of Intelligent Transportation Systems. 18(3). pp.299-308.
Demski, J., 2013. Managerial uses of accounting information. Springer Science &
Business Media.
DRURY, C. M., 2013. Management and cost accounting. Springer.
Libby, R., 2017. Accounting and human information processing. In The Routledge
Companion to Behavioural Accounting Research (pp. 42-54). Routledge.
Maskell, B. H., Baggaley, B. and Grasso, L., 2016. Practical lean accounting: a proven
system for measuring and managing the lean enterprise. Productivity Press.
Rainer, R. K., and et. al., 2013. Introduction to information systems. John Wiley & Sons.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.
Worrell, J. L., Di Gangi, P. M. and Bush, A. A., 2013. Exploring the use of the Delphi
method in accounting information systems research. International Journal of
Accounting Information Systems. 14(3). pp.193-208.
Zadek, S., Evans, R. and Pruzan, P., 2013. Building corporate accountability: Emerging
practice in social and ethical accounting and auditing. Routledge.
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