B Bakery Case Study - Accounting Information System
Added on 2020-03-01
24 Pages4926 Words168 Views
Running head: ACCOUNTING INFORMATION SYSTEMSAccounting Information SystemsName of the Student:Name of the University:Author Note:
2ACCOUNTING INFORMATION SYSTEMSExecutive Summary The current segment explains the significance of adopting automated accounting systems. In thisstudy, a research on Accounting Information Systems has been conducted on the case studyorganization named as B Bakery. The family-owned trade presently follows manual system ofaccounting. There are different benefits of automated accounting system that need to behighlighted and help business firm to attain success in the near future. There are different factorsthat comprise credentials recording, easy financial declaration analysis as well as onlinetransactions and computerized accounting software. In addition to that, there are various types ofsoftware that had been compared and best had been selected that suit B Bakery. MYOBaccounting software should be used by B Bakery and proper justification is mentioned in therecommendation section of the study.
3ACCOUNTING INFORMATION SYSTEMSIntroduction This study deals with discussing the concept of accounting information systems thatactually help in tracking all the financial activities of a given firm in a proper way. In the moderncompetitive environment, application of accounting information systems in organization hasbecome a necessity as the system has lot of advantages of its own (Worrell, Wasko and Johnston2013). Nowadays, all types of modern organization are showing interest in adopting various kindof modern technology so that they can sustain in the business as well as able to compete with thecompetitors. The present study identifies the importance of efficient accounting system for thefirm B Bakery. The business is currently following a manual form of accounting systems and hasnot yet adopted and automated accounting software (Diatmika, Irianto and Baridwan 2016). Thisstudy suggests B Bakery in using automated accounting software for the keeping track of all thefinancial activities. Different types of accounting system as well as accounting software had beenmentioned to B Bakery that even explains about the benefit of each process. Therefore, B Bakeryshould adopt automated accounting software as it will solve the current issues faced by the firmdue to manual accounting system (Williams 2014).
4ACCOUNTING INFORMATION SYSTEMSQuestion 1Part A A Baker is an individual who really produces different forms of breads and cakes withthe help of heated source. In addition, Bakery is a place or workplace where the baker preparesand sells their respective breads or cakes (Weil, Schipper and Francis 2013). Business Process of the organization B Bakery mainly carries out various range of business that is explained below withproper justification: B Bakery is a medium-size enterprise that deals with different forms of bakery productssuch as manufacturing of bread as well as other items. The Unique Selling Propositionfor the given product items offered by B Bakery is that it give importance to healthrelated factors at the time of manufacturing its products (Sutton and Arnold 2013). Carrying out the business manually- B Bakery still carries out their business activitiesthrough manual accounting system and this is one of the disadvantageous factor that needto be corrected on urgent basis (Deegan 2013). B Bakery records all their businesstransactions as well as accounting activities through adoption of manual process ratherthan technical accounting process such as use of any of the accounting software. Usingmanual accounting system is one of the limitations of B Bakery as the firm failed to adoptany proper ERP process in their business activities (Sousa and Oz 2014).
5ACCOUNTING INFORMATION SYSTEMSB Bakery involves in allocation procedure of its diverse types of bakery products. Here, itis noted that B Bakery sells their breads through use of various channels of distributionsuch as supermarket chains (Dillard, Yuthas and Baudot 2016). Less effective in human resource management- B Bakery employs 70 employees whowork for the firm. B Bakery still uses manual process for keeping track of monthlysalaries. In addition, lack of proper accounting department had negatively affected theemployees of the firm by large amount (Simkin, Norman and Rose 2014). Figure: Manual Accounting versus Computerized accounting systems(Source: Simkin, Norman and Rose 2013).
6ACCOUNTING INFORMATION SYSTEMSQuestion 2Part B It is noted that B Bakery is highly successful in making a good amount of turnover intheir business activities (Collier 2015). For this reason, the business process of B Bakery willsuffer largely because the firm had adopted manual accounting system for tracking the financialtransactions. It is suggested to B Bakery to adopt accounting software for smooth functioning ofbusiness enterprise (Simkin, Norman and Rose 2013). Payroll structure with automated accounting structure- B Bakery currently followsmanual payroll structure to give away salaries to their employees. B Bakery is a growingfirm and it is essential that the firm should have a proper automated payroll structure inorder to credit the salaries of their respective employees (Belfo and Trigo 2013). Proper analysis of costs for various inflows as well as outflow activities- B Bakery isa growing organization and it is essential for the firm to categorize its various types ofcosts in their respective production as well as manufacturing process. B Bakery shouldminimize their operating costs as it will help the firm to sustain in the upcoming financialyear. The problem can be sorted when B Bakery adopts automated accounting software(Patel 2015). B Bakery need to adopt an effective process so that they can properly determine the costof production or cost of goods sold. In addition, the process mainly involvesdetermination of costs starting from raw materials to finished goods. This type ofactivities is not possible if B Bakery continues to use manual accounting process(Apostolou et al. 2014).
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