Management Accounting for Surfzone

This assignment examines the design and implementation of a management accounting system for Surfzone, a business with three stores. The analysis focuses on key aspects such as billing, inventory control, payroll processing, and the role of data in informed decision-making. It also includes recommendations for improving the effectiveness of the proposed system.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:

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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Proposed information system....................................................................................................2
3.0 Conclusion.................................................................................................................................4
4.0 Recommendations......................................................................................................................4
References........................................................................................................................................6

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1.0 Introduction
Andrew West started a Surfzone with a goal to provide of better quality of surfing
equipments to the customers. The existing system of the store is such that it does not record
customer’s details, hiring details along with sales and inventory information. Therefore, the
employees are not able to track their customers and other purchasing details (Khodakarami and
Chan 2014). Andrew thought that implementation of information system into each of three stores
capture sales data, manage the hiring details, capture customer’s details about payroll, sales and
inventory. The design of new information system is used by Andrew for sales forecasting,
offering of information to different accountants in order to complete the statement of business
activities.
2.0 Proposed information system
Due to implementation of computer into each of the three stores, the store manager can
able to solve various issues Customer based relation software would enable the store for storing
relevant information about the existing or new customer (Symons 2014). The proposed
information system for the store is “Sales Management CRM System”, which would enable the
store manager to capture details of customers regarding purchased goods, quantity, payment
method, price and total purchased orders (Laudon and Laudon 2016). It is analyzed that
implementation of computer would enable to use of CRM software and help in maintaining
customer’s details. The proposed information system processes the information throughout
computer for managing and supporting the managerial decisions into the store. Andrew thought
that implementation of “Sales Management CRM System” into each of the three stores would

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help in maintenance of sheets for marketing off stock which leads a good reputation on the
suppliers. The information system should assist the inventory control, maintain the sales date,
purchase records and find optimum level of recorder for various items (Peltonen 2015). The
proposed information system captures the sales information, maintenance of marketing sheet and
computation of wages. It is analyzed that the proposed information system would help three
stores into sales report generation such as financial statements, status of inventory and reports on
performance.
With implementation of proposed information system into three stores, it would enable
the accountant to store and calculate the wages by use of excel as well as spreadsheets. It would
enable the accountant for examining of data a single sheet along with assisting of managerial
decisions (Agnihotri et al. 2017). The proposed system helps in operations such as wages
computation, maintenance of ledger along with invoicing. The system also helps into the hiring
process and providing salary to the employees. The system would enable the store manager to
pay electronically to the employees with help of electronic fund transfer. The assistant manager
is also helpful by use of this system by calculating of accurate as well as fair wages for the
employees. It is being analyzed that relevant changes into existing system would help Andrew to
open six stores in next three years (Johnston and Marshall 2016). The system would also help in
find out the default debtors along with determine the exact time of credit for debtor in addition to
put of stores ledger. Therefore, the main advantage of the proposed system is to maintain of
accounting records.
The proposed information system should create reports on the company’s past as well as
current financial related activities. The proposed information system should show the profit, loss
along with financial records of the customers which help the management team to track the sales

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records of the customers and their details in future (Arroyo et al. 2017). The company can
control the cost using the “Sales Management CRM System”. This proposed system would help
the company in order to track the resources to make the business operations organized. The
manager can print the financial reports that show the daily activities of company such as how the
products and services are used and how it is used to make the future decisions (Kumar 2015). It
is also observed that the proposed system automates the entire sales process and results into
increase into revenue and decrease of waiting time.
3.0 Conclusion
It is concluded that computer is used for carrying out the administrative work into three
of the stores. The proposed information system helps in billing, inventory control and accounting
details. It also utilized for hiring process and salary and wages purpose. The proposed
information system is being implemented into the accounts areas for carrying out financial
transactions. Computation of the salaries and wages are related to details of employees such as
job rate, tax liabilities and gross pay which are stored into the information system. Therefore, the
system helps each of the stores for improvement the organizational performance along with
store’s efficiency.
4.0 Recommendations
Following are the recommendations which are suggested to Andrew:
Review the outcome of proposed system: The store manager should review the outcome of
proposed information system which helps in maintaining of accounts details. They should enter
appeal for sums in relation to incentives, salary, benefits for different employees. The

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organization should reconcile accounts of payroll included of expense accounts, register for
payroll from the service provider of payroll. The proposed system should provide of accounting
payroll in cost effective way.
Follow rules and regulations: The store should follow of rules as well as regulations
regarding the payroll, accounting. It would also help to minimize the issues related to payroll as
well as accounting.
Decision taking: The information which the store manager receives from “Sales
Management CRM system” has related to decisions the manager has made. Proposed
information system has taken the data which is originated in areas of management activity which
concern the manager at provided time.
Performance of proposed system: It should also analyze that effectiveness of proposed
information system consists of accuracy along with reliability of the information. Historical
performance is input of proposed information system, as well as serves a measure of accuracy
along with reliability of the output. The output of proposed information system should be current
and the management team should make decisions about future of company based on data from
present.

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References
Agnihotri, R., Trainor, K.J., Itani, O.S. and Rodriguez, M., 2017. Examining the role of sales-
based CRM technology and social media use on post-sale service behaviors in India. Journal of
Business Research, 81, pp.144-154.
Arroyo, J.A., Kruger, S.P., Silva, L. and O'sullivan, P.J., International Business Machines
Corporation, 2017. Integrating metadata from applications used for social networking into a
customer relationship management (CRM) system. U.S. Patent 9,626,727.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management
(CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Kumar, V., 2015. Customer relationship management (CRM) in services
companies. International Research journal of Management Sociology & Humanities, 6, pp.521-
525.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Peltonen, H., 2015. CRM system implementation supporting the management of customer
relationships.
Symons, M.J., Single Funnel Pty Ltd, 2014. Customer relationship management (crm) systems.
U.S. Patent Application 14/192,692.