Accounting Information System Project: Kofiweb Internet Cafe Analysis

This project analyzes the Accounting Information System (AIS) of Kofiweb, a start-up internet cafe, examining its various subsystems including sales, purchasing, inventory, and time management. The report includes a functional organizational chart, data flow diagrams, and a control matrix to illustrate the system's operations and internal controls. It addresses e-business specific issues such as customer retention and provides data for managerial decisions. Risks associated with the business, such as human labor and marketing risks, are identified, and control measures are proposed. The analysis culminates in conclusions regarding the system's strengths and weaknesses and recommendations for enhancing the business's performance. The project highlights the importance of effective AIS in supporting managerial decision-making and ensuring customer satisfaction in a competitive market.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student
Name of the University
Author Note

1ACCOUNTING INFORMATION SYSTEM
Executive Summary
The aim of the paper is to discuss the various aspects of the given study, the ‘Kofiweb’
Internet Cafeteria and analyze the key features of the business with respect to
Accounting Information System of a company. The paper gives a brief overview of the
organization along with the objective of the business. The services provided by the
business is discussed in details for customer awareness. The risks and its control
measures are analyzed in the best interest of the organization. To demonstrate the
functioning of the sub-systems certain diagrams like Functional Organizational Chart,
Data Flow Diagram, Partial Control Matrix, and Documents Flow Chart are drawn using
the MS-Visio software application. The paper also finally draws a conclusion and a
recommendation to suggest ways for enhancing the business.

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Table of Contents
Part 2: System Documentation and Analysis....................................................................3
2.1 Organization.............................................................................................................3
2.2 Purpose and Key Features......................................................................................4
2.3 Issues Specific to e-Business System.....................................................................5
2.4 Data for Managerial Decisions.................................................................................6
2.5 Narrative and Flowcharts.........................................................................................8
Part 3: Internal Controls Analysis and Documentation and Recommendations.............11
3.1 Partial Control Matrix.............................................................................................11
3.2 Control Matrix Explanation.....................................................................................11
3.3 Control Analysis.....................................................................................................14
Part 4: Conclusion and Recommendation.......................................................................14
4.1 Conclusion.............................................................................................................14
4.2 Recommendation...................................................................................................15
Bibliography.....................................................................................................................16

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Part 2: System Documentation and Analysis
2.1 Organization
The given case study is about ‘Kofiweb’, a start-up Internet café on the Stuart
Highway owned by Mr. Kylie Gates along with three investors namely, Lucy Wozniak,
Doris Chan, and Joan Overleaf that plans to offer its customers educational Internet
classes accompanied by quality coffees and delicious bakery items. The company is a
B2C type organization that aims to provide the best services to retain customer
satisfaction and thus build up a remarkable reputation in the market. Kofiweb intends to
provide its customers with high-speed Internet services and lessons on the scope of
Internet in our daily lives. Hence, services like access to external e-mail accounts,
WWW and various Internet applications are available here at a reasonable price.
Kofiweb also plans to provide its customers with individual Kofiweb email accounts that
are to be maintained by the company’s server system.
The organization is also providing gaming peripherals and ‘house accounts’ for
the gamers to enjoy pro-gaming. Basic lessons on internet will also be available to
nonprofessionals along with services like printing or scanning. People can enjoy all
these computing and web services in a unique ambiance amidst wonderful coffees and
lip smacking confectionaries. The major attraction of this café lies in the duality of its
services. There exist cafeterias that serve their customers with various types of coffees
along with mouth-watering bakery items and cyber cafes that provide excellent Internet
and computing services. However, this particular café has given business goals to its
competitors by combining these two separate forums and starting an innovative

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business. Chianti & Coffee, Murphy’s Law Cafe, McDonalds, and Muffin Break are
some nearby cafeterias that will be getting high competition from this café. The
company may face operational challenges like slow growth in business, non-functioning
of the services or similar competitors in the market.
Figure 1: Functional Organizational Chart for ‘Kofiweb’ Internet Cafeteria
(Source: Created by Author using Visio)
2.2 Purpose and Key Features
Kofiweb is an organization that aims in providing computing services, web
services, and cafeteria service along with confectionary. The accounting information
system (AIS) that is proposed for this business therefore consist of sub-systems, which
are sales, purchasing, inventory and production/subscription and time management. In
this section, the key features of this sub systems will be discussed.

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An accounting information system is a system that aims in collection, storing and
processing of the financial and the accounting data of an organisation (Taiwo 2016).
The main sub system of the AIS that is considered is sales. This sub system will track
all the sales processes of Kofiweb, which will help the managers in effective decision
making. The other subsystem of purchasing aims in tracking the current purchases of
the organisation to generate reports which helps in efficient decision making. The sales
and purchasing sub system are interrelated as the purchases of the organisation is
driven by its sales. The sales is related to the confectionary and the cafeteria services of
Kofiweb. The other subsystem that is linked with the AIS of Kofiweb is inventory. The
inventory management system as offered by the AIS of the Kofiweb monitors and
maintains the stocked products of the organisation. The stocked products include the
assets of the company, the raw materials, supplies and the finished products of the
organization. Thus, this subsystem is an important consideration for the business of
Kofiweb. Kofiweb is a cybercafé that aims in providing an excellent internet and
computing services along with the facility of gaming, while serving coffee and bakery
items to the customers. Thus, the AIS system of the organisation should possess the
subsystem of time management. Time management is a vital aspect of the business of
Kofiweb, which is essential to ascertain that each customers are being given adequate
services.
2.3 Issues Specific to e-Business System
There are certain challenges and issues that are faced by the ecommerce
business as opposed by the traditional e-business systems. One significant issue that e-
business faces include retaining the customers. This encompasses maintaining the

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customers’ loyalty. Apart from that delivering an omni channel customer experience is a
challenge in e-business.
The AIS system that is proposed for Kofiweb aims in addressing the specific
issues linked with e-business. The sales and the inventory management system helps
in tracking down the demands of the customers thus helping in its effective
management (Hla and Teru 2015). The regular reports as generated by the accounting
information system will help in effective decision making thus helping in addressing the
most specific issues related to e-business. Effective decision making play an integral
role in delivering efficient customer services (Patel 2015). The process of decision
making is enhanced by the regular reports generated by the AIS of Kofiweb. The AIS
of kofiweb aims in effective processing of the accounting data of the organization, which
in turn helps in understanding the main business processes. Proper reports and
effective decision making helps in maintaining the customers’ loyalty.
2.4 Data for Managerial Decisions
Each of the subsystem of the proposed AIS model is effective in providing data
for managerial decisions within the organization. The regular reports generated by the
accounting information system helps in effective decision making (Atieh et al. 2016).
The data about the sales helps in understanding the demands and the preferences of
the customers (Rajasa and Faturachman 2015). This helps in taking decisions related to
the product or the services that needs improvement. The other subsystem of AIS, that
is inventory management system further helps in identification of the products that has
highest demand. Accordingly, this report helps in effective understanding of the key
business requirements of the organization. In this case, the key products and the

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services of the organization that has a higher demand can be identified. Accordingly,
the reports generated by the inventory management system will help in taking decisions
regarding the process in which customers’ satisfaction can be achieved (Collier 2015).
The other subsystem that is the time management system helps the managers of the
organisation to prioritize the processes running within the organisation (Chang 2016).
The subsystem of time management enables effective management of all the processes
of Kofiweb thus prioritizing the main processes. The reports generated by the time
management system provides an idea of customers’ need thus helping in taking
decisions regarding the process in which the satisfaction of the customers can be
increased. Thus, it can be said that the various subsystems of the AIS of Kofiweb
enables effective managerial decision making.

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2.5 Narrative and Flowcharts
Figure 2: Zero Level Diagram for ‘Kofiweb Internet Cafe’
(Source: Created by Author using Visio)
The ‘Kofiweb’ Internet Cafeteria is a start-up that has the following service
management systems functioning within it.
The ‘Computer Peripherals Management System’ supervises all the hardware
devices of the computers and maintains it regularly. This system repairs computers that
are having functioning issues and fixes them as soon as possible. The ‘Server
Management System’ takes care of the server and issues within it. The ‘Internet
Services Management System’ ensures high-speed internet connection for smooth

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surfing and monitors charges against the usage. The ‘Educational Services
Management System’ manages the teachers and their class timings in the café. The
‘Accounts Management System’ performs tasks like accounting, purchasing and
maintaining personal accounts. The ‘Confectionary Services Management System’
provides the customers with the bakery items and coffee at intervals and updates the
inventory when stock reduces. The ‘Inventory Management System’ checks the reduced
stocks and refills it from time to time. The ‘Customer Service Management System’
visits the customers, attend their problems regarding internet issues, and helps them
with their ordered items.

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Figure 3: Document System Flowchart for ‘Kofiweb’ Café
(Source: Created by Author using Visio)

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Part 3: Internal Controls Analysis and Documentation and
Recommendations
3.1 Partial Control Matrix
Figure 4 : Control Matrix
(Source: Created by Author using Visio)
3.2 Control Matrix Explanation
Control
name
Risk
Associated
Likelihoo
d of Risk
Impact
of
Risks
Explanation
Control the Human Labor High High The employees working

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employees
working for
KofiWeb
Risks in the system should be
controlled as because
the work in the cafeteria
is to be done and the
employees are needed
to provide service for the
customers.
Control the
marketing
situations
Marketing risks Medium High There might be
marketing risks in the
project that would
reduce the owner of the
project to compete with
other established
companies in that
market (Susanto et al.
2015).
Control the
lowering of
internet usage
by the
customers
Financial Risk High High As internet is becoming
easily available day by
day with falling of cost,
the KofiWeb might face
difficulty in gaining
customer as they might
not will to access

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internet from the café
(Djanegara et al. 2018).
Have control
on the
promotion
strategy
Marketing Risks Medium Low There might be risks in
promoting the business
of KofiWeb. They need
to promote the
consumer awareness as
well as has to increase
the demand that are in
the project.
Control on
cost of the
project
Financial Risks Medium Medium KofiWeb might face
financial risks in
completing the project
within the project
schedule and within the
project cost. With time
increasing in the project
or with human resource
management system,
there might be risk that
the budget for the goes
high.

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3.3 Control Analysis
Every sub-system of the ‘Kofiweb’ Internet Cafeteria are prone to the above-
discussed risks and measures need to be taken to control the situation effectively. The
Sales team needs to calculate the cost of campaigning and before investing in the
promotions (Mulyani, and Arum 2016). The Purchasing team should also consider the
budget before buying the peripherals. Since this is a start-up café with a unique
concept, the company should focus on the marketing risks and consider the budget
assigned to it. Since, this is a service-based organization, the company should majorly
focus on the human labor risks and recruit polite sales person to build a goodwill in the
market. Considering all the risks the company can flourish if they promote and maintain
their standard honestly.
Part 4: Conclusion and Recommendation
4.1 Conclusion
In conclusion, the paper summarizes the goals, services, risks and control
measures of starting up a new business of cafeteria and Internet-based services. In the
given case study of ‘Kofiweb’ café, the business background and services are
discussed in detail. A functional organization chart is drawn in the initial part of the
report to understand better the systems involved in the company and what are the
services a customer can expect from this start-up venture. The purpose and the key
features of the business are highlighted that can promote the company to a larger
organization. It is also discussed how the Internet services management system of the
company can handle issues through online. Data are analyzed in the next section of the
paper to help in taking managerial decisions and improve the marketing strategies

15ACCOUNTING INFORMATION SYSTEM
considering the budget of the company. With the help of the MS-Visio software,
Document System Flowcharts and Data Flow Diagrams are drawn to understand the
functioning of the system in a better way. Risk control measures are given along with a
partial control matrix diagram, such that the company can analyze the risks and take
precautions against it. Finally, in the following section, a recommendation is made to
suggest improvement ways for the start-up café.
4.2 Recommendation
Internet Cafes are a rage in the rural areas because not many people can afford
personal computers and Internet access in it. Hence, people move to cyber cafes to
accomplish their tasks that requires an Internet connection. Setting up such a café
along with a cafeteria beside it to draw customer’s interest was a unique idea itself. The
company can enhance their business by offering some lucrative offers and thus
promote their business along with it. They can offer discounts to the customers who will
be interested to open the ‘Kofiweb’ email accounts. Since the company is also providing
special facilities to the gamers, they can offer licensed copies of games multiple times to
different clients. In the cafeteria section too, special offers and discounts can be given
for increase in customer growth.

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