Accounting Information Systems Project for Here4Beer Brewing Company

This project analyzes the accounting information system (AIS) for Here4Beer Brewing Company, focusing on the purchase, inventory, and production subsystems. The project includes a project plan outlining group member responsibilities and an executive summary. System documentation and analysis cover the organization's background, key features of AIS, and issues mitigated by the proposed system. The document details how data supports managerial decisions, software features, and system flowcharts. Internal control analysis includes a control matrix and managerial recommendations to enhance operational and information system effectiveness. The project aims to improve the functionality of the organization through a well-designed AIS, addressing challenges in purchase, inventory, and production processes. The document also explores how the AIS can provide better support towards the customers and manage the accounting activities effectively within the business.

Running head: ACCOUNTING INFORMATION SYSTEMS
Libby, R., 2017Khan, M.F., Ahsan, K. and Hussain, M.A., 2016Formentini
ACCOUNTING INFORMATION SYSTEMS
- Here4Beer Brewing Company
Name of the Student
Name of the University
<Student ID 1>
<Student ID 1>
<Student ID 1>
Author Note

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Table of Contents
Part 1: Project Plan..........................................................................................................................3
1.1 Group member responsibilities..............................................................................................3
1.2 Executive Summary...............................................................................................................3
Part 2: System documentation and analysis.....................................................................................4
2.1 About the organization..........................................................................................................4
2.2 Key features of AIS...............................................................................................................5
2.3 Issues mitigated with the use of the proposed AIS................................................................7
2.4 Providing data for managerial decisions................................................................................8
2.5 key features of software.......................................................................................................10
2.6 Similarity/ Contrast between the parts of AIS.....................................................................11
2.7 System Flowcharts and Narrative........................................................................................11
3. Internal Control Analysis and documentation and Recommendations......................................21
3.1 Control Matrix.....................................................................................................................21
3.2 Control matrix Explanation.................................................................................................24
Control matrix for purchase subsystem.................................................................................25
Control matrix for inventory subsystem................................................................................28
Control matrix for production subsystem..............................................................................30
3.3 Control analysis...................................................................................................................31
3.4 Managerial recommendations..............................................................................................31

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Reference.......................................................................................................................................32

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Part 1: Project Plan
1.1 Group member responsibilities
The main aim of the project is to identify the basic needs for integrating an accounting
information system within the organization so that it can provide better support towards the
functionality of the system. The project is going to be carried out with the help of three team
members. The organization that has been selected for carrying out the project is Here4Beer
Brewing Company. The sub system that has been selected for the organization is Purchase,
Inventory and Production subsystem. The focus will entirely on identifying the performance of
the Purchase system within the organization. Each team member focuses on determining the
activities that are going to be taken place within the system. Accounting information system is
considered as one of the important system that helps in improving the functionality of the
organization.
1.2 Executive Summary
The aim of the assignment is to propose an accounting system that will be able to provide
a better support towards the organization. The project will focus on determining the business
environment and will provide a suitable accounting information system that will be able to
enhance the selected subsystem. The Purchase sub system of Here4Beer Brewing Company will
be enhanced with the use of accounting information system. The paper will highlight the
activities that are performed by the organization and will ensure that each component has been
addressed successfully so that it becomes easy to determine the controls that are going to be
offered with the proposed system. The purpose of the paper is to recommend an accounting

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information system that will be able to enhance the performance of the subsystems associated
with the organization.
Part 2: System documentation and analysis
System documentation analysis has been developed for the purpose of understanding the
functionality that will be offered with the use of the selected sub system. The selected subsystem
for the Here4Beer Brewing Company organization is sale system. Purchase subsystem is
considered as one of the essential subsystem that helps in carrying out the systems functionality.
Accounting information system has the potential to improve the financial and accounting
activities associated with the organization (Chhabra, Bhushan and Chandna 2016). Thus it can be
stated that with the help of AIS it will become easy to maintain the flow of activities within the
organization. Beside this the two other subsystems that are being taken in consideration are
Inventory and Production subsystem. With the help of this subsystems it will become easy to
manage the performance of the organization.
2.1 About the organization
Here4Beer Brewing Company is one of the most renowned organization that is entirely
focused on creating microbreweries in the Northern territory. The organization entirely focuses
on manufacturing craft beers and ensures that the products prepared have dispatched successfully
towards the intended organization. The organization prepares the products in small 20 barrel
batches under supervisor administration and ensures that all the products have been refined
effectively towards the receivers (Collier 2015). The organization has also developed several
ways to measure the taste and also ensures that each details and feedbacks related to the products
have been shared with the customer. This organization offers developing a strong relationship
with the local beer distributors so that the organization can gain competitive advantages in the

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market. Throughout the production year the organization ensures that the product quality has
been maintained effectively so that it can offer a better result towards the customers. The
organization is known for the use of fitness natural ingredients in the manufacturing of beer.
After analyzing thee organizational performance it has been observed that the operations of
Here4 Beer Brewing company needs to be enhanced so that it can meet the need of the market by
enhancing the production. Here4Beer Brewing is owned by three partners Thuc Luc, Eliza
Maddox, Viresh Varughese, and Tala Green. The management of the organization works
differently and focuses on managing the different sectors associated with the production of beer.
Thuc Luc focuses on managing the bottling and shipping operations. On the other hand Tala
Green aimed at managing the marketing and sales department for the organization. Lastly
Brewmasters Eliza Maddox and Viresh Varughese will focus on managing the brewing processes
that takes place within the organization.
2.2 Key features of AIS
Accounting information structure is referred to the structure that is used by a business
organization for the purpose of collecting, processing, managing, retrieving, storing and
generation of financial reports. It becomes essential to develop a proper accounting information
system that will be able to provide proper support towards the customer and will ensure a better
management of the performance that are carried out within the system. With the help of this
developed business structures it becomes easy to manage the key activities associated with the
organization and ensures that each data has been shared effectively. Thus in order to enhance the
functioning of Purchase subsystem within the selected organization it is important to propose an
AIS that will be able to meet the needs of the customers (Diatmika, Irianto, Baridwan 2016).
Accounting information system that is proposed for the organization contains three key

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subsystems that will provide support towards the activities performed within the organization.
This includes transaction processing system, management reporting system and financial
reporting system. It is important for every organization to ensure that an effective way of
managing different subsystems have been offered towards the organization that will help in
executing the process of the systems. It is expected that the implementation of an effective
accounting information system has the potential to manage the activities and will be able to make
decisions in such a way that it can enhance the performance of the organization.
Transaction processing subsystem is considered as the central subsystem for the
accounting system that focuses on converting the economic events into its corresponding
financial transactions and ensures that all data has been recorded successfully within the system
(Formentini et al. 2015). TPS mainly focuses on dealing with the business events that are going
to be carried out frequently. It is expected that a thousand of transactions can occur within the
organization in a day and thus it becomes essential to enhance the efficiency by increasing the
volume of the transaction. With the implementation of transaction processing subsystem in the
organization it will become easy to manage the activities. The cycle will include the revenue,
conversion and expenditure.
Financial ledger system is one of the effective subsystem as it helps in carrying out the
activities associated with the organization. Due to the operational independency offered with the
system it becomes easy to manage the efficiency within the system (Jin, Li and Hu 2017). It has
been observed that the system will be able to manage the financial statement within the
organization.
Management reporting system has the ability to enhance the performance of the system
as it ensures better way of managing the information within the system. With the help of this

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system management it becomes easy to enhance the performance of the proposed information
system. FreshBooks is one of the best accounting software as this helps in managing the
accounting activities effectively within the business. FreshBooks has the potential to support
multiple tax rates and currencies. With the help of an accounting information system it has been
expected that the system will be able to manage the performance and will be generated purchase,
inventory and production subsystem. FreshBooks is considered as one of the effective
accounting software that will be able to provide better support towards the customers. The major
challenge that is faced with the current system of the organization is that it will be able to
provide better support towards the purchase, inventory and production subsystem. The
performance of the organization gets enhanced with the help of proper AIS. Moreover it has been
observed that the FreshBooks will be able to manage the records on time and will enhance the
performance of the organization. Cost saving feature is considered as one of the highlighting
features that is offered towards the organization.
2.3 Issues mitigated with the use of the proposed AIS
The main issue that is faced with the current system of the organization is with managing
the production that is offered with the system. The organization faces numerous risks that should
be addressed effectively in every stage of the operations of the company (Khan, Ahsan and
Hussain 2016). The organization consists of four sub-systems that include Purchase, purchasing,
Inventory and receiving.
Purchase is considered as one of the most crucial phase wiring the organization and thus
it becomes essential to determine the risks. This is the relationship that is developed particularly
in order to obtain an understanding that is accurate of the requirements of the customers and to
address those requirements.

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Next comes the inventory subsystem. There are various types of organizations and not all
the organizations experience the same level of risk of business for any variable that is given. The
issues that are mitigated by the purchasing subsystems are need analysis that are inadequate,
poor supply chain management, contract management that is inefficient and fraud and
corruption.
An Inventory is a list of the employees of the company but it also refers to the total
amount of money that an organization pays to its employees. The issues that are mitigated by the
Inventory subsystem are incorrect processing of the Inventory that is made with mistake or by
intention, miscalculations, lack of proper security and ignoring the patterns of Inventory (Laudon
and Laudon 2016). The issues that are caused due to faulty Inventory can be mitigated by
outsourcing Inventory, assessment of fraud risk and improving the internal policies and controls.
Next comes the production subsystem that refers to the producing the products by the
beer organization. There are certain issues that are needed to be mitigated within the production
subsystem (Libby 2017). The issues that are mitigated by the receiving orders subsystem are
fraud, cost, quality and risks of delivery. The main components that are associated with the
production subsystems are providing proper inputs that includes the raw materials, labor needed,
components and machines. The conversion process also comes under the production system as it
includes the operations.
2.4 Providing data for managerial decisions
All the subsystem of the company falls under the category of the transaction processing
system. The subsystems of the organization includes Purchase, Inventory, and Production. The
subsystems will conduct meetings and then they will take their decisions and they will pass their
decisions to their respective managers and the final decision will be taken by the managers. The

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subsystems can also take the help of management reporting systems. The management reporting
systems report on the internal operations of the company (Mancini 2016). The management
reporting systems provide reports that are periodic or scheduled, exception reports and Ad-ho
reports. The reports can then be presented to the respective managers of the subsystem. The
managers then take the final decision from the decisions that are written in the report.
Purchase Subsystem
Purchasing subsystem is considered as one of the key components that is associated with
the inventory management. Purchasing subsystem tends to play a crucial role within the
organization and thus it becomes essential to determine the cash flow within the system. The
main reason behind having a purchase system is to ensure that the purchasing process becomes
more efficient and provides support towards the companies so that they can reduce the overall
cost that is indulged in supply process.
Inventory Subsystem
Inventory subsystem has been considered as one of the essential subsystems as it helps in
tracking the inventory of the system and ensures that all the data have been recorded efficiently
within the system. FreshBooks is considered to be one of the crucial components of the inventory
subsystem as it has the potential to manage the performance of the systems.
Production subsystem
The production systems are the systems that includes all the features that are required in
order to gather the inputs, procedures or reprocesses the inputs and then deliver the goods, in this
case beer.

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2.5 key features of software
The software that can be chosen for the Accounting information system of the organization is
FreshBooks. One of the decisions that are biggest in every business is to make some good
investments in the accounting software solutions. FreshBooks accounting software is a cloud
accounting software that is designed particularly for the businesses that are small. The features of
the FreshBooks accounting software solutions include:
 Tracking of expenses: This accounting software solution can track the expenses. This saves
a lot of time for the business using FreshBooks.
 Accepting Credit cards: The FreshBooks accepts payments through credit cards by an online
portal that is customized. The client can sign in the customized through email and the send
money through credit cards.
 Financial reporting: The FreshBooks is useful in financial reporting. The organization can
quickly get the performance of the business in between board meetings. Whether the business
is running on profit or loss, FreshBooks can bring in all the data that are relevant thus
providing clarity of the financial situations.
 Provides clarity for all the team members: The best thing about the FreshBooks accounting
software solutions is that it opens up the communication between the departments of
accounting, executing team and the staffs of the organizations (Quinn and Oliveira 2018).
Everyone can log in the software and see what is going on and can also see the cash flow.
The benefits of the FreshBooks software solutions include:

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 Easy invoicing
 Time tracking that is effective
 The interface is simple and intuitive
 The payment processing options are integrated
 Information of the Inventory are accurate
 The price of the software is cheap.
2.6 Similarity/ Contrast between the parts of AIS
The subsystem of the organization is connected and there is similarity in the subsystem of
the organization. The systems should be connected with each other should be similar. If the
subsystems aren’t similar then the order will not be dispatched from the organization. The
subsystem of the organization falls under the transaction processing system. So they are
connected with each other. The contrast among them is that their roles are different in the
organization (Zeng et al. 2015). The Purchase subsystem deals with Purchase and marketing of
the company. The purchasing subsystem deals with the customers that are purchasing beers from
the organization. The Inventory subsystem deals with the amount that the organization pays to
every employee in the company. The receiving subsystem deals with the receiving of orders
from the customers.
2.7 System Flowcharts and Narrative
Purchasing subsystem
The purchase subsystem is considered as one of the crucial subsystem as it focuses
entirely on buying the services and achieving the products. With the help of a purchasing
subsystem it becomes easy to control the cash flow within the organization and this ensures that