Accounting System Analysis for Tilly's Pet Supplies

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ACCOUNTING SYSTEMS AND PROCESSES
ASSESSMENT
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Contents
INTRODUCTION............................................................................................................................. 3
BODY.............................................................................................................................................. 4
A. ADVANTAGES AND DISADVANTAGES OF BUYING AND MAKING NEW SYSTEM IN THE
TILLY’S PET SUPPLIES..................................................................................................................4
B. THE SECURITY RISK ASSOCIATED WITH BOTH MAKING OR BUYING NEW SYSTEM AND
WAYS TO MITIGATING THOSE RISK............................................................................................7
C. RECOMMENDATION TO TILLY'S PET SUPPLIES AS TO WHETHER MAKING OR BUYING NEW
SYSTEM IS APPROPRIATE FOR THEIR BUSINESS.........................................................................9
D. ONCE THE SYSTEM IS ACQUIRED THEN THE BUSINESS CAN GET BACK TO NORMAL AND DO
WHAT IT DOES BEST — MAKE GREAT PET PRODUCTS — WITHOUT HAVING TO SPEND MONEY
ON IT’?..................................................................................................................................... 10
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12
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INTRODUCTION
Tilly’s Pet Supplies is a well-reputed company deal with good quality pet food. It uses the
system to manage their operations is now old and outdated, the company owner wants to
update a new system which will help in improving the overall performances of the company.
This case study will analyze the advantages and disadvantages of making and buying a new
system and the risk associated with them. It also covers the ways of mitigates to access the risk
of buying or making a new system. The later recommendation will be provided for making or
buying a new system.
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BODY
A. ADVANTAGES AND DISADVANTAGES OF BUYING AND MAKING NEW
SYSTEM IN THE TILLY’S PET SUPPLIES
As work under Sam’s accountant, to remain efficient in a competitive world with updated with
technology and provide best services and products to the customers, it is essential to adapt a
new accounting system for efficient working. Effectively using technology encompasses
activities simple and easy, best use of resources, it saves time as well as cost, reduces the
burden and legal regulatory.
Advantages of creating a new system-
Capital and time- Purchasing software to other developer takes times and huge capital involves
but making new system in the Tilly’s Pet Supplies, saves time as well it is efficient to use as the
Tilly pet supplies employees are engaged himself (Clarke, 2019.).
Risk reduction-It helps in risk reduction as the buying new system from outside no one estimate
that it will lead to success or not. Whereas the company's developer’s team own creates a
system so they know about the culture and the structure of the Tilly pet supplies.
Less legal procedures- Legal issues should be minimized in making new system is another
advantage for the Tilly’s Pet Supplies.
Disadvantages of creating a new system-
More training -For making a new system, Tilly’s Pet Supplies recruit additional experts and
developer team that involves money as well as it is time-consuming to get select the right
candidates from the different number of candidates.
Huge cost involved- An issue arises such as cost of renting additional office space, purchasing
necessary hardware, extra human resources and other tools that will involve huge capital of the
company (Blakemore, 2015).
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Involvement of various researches and testing - before giving a final permit to the new system
there will lot of researches and pre-testing processes involved and wasted time in bugs
problems.
Maintenance and installation cost – a company should be bearing the installation cost
additionally after launching and pre-testing of the new system. The company should maintain
and upgrade the system time to time according to technology and usages this will lead to high
maintenance cost.
Advantages of buying a new system-
Improved efficiency-When individuals’ components of a new system working together, this will
result in improves the efficiencies and experience of the employees in the Till’s Pet Supplies
(Clarke, 2019).
Increased productivity- efficiency and productivity are related to one another. When the teams
are more efficient with the given resources, system and time they become more productive.
Less training- when the Till’s Pet Supplies implement new system own this require training to
the team but when the company invested in purchasing a new system from outside will lead to
less training and don’t need to hire additional developer’s team (Laudon and Laudon, 2016).
Support in access and training – the biggest advantage a Till’s Pet Supplies to take in
purchasing that many companies provide training materials with online service for
troubleshooting problems.
Quick implementation and proven technology- purchased system is implemented quickly as
the manager make payment and load into the system. Many reviews and track record with
other users are available to make sure the proven technology before purchasing the system.
Disadvantages of buying a new system-
Time-consuming- buying process take lots of time to search and communicate about the need
or the requirements to the different vendors.
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Not adequate- it does not fulfil all the needs of the company and the software may not be
modified and debugged if the problems arise in the future.
Cost involvement- it involved a huge cost in the computer, hiring new experts and in training
(Blakemore, 2015).
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B. THE SECURITY RISK ASSOCIATED WITH BOTH MAKING OR BUYING NEW
SYSTEM AND WAYS TO MITIGATING THOSE RISK
Till’s Pet Supplies has a vision in this digital era organization uses automated information
technology to process their information for efficient working or to achieved desired mission.
Risk is the negative impact on the nature of the business in every aspect. For the effective
working, risk management is very essential for the companies to evaluate and reduce the risk
especially security risk. It plays a very crucial role in protecting the organization information
data or assets (Shameli-Sendi et al., 2016). The main risk colourized in security purposes of
making and buying processes is confidentiality risk, integrity data risk and availability risk.
Confidentiality risk is the risk involved in updating a system is to control who is read the
information. Customers are the assets for the company; data loss may lose business trust and
interest. Another risk is Integrity risk in which risk associated with the accuracy, specified and
authorized transactions. The other risk is availability risk includes the inability to recover the
services due to the failure of software and hardware or weakness in its system or any other
event occurred. Other risks include viruses, unauthorized users, leaked information, production
stopping etc (Clarke, 2019). These all risk lead to financial loss as a result of business disruption,
loss of image, legal implications, loss of privacy etc.
Steps to mitigating risks are as under-
Risk assessment is very important for the company and it should evaluate time to time.
Employees participation play an important role in the assessment of risk as they can help to
mitigate the risk. Firstly, Till’s Pet Supplies need to identify the assets of the company. For
example, the assets for the company are customer’s information, trade secrets, legal and
sensitive documents. Next step is to identify the reasons for threats which harm the
organization. Types of threats are a natural disaster, accidental human interference, system
failure and others (Nurse et al.,2017). Then to analyses, the control system to minimize the risk
of eliminating of the probability of threats through software, hardware, identification and
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authentication subsystems.in next step ensures that everyone in the organization is informed of
all the implemented controls and policies at all levels. Last is to monitor and evaluate the policy
and control effectiveness by documents all result (Gladstone et al., 2016).
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C. RECOMMENDATION TO TILLY'S PET SUPPLIES AS TO WHETHER MAKING OR
BUYING NEW SYSTEM IS APPROPRIATE FOR THEIR BUSINESS
After the analyses of the advantages and disadvantages of buying or purchasing new system as
an accountant of a company, I will conclude that buying the new system option is most
appropriate for the business of Till's Pet supplies. Buying options have more advantages as
compare to adopt making new system advantages. According to the case, Till's Pet Supplies is a
small and medium-size company, buying a readymade system is typically cheaper to making
new system own. Research procedures, pre-launch testing, track records of others users
reviews these all things make buying option more appropriate as if program perfectly fulfil the
requirement of the company there will be less time to investing time, money in upgrading the
version that already used by others (Laudon and Laudon, 2016). Making a new system is risk-
taking as we don't estimate that it will be successes or not. Buying a new system are the
readymade solution and it is available fast at the time of need this will lead to increase
productivity in the organization.
Another recommendation for buying a new system is expert support and training are easily
available with an online solution anytime for troubleshooting problems to the existing and
future employees so it will help in reduced the burden to HR and IT departments. The
functionality of the system should be enhanced by customer feedbacks, anticipating the
business needs rather to reacting in them. The main advantage of buying a new system is it is
easily available; at the time of environment or technical changes, Till's Pet Supplies not need to
invest thousands of hours to making new system again according to new requirements (Laudon
and Laudon, 2016). Therefore, I recommended going with buying option as it saves time, cost
and it involved less capital as compared to making an option as it involves big money in hire
developer teams, renting additional spaces for working, purchasing of hardware and other
resources. In buying option company uses the other part of the company in other fields which
together can help them in increasing productivity efficiencies and provide the best customer
services.
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D. ONCE THE SYSTEM IS ACQUIRED THEN THE BUSINESS CAN GET BACK TO
NORMAL AND DO WHAT IT DOES BEST — MAKE GREAT PET PRODUCTS —
WITHOUT HAVING TO SPEND MONEY ON IT’?
Once the system is acquired in Till's Pet Supplies, then the business is getting back to normal as
the new system is latest in the technical aspect and fast processing transaction this will help in
more work and increases the efficiency level of the employees. The new system also controls
and maintain the inventory management it ensures resources are timely available for
production, providing a warning to when and what quantity of units should be prepared. For an
example, the new system ensures the working fast of the team, so team can finish their work
sooner or save time to think innovative and creative ideas to make more varieties of products
with the context of the requirement of the customers. Above features will help to produce
more quantity of pets food with high quality and helps in achieving the desired goals and
remain stay with a good reputation in the market. Through risk assessment time to time basis
will help to protect with unnecessary damages and smoothly functioning of the system (Nurse
et al., 2017). Efficient and smoothly working will ensures proper working of operations
management and avoid the cost of repairing and spend money on IT.
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CONCLUSION
After the analysis of the Tilly's Pet Supplies case study of buying and making a new system in
the organization. Researching buying and making the decision of new system leads helped in
identify the pros, cons and the risk associated with them. Through the analysis, we can
conclude that buying option is more appropriate for the company as it saves time, Human
resources, space and other activities. It also includes less capital involvement as compared to
making the new system decision. Buying decision improves the performances and the efficiency
of the employees which helps in achieving the desired goals.
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REFERENCES
 Blakemore, S., 2015. Buying into a greater product procurement role for nurses. Nursing
Management (2014+), 22(8), p.8.
 Chameli-Sendi, A., Aghababaei-Barzegar, R. and Cheriet, M., 2016. Taxonomy of
information security risk assessment (ISRA). Computers & Security, 57, pp.14-30.
 Clarke, B., 2019. Beyond Price and Functionality: What to Consider When Buying a New
Information System.
 Gladstone, P.J.S., Kirby, A.J., Truelove, J.M., Feinzeig, D., Vienna, N. and Boyer, S.,
BitSight Technologies, Inc., 2016. Security risk management. U.S. Patent 9,438,615.
 Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson
Education India.
 Nurse, J.R., Creese, S. and De Roure, D., 2017. Security risk assessment in the Internet of
Things systems. IT Professional, 19(5), pp.20-26.
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