Acct6001 Accounting Information Systems Effective Assessment Answers

Answer:

Business Process

The business process is defined as the group of logically related activities and tasks that make use of the organisation’s resources in order to meet the needs of the customer while taking into consideration the objectives of the organisation (Singh, 2011). In the business process, the accounting information system is very important as it facilitates the collation of data and the processing of the collected data into information that is relevant to the individual users (Accounting Edu. Org, n.d.). Traditionally, the accounting information systems were manual but advancement in technology has resulted in most of this systems being computer-based.

Order Process of the Global Athletics Apparel Manufacturing Company

The ordering process of the Global Athletics Apparel Manufacturing (GAAM) Company consists of different stakeholders. These stakeholders include the customers/ the retail stores, the customer representative, the warehouse assistant, shipping department, accounts payable, and accounts receivable. Analysis of the business process indicates that the system in use is manual. Additionally, it has been observed that the placement of orders is irregular which makes it difficult for the organisation to manufacture and make available different types of clothing and athletic wares to the stores. This suggests that the process needs to be reengineered.

Business Process Reengineering

Business Process Reengineering refers to the significant redesign of the main business processes in a bid to achieve significant improvements in the level of production, reduce cycle times, and improve quality (Rigby, 2015). When performing business process reengineering, the company evaluates the existing business processes and models and makes revisions with the aim of enhancing value given to the customer. This is achieved by the redesign of functional organisations into cross-functional units and the use of technology to improve the sharing of data useful for decision making.

Benefits of Business Process Reengineering

Organisations often redesign their business processes in a bid to bring about significant improvement in the level of performance (Sandberg, 2001). The performance is improved by:

• Reducing the costs and cycle times. In order to accomplish this objective, the company removes unproductive functions and the workers associated with these functions. The reorganisation and reduction in employee numbers reduces the levels of management, enhances the flow of information, and does away with mistakes and corrections that arise from having many processes.
• Improving Quality. The company reduces the degree to which the work is divided. The individual workers are responsible for the quality and quantity of output; the workers’ performance is measured by the promptness and quality .

Proposed Business Process for Global Athletics Manufacturing Company

The various stakeholders of the GAAM ordering process desire that the system is efficient and accurate and minimises the costs associated with managing the return of products and handling the returns from the customers. Additionally, the stakeholders desire that the process should enhance the number of accounts receivable from 10.5 to 12.5 times a year. In order to meet the desires of the stakeholders, the ordering process should use accounting information systems specifically Point of Sales (POS). The POS facilitates the calculation of the amount owed, preparation of invoices, and indicates the various modes of payment available to the clients (Long, n.d.). The point of sale is also thought of as a point of service as it is not just a point of sale but can also be used as a point of return or customer order. The POS software is used in retail businesses to handle back-office functions such as control of inventory, purchasing, receipt of products, and transfer of products to different locations.

In the reengineered business process, the ordering process will begin with the retail store tracking the sales of products. This involves updating the accounting information system of the goods ordered; goods sold, and balance in store. The retail store places orders based on the stock levels. The customer representative will track information of stocks reaching the replenishment level. When the store places an order, the customer representative will generate two copies of orders and forward the same to the warehouse clerk and the accounts receivable department.

The warehouse clerk will confirm to the customer representative and shipping department the availability of inventory. The account payable department checks the system for outstanding balances owed by the customer. Where there are no balances, the accounts payable department gives approval to the warehouse clerk to release the goods. Upon confirmation, the goods are packaged and good release forms (two copies) are prepared. The warehouse clerk updates the accounting information system to reflect the outflow of goods. The packed products are then forwarded to the shipping department, who courier the products to the customers.

Using the dispatch forms and orders generated by the customer representatives, the accounts payable clerk prepares invoices. The invoices are disbursed to the clients at the end of each week. The payments are sent to the customer representative who forwards them to the account receivable department. The accounting department updates the customer accounts to reflect the payments received. The new ordering process will:

• Ensure efficient and effective collection and storage of data regarding the number goods in stock at the retail stores and in the warehouse, amount of goods required by customers, amounts outstanding from individual customers, and update of payments received.
• The information supplied is useful for making decisions including production levels and financing.

Problem Identification and Solution Generating Process

The process of managing a business is wrought with numerous problems. This requires that the managers have the requisite skills to deal with these problems. The process of problem identification and solution generating involves:

• Clear definition of the problem
• Identification of the cause of the problem
• Development of multiple possible solutions. The greater the numbers of possible solutions, the higher the chances that the managers are likely to find the most appropriate solution. Researchers have established that having a wide pool of possible solutions improves the quality of the final solution (Zwilling, 2011).
• Prioritisation of the solutions. In situations where there is more than one solution, the application criteria entails focusing on the solution that is implementable now rather than the solution which is highly complex, requires a long-time to implement, and has a higher cost.
• Selection of the appropriate solution.
• Assignment of responsibility,
• Identification of measures to indicate how well the chosen course of action mitigates against the identified problem. This is important given that at times the solution to the problem might have unintended effects on the organisation.

Justification of Recommendations

The recommended ordering process and approach to problem identification are relevant to GAAM as they identify an improvement plan, appoint responsibility for each process, simplify the process so as to enhance efficiency and effectiveness, and reduce the lack of information that creates bottlenecks.

Corrective Actions Based on Recommendation of Peer Review

The peer review indicated that the proposed business process model had the following short-comings:

• Failed to involve all the users and stakeholders involved in the process
• The business model did not fully indicate all the recommended changes

In order to address this challenges;

• The opinions of all the stakeholders involved in the process will be sought and their opinions integrated in to the redesign process.
• The model will be redesigned to show the link between the accounts receivables department and the warehouse, the accounts receivables and accounts payables departments, and the accounts receivables department and customer representatives.

Effective communication with IT professionals, stakeholders, and user groups of information systems is essential for successful system implementation and operation. Here are strategies for communicating with these groups:

1. Communication with IT Professionals:

- Clear Requirements: Begin by clearly defining the business requirements to IT professionals. Provide detailed documentation specifying what the system should accomplish, the technologies required, and any constraints.

- Regular Meetings: Hold regular meetings with IT professionals to discuss project progress, address challenges, and ensure alignment with business needs. These meetings should include technical and non-technical stakeholders.

- Feedback Loop: Establish a feedback loop where IT professionals can ask questions and seek clarification. It's crucial to have an open channel for addressing technical concerns and making necessary adjustments.

- Documentation: Maintain detailed documentation of the project's technical aspects. This documentation should be accessible to IT professionals, helping them understand the system's architecture and design.

- Training: Provide training to IT professionals on how the system works and how it integrates into the organization's existing technology infrastructure.

2. Communication with Stakeholders:

- Executive Summaries: For stakeholders, especially top management, provide executive summaries of the project's progress and impact on the organization. Use language that highlights the business benefits and aligns with strategic objectives.

- Regular Updates: Keep stakeholders informed with regular updates. Share key milestones, financial implications, and potential risks. Address any concerns or questions they may have promptly.

- Demonstrations: Conduct demonstrations to showcase the system's functionality and how it aligns with the organization's goals. Visualizing the system can help stakeholders understand its potential impact.

- Key Metrics: Share key performance metrics and how the system is contributing to achieving them. Use data and analytics to illustrate progress and outcomes.

- Risk Mitigation: Discuss any risks and the steps taken to mitigate them. Show that you are proactive in addressing potential challenges.

3. Communication with User Groups:

- User Training: Provide user groups with comprehensive training on how to use the information system. This training should be tailored to their specific roles and needs.

- User Feedback: Encourage user groups to provide feedback on the system's usability, challenges they encounter, and any desired improvements. Act on this feedback to enhance user satisfaction.

- User Manuals and Resources: Create user manuals and resources that are easily accessible. This includes FAQs, user guides, and online resources that users can refer to when they have questions.

- User Workshops: Organize user workshops or focus groups to gather insights and ensure that the system aligns with their workflow. Involve users in the design process.

- Change Management: Recognize that the introduction of a new information system may represent a significant change for user groups. Implement change management strategies to support users during the transition.

Effective communication with IT professionals, stakeholders, and user groups is critical for the success of an information system. By tailoring your communication approach to the needs of each group and maintaining an open, transparent, and collaborative dialogue, you can ensure that the system is well-received, meets business objectives, and operates smoothly within the organization.

References

Accounting Edu. Org., n.d. What are accounting information systems. [online] Available at < https://www.accountingedu.org/accounting-information-systems.html> [Accessed 6 August 2017].

Long, T., n.d. Paperless receipt solutions system. James Dyson Foundation. [online] Available at <https://jamesdysonaward.org/projects/paperless-receipt-solution-prs-system/> [Accessed on 6 August 2017].

Rigby, D., 2015, Management tools 2015. [pdf]. Bain & Company. Available at < https://libweb.anglia.ac.uk/referencing/harvard.htm> [Accessed 6 August 2017].

Sandberg, K., 2001, Reengineering tries a comeback-this time for growth, not just cost savings. Harvard Management Update, 6(11), pp. 3-6.

Singh, K., 2011. Business Process reengineering: An organisational make over. [online] Available at < https://www.slideshare.net/PrinceSingh1/business-process-reengineering-7654477?next_slideshow=2> [Accessed 6 August 2017].

Zwilling, M., 2011, Nine steps to effective business problem-solving. Business Insider, [online] Available at < https://libweb.anglia.ac.uk/referencing/harvard.htm> [Accessed 6 August 2017].