Kudler Accounting System Paper

Kudler Accounting System Paper Jon Lazar BSA/310 January 23, 2012 Jaclyn Krause Kudler Accounting System Paper These days it is especially important to pay attention to details when it comes to deciding if your accounting system is providing the kind of information that may be required of you to produce. I think legal requirements and government regulations are becoming more demanding as to what they expect to see if someone such as the I. R. S. were to show up and ask for an audit. I would like to talk a little about a few of the key features, core technology, benefits, and costs of installing and maintaining an efficient accounting system and some of the benefits it would be to your company, especially in areas where details are crucial. Like the existing accounting system that you have all probably gotten used to here at Kudler, a new accounting system would be set up the same way; by modules. Each module would be more comprehensive and attentive to details that have been apparently overlooked by the present system. In the way of features, I could say that it is the most important overall feature a new system could offer this company. New technology has provided for faster, more detailed and organized data auditing and reporting. This is essential in today’s business world to keep accurate, itemized data entries in order to satisfy government business regulations such as standards set by the I. R. S. Detailed information is especially critical for a company like Kudler, whose business transactions and data entry are performed by a single person. From an internal control standpoint, this isn't desirable. Having only one person, or even a few people doing all the accounting that has to be done in a lot of different areas, opens the door for fraud and embezzlement. Companies that employ more people assigned functions can structure tasks in such a way that those done by the same person don't pose a control threat. Realizing that for smaller companies, a lot of people in the accounting department may not be practical, and/or cost effective, systems have been developed for use with fewer people staffing them and still maintaining security. The internal control structure that can be installed in a new accounting system will help eliminate security risks through mechanics and procedures rather than expensive people (â€Å"Accounting – Basic Accounting Components of the Accounting System†,  2003). There are several top rated Core Accounting programs that would fulfill the needs of your accounting department. Weak areas and areas of concern with the existing system include inventory and ordering control, and the way employees punch in and out for work. Presently, there is no systematic way of ordering supplies other than when a store runs low, an order is placed to share between the three stores. If one of the stores should experience a slow period, overstocking could very well become a problem, especially when freshness of their products is one of Kudler’s trademarks. An inventory control feature within the core program can automatically analyze, predict supply needs for a set delivery date, and actually place the order for each individual store saving lots of time and expense. The process in which employees punch in and out of work and the process it goes through just to get to the payment agency seems very time consuming for Kudler. A payroll processing feature of a new accounting system would record data such as name, date, time, employee number, etc. from a card that an employee would swipe upon signing in or out, process the employee’s personal financial information and then send that information to a printing station to print out the physical checks or send that information to the employee’s bank for direct deposit. Kudler needs a system that is up to date with speed, and technology to be able to produce reliable up to date, detailed account of all transactions made in the form of itemized and organized reports. If it is the intention for Kudler Fine Foods to grow, it must have a system that can grow with it. I do not believe Exel spreadsheets with its time consuming manual entries will be able to keep up with the growth of the company. Replacing the XLX with a SQL database will give the company connect-ability to send and receive data updating reports and balancing finances all in real time. The total cost would include hardware and software upgrades to the main servers as well as each POS at each store. The cost will include the time it takes to install, program, and test the new system. The cost will also include a basic training program and online support along with materials warrantees and our guarantee of customer satisfaction in both product and service. In closing I can only say that the benefits of a new accounting system would surely in the long run outweigh the modest cost of installing a new system. In business, time is money so saving time is saving money, and in this day and age where attention is given to detail, and details can either cost you money or save you money, there is only one logical choice. References: Accounting – Basic Accounting Components of the Accounting System. (2003). Retrieved from http://www. businesstown. com/accounting/basic-components. asp