Introduction
Business needs and accounting operations have a great effect on the profitability of a business. Many organizations have integrated computer systems in their businesses to help them in accounting operations and meeting the business needs. However, integration of computer systems in a business is not enough. The most important thing is the effective integration as this will help the business meet its needs and also improve its accounting operations. Before integrating the computer systems, the key business and accounting needs should be determined so that the most effective software to meet these needs can be developed. Some of the most important aspects that can help in meeting the needs are a local area network that interconnects all the systems in the business and a properly designed database. This paper will seek to analyze the business and accounting information needs of Kudler Fine foods and propose how computer systems can be effectively integrated to improve its operations.
Key Business and Accounting Information Needs
Every company has an intention to maximize profit. The prices of commodities that a company offers affect its profit but other aspects such as the business and accounting information needs also have an effect. A business needs various files and documents that assist the management in running it. Integration of these documents in computer systems will help ease the work of the management and make it effective (Turban, Rainer & Potter, 2003, pg.38). A means in which the management in the company can share information is necessary for purposes of improving efficiency in the organization. An effective local area network will enhance sharing of information among the different departments. The software in the computer systems should allow the individuals who use them to work accurately and efficiently.
The Current System
Strengths
Kudler Fine foods currently have several computers systems that are networked both in a local area network and a wide area network. The presence of the computers has helped the company implement a Retail Enterprise Management System (REMS) in the system. The software helps in effecting various areas in the company. The interconnections of the computers in a local area network help in performing some tasks such as printing while still in the office. Data entry also becomes easy and maintenance of files becomes easier when the company makes use of computers. The wide area network helps the company know the external environment in relation to competition (Valentine, 2008, prg.4). The REMS has some embedded security features which helps keep information private. This increases the overall competitive advantage of the company.
Weaknesses
The Kudler Fine Foods Company has some computers but some operations are still recorded manually. The software that is available has not integrated all the operations that take place in the company. This means that the software that is available is limited to performing certain tasks and no other. Maintenance of some records manually while others are maintained in the computer systems makes the process of compilation quite complex (Valentine, 2008, prg.6). All the individuals who carry out certain actions should have some computers to enhance data entry. The company has spent so much money in installing generators to support the system.
Opportunities for Technology
The advancement in technology provides opportunities in the future that will help the Kudler Fine foods limited maximize its profit. Better accounting software that will integrate all the processes that are involved in running the business will help achieve accuracy and efficiency in the company. This can be achieved by implementing the Enterprise Resource Planning (ERP) system. This database software will allow all the information to be integrated in the system allowing sharing (Morton & Hu, 2008, pg.394). Any individual who is connected to local area network will be able to access any information in any system from his or her computer. The software reduces replication of data where any data is entered only once and can be seen by any other person in the network. Management will also be able to see all the processes that take place in the accounting department making their work very easy.
Threats
The greatest threat that the companies faces is competition from other companies offering similar products. Other companies offering substitutes also do exist and some customers go for the products because of the low prices. These are likely to affect the profits of the company in the future. Providing good quality products than the competitors will help the company win many customers because customers are more likely to go for quality when it comes to similar products. The company should also use the wide area network and the internet to advertise its products and venture into new markets so as to increase its customer base. Implementation of an efficient ERP system will help reduce costs and the company can eventually reduce the prices of its commodities while maintaining the same level of profit (Morton & Hu, 2008, pg.394).
Conclusion
The advancement in technology can help a company meet its business needs and improve its accounting operations. However, the computer systems need to be integrated in the right manner. Kudler Fine Foods Limited currently has some computers that are networked but the software that is available does not integrate all the processes in the company. The company can implement a more effective database that will help in integration of all the information regarding the operations in the company. This will help reduce costs and ease the work of the management.
Reference List
Morton, N.A. and Hu, Q. (2008), “Implications of the fit between organizational structure and ERP: a structural contingency theory perspective”, International Journal of Information Management, Vol. 28, pp. 391-402
Turban, E, Rainer, R.K., & Potter, R. (2003). Introduction to information technology. John Wiley & Sons, Inc, pp. 36-40.
Valentine, G. (2008). Accounting Information Systems Technology. Web.