Automated Process of Accounting Information System

Automated Process of Accounting Information System

Accounting Information Systems

ACC/542

May 30, 2011

Automated Process of Accounting Information System

“An accounting information system is a collection of data and processing procedures that creates needed information for its users” (Bagranoff, Simkin, & Strand, 2008, p. 5) through an automated computer system. However, determining which type of system is best for which type of operation is not always an easy task. For Kudler Fine Foods, a retail gourmet grocery store and catering business, they must determine which type of Accounting Information System (AIS) will provide them with the best results based on the information they need. Therefore, the following paper will examine Kudler’s analysis and justification behind their recommended course of action. In addition, it will clarify the qualities of the AIS system that supports their decision and explain how the AIS incorporates the recommended modifications to enhance the value of Kudler’s accounting operations.

Rationale and Analysis

Kudler Fine Foods desires an AIS that can process payroll, accounts payable, accounts receivable, and inventory needs for their retail grocery store as well as the needs of their emerging catering business. Implementing a customized AIS appears ideal however, they are dreadfully expensive and can often be unreliable. Oftentimes it is best to use off-the-shelf industry specific software programs, which are moderately reliable and inexpensive, in fact, “even vendors of inexpensive accounting software now include an e-commerce interface with their products” (Bagranoff, Simkin, & Strand, 2008, pg 386). Furthermore, given that the catering business is just getting off the ground, this may not be the most opportune time to spend thousands, maybe even millions as Kudler will more than likely need the extra cash flow to invest in their catering business. Therefore, the recommended course of action is to invest in an...