Accounting Systems

Accounting Systems

Jeremy Void

BSA 310

Accounting Systems

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.

After evaluating the accounting information system needs of Kudler, we found many reasons to also recommend Microsoft Dynamics GP as the company's ERP software. When selecting a system for a company the size of Kudler, the options were to select an ERP, Enterprise Resource Planning, or ordering custom software. Choosing a premade ERP like Microsoft Dynamics GP has the benefit of being less expensive than custom-built software, while still having a lot the same functionalities. "Consultants usually find that packaged software can handle about 80 percent ofa client's processing needs"(Bagranoff 190). Within Dynamics GP there are built in customization features along with the ability to bring in your own software, and with these features we are confident this 20 percent gap can be bridged. The starting price point of Microsoft Dynamics GP is going to be under three thousand dollars, which will be much less expensive than custom built software. Also, in comparison to custom systems, Microsoft Dynamics GP can be set up and implemented much faster, a "custom system is likely to be costly and take longer to develop than management anticipates"(Bagranoff 190).

Keeping in mind Kudler's core information systems needs, Microsoft Dynamics GP offers solutions for payroll, accounts payable, accounts receivable, and inventory processes in their base business essentials package. This ERP system offers the ability to automate a lot of the accounting functions, which can take away some of the work load away from management. What stood out with this ERP is that they provide the option of adding more advanced features to the current package as Kudler's mastery of the program grows. This will add value to the system and allow Kudler to advance its capabilities over time. Flexibility is key to the selection of an ERP system because it allows Kudler to grow with the system. This will reduce Kudler's need to purchase a new system in the near future as the ERP requirements of the company change. With this software there is also the ability to add non Microsoft software, adding to the product's general value. Lastly, within this package Microsoft offers a 10 year support package over various mediums. For these reasons we feel that this package will be a great fit for Kudler Fine Foods.

The new accounting system will need to be installed before it can be put into play.