Introduction

An accounting information system helps to track all the financial activities of a firm in a systematic manner. Knezevic, Stankovic, & Tepavac (2012) point out that the modern business environment is extremely competitive in nature. Due to this, all forms of modern organizations needs to adopt different kinds of modern technology in order to sustain their business and compete with their competitors. The report analyzes the need of effective accounting system of the firm B Bakery.  This organization is following a manual form of accounting system and has not yet adopted automated accounting software. Various forms of accounting system and accounting software will be suggested to the organization and the benefits of such processes will also be discussed in this report. 

Answer to Question 1:

Definition of Baker and Business Process description

Part A

Li & Bai (2014) opine that the person who produces different form of breads and cakes with the help of a heated source is known as baker. Bakery is known as the workplace where the baker uses to make and sells his/her respective bread and cakes. 

Business Process of the organization

The firm B. Bakery carries out wide range of business activities. These are as follows:-

Production of Bakery products

The given organization deals with different forms of bakery products like manufacturing of bread and other items. The main Unique-selling proposition (USP) of its products is that it gives importance to health related factors while manufacturing its products.

Carrying out the business manually

The most disadvantage factor of the firm is that it carries out its business activities manually. This further suggests that the firm records its business transactions and accounting activities by following a manual process rather than a technical accounting process by using any kind of accounting software. This can be considered as a drawback of the firm as it has failed to adopt any proper ERP process.

Product Distribution

The firm is also involved in distribution process of its different forms of bakery products. This further suggests that the organization sells their breads by using different channels of distribution like supermarket chains, etc. 

Less effective in human resource management

 

It can be inferred that the organization employs 70 employees. However, the organization uses manual process to produce their monthly salaries. This also infers that lack of proper accounting department has affected the firm’s employees by a large amount. 

Answer to question 2:- Development of business requirements

Part B: Indispensible business processes

The organization is highly successful in making a good amount of turnover. However, it is also evident that the business process of the organization will suffer in the near future due to its manual adoption of accounting process. Due to this reason, the following business process activities can be suggested to the organization in order to make their process smooth for the long run.

Pay-roll structure with automated accounting software

Currently, the firm follows a manual pay-roll structure to give the salaries of their employees. Since, the organization is a growing firm; it is of great essence for the firm to have a proper automated pay-roll structure in order to credit the salaries of their respective employees. 

Proper analysis of costs of different inflow and outflow activities

Since, the Bakery firm can be classified as a growing organization; therefore, it is important for the firm to classify its different types of costs in their respective production and manufacturing process. The firm also needs to minimize its operating costs and this will help them to sustain in future. This can be only possible, if the firm adopts automated accounting software (Knežević, Stanković, & Tepavac, 2012).

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