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    Information Systems For Business

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    Information Systems For Business


     STRATEGIC INFORMATION SYSTEMS FOR BUSINESS AND ENTERPRISE

    Executive Summary
    Strategic Information System (SIS) is the essential system that aids and organisation to improve generic strategies for gaining competitive advantage. In the present study, three systems that are adopted by Bell Studio are highlighted, which includes payroll system, payment system and cost disbursement system. Bell Studio uses payroll system for improving the payment system of employees. On the other hand, the system of cost disbursement is beneficial for enhancing accountability of organisation. Payment system is useful for Bell Studio for enhancing inventory processes, besides reducing human error. It also states about purchasing function, which stays related to developing input needs.
     
    Introduction
    Strategic Information System (SIS) stands as an essential information system in the organization as it helps in delivering products or services at the lower price for boosting organizational profitability. It aids the organizations to make the proper connection between organizational demands and information technology (IT). In the current context, Bell studio is taken into consideration, besides emphasizing on three different systems; payroll system, payment system, and cost disbursement system. The aim of the current study is to make well aware of Bell Studio three mentioned systems for aiding the company to gain an advantage over its competitors.
    Diagram of Data flow of cash disbursement and purchases system 
     
    1: Diagram of data flow of the purchase system
     
    Purchase system and cash disbursement system are two different methods that are considered as an efficient and secure method of paying cash in the organization. According to Rojas (2019), purchase system includes tasks that involve identifying inventory requirements, placing orders, receiving inventory as well as recognizing a liability. The mentioned procedure is easily applied in the manufacturing company; Bell Studio as it helps in authorizing the purchases. It is noted that the purchase system aids Bell Studio to purchase materials (raw) for improving the production level. Furthermore, control function and production planning authorize the purchasing decision of Bell Studio. Ariana and Bagiada (2018) commented that in the purchase system, it is the responsibility of the purchasing clerks to check subsidiary ledger at the computer terminal. In the current case, purchasing clerk of Bell Studio prints two copies, from which, one is sent to the vendor and other in the purchasing department. It, therefore, helps the current organization to monitor properly the inventory records.
    It is important to note that inventory control records and monitors the finished products at the inventory level. Valacich et al. (2017) mentioned that when the inventories simply drop down to the predetermined point of the recorder, then purchase requisition is made. The purchase requisition is then sent for initiating the purchase process. Bell Studio prepares separate requisition of purchase for every item of inventory as per the required need. In addition to this, the purchase system is beneficial for preparing purchase order and received goods. Furthermore, Bell Studio uses the system of voucher payable, which thereby provides a chance to the company for focusing on using cash disbursement vouchers.
     
    2: Data flow diagram of the system of cash disbursement
     
    The system of cash disbursement is beneficial for securely and efficiently handle cash payments of the company with proper documentation. Based on the viewpoint of Rojas (2019), in the system of cash disbursement, the clerk files document until the due date of payment. In the present context, Bell Studio uses the mentioned system for avoiding any type of misconduct and misuse of cheque in the organization. The clerk of Bell Studio prepares the cheque for the invoiced account, which is then sent to the treasurer, who would mail and sign the cheque to the vendor. In addition to this, the clerk of cash disbursement always focuses on updating account payable A/P subsidiary ledger, cheque register and A/P control account.
    The clerk files invoices, receive the report, and purchase the order copy and the cheque copy in department. Ariana and Bagiada (2018) opined that cash disbursement is considered as invoice payments, which helps in providing proof of the merchandise receipt. In the current case, Bell Studio makes use of the cash disbursement system as the system aims at providing invoices after the purchase of inventory. The invoice emphasizes contracts, which describes the entire detail of job agreement between parties. If the documentation is found to be missing, it shows the sign of incomplete transactions; like non-delivery of services or products or any fraudulent activity. Therefore, it can be said that Bell Studio is correct in adopting the mentioned system, as it avoids any kind of fraudulent transactions in the organization.
     
     
    Data Flow of payroll system
    The payroll system focuses on involving the process of employee’s payment and filing employment taxes. As mentioned by Valacich et al. (2017), payroll system includes racking the hours of working of employees, withholding taxes, calculating wages and paying taxes of employment to Government. In the present case of Bell Studio, it is found that the employees record the work on the timecards every day. The supervisor of Bell Studio reviews time cards prior to submitting it into the payroll department every week. The clerk of the payroll input data, print the hard copies of cheques and payroll register and then post to the digital records of employees. Rahman et al. (2018) commented that the payroll system stands as the system, which makes the employers pay employees for the tasks that are completed by them. In the current case, Bell Studio uses the present method for ensuring that the employees of the company are paid consistently and accurately, which is important for improving employee satisfaction.
     
    3: Data Flow diagram of payroll system
     
    It is found that in Bell Studio, the A/P clerk review register of the payroll and then manually prepares the disbursement voucher. After this, the clerk sends the voucher as well as payroll register to the department of the general ledger for maintaining its accuracy. Based on the view of Valacich et al. (2017), the payroll system is useful for organizing tasks of employees, based on which the payment procedure is set. The task of the payroll system in Bell Studio includes writing a cheque for entire deposits and payroll by the A/P clerk. After the cheque is being written, then the clerk of Bell Studio files cheque copy in the department of account payable. It is found that when the clerk of general ledger receives a voucher as well as payroll register, the clerk then post to the general ledger and file payroll, voucher register in the department. Moreover, in the system of payroll in Bell Studio, employee's information are collected for ensuring employee, who is applicable for a certificate, based on job completion. The mentioned system is beneficial for motivating employees to give their best performance. The improvement in the performances of employees thereby is useful for Bell Studio to win competitive advantage.  
     
    System flowchart of the purchase system
    Purchase system is for every organisation, purchasing function stays related to developing input needs. It is also said that the purchasing system is a process that looks after emphasizing organisational profit by developing purchase orders by maintaining the product receipts. It is also said that purchasing systems are a key component of effective inventory management. It also helps the companies to look after developing a quality model of the products. Purchasing system also helps in developing purchasing process more effective so that supply costs can be reduced (Accounting Tools, 2018). It is seen that computerized purchasing systems help in cutting down the organization’s administrative costs so that the length of the purchasing cycle can be reduced along with reducing errors that get conducted by a human.
    In this way, orders can also be tracked along with developing a purchasing budget by creating an expenditure report. In Bell Studio, four parts are Purchasing department, Inventory control, receiving department and Account payable department. Purchase orders have an important step in controlling business functions. In the purchasing department, the purchase of the products gets conducted in the first part (Leeds et al. 2018). In the Receiving department, purchase and packaging slip gets looked after in a popular way. After that order gets prepared, the necessary details related to the order copy get attached while delivering to make the whole payment process clear.
    On the other hand, purchased order also gets converted to the vendors, where the bill gets issued for goods delivery or to provide the service to the customers. Thereafter the payment and the order gets approved by Account Payable function (Leeds et al. 2018). After that, it gets forwarded to the AP Sub Ledger and General Ledger. In the receiving department, while the bill gets prepared, the report also got presented to keep the track of billing. Once the purchase order copy gets prepared, it gets forwarded to the Account Payable Department. 
     
    4: system flowchart of purchases system
     
    System flowchart of the system of cash disbursement
    Cash disbursement is also termed as cash payments, which helps in conducting cash payments. It is basically the payments that are made by cash or by the help of electronic fund transfer. The date, amount, purpose and the payment method gets added in the page of cash disbursement to maintain proper track of the orders (AccountingTools, 2018). It also indicates the amount of money that gets generated to look after the amount of money that is flowing outside of the company. It also helps in looking after if the company Bell Studio is profiting or losing. The purpose of cash disbursement is to generate basic guidelines to look after developing better guideline in order to give support to the payment option.  
    It is also mentioned that disbursements stay included with providing benefit to the Bell Studio. It also helps in preparing and documenting tax purpose so that it can be used in developing compliances with donor restrictions (Kennan, 2019). It is termed as the outsourcing of cash that gets paid in exchange for the product or service that gets provided by the organisation. The cash disbursement system can be developed with the help of bills or by the check or by electronic fund transfer. It is also said the cash disbursements are gets done by the accounts payable system.
    In the process of cash disbursement, the process gets conducted by the vendor or by receiving the orders. After the order gets done, the amount gets checked to ensure the amount that is necessary to be paid. After the part of process cash disbursement, it gets recorded in cash disbursement journals for future purpose. Thereafter, the whole process gets summarized and gets delivered to General Ledger (KAGAN, 2019). It is necessary for a business to conduct the act of paying out so that the business can be run in an effective manner. It is also said the disbursement is actually the delivery of funds from one fund to another fund. In Bell Studio, cash disbursement helps in measuring the cash inflow along with looking after cash outflow. It also helps in looking after if the organisation is making a profit or not by looking after transactions.
     
    5: System flowchart of the system of cash disbursement
     
    System flowchart of payroll system
    Payroll system is a graphical representation of the relation between the major parts to look after managing the workflow in a proper way. A payroll system stays involved with the payments of employees. It also helps in keeping the track of the employee's salary at Bell Studio. The track also gets maintained about the work hour along with calculating the wages, taxes or any other deduction part (Collins et al. 2019). It is also necessary for the business to look after establishing payroll process so that business expenses can be estimated in a proper way. Efficient payroll process helps in ensuring the amount that employees are needed to get paid accurately. In small business, payroll-processing duties can create a huge burden and unwanted stress related to payroll processing duties.  
    In order to avoid the issues in small and middle-sized business, it is necessary to use the payroll system so that benefit can be conducted. It is necessary to integrate a proper payroll system so that difficulties can be mitigated in an easier manner (Collins et al. 2019). It helps in narrowing down business by selecting the necessary parts in an easier manner. Bell Studio is necessary to integrate the payroll system as it helps in mitigating errors by developing better efforts. After using the software, main business owners can maintain control and it also helps in maintaining security is business (Ardiansyah et al. 2019). It is necessary to use password-protected software so that data breach cannot happen in Bell Studio organization. It is also necessary to use a vendor matching payroll system as it helps in providing up to date information so that business processing can be maintained in a proper way.  
     
    Conclusion
     
    From the above study, it is seen that the Purchasing system helps in developing purchasing process more effective so that supply costs can be reduced. It is also seen that computerized purchasing systems help in cutting down the organization’s administrative costs. It is also mentioned that it is necessary to integrate the payroll system so that difficulties can be mitigated of Bell Studio organization in an easier manner. In case of Cash disbursement, it is stated that it helps in conducting cash payments in a better way. It is also stated that the payroll system stays involved with the payments of employees of Bell Studio organization.