The importance of information technology to accountants

Competency

Value the importance of information technology to accountants.

Scenario Information

BeGood Baking Supply is a small bakery supply company formed as a closely held corporation. The company supplies raw baking materials, paper goods, and equipment to restaurants and bakeries in three states in the upper mid-west. Most of its business, however, is located in a large metropolitan area. BeGood wants to increase its presence in the region and serve five states. In fact, the owners of BeGood would like 75% of their business to come from throughout the region rather than the current metropolitan area.

Currently, BeGood has a phone center where customer orders are taken; these orders are then sent to shipping where the order is filled in its large warehouse and shipped within four days. BeGood outsources its shipping to a local trucking company. Once the order ships, all paperwork goes to the accounting department where it is entered into the accounting system. BeGood still uses the same accounting system it has used since the inception of the company. All aging of receivables and other analysis is done using Excel spreadsheets. Purchasing and tracking of inventory are done solely by the warehouse manager.

The owners at BeGood are wondering how they can utilize an online presence and further automate its systems in order to facilitate its growth. The owners would also like to expand into the retail business.

You have been hired as a full-time staff accountant at BeGood Baking Supply and have been given the task of evaluating and recommending a viable accounting information system for the accounting and financial data of BeGood in order to facilitate expansion. As you begin your research, you realize that many departments are involved in the information system, and communication is key.

Your task is to write a memo to management on the value of an AIS and how it will impact the business processes at BeGood facilitating its growth.

Instructions

Prepare a memorandum for the owners/management of BeGood outlining the following:

  • The value of an AIS and how it can be used to facilitate growth at BeGood
  • Current state of the AIS and its viability
  • Needed changes to the current AIS in order to support desired growth

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