Accounting Information System

1944 Words8 Pages
Table of contents No. | Title | Page | 1 | Question 1 | 2-3 | 2 | Question 2 | 4-5 | 3 | Question 3 | 6-7 | 4 | Bibliography | 8 | 5 | CD | 9 | 6 | Turnitin report | 10 | Question 1 Mrs. Sally runs a bakery business, Sweet Delight which caters to both individuals and businesses. However, there are some flaws found in her current sales system that caused a loss of significant amount of money. Hoping that she’s able to improve her cash flow, there are some weaknesses highlighted in her current practice. i) Poor online ordering. Having an online catalogue is beneficial for businesses today. It gives the owner slight edge and greater opportunity against their competitors. Most customer nowadays prefer online…show more content…
The need to settle off the overwhelming orders might affect the next orders in line as they are taking longer times to settle the current orders. They might not be able to finish the orders on the agreed date. iii) Credit collection practice. An invoice is a document that shows how much a buyer owes to the seller. Sales invoice indicates that the sale has been done but the company has not received the cash yet (Conjecture Corporation, 2013). Mrs. Sally prepared her customer invoices at the end of each month. This method is considered as inefficient as taking a longer time to issue invoice will result in poor cash flow. The income statements may show a high sales but the company cash flow is affected due to increase in debtors account. Furthermore, the company also might have risk of bad debts. For instance, when Mrs. Sally issues a customer an invoice at the end of this month, the customer might not pay her right away instead they pay at the end of the following month of invoice date. Question 2 By analyzing the weaknesses in Mrs. Sally current practices, there are several improvement that can be done to enhance the performance of the business. i) Set up e-payment processing network Connecting a business website to online payment processing network is no easy task and beyond the skill and technical resources of most business operating online. Instead, there is easy and inexpensive way for getting business transactions online
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