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Computer Information Systems Brief

In: Business and Management

Submitted By mealei
Words 481
Pages 2
Kudler Fine Foods is a specialty food store is located in the metropolitan area of San Diego California. Kathy Kudler founded the operation by organizing a business plan to open the first store. Within the first six months the store broke even and ended the year profitable. Two more stores have opened since and the company continues to remain profitable. Kudler Fine Foods is looking to further growth of the company and has asked Regal CPA’s to evaluate the company’s accounting operations and advise on how to integrate the computer systems to meet business needs.

Key Business and Accounting Information Needs

Kudler’s initial business plan included funds in excess of $50,000 to initial a Retail Enterprise Management System. Kathy Kudler contracted Smith Consulting to help analys the business needs and select an appropriate REMS. Smith Consulting has been contracted yearly to maintain the system for Kudler Fine Foods. The REMS was chosen to help integrate Kudler’s point of sale system with the accounting modules including, general ledger, accounts payable, bank reconciliation, asset management and accounting, and security.

Strengths and Weaknesses

Kudler’s currently runs using a point of sale system which reports all sales in detail sending information to the general ledger, electronic payment clearing house, and purchasing function. Each sale is transmitted into the general ledger automatically recording debits and credits, calculating cost of goods sold, calculating FIFO inventory levels, and net profit. The POS system sends automatic transmission for credit sales to the financial institution. With each sale the POS system also adjusts inventory on hand, records discounted purchases, and tracks ordering. Having these systems integrated eliminates potential posting errors. The Entrepreneur (2014) website states that a POS system should allow for a company to analyze sales data, determine how each item sells, adjust for purchasing levels, maintain sales history for future purchases, improvement of pricing accuracy by use of barcodes scanners and credit card authorizations.

Currently the stores are connected through a T3 line to help connect all three stores. According to "Data-Connect" (2014), “A T3 line is an ultra high-speed connection capable of transmitting data at rates up to 45 Mbps. A T3 line is equal to approximately 672 regular voice-grade telephone lines, which is fast enough to transmit full-motion, real-time video, and very large databases over a busy network” (T3 - comprised of 28 T1 lines). Having this system helps to ensure all three stores remain connected and are able to communicate effectively.

Some weaknesses within Kudler Fine Foods is with cash purchases. When dealing with local grown produce some growers insist on cash payments which lead to manually entering the information into the accounts payable system. This leaves room for error from incorrect entery.

References:
Entrepreneur. (2014). Retrieved from http://www.entrepreneur.com/encyclopedia/point-of-sale-pos-system

Data-Connect. (2014). Retrieved from http://www.data-connect.com/T3_E3.htm

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