Accounting Information Systems for Local Farmers and Producers

Discuss about the Accounting Information Systems for Local Farmers and Producers.

Introduction

JK Saddlery makes and sells saddlery and other rural supplies to local farmers and producers, as well as to tourists. However, JK does not like to spend money if he does not feel that he needs to. Therefore they employs only one cashier, who also does the banking. In this case, many different types of risks are present in their system. Only one employee control was cashiering and banking work. Therefore, the collected money can be stolen or lost from the cash counter if proper attention is not given. This report divided into two different part. Part one consists three different diagram. First two diagrams represent the data flow of the present system, and another diagram represents the process map of the entire system. Other parts of this report consist the risks which are present in this system and its mitigation control plan.

Part A

Data Flow Diagram

Context Diagram

Figure 1: Context Level Diagram

(Source: Created by Author)

Level 0 Data Flow Diagram

Figure 2: Level 0 Dataflow Diagram

(Source: Created by author)

Process Map

Figure 3: Process Map

(Source: Created by author)

Part B

Risk factors and its control plan

Risks in the Present Cashiering Function

The JK Saddlery only used one employee for cashiering and banking both works. Therefore, Cashiering Function has many risks. The risks are defined bellow: 

Only one employee control was cashiering and banking work. Therefore, the collected money can be stolen or lost from the cash counter if proper attention is not given. One of the major problems is manual cash system. It has the significant risks of money being lost or misplaced. It has been seengenerally that the money from the locker may get lost. Now and again, the criminals or hoodlums get into the shop for taking the cash by power. It is a highly regular risk consider that has been seen in the retail shops and stores. On the other hand, the only one employee is assigned for two different cash control work. The danger component of deceptive nature of employee would have a genuine offense on the income exchange of the organization. JK Saddlery may need to face issues like money or item lost because of the deceitfulness of the representative. The representative may take or utilize some cash for individual addition, and it would bring about the negative impact on the business operations of the JK Saddlery. The assigned employee can steal the cash.

The manual accounting process can be a major caused of losing money. If any data is not recorded accurately or any paper or record lost, then it can be caused by losing cash. It is one of the major risks in this current manual process. The assigned employee can miss track of any product or any record. As the system is not programmed, the data must be put away physically in the operations of JK Saddlery. It would bring about putting away the data with any blunder of flaw. Thus there is a risk of losing information and data. The danger component can influence by the banker of the JK Saddlery. However, for JK Saddlery, the data must be physically kept up, which may bring about event of the mistake.

Control Plan

The control arrangement for dealing with the risks of JK Saddlery cashier function can be overseen by the usage of coordinated data framework administration. It would help in shaping a framework that would be fit for keeping up the data structure in JK Saddlery. It would upgrade the structure management to offers receipt for their customers. There are many rules available that could be executed for dealing with the money and avoid the risks. 

Recording the daily sells and cash detail in to the system can prevent the data loss risk. The JK Saddlery can manage the transaction by creating an information system. This information system can manage all the details of their business. An authorization system must be present in this information system. This approval system helps the JK Saddlery to prevent the theft. The information and data arrangement of the JK Saddlery can be overseen by the utilization of data framework. The issues confronted by the burglary of data could be effectively halted by executing the approval capacity accessible in data structure. Record and report the exchanges also help them to prevent the risks. The exchanges of the JK Saddlery must be overseen by registering and archiving of the everyday transactions. Henceforth, the odds of the loss of information by any methods could be halted. The JK Saddlery can deal with the exchanges by the usage of data framework. 

Moreover, the risks can be prevented by surveying the documents. Check the records can be efficiently executed by the data framework administration. It would be useful for sorting out the mistakes in management system. The charging and receipt framework had been overseen exclusively by a worker in JK Saddlery. In any case, if data framework is actualized, the framework would be speedier and precise for dealing with the income arrangement of JK Saddlery.

Conclusion

The report had expressed the risk factor of manual system of JK Saddlery. It has brought about shaping the errors by the risks elements like robbery and losing of cash, the untrustworthiness of worker, lacking partition of exercises in JK Saddlery, and mistake of the money administration. These risks components have brought about bringing on issues and issues in income arrangement of JK Saddlery. The risks can be prevented by surveying the documents. Moreover, Recording the daily sells and cash detail in to the system can prevent the data loss risk. The last thing which can be concluded that is a proper control plan. However, the control plans can help them to avoid these risks from their system.

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