Accounting Information System Assessment Answer

Key Topics

• Accounting information system - BUSINESS REPORT
• Executive summary:
• Introduction:
• Sales process for Bucks Phyz:
• Identification of internal control weaknesses, risks and corrective measures:
• Impact of introducing corporate credit card:
• Conclusion:
• References:

Accounting information system - BUSINESS REPORT

Executive summary:

Every business needs to have a well-defined sales process. The current report deals with analysis on the existing sales process of Bucks Phyz and recognizing its weaknesses. The analysis indicates Bucks Phyz has a number of problems including lack of prioritized work schedule, consistent performance appraisal system, and training programs. The problems can be mitigated using project management tools for work prioritization; web based training programs and dedicated software for performance appraisal. Bucks management wants to launch corporate credit cards for small purchases. The benefits and risks of corporate credit cards are also identified in this report. The analysis on corporate credit cards indicates that the risks can be mitigated if the trained procurement managers use it for limited number of transactions. 

Introduction:

Sales process is one of the most critical activities for an organization. For every organization, having a structured sales process is necessary for meeting the business objectives. The current report deals with analysis of the sales process of Bucks Phyz , identification of weaknesses, risks and control measures. The impacts of introducing corporate credit cards for purchasing on Bucks Phyz are also included in this report.

Sales process for Bucks Phyz:

The sales process in Bucks Phyz starts with evaluating the sales situation. Market evaluation helps an organization to set realistic goals (Agnihotri et al. 2016). On basis of the analysis, separate goals for every individual members of the sales team are developed. Once members of the team start working to achieve the targets, their performance is monitored and reviewed once in a year. Feedbacks are also collected from the sales personnel to identify issues, they are encountering. The Bucks Phyz management emphasizes on motivating the sales people in several ways. Use of incentives is one of the techniques that the management uses heavily for motivates the employees (Rodriguez et al.2015).

Identification of internal control weaknesses, risks and corrective measures:

Although Bucks Phyz has an efficient sales team, it has a number of internal control issues within the sales process. The internal control weaknesses of the sales process are impacting Bucks Phyz to a great extent. An accounting information system (AIS) integrates employees of all levels of the organization. AIS enhance visibility of the sales reports, customer accounts and the performance of sales teams. It also facilitates the organization to use innovative procedures. So, implementing AIS is effective for bucks to cope with its problems. 

The weaknesses, the associated risks and the control measures of Bucks Phyz currently have, are listed below –

Internal control Weaknesses 

Risks

Corrective Measures

Table 1: Internal control weaknesses, risks and control measures for sales process

Impact of introducing corporate credit card:

The corporate credit cards come with many benefits when used properly. However, misuse of the cards can pose serious threats for the organization also. This section of the report deals with analysis on the corporate credit cards and identification of the benefits and risks associated with these cards.
Benefits of using corporate credit card:

The benefits of corporate credit cards are as follow:

Cash benefits: The most prominent benefit of corporate credit cards is the cash rebates. Due to use of credit cards, the businesses obtain a rebate on their yearly purchases which is not possible in any other purchasing method (Bryan, 2014).

Better spend analysis: Use of credit cards help businesses to analyze their spending (Daly et al.2017). As an effect, the businesses can use their financial resources in a better way and gain more control over the expenditure.

Eliminating expenditure frauds: The expenditure frauds, if not prevented, can cause significant financial loss for the business (Ma et al.2015). Due to use of credit card, a business can stay aware of all the expenditure and can reduce the chances of false purchases.

Risks of using corporate credit card:Despite all the benefits, corporate credit cards are associated with a number of risks also.

The risks that can be caused due to use of credit card are –

Security loss of sensitive data: The chances of losing confidentiality of sensitive data are higher in electronic transactions ( Laudon & Laudon, 2015). Use of corporate credit card can enhance the chance of losing sensitive information.

Financial loss due to overuse of credit cards: Using credit card beyond its limit can cause monetary losses (Ma et al.2015). If the employees use corporate credit cards excessively, the business can encounter severe financial loss.

Internal controls to reduce the risk:
The risks associated with corporate credit cards can be reduced with help of internal controls – 

Setting transaction limit for each card: Setting a limit on the corporate cards prevents its overuse (Joshi & Singh, 2017). The Bucks management can set a limit to control use of the cards.

Providing cards to designated persons only: Allowing limited number of people to use corporate cards makes expense controlling easier (Boutcher et al.2014). Additionally, it also reduces the chances of misuse. Bucks management can provide designated personnel only with cards.

Training programs for card-users: Training programs on corporate card reduces the chances of misuse (Rubtsova et al.2015). The Bucks management can run training programs for the card users to ensure that the cards will be used in proper way.
Designated person to be issued with credit card: The procurement managers should be responsible for using the corporate card. Although it will be used for small purchases, the management should ensure that the card is used for valid reasons only. As the managers only will be responsible for using the card controlling, tracking and analyzing the expenditure will be easier.

The current report indicates that the sales process of Bucks Phyz has several issues. However, the management can control those issues using AIS. Use of credit card for purchasing can benefit Bucks management in several ways. The management can use risks associated with it by setting limits on transaction and educating the employees.

References:

Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media: Influencing customer satisfaction in B2B sales. Industrial Marketing Management, 53, 172-180.
Boutcher, D. C., Harney, R. K., Munroe, S. J., & Scheel, J. J. (2014). U.S. Patent No. 8,632,002. Washington, DC: U.S. Patent and Trademark Office.
Bryan, B. E. A. L. (2014). U.S. Patent No. 8,688,511. Washington, DC: U.S. Patent and Trademark Office.
Cuevas, J. M., Donaldson, B., & Lemmens, R. (2015). Sales Management: Strategy, Process and Practice. Palgrave Macmillan.
Cummins, S., Peltier, J. W., & Dixon, A. (2016). Omni-channel research framework in the context of personal selling and sales management: A review and research extensions. Journal of Research in Interactive Marketing, 10(1), 2-16.
Daly, J. L., & Buehner, M. A. (2017). P-Card Utilization in municipal government: Advantages and Concerns. Journal of Public Procurement, 3(1), 75-94.
Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership, innovation, technology. Routledge.
Joshi, M., & Singh, V. K. (2017). Data Security Breach as Perceived Risk and its Influence on Consumer Purchase Decision. Asian Journal of Research in Business Economics and Management, 7(8), 187-196.
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Laudon, K. C., & Laudon, J. P. (2015). Management Information Systems: Managing the Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Ma, L. C., Banerjee, P., Lai, J. H., & Shroff, R. H. (2015). Diffusion of the ‘Octopus’ Smart Card E-Payment System: A Business and Technology Alignment Perspective. International Journal of Business and Information, 3(1).
Rodriguez, M., Peterson, R. M., & Ajjan, H. (2015). CRM/social media technology: impact on customer orientation process and organizational sales performance. In Ideas in Marketing: Finding the New and Polishing the Old (pp. 636-638). Springer, Cham.
Rubtsova, M., Kapustkina, E., Karapetyan, R., Kovalev, I., & Rasskazov, S. (2015). The social environment and business communication in English: A small-scale research on front-line staff performance in Russia, Spain and France. International Review of Management and Marketing, 5(4).
Spillecke, S., & Brettel, M. (2017). The Effects of Informal Sales Management Controls on the Learning and Entrepreneurial Orientation Within Sales. In The Customer is NOT Always Right? Marketing Orientationsin a Dynamic Business World (pp. 336-336). Springer, Cham.
Wotruba, T. R., & Simpson, E. K. (2015). The selling cycle: A unifying guide for sales management decisions. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 81-84). Springer, Cham.