Kudler Fine Foods
Automation Process of Accounting Information System
ACC/542
Accounting Information Systems
March 27, 2012

Kudler Fine Foods Accounting Information Systems
Kudler Fine Foods (Kudler) is an upscale specialty food store chain in the San Diego, CA area. It was established in 1998 by its current owner Kathy Kudler, and since has expanded to three locations, all focused on providing the best quality bakery products, fresh produce and meats, condiments, packaged foods, cheese, specialty dairy products and fine wine (Apollo Group, Inc., 2011). Kudler currently uses a retail management system that includes a point of sale (POS) module for cash sales, QuickBooks software for payroll functions, Microsoft Access as a customer database, an Excel spreadsheet as an inventory tracker, and several other specific-area modules required to operate the system. Although the current software addresses most of Kudler's accounting information system (ACI) needs, team A recommends installing a new system that would centralize major accounting functions and automate some processes the company currently performs manually (Apollo Group, Inc., 2011).
When choosing new accounting software, most companies have several options. These include custom solutions, Enterprise Resource Planning (ERP) software, and industry specific AIS. Team A recommends Kudler purchases an industry specific solution for several reasons. There are numerous businesses, for example Whole Foods, Wild Oats and Trader Joe’s that similar to Kudler specialize in offering high quality organic foods. These companies are successful, and have been in business for a much longer time, which means Kudler is able to research the type of software these companies use, and choose one that will best fit the company’s needs (Visco Venture Information System, 2005). Furthermore, purchasing an industry specific software may save Kudler a great deal of money required to hire a consulting firm in order to develop specific software, a Software Architectural company to design the software, and an IT firm to put it in place. In addition, Kudler will possibly have to sign a service contract with these companies for any repairs, maintenance or performance enhancements required to keep the software functional. An industry specific software, in contrast, will not require such contract as the manufacturer of the software is usually responsible for handling these types of issues. Any costs for updates or repairs should be minimal when compared to the amount of time and money it will cost Kudler to maintain a team of professionals. Furthermore, any malfunctions that have been encountered in using the industry specific software most likely have already been repaired, which means the software is up-to-date and ready for use (Visco Venture Information System, 2005).
Team A recommends automation for three main areas of Kudlers accounting. First, the recommendation for Kudler is to integrate the inventory into the software so the ordering process is simplified, which allows the store managers to focus on other functions of the business. The inventory system will work off a Just in Time (JIT) ordering system which will allow Kudler to maintain proper amounts of product while helping to eliminate costly waste. JIT will allow orders to compile by need until they are approved and placed. The inventory system will also keep track of inventory trends by day of the week, time of month, seasonality, and relationship to marketing and advertising campaigns (Bagranoff, Simkin, and Strand, 2008).
The second area for AIS changes is company information communication. The new AIS system will utilize dashboards on all company computers. According to Bagranoff, et al (2008), digital dashboards and scorecards are essential tools for organizations to monitor a wide variety of business processes. Employees, managers and officers of Kudler will be able to track daily information required for the decision-making processes they are responsible for.
Lastly, the new AIS system will automate the payroll system to eliminate outsourcing. Payroll will be completed in-house to eliminate the extra steps involved in reporting, as well as multiple entries. The new system will allow communication between human resources, time entries, payroll, and accounting. The system will be similar to company’s current arrangement, and therefore will require minimal training to transition.
Ultimately, through implementation and use of the new software, Kudler will be able to save time and money, as the system will be less expensive to purchase, maintain and update. The new AIS system will also add value to Kudler and the overall accounting system by automating more processes. The system will utilize dashboards for better decision-making and information. Payroll and inventory will work on an automated system that will help eliminate waste and unnecessary work. The new AIS system for Kudler will create a more profitable company through greater automation and easier processes.

References
Apollo Group, Inc. (2011). Kudler Fine Foods. Shopping the World for the Finest Food. Retrieved from ACC/542- Accounting Information Systems.
Bagranoff, N. A., Simkin, M. G., & Strand Norman, C. (2008). Core concepts of accounting information systems (10th ed.). New York, NY: Wiley.
Visco Venture Information System. (2005). 5 Advantages to Using Industry specific software. Retrieved from http://www.ventureinformationsystem.com/secondary/documents/5AdvantagestoUsingIndustryspecificsoftware.pdf