Computer Information System Brief

ACC/542

Computer Information System Brief Kudler Fine Foods operates in La Jolla, Del Mar, and Encinitas California providing gourmet meats, cheese, produce, wine, and deserts to the community. Kudler Fine Foods offers its customers a selection of fine foods from around the world as the company takes pride in providing the finest epicurean delights. During the review of Kudler Fine Foods determined the company’s needs to strengthen accounting practices and fix the technological weaknesses found with the technology and computer systems. This brief will discuss the key business and accounting information needs; strengths and weaknesses of Kudler’s current computer system and technology use; explain the opportunities Kudler has in terms of technology and provide suggestions; and evaluate the threats that Kudler may encounter with the current systems.
Computer System Kudler Fine Foods success depends on the systems three stores have in place. As each store sells meat, bakes goods, produce, cheese, wine, and dairy products, the computer system must allow managers and employees of the company to track inventory, sales, spoilage, and consumer purchasing trends. The current computer system in each store is accessible 24 hours a day, and the owner is responsible for training the employees to ensure each employee understands the daily operating system. The decision to have the owner train the employees serves as a strength because each employee will have the proper understanding of the computer system resulting in the daily operations continuing to run smooth during heavy traffic times and future growth. Management of Kudler Fine Foods needs to remember employee training is important as the company advances and implements new technology or technological advancements to the systems already in place.
Accounting Data and Technology Kudler Fine Food’s provides a variety of food selections resulting in products being accounted for daily. Currently, the data and inventory is accounted for with the point of sale (POS) terminals in the stores. The use of POS terminals to complete the sale of customer’s purchases, and record the sale of each item, the quantity sold, taxes, prices, and the transaction total. The terminals capture the data of each transaction and rely on servers or other computers to continue the transaction processing (O’Brien & Marakas, 2008). The current system in place provides various functions for managers to run sales reports that are beneficial for ordering inventory and determining what products may not be as popular as others. The downside of the current system, it does not do its job of meeting the needs of the company since the system is outdated. The growth of Kudler Fine Foods to three stores cannot be handled by the POS system as the system cannot accommodate the owner’s needs for present and future transactions and mapping. The POS system in each store does not communicate with one another resulting in more work for managers and the owner as travel to the stores is necessary to ensure the stores employees and managers are meeting the needs of the owners and company. Each POS system is a stand-alone system providing essential information in the store and does not allow the owner to access inventory, sales information, and accounting information remotely. In order to maintain a successful business and keep up with customer demands and growth, Kudler Fine Foods must update the POS system so that it can be accessed reportedly and so that each store can talk to each other to reduce spoilage, increase sales, and track trends more easily.

Security The possibility of expansion is threatened because of the out of date POS system and lack of security measures taken by the company. Kudler’s current system is password protected and has the capability to be backed up, however, financial information is still in jeopardy. The implementation of a new POS system or accounting system can easily remedy the security situation by adding more security and protection to the financial data, accounting data, and transaction data. Another area of concern is customer credit card information. Kudler Fine Foods needs to implement additional security to address the risk of the possibility of employees or outside sources obtaining customer credit card and checking information. To ensure customers information is kept private and secure, the company should implement employee passwords, employee identification numbers, restrict the number of employees allowed to access specific information and transactions, and place specific barriers on internet access. In order to limit employee internet access, the company may want to look into a proxy server as it will limit internet access to approved websites (Bargranoff, Simkin, & Strand, 2008). The proxy server will also limit exposure to viruses, theft, and hackers that are trying to obtain company and consumer information.
Strengths and Weaknesses of Technology Practices Kudler Fine Foods computer technology practices consist of strengths and weaknesses. The POS system is used to record sales, prices, taxes, and sales transactions, however; the inventory purchasing practices of the company continually seem to be a challenge for the company. Currently, the company forecasts as it allows the company to order and stock inventory based on the sales information tracked by the POS system. Although forecasting can prove to be a strength to some companies, it is not recommended for a food store as the information used to forecast can two to three years old. Most purchasing trends seem to change from year to year and holiday purchasing trends differ from year to year as holidays do not always land on the same day or date. As Kudler Fine Foods is aware, inventory management is crucial as foods may spoil costing the company hundreds if not thousands of dollars. It is recommended that Kudler Fine Foods implement a system that can track each item and allow managers to order necessary items based on the information provided from the tracking system. The importance of Kudler Fine Foods increasing the use of technology is high as it will assist with the continual growth and success of the company. The need for the company to have a strong technological system that communicates between the stores to the owner and provides various information regarding inventories, sales, and profit is imperative as this will also assist with the continuous success of the organization. The implementation of new software and technology will result in more training, an output of funding, and time, however; the new technology will help ensure the business is run efficiently and effectively. With the continuous expansion of the company, the systems placed in new stores will be able to communicate with the network resulting in management being able to spend more time interacting with employees and customers as well as ensuring the proper items are being ordered. In order to ensure the security of the company, it is suggested Kudler Fine Foods put policies in place to ensure accounting and financial information is protected. Another suggestion for ensuring security is to ensure duties are segregated and each manager has a specific roll with the appropriate access to specific systems and not all systems.
Conclusion
Kudler Fine Foods continues to operate as a successful organization and the continued success of the company will remain strong if the changes suggested above are implemented. In order to meet customer demands and industry demands, the company should implement a new POS system and keep up with the ever-changing technology. Focusing on security and protecting important financial data is important as it will help the company continue to thrive and ease the mind of the owner, consumers, and accountants.

References
Bagranoff, N.A., Simkin, M.G., & Strand Norman, C. (2008). Core Concepts of Accounting Information Systems(10th ed). New York: Wiley & Sons O’Brien, J. A. & Marakas, G. M. (2008). Management Information Systems (8th ed). New York: McGraw-Hill