The company bought a Franchise from Nine Refill Solutions Singapore to be the authorized company to sell Nine products and to offer Ink refilling Services to various brands of Inkiest printers. The business started with four personnel; the finance officer who Is In-charge of treasury, the business manager who is in-charge of marketing and operations, the technical staff who is in-charge of ink-refilling and delivery, and the accounting staff who is in-charge if bookkeeping, tax compliance and accounting.
On 2009, the many added retailing of office and computer supplies’ product to its service lines. These brought significant increase to the company’s revenue as well as volume of transactions. The company hired an additional accounting staff and marketing assistant to address the Increasing workload. The company’s primary market is corporate customers.
The company’s business edge is Its high quality products like branded Cartridges, branded-original high memory SD cards, Laser-printers, Computer hardware and the like offered at a lower market price compared to Its competitors Like Dollar Computer Supplies and other computer hardware supplier, egoistic and product availability. During 2013, 70% of the company’s total assets were made up of accounts receivables and inventories. The company’s dilemma is the accurate and timely update of company’s receivables and the recording of inventory movement.
The company had experienced slow accounts receivable turnover as well as unaccounted inventory variances between the company’s book records and actual physical counts. These problems were due to lack of appropriate accounting system. In response to this, we have formulated and come up with a project that would directly address the company’s dilemma. Our project “Accounting Information System: Accounts Receivable and Inventory Management” will actually help the company In Its collections of accounts receivables and monitor accounts that are unconvertible or past due.
It will also provide the company an organized way of checking the In and out of Its Inventory. Our project, of course, without the lad of the database software will be impossible. Sweet Tree Inc. Is required to purchase and install in its system an Accounting Software that are widely available in the market provided that in the procedures and instructions of the Software the purpose of which is to monitor the in and out if its Inventory and update its Accounts Receivable that are collectible, deemed unconvertible, and are past due.
In addition, purchased and installation of the said Accounting Software will surely incur great expenses. However, in the contrary, it will provide convenience and the benefit from it will exceed its cost. Objective: Our project’s main objective is to incorporate the appropriate Accounting Information of its business. It will provide timely updates in its Accounts Receivables and Inventory balances. It would be great help to the company to know what truly lacks n them. With this, they can improve their inventory management and amend their credit policy.
Significance of the Study We all know that every company is facing internal problems especially with regards to their adopted system. And our focus is on helping the manager of this entity in gaining their knowledge on what to develop and what system to adopt so that they will not face any problem concerning inventories and receivables. This study will also be very helpful particularly to the college students who aspire to become a manager and to those who wanted to build their future businesses, which are independently lying to the trend because they are the ones who will manage the company and its available resources.
This study is not only intended for the students and management of our chosen company but, It is also address to all of the companies outside in a way that as the manager of the business, they should have also knowledge on what systems to be adopted that suits to their business operations. This study is beneficial to the following: Students. The outcome of this study will help them know the effective ways of managing the business. It may also change their outlook on how important Information Systems are.
It may serve as a basis to the students to become a better manager in the future.. Business Industry. Future businessmen who will be composed by this generation’s youth will know how to use appropriate accounting system as a profitable tool in the business world. They will know how to manage when it comes to bulk inventories and huge receivables. Company. This will help them widened their knowledge and share it to those who needs it. It helps them gain control over management. They will serve as a key for people to get rid of any losses.
They can become people who will know how to adjust their inventories and policy according to the needs and circumstances with the help of this study. In addition, this will serve as awareness for them on how to manage their inventory and collection of accounts receivable in an updated and organized manner. Scope and Delimitation The scope of this study includes collection of Accounts Receivables and accounting of collection of accounts receivables and daily monitoring of its inventories. This study is not intended for annual monitoring and accounting of its receivables and inventories.