BeGood Baking Supply Accounting information system

Scenario Information

BeGood Baking Supply is a small bakery supply company formed as a  closely held corporation. The company supplies raw baking materials,  paper goods, and equipment to restaurants and bakeries in three states  in the upper mid-west. Most of its business, however, is located in a  large metropolitan area. BeGood wants to increase its presence in the  region and serve five states. In fact, the owners of BeGood would like  75% of their business to come from throughout the region rather than the  current metropolitan area. In order to do this, the owners understand  they must diversify offerings and lines of business.

Currently, BeGood has a phone center where customer orders are taken;  these orders are then sent to shipping where the order is filled in its  large warehouse and shipped within four days. BeGood outsources its  shipping to a local trucking company. Once the order ships, all  paperwork goes to the accounting department where it is entered into the  accounting system. BeGood still uses the same accounting system it has  used since the inception of the company. All aging of receivables and  other analysis is done using Excel spreadsheets. Purchasing and tracking  of inventory are done solely by the warehouse manager. Invoices for  inventory purchasing are sent to the accounting department when goods  are received.

The owners at BeGood are wondering how they can utilize an online  presence and further automate its systems in order to facilitate its  growth and diversify its business. The owners may also like to expand  into the retail business.

You have been hired as a full-time staff accountant at BeGood Baking  Supply and have been given the task of evaluating and recommending a  viable accounting information system for the accounting and financial  data of BeGood in order to facilitate expansion and diversification. As  you begin your research, you realize that many departments are involved  in the information system, and communication is key.

Instructions

After attending the board of director’s meeting, you learn the  company is considering expanding into Canada and becoming a  multinational corporation. In a memo to the board chair, discuss how  multinational corporations have to set up an AIS with their foreign  subsidiaries to provide the accounting information needed to plan,  control, evaluate, and coordinate all business activities including government regulations and political climates. Also, summarize the  issues that must be addressed regarding the company going multinational,  and how that impacts the AIS for the company.


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