Accounting Information for Manager

Budgeting, setting goals, forecasting challenges, and making good decisions are all part of planning. According to one senior member of management, the loss of Best Electronic Plc. was due to line management's negative approach toward accountants. The accountants had no knowledge of the computer market, its challenges, or the choices that management had to make. The corporation should recommend educating accountants in crucial facets of the electronic field so that they can thoroughly understand fundamental processes and recognize emerging challenges. According to (Schade, 2017), interviews with leaders and successful companies affirms that training employees well expedite the success of a firm.

Needs of the firm

Best Electronic Plc. should list their needs to have an efficient accounting management system. Previously, failure to file vital reports on their cash induced losses. The management could not tell the economic status of the firm and therefore failed to update their strategies to curb any probable risk. The company should list their needs to ensure that the system addresses them and prioritizes on those with high risks. The management ought to put down the important needs including budgeting, cost accounting and specific variance analysis.

Level of Expertise

Qualified staff with relevant expertise positively influence the performance of a company (Chinomona, 2013). Best Electronic Plc. should hire skilled staff to manage accounting, thus ensuring the success of the firm. No qualified accountant has ever got appointed to the board, and until 2016, only one qualified accountant has been employed. Lack of competent accountants made it difficult to obtain reliable estimates from the line of management (Epstein and Lee, 2006). Therefore, the management could neither provide relevant nor timely information.

Computerized solutions meeting the firms need.

Best Electronic Plc. incurred losses as market shares dropped in 2017. The manager could not obtain any information from the accountants and had to pinpoint problems and identify cost reduction possibilities. Having computerized solutions could have curbed the problem as the information would have been provided (Epstein and Lee, 2006). Managers need fast information on sales and profits soon after they occur to make changes and prevent unresolved problems in the flow of the business.

Organization of Critical Information

In the contemporary business environment, organizing and managing information are critical to a company's success (Pearlson, Saunders and Galletta, 2016). The management of Best Electronic Plc. is not in a position to know the beginning or predict risks since critical accounting information is not prepared and organized. Some of the managers in the firm affirmed that they lacked sufficient knowledge of unit production cost and were not in a position to pinpoint which of the previous contracts and deals had been profitable. Budgets are also no longer prepared. Budgets prompts the managers to set expectations and pass them to the lower-level management. Since all this results from the lack of organization of financial information, the firm should consider formulating new strategies aimed towards enhancing the organization of critical information.

Access control

Systems access dictates which users have authority to what information (MM Hayes, 2017). Access control should be personalized based on the number of employees in the accounting departments and their roles. Best Electronic Plc. failed to produce budgets for 2013/2014 due to lack of authority within the firm resulting in ineffectiveness. The company should consider access control to minimize the lack of cooperation among employees since each would know their role and be answerable for not performing their task.

Budget

The ability of a manager to achieve the target budget renders him as successful. Sufficient funds should be ready when required and all issues such as cash shortage should be well recorded and investigated. Budgeting aids in many processes such as planning, coordination and authorization. Best Electronic Plc. bought every new equipment which would improve the quality of the firm’s products. This often led to the company’s overdraft, high bank expenses and interest expenses. The company should establish mechanisms through which the accountants should be in a position to advice on the expenditures to avoid overspending with little returns. The firm should be in a position to plan its budget as the implementation of financial policies can be very expensive.















References

Chinomona, R. (2013). Business Owner's Expertise, Employee Skills Training and Business Performance: A Small Business Perspective. Journal of Applied Business Research, [online] 29(6). Available at: https://search.proquest.com/openview/2a43821933522a4a8071b0507406b12b/1?pq-origsite=gscholar&cbl=30135 [Accessed 1 Dec. 2017].

 Epstein, M. and Lee, J. (2006). Advances in management accounting. Amsterdam: Elsevier JAI.

 Hayes, M. (2017). Access Control: Top 5 Benefits of Workforce Access Go Beyond Traditional Security. [online] MM Hayes. Available at: http://www.mmhayes.com/top-5-benefits-of-workforce-access-go-beyond-traditional-security/ [Accessed 1 Dec. 2017].

 Pearlson, K., Saunders, C. and Galletta, D. (2016). Managing and Using Information Systems: A Strategic Approach. New York: John Wiley & sons.

Schade, J. (2017). Why Corporate Success Depends on 'Invincible' Employees. [online] Adage.com. Available at: http://adage.com/article/talentworks/corporate-success-depends-invincible-employees/141757/ [Accessed 1 Dec. 2017].