Effective information systems are essential to productive business. How a system is organized is important in determining efficiency. Managing a balance between cost and accuracy is one of the biggest problems that a company faces. There are advantages & disadvantages to having a single person performing multiple activities in a specific process. A single person working on multiple activities helps reduce errors and confusion as well as provide a better understanding of the reason for certain activities in a process. The employee will then be better able to find and correct mistakes. Unfortunately, a single person means that there is no one to check data for accuracy and integrity. Errors can occur more easily without a second look. There is also the risk of not having someone to complete an entire process if that single person is absent from work.
In order to secure growth, implementing new processes to ensure accuracy is a must while balancing cost and accuracy. If the start up costs of the process are too high, and the return too low, then the venture is not the best choice. An example would be using swipe cards for tracking hours and timesheets as it provides an internal control at an amenable cost while still retaining employee trust and reducing timesheet errors and fraud. Every business wishes to increase its bottom line. This, in part, requires the protection of its assets. In order to help Ramos International minimize expected loss in the upcoming year, it is important to prioritize its assets related to the specific risks and exposure to loss for each.
This helps accurately identify the necessary controls and available options to safeguard such assets. This can be managed by determining if the return from implementation of a system is worth the cost associated. The effective use of information systems is essential. The ability to balance both the cost and accuracy of implementing information systems will help to ensure a business’s success and longevity. As in all businesses, Ramos will need to find the right way to successfully organization and delegation of tasks in their system.
Bagranoff, N.A., Simkin, M.G., & Norman, C. (2008). Core Concepts of Accounting Information Systems (10th ed.). Hoboken, New Jersey: John Wiley & Sons, Ltd.