Strategic Information Systems for Business Enterprise

Executive Summary of Harda Fashion Accounting Information System Analysis

The current report highlights a case study of HARDA fashion. It has its business operation in the USA that provides readymade clothes for teenagers. Further, the report emphasized an accounting system’s strength that is adopted by the chosen business for the purpose of controlling transactions related to sales. It has been found that inventory management, tracking customer transactions are the strengths of HARDA’s system. In addition to this, there are certain problems avoided by the selected organization to increase fraud within a business. In the last section, it has been analyzed that a distributed system is more common among companies while compared with a centralized system.


Executive Summary.



HARDA’s system strengths.

Problems avoided by HARDA fashion.

Pressures faced by HARDA fashion.

Companies adopt distributed system than centralized one.



Introduction to Harda Fashion Accounting Information System Analysis

In the modern era, accounting information system (AIS) is used by every organization for the collection, storage, and retrieving financial data and information that can be further used by managers, auditors, etc. for making a decision for the future. It is a data processing system that is designed with the help of software. It has been identified that information from the accounting system is used by employees, managers, and external users of the business (Gholami and et. al 2016). AIS comprise five basic principles, such as compatibility, relevance, accountability, control, and flexibility. There are different sources present through which accounting information can be gained that include packing slip, bank statement, supplier invoice, and credit card receipt.

The current report reflects on a case study of HARDA fashion. It has around 20 stores in the northeastern part of the USA. It uses unsophisticated cash registered along with four parts sales invoices for recording financial transactions. The report includes the stability of HARDA’s system and the problems associated with it. It also includes situational pressures through which an increase in fraud can be catered.

Analysis of Harda Fashion Accounting Information System Analysis

1. HARDA’s System Strengths

An effective inventory management system is one of the strengths of HARDA’s system through which inventory can be managed in an easy manner by the company. It has been observed that with the help of this system, sales transactions can be easily recorded along with certain details such as the price of a unit, description, item number, etc. In addition to this, through this strength company can be able to manage its stock on a real-time basis as it provides an insight related to stock that is available within its store for sale (Lansing and et. al 2019). Apart from this, EOQ (Economic Order Quantity) can also be evaluated through this system within HARDA. Along with this, the number of units of a particular type of clothes can also be gained. 

Moreover, it also helps in analyzing the outflow of clothes from the selected business. Customizable reports are easily available as it is also strength of HARDA fashion. It has been observed that through this system, daily reports can be prepared along with a recording of daily sales transactions by the cashier. The report involves business activities and operations of the organization of a given period. This supports improving the company’s performance for a longer period of time. It is important for businesses to make reports so as to gain an understanding related to activities that are being carried out within the business. HARDA fashion can also be able to make an effective decision for the company through these reports. It also provides an insight related to daily sales through the sales volume of the business can be determined in an efficient manner. Apart from this, it also caters to forecasting sales for the future that provides reliable and accurate results in the end.

The effective reconciliation approach is the third strength of HARDA’s system that helps in reconciles cash sales along with credit cards and bank cards. It has been noticed that the reconciliation of accounts is the most important aspect of determining the financial position of the company. In addition to this, cash and credit sales information is kept by the cashier of the company (Fatih, Hammed and Hasan, 2017). This helps in reconciling records of chosen business along with determining sales amount for the future. It is necessary to consider financial records and information so that it further supports in meeting current and future trends in the marketplace.

Tracking customer transactions is the fourth strength of the HARDA information system. It is mainly based on determining records of sales by the cashier that provides an understanding related to the total sale of a business. In addition to this, the system also caters to tracking transactions that are made by customers for purchasing clothes from the business. Copies of receipts are also taken by HARDA fashion through which it can evaluate the mode of payment that is carried out by customers at the time of purchasing. This provides an idea related to a customer’s payment preference so that further it will be helpful for the organization to achieve success.

Furthermore, it has been determined that HARDA’s system helps in identifying commission and omission errors at the time of recording of a sales transaction. Through sales, book reports can be filled by cashier in an easy manner for each transaction that is being carried out within the business. Here, the assistant manager of the company can identify the error that can be further replicated with the use of the software. This can be catered as in case if the sales book did not reflect the amount that is recorded by the cashier, then the manager will able to determine the error in between transactions that are carried out in the organization.

HARDA system also provides financial information and data, so it is another strength that helps in meeting organizational goals and objectives for the future (Lungu, 2020). It has been evaluated that information related to sales and invoicing records help the company through which volume of sales can be gained and further it contribute towards preparing financial statement at the year-end by the firm.

2. Problems Avoided by HARDA Fashion

It has been identified that at the time of considering the accounting information system, problems may arise at the time of its implementation within the business. This can be further explained as below:

Effective inventory management 

The main problem of the selected organization that it avoids with this strength is associated with stock out errors at the time of data entry. It has been found that with the help of the HARDA system, the movement of each unit of cloth can be determined that influence is avoiding stock-outs within the business. Here, the assistant manager indulges with the cashier for identifying the cloth type that is needed for supply in the marketplace (Zhu and Kouhizadeh, 2019). This system caters to recording information related to the sale of clothes and also prevents problems at the time of entry in the spreadsheet.

Customizable reports 

It has been noticed that this system supports in avoiding the problem of handling bulky data. In this case, the assistant manager of HARDA fashion prepares reports along with the daily details provided by the cashier related to the recording of the transaction. It has been found that it is not an easy task for the company to handle bulky data as it further leads to create a loss in the transaction details. Reports that are prepared on a weekly basis can further affect the loss of information that is the most important concern for the company to manage for the future.

Reconciliation approach 

The chosen business avoids problems related to falling victim that involve unauthorized financial transactions with the use of a cash register within the business. In this case, if transaction details are not reconciled in a proper manner, then it creates problems related to fraud that can occur likely within the business. The system of maintaining a cash register in HARDA ensures that each transaction is reconciled or not by the cashier of the chosen organization. If records are not reconciled, then it will have a greater impact on the accounting activities of HARDA fashion.

Tracking transaction of customer 

It has been noticed that HARDA fashion avoids problem-related with customer complaints along with returning the product by the customer through the use of an unsophisticated cash register. This can be explained as if cloth returned by the customer, then the sales assistant of the company can be easily determined the sale of the product. In addition to this, the cashier of the company provides actual details about the product as here it avoids problems related to the return policy of the company (Wiener and et. al 2016). Apart from this, it also helps in tracking the consistency of customers related to frequent purchases by them with the firm.

Determining errors 

It has been evaluated that problem of omission and commission is considered as most common among businesses. The errors that are identified have an adverse effect on the financial information and data of the organization. On the other hand, if errors are not detected, then it affects business activities and further influence business operation. The errors can be avoided by executing a cash register by HARDA fashion through which a manager can be able to evaluate errors in the company.

Financial information and data 

In this case, HARDA fashion avoids the risk associated with maintaining inaccurate financial reporting with the use of a system that helps in providing updated financial data to the users. It has been observed that financial reporting is a necessity for a company that is also involved in developing a cash register through which the company able to prevent the problem of preparing a financial report that is not correct.

3. Pressures Faced by HARDA Fashion

It has been evaluated that the selected organization has to face certain pressure that influences its operational activity. Severe inventory obsolescence is the situational pressure as it is catered within HARDA fashion. It is considered an important aspect that if inventory is not sufficient, then it influences the sale and profitability of the company in the future. It can be said that pressure from the market influence business activities (March and Scudder, 2019). This is the major concern of the company to meet the requirement of the customer and their needs as well. It is necessary to inculcate and create change at the time of managing inventory within the organization.

Moreover, it has been noticed that inventory obsolescence is considered as the biggest loss for the firm as it influences business operation. If there is a shortage of inventory, then it also reduces customer satisfaction and declined brand image in the market. On the other hand, unfavorable economic condition is also a situational pressure on the selected brand. It affects the sale of the business and creates a problem for the company to sustain in the market for the longer term. In this case, a different situation arises, such as either inflation or recession, both have a greater impact on HARDA fashion (Ghobadi and Robey, 2017). In the inflation price of clothes increases, so it cannot be easy for every people to afford cloth of that price, so this decreases their sale. In a recession, the economy did not grow as there is no stability in the country, so people cannot buy products and services from the market. Therefore, these pressures affect the motivation and purchasing power of customers with a particular brand.

 4. Companies Adopt Distributed System than Centralized One

It has been identified that with the help of individual components distributed computing system is developed. In this system there are different commands that are catered by the organization. It can be said for increasing efficiency and performance computing model is adopted that involve software programs that are shared with different computers. On the other hand, there are various semi-autonomous components that are framed along with single command space (Chumo, 2016). It has been found that distributed system is carried and in this different computer networks are involved in it. In this case, all system is operated though single command as it controlled with main server.

There is difference in centralized and distributed system as centralized system can be handled in an easy manner while compared with distributed system is complex at the time of executing it in the company. Furthermore, centralized system is vulnerable on the contrary distributed system is stable that helps in retaining specifications within itself. It has been noticed that companies adopt distributed system because it is cheap than other systems. In order to protect business from illegal practices distributed system provides more safety.

Conclusion on Harda Fashion Accounting Information System Analysis

It can be analyzed that HARDA fashion has its operation in the USA, and it's the northeastern part that deals in providing readymade clothes to teenagers. It has been found that the information system that is adopted by the company has certain strengths as it helps in determining up to date data and information about the sales, involves effective inventory management, and also supports in the reconciliation of sales records. There are some problems that are avoided by HARDA further increase fraud within the business. In addition to this, it has been observed that a distributed computing system is more feasible for the organization as compared with a centralized one.

References for Harda Fashion Accounting Information System Analysis

Chumo, K.P., 2016. Information systems strategic alignment maturity levels: Corporate and project implementation perspectives. Information Systems, 6(2), pp.81-91.

Fatih, K.M., Hammed, A.N. and Hasan, H.M., 2017. The Strategic Information can support the Target Cost Approach to realize Competitive Advantage. Qalaai Zanist Journal, 2(5), pp.819-837.

Ghobadi, S. and Robey, D., 2017. Strategic signalling and awards: Investigation into the first decade of AIS best publications awards. The Journal of Strategic Information Systems, 26(4), pp.360-384.

Gholami, R., Watson, R.T., Hasan, H., Molla, A. and Bjorn-Andersen, N., 2016. Information systems solutions for environmental sustainability: How can we do more?. Journal of the Association for Information Systems, 17(8), p.2.

Lansing, J., Siegfried, N., Sunyaev, A. and Benlian, A., 2019. Strategic signaling through cloud service certifications: Comparing the relative importance of certifications’ assurances to companies and consumers. The Journal of Strategic Information Systems, 28(4), p.101579.

Lungu, M.F., 2020, July. The influence of strategic agility on firm performance. In Proceedings of the International Conference on Business Excellence (Vol. 14, No. 1, pp. 102-110). Sciendo.

March, S.T. and Scudder, G.D., 2019. Predictive maintenance: strategic use of IT in manufacturing organizations. Information Systems Frontiers, pp.1-15.

Wiener, M., Mähring, M., Remus, U. and Saunders, C., 2016. Control configuration and control enactment in information systems projects: Review and expanded theoretical framework. Mis Quarterly, 40(3), pp.741-774.

Zhu, Q. and Kouhizadeh, M., 2019. Blockchain technology, supply chain information, and strategic product deletion management. IEEE Engineering Management Review, 47(1), pp.36-44.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

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