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PROBLEMSTATEMENT Background Buttonair a textile wholesalerand retailer founded in 1962 byMrs. DoloresSinfuego at Tondo, Manila.

It later expanded to include other items like buttons as part of its merchandise inventory and in 1997, the businesstransferredtoTutubanPrimeBlock,Divisoria,whichisitscurrentlocation. All of the financial transactions ofthe companyare recordedmanually. There isno formal procedure wherein data is collected and processed to useful information that can be of use by the business owner. Although thecompanyhasanaccountant,hispresenceisonlyfeltduringthetaxseason. On the purchasing side, orders for inventory are simply made when the level of inventory is deemed to be low enough already. Moreover, the shouldbe level of inventory at any given point in time is not knownwith certainty because there is no procedure that records the reduction of inventory upon every sale made. The business has no means to accurately identify its bestselling items that can be of great use in inventory planning. Internal control over cash receipts and disbursements is of great concern as well because the business is notabletocarefullyexaminewhencashgoesintoandoutofthebusiness. ProblemStatement How can Buttonair Inc. improve and streamline its business operations in order for the company to better manageitsrevenues,expenses,andcashflows? Solution: ButtonairAccountingInformationSystem ProposedStructureoftheSytem: 1. FinancialReportingSystemgenerationofmanagementreports 2. TransactionProcessingSystemrecordingandprocessingoffinancialtransactions a. Expenditure i. PurchasingModule ii. BillsProcessingModule iii. PayrollProcessingModule iv. CashDisbursementModule b. Revenue i. SalesProcessingModule ii. CashReceiptsModule Conclusion Upon implementation of the proposed Buttonair Accounting Information System, recording of transactions will be made easier. Data recorded into the system can be quickly converted to meaningful information, in the form of daily, weekly, or monthly reports, allowing Buttonair to have more effective and efficient operations.