2019-

2020

Information
Technology

INTERNAL ASSESSMENT
VIVIEK PERSAUD
Table of Contents
Problem Definition......................................................................................................................................2
Gant Chart...................................................................................................................................................3
Analysis of the Problem..............................................................................................................................4
Questionnaire...........................................................................................................................................4
Interview.................................................................................................................................................5
Identification of possible solutions..............................................................................................................6
Evaluation of Possible Solutions.................................................................................................................7
1. Electronic (Computerized) Database System...................................................................................7
2. Online Only Management System...................................................................................................9
Justification of Solution.............................................................................................................................10
Problem Definition

Technology has become of major importance in today’s society, providing advantages to

individuals as well as businesses. However, some businesses, such as West Coast Customs, tend
to not realize these advantages as they usually record inventory information using manual
methods. This leads to issues, such as the business failing to keep track of inventory on time
resulting in loss and mismanagement of stock which also leads to a decrease in profit.

The researcher aims to design an easy to use database layout that can easily accept, store,
calculate and output data so that small businesses would have less hassle in recording
information, and would be able to easily keep track of their inventory. The aim is to create a
database than can easily keep track of the buying and selling of stock, preferably using the ‘First-
in-First-out’ (FIFO) accounting method to help decrease mismanagement of stock in the future.
Gant Chart
1-NovStart 6-Nov
Days to 11-Nov 16-Nov 21-Nov 26-Nov 1-Dec
Tasks
Date Complete
Identification of Problem

Identification of Problem 1-Nov 2

Construction of Questionnaire and Interview
Construction of
Questionnaire and Interview 2-Nov 3
DistributionDistribution
of of Questionnaires
Questionnaires 5-Nov 8

Interviews Interviews 6-Nov 1

Analyzing collected data
from Questionnaires
Analyzing collected data from Questionnaires 15-Nov 5
Analyzing collected data
from Interviews 15-Nov 2
Analyzing collected data from Interviews
Identification of Possible
Solutions 21-Nov 3
Justification of Solution
Identification of Possible Solutions
25-Nov 2

Justification of Solution
·
Analysis of the Problem
Questionnaire
A questionnaire was distributed to 15 persons who worked at various small businesses. From
analyzing the results of these questionnaires, the following results were noted. Also, no two
persons from the same business were given a questionnaire.

Of the 15 people asked, 11 of them responded to question 3, which is 73.3%, by stating that their
employer, the owner of the small business was the one to overview the entire inventory of the
business. Only one person said that they could overview the inventory. From this it can be
deduced that a rather large majority of small business owners would rather keep track of their
inventories themselves rather than have their employees do it. Though it should be noted that in
question 4, when asked why they were not allowed to overview the stock, 13 persons simply
stated that they did not have the experience.

In question 5, when asked 7 persons (46.6%) of persons said that inventory rarely ever went
missing. 4 persons said that it occasionally happened whilst 3 persons said it had a tendency to
happen often. In question 8, 60% of persons said that inventory management led to the business
having to increase expenditure.

When asked, 60% of persons said that they were slightly interested in having the business move
to a computerized system and 80% believed that having a proper computerized system to manage
inventory would be able to help improve the business and its functionality.

The reasons questions 4-9 are important, is because from the results we can see that inventory
mismanagement is a thing that affects small businesses on a somewhat normal occurrence. While
this can also happen to larger businesses as well, small businesses can be more affected by it
because they have a lower, more limited capital, and even the smallest inconveniences can affect
them, whilst larger counterparts would just brush it aside. The results show that persons are
willing to change their styles if it means that it would help them operate, and they believe a
computerized system would actually help them improve.

Interview
When conducting this research, two owners of different small businesses were interviewed and
asked the same five questions each. When asked how long they have owned and operated their
own small business, both respondents simply replied with a couple years. After being asked, the
respondents implied that their employees had access to their inventory most of the time,
however, one of the respondent said that they kept a ‘keen eye’ on whoever went to check on
inventory, which eventually led to always questioning employees on why they were in the stock
room. This basically meant that the owner would run a system in which some sort of permission
would need to be given in order to access the storage room. Interestingly enough, whilst one
respondent was trying to be as careful as possible, the other had a carefree approach on how their
employees accessed their inventory, as they could go as they pleased. The reason for this can be
deducted from their answers from question 3, in which the stricter respondent said that he often
has cases where things go missing or are misplaced and destroyed, whilst the carefree respondent
said that all that ever happens is that inventory is rarely mismanaged which leads to it being
damaged.

In question 4, when asked about the results of inventory mismanagement, the results of the
respondents were identical, in which they said it often leads to major distrust and rivalry among
the employees. They also stated the obvious, in which the business would have to spend more in
order to replace the now lost or damaged goods.

When asked, both participants in this interview said that their business uses the traditional
manual methods of recording stock. However, it should be worth noting that one of the
respondents said that they were using an online application to record data, but decided to switch
for unspecified reasons. When asked on how they feel about a computerized method to record
inventory, the respondents had different reactions; one said it sounded like an interesting idea
whilst the other basically said he was skeptical about the proposed system.
Identification of possible solutions
After conducting a research, the following were selected as possible solutions:
1. One method is to use an electronic database system to record inventory ‘movement’, such
as sales and purchases.
2. Utilize an online only management system to record inventory which can be accessed
through any device connected to the internet.
3. Record inventory using the traditional methods of bookkeeping, recording date, etc.
However, a computer system will be utilized to calculate the cost of inventory when
selling it. This allows for easier budgeting when buying and selling.
Evaluation of Possible Solutions
1. Electronic (Computerized) Database System
The idea for this solution is simple; classical methods of recording data and bookkeeping
shows how dated it is when a business starts to get larger and larger, as the constant
introduction of new accounts and constant changes to old ones means that there are going to
be more things to micro-manage, and as such, for small businesses especially, it can become
quite tiresome trying to record data accurately. A computerized system simply means to
digitalize all of the relevant data, storing it all on one hard drive rather than multiple books as
accustomed to.

Advantages of this method

i. It is far easier to manage data, as well as finding and cross referencing it. Compared
to traditional methods, which require a number to reference in which book and on
which page to find the desired account, computerized systems also have their
reference numbers serve as links to instantly go from one location to the next,
basically making it a faster method if utilized correctly.
ii. This method is cost effective; as the requirements for it are decently low since it
mostly can be utilized on lower end and cheaper computers. This can also count as a
one-time purchase, as very little money is needed to sustain the system itself, with
most other costs, such as internet fees or machinery such as receipt printers being
counted as optional and can be incorporated over time as the business itself grows.
iii. This method allows for collaboration. Information can be shared with other
accountants and businesses so that certain information may be verified.
iv. If the person in charge of bookkeeping is decent enough with this system, there will
be a noticeably drastic decrease in the amount of errors in the accounting process.
v. If the business owner truly wants their business to increasingly grow in size, this
method is recommended. Basically, this allows the business to slowly but gradually
phase in computerized systems in its core processes rather than make one big sudden
change. Computerized systems are preferred in larger businesses over manual
 because it leaves less room for errors and allows for more security, among other
things.

Disadvantages of this method

i. The person in charge of documenting information and upkeeping the books will now
need to be proficient in both basic accounting as well as have basic computer literacy
to interact with the system. While this isn’t a high requirement by modern standards,
failure to meet it would result in more chaotic errors compared to the traditional
system, such as incorrect and irrelevant information being entered in the wrong place
or not properly being recorded at all.
ii. Using computerized systems in any field comes with the having to deal with the risk
of technical errors. From power outages, to hardware malfunction, to buggy software,
all become added unwanted risks the business now has to deal within its financial
sector.
iii. Power outages or system failure can either result is loss of data if not backed up
properly, or just inability to access the data. This is one of the largest disadvantages,
as it sacrifices accessibility for mobility, and can sometimes be the one determining
factor in whether or not a business will stick with manual or switch to computerized.
Unless time is take to ensure data is properly backed up after every alteration, data
loss or malicious alteration could severely affect a business.
2. Online Only Management System
Utilize a system where all of the bookkeeping and accounting processes are done online, and all of the
relevant information is also stored online. This removes the need for any physical method of
recording data and can be done on any device as long as it is connected to the internet. This can
truly only be achieved on cloud-based services that businesses can register on, that allow for
accurate calculations of transactions, as well as automatically updating the relevant accounts.
Advantages:

Information can easily be accessed on any device as long as there is an internet connection. This allows
for the easier utilization of an external accountant, which would only be suitable for larger businesses.

The price can be rather affordable depending on which program you choose.

Online cloud services tend to be heavily secured.

Most online only programs tend to also offer other services in relations to accounting.

Disadvantages

The accountant will need to familiarize themselves with the layout of the cloud service, as each one has
their own different optimizations.

There are a large variety of online accounting services, and in comparison some can be extremely
expensive in comparison to the lower budget ones, so if the proper research is not done, one could find
themselves quite possibly bamboozled at the amount of choices there are to choose from.

A Hybridized System
Information is recorded normally, however an online or local database system is used to calculate inflow
and outflow of inventory

Security bandwidth
 are: high speed and mobility of reporting, reliability, no routine work, increased accuracy,
internal control system of increased productivity, easy back up and restoration of records;
the disadvantages include: extremely high costs on developing, introducing and using the
system, special trainings for personnel, increased personnel costs, dependence on
machines etc.

Obviously both computerized and manual accounting have advantages and disadvantages
but they perform the same task, and the final result is the same. The main differences
between them are the costs Health Fitness Articles, speed and mobility.

Thus, small and medium businesses usually prefer manual accounting without detriment
to quality while large corporations apply complex accounting systems which cost
millions dollars but the effect from their application exceeds all the expectations.

Among the advantages of manual accounting there are:

comparatively cheap workforce and resources, reliability, independence from machines, skilled
workers availability; the disadvantages include: reduced speed, increased effort of accountants,
relatively slower internal control reporting, routine work and some others.

Cloud accounting is the way the accounting industry is heading. This is no surprise due to the
benefits offered though user accessibility, efficiency and safety. To make the best decision for
your business, ensure you evaluate all the options available and ensure your data is sufficiently
protected before heading straight to the cloud.
Justification of Solution
In terms of a small business that is now developing