Question

Asia Ria Restaurant is a rapidly growing Malaysian manufacturer that meets consumers’ needs in providing Asian local frozen authentic cuisines. Every day, the restaurant received large orders of food requests from all states including Sabah and Sarawak. As its business expanded in recent years. Asia Ria Restaurant finds that its traditional accounting record-keeping system could no longer cope with the quick pace of sales account movements. When its business branches expanded, more sales transactions need to be handled along with asset accounts, liability accounts, operating accounts, equity accounts and revenue accounts. Mr Rafie, the owner plans to resolve this and upgrades its traditional systems to an integrated accounting system that standardizes the procedures and interconnects the reporting activities of different functional accounts of the restaurants. Explain how these changes might affect the technology, people and structure of Asia Ria Restaurant and its branches.

Answer 1

The implementation of an integrated accounting system at Asia Ria Restaurant would bring about several changes in terms of technology, people, and organizational structure. Here's how these changes might affect the restaurant and its branches:

1. Technology: The adoption of an integrated accounting system would require the implementation of new software and hardware infrastructure. This would involve procuring accounting software, servers, and other necessary equipment. Additionally, the system would require data integration and connectivity across different branches, enabling real-time reporting and data sharing.

2. People: The transition to an integrated accounting system would necessitate training and upskilling the employees who handle financial and accounting tasks. They would need to learn how to operate the new software, understand the standardized procedures, and adapt to the changes in reporting activities. The restaurant might also need to employ or assign dedicated IT personnel to manage and maintain the new accounting system.

3. Structure: The implementation of an integrated accounting system would likely lead to changes in the organizational structure of Asia Ria Restaurant. The centralization of accounting functions and the standardization of procedures would require clear lines of communication and responsibilities between different branches and departments. The restaurant might establish a centralized accounting department or designate a financial controller responsible for overseeing the system's operations and ensuring compliance.

Overall, these changes would streamline financial operations, enhance data accuracy, and improve decision-making processes at Asia Ria Restaurant and its branches. The integrated accounting system would enable better coordination, reporting, and control over sales, assets, liabilities, operations, equity, and revenue accounts, supporting the restaurant's growth and expansion.