BUSINESS REQUIREMENTS

FAISAL SANITARY FITTING

GROUP MEMBERS:
Umair Ali 15140019

Smama Marsad 15140003

Muhammad Umer 15140024

 Business Requirements

Background

Faisal Sanitary Fitting Industries (pvt) Ltd. established in the year 1974 is one of
Pakistan’s leading manufacturing company for bathroom sanitary fittings. Its
product range comprising of C.P. fittings and fancy bathroom accessories are of
high quality standards which are accepted as a prestigious product and captures
55/60% of the country’s sale.

Business Opportunity

Efficiency
Computerized financial information systems are faster and more efficient in
processing data. The use of hardware such as scanners automatically generates
accounting information without much difficulty. The information is available
almost immediately. The cost of hardware such as computers is low and the
availability of cheaper and user-friendly accounting software makes accounting
information systems affordable. Computerized financial systems enable users to
access it promptly by the click of a mouse. Unlike manual, which by the way is still
very much in existence as some companies want to keep both electronic and manual
accounting information systems, the user does not have to go through a pile of
paper work in order to locate the information he needs.

Cost Effectiveness
The software does most of the work that would otherwise require several
employees. The accounting software can journal and prepare documents such as the
trial balance. Journals and ledgers are recorded in the computer data bases.
Accounting information systems help cuts the payroll for accounting staff
substantially.

Business Objectives
 Financial Objectives
Growth in company revenues and earnings. Such as 15 percent growth in
revenues and earnings within the next 12 months. Increasing capital and
investments, such as attracting new shareholders and investors by improving
credit worthiness and cash flow.

 Sales and Marketing Objectives

 Lower costs in respect to competitor pricing to attract a new class of
buyers, or to introduce a new product line to appeal to a broader
demographic.

 Human Resources Objectives

Reduce employee turnover by 20 percent by introducing a new employee
assistance program. Improve productivity by implementing a company-
wide training program.

 Customer Service Objectives

Reduce delivery and distribution time of products and services. Another
could be to reduce the number and frequency of customer returns and
complaints, or to improve the response time of client inquiries.

Success Metrics
Vision Statement

Business Risks
The benefits of accounting information systems are obviously immense. But there is
also a downside such as losing information if the system is attacked by computer
viruses. Of courses anti-virus software has improved, but no computer or computer
system is 100 percent immune from virus attacks. The other problem is power failure.
When that occurs information could be lost if not properly saved. The computerized
information systems are also prone to fraud if there are no proper internal and external
controls.

Business Assumptions and Dependencies

Assumptions
 Consistency assumption
The same method of accounting will be used from period to period,
unless it can be replaced by a more relevant method. If this assumption
is not true, the financial statements produced over multiple periods are
probably not comparable.

 Economic entity assumption

The transactions of a business and those of its owners are not
intermingled. If this assumption is not true, it is impossible to develop
accurate financial statements.

 Reliability assumption
 Only those transactions that can be adequately proven should be
recorded. If this assumption is not true, a business is probably
artificially accelerating the recognition of revenue to bolster its short-
term results.
 Time period assumption
The financial results reported by a business should cover a uniform and
consistent period of time. If this is not the case, financial statements will
not be comparable across reporting periods.

Dependencies
 The design and use of a management accounting system is related to overall
characteristics of the organization.

 A management accounting system is one element in a package of control

systems.

Scope and Limitations

Major Features
 System should have a fast and modern user interface.
 System should generate automatic alerts when things not happened according
to plans.
 Ability to reconcile a payment with several invoices using a button on the
payment form.
 System should support online payments with credit cards
 System should have customer portal where customer can track their order
status, invoices, and payments.
 System should propose emails, follow-ups letters, and tasks automatically to
ease credit collection process.
 System should generate clear reports on customer statements and navigate
easily through the documents to understand every customer use case.
 System should forecast of your future bills to pay.
 System should Track employee expenses, from the recording by every
employee to the validation and reimbursement.
 System should keep track of deposit tickets to ease the bank reconciliation
process.
 System should update currencies rate automatically every day.
 All reports must be full dynamic allowing you to navigate easily.
 Customers can change their plans, order upgrades or downgrade /
unsubscribe through the customer portal.
  Salesperson gets automated alerts when contracts have to be renewed.
 System should be able to track budget and compare actual performance with
different budget.
 System should create customer invoices automatically from sales order, tasks
or delivery orders.

Limitations
 Based on Records
The management accountant takes into consideration the past records
provided by the financial and cost accounting while making decisions for
the future.

 Lack of Knowledge and Understanding

For taking a sound decision it is necessary that the management must have
knowledge of various fields like accounting, statistics, economics, taxation,
production, engineering and so on. But it has been observed that the person
who is taking the decisions may not have comprehensive knowledge of all
such subjects.

 Intuitive Decisions
Though it has been realized that scientific decisions must take into
consideration the quantitative techniques yet because of simplicity and
personal factors, the management has a tendency to persistence intuitive
decision-making.

 Lack of Continuity and Coordination

In order to make the conclusions drawn by management accountant
meaningful, they must be implemented in the organization at various levels.

 No Substitute of Administration
The techniques and tools suggested by the management accountant are not
alternatives or substitutes of good administration but in fact these are only to
supplement the sound management and administration.

 Lack of Objectivity
There is every possibility of personal bias and manipulation from the
collection of data to the interpretation stage in financial accounting. Thus, it
losses objectivity and validity.

 Unquantifiable Variables
There are various problems in business which cannot be expressed in
monetary terms. Such problems cannot be interpreted for the future.
 Costly
The installation of management accounting system in a concern requires
large organization and a wide network of rules and regulations and thus
requires a heavy investment.

 Not in Final Stage

Management accounting has not reached the final stage and is in the process
of development. That is why its techniques suffer from fluidity of concepts,
diversity in opinions and various interpretations.

 Psychological Resistance
For introduction and operation of management accounting system in any
organization, it requires a lot of changes in the organization structure, rules
and regulations.