Computerised accounting system can benefit small business because all the transactions can be made by computer. Small business owners face the task of ensuring their accounting procedures are as accurate and efficient as possible. The best method they could use is computerised accounting system that can help them to record transactions more quickly than any manual processing. Complexity, value and volume Computerised accounting system can benefit them because it is an automatic document production, speed, accuracy and update information. Cost savings can be computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate.
From 2002 to 2006, Whole Foods’ management team decided to drive growth by opening 10 to 15 large stores in metropolitan areas each year. Their stores range from 40,000 square feet to 70,000 square feet which were on the same scale as larger supermarket chains. Due to the economic conditions that hit in 2008, the company had to scale back their new store openings. In order to keep opening new stores in profitable areas, management will have to research and target each new opening into areas where Whole Foods can offer their products to willing buyers. Keeping these stores located in larger metropolitan areas will reach more potential customers who are willing to pay the price for organic
After two straight years of financial losses in 1994, CEO Ron Allen rolled out a new strategy called “Leadership 7.5.” Allen targeted to reduce Delta’s cost per each available seat mile from more than 10 cents to 7.5 cents, which would match that of major competitor Southwest Airlines (Bryant, 1997). Along with a new company strategy a change followed with Delta’s human resource strategy. This changing policy devastated employee morale and resulted in a decline of customer service, efforts to unionize, and dissatisfaction among personnel. Delta couldn’t keep the past primary policy about human resources so there were several significant changes in Delta’s organization and corporate culture. There are many programs that Delta has built after passing through the cost-cutting reformation in 1997 for getting back its capabilities on customer relationships like rewards and recognition program above and beyond and more.
Even though the prime focus of these systems is not necessarily to cut labor costs, often times they can improve efficiency. Store cashiers do much more than just point of sale transactions. They ensure that the store is stocked, clean, and up to date with all products. (Especially perishables) “Self-checkout can allow more time for convenience store employees to handle these additional transactions and activities” (Murphey, p.
As a result, newspaper circulation fell by 17 percent due to revenues from display advertisement that have plummeted as many marketers engage customers via social media, Internet ads, special events, daily deal sites, and other promotional methods that sidestep newspapers. Consequently, The Wall Street Journal suggestions for price elasticity of demand for its products in digital editions is to try to find pricing approaches that made sense for its situations. In this way, being a national new paper that covers general news politics, economics, investments, the arts, and lifestyle trends that most people need to follow the latest happening in their field and stay updated on world events to pay a yearly amount to access their website. For his manner, the Journal believed it offered a long-term value that they wouldn’t appreciate if they could pay for content by the content or by the week sense they are not providing news instead they are providing a completive advantage tool. Likewise, the Journal site’s loyal and lucrative subscribers base, a growing number of major advertisers are willing to pay to reach audience online, which contributes millions more to the newspaper’s bottom line.
Macy’s decreased its purchase of inventory and property and equipment and decrease disposition of property and equipment year by year. The cash flow changes of property and equipment are difficult to evaluate because the company opens and closes several stores each year. The cash used to capitalized software increased each year, which maybe a good investment because it could help the company generate more website sells. In 2006, Macy’s got $1,887 million from proceeds from the disposition of After Hours Formalwear and Lord & Taylor, which caused a cash inflow from
Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales.
Using the transaction processing system makes product transactions easier to monitor and track which makes it easier to place orders and monitor how inventory sales are going. They system is able to keep accurate accountability for each product as it is sold, create invoices for orders, and reordering product. Having this system in place is critical because without it there can be data errors from numerous areas. There could be accounting issues such as invoices being paid multiple times, invoices not paid at all, transactions not accounted for, or financial statements not calculated correctly due to missed information. The importance of monitoring all the transactions coming and going from each location plays a key role in maintaining not only accuracy in inventory but also accuracy with the general ledger.
They also faced increased operational expenses of selling, general, and administrative costs by 0.49%. Perhaps the biggest impact on their profit margin is the cost of revenues that were associated with their sales, an increase of 0.92% which affected their EBITDA (Earnings before Interest Tax Depreciation and Amortization). Overall, these show operating expenses as a key issue for the company as the operating income shrank by 2.72% in just a two year period. When analyzing the whole foods balance sheet in common size it shows they have been reducing their short term debt. In 2007, they reduced their current installments of long-term debt by 0.76%, accounts payable by 1.61%, and other current liabilities by 1.35% in just a year as portion of their Liabilities and Shareholders’ Equity.
There are several parallels that lead us to believe that history may be repeating itself. Today’s U.S. economy is producing 2.2% more goods output then before the economic recession started in the late 2000’s, but with 3.8% fewer workers. This can be attributed to our modern day recession stimulating huge productivity and efficiency gains as business let mediocre employees go to save on labor costs. They have learned to do more with less. Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs.