Business System In Kenya
This is one of the most comprehensive business systems articles you will find online.
You will gain an in-depth understanding of how businesses have appropriated systems in Kenya. We will focus on the following.
1. What is the Meaning of Business System
2. Objectives and benefits of Business System
3. Types of business systems
Meaning of Business System
Majorly, business systems are meant to help the business organizations to efficiently achieve their goals.
A business system can be said to be a combination of policies, principles, personnel, equipment, and computer facilities that help in coordinating the many activities of a business organization.
It will establish the rules as well as the procedures of that organization, which are to be governed.
The business system will establish how data needs ought to be handled and it ensures that it is methodically processed.
The other fundamental contribution of the business system is that it also controls the procedures of the processed data and the results to be displayed.
For example, a system may have the capability to automatically order parts for an inventory, it can also monitor future corporate profits credit documentation and also help monitor customer accounts.
Ultimately, the nature of a business system will totally demonstrate how efficient the designer of the system wanted to process to be run.
The following are the main objectives of the Business System.
1. They are established with the goal of meeting the needs of the user as well as those of the customer.
2. Business systems majorly cut down operating costs thereby increasing savings and eventual profitability.
3. They will ensure a smooth flow data via the various levels in a business organization.
4. Business systems normally will speed up the execution and attainment of results appropriating all the reliable data that is available in the system.
5. They are important in handling data more efficiently as well as provide timely information to the management.
6. Business systems enable the establishment of a desirable distribution of data, services, and equipment are throughout the organization.
7. To define a proper method of handling business activities.
8. To eliminate duplicated, conflicting, and unnecessary services.
The Major Categories of Business Systems in Kenya are as follows.
Generally, there are five kinds of business systems
1. There are Payroll business systems
2. Personnel business system
3. Accounts receivable system
4. Accounts payable system
5. Inventory system.
1. Payroll Business System.
A payroll business system comprises of all the forms, procedures, files, equipment, personnel, and computer support necessary to completely process the payment of employees.
A complete payroll system comes with an inbuilt capability that enables it to fully handle all tax deductions, personal deductions, and the update of payroll data related to each employee.
It is designed such that it provides for the actual payment of employees; it will also be able to record that particular payment.
These business systems have the capability to allow for the modification of all payroll records and finally the preparation of payroll reports.
The payroll system needs to have the capability to generate all tax documents reports and a wide range of other employment tax filing requirements.
Another vital payroll responsibility is the ability to produce accurate reporting of all personal deductions in the organization where it is being used.
This may include but not limited to medical and life insurance, profit-sharing plans, stock options, credit union deductions, and an employee’s salary by a creditor.
The above-accumulated totals need to be reported accurately to the individuals from whose salaries these amounts were deducted.
A comprehensive I.T support in the organization makes it possible to accurately and promptly process the entire payroll. All the input data are properly handled on a timely basis.
2. Personnel Business System.
Personnel system describes varied aspects of an organization’s workforce. The outputs generated by personnel systems are frequently used in compiling central & state labor power reports.
Retail organizations are major users of accounts receivable systems, since these systems detail monies that are owed to an organization.
Conversely, accounts payable systems focus on the monies that are owed to an organization.
These two systems parallel to each other, requiring the continued maintenance of files, their update reporting on movies due and owed, providing customer statements and invoices, and recording payments made.
3. Accounts Receivable System
An account receivable system monitors the flow of money. An accounts receivable system monitors the people who owe money to a business organization. It provides the means to process all data for credit and other kinds of charge accounts.
The files contain the individual customer data, including names, addresses, financial charges like, payments received, and current charges.
The information is issued as monthly statements of each customer and also provides useful information for management’s use.
4. Accounts Payable System.
Accounts payable system monitors the organization to which money is owed. The file structures and input/output (I/O) formats are similar to the accounts receivable system.
It contains the accounts of vendors to whom money is owed. Input will have goods and services received by the company while outputs include the issue of payments and management reports.
5. Inventory System.
Inventory system monitors the status of items held in an inventory. These systems report on the quantities of goods on hand, as well as when items should be purchased to replenish stock and what critical items are needed.
Inventory systems are crucial to organizations that maintain large and costly inventories.
Business System In Kenya
Business System In Kenya