IMPROVEMENT OF ACCOUNTING SYSTEMS FOR PLANNING AND CONTROL: CASE STUDY OF A GOODS DISTRIBUTION BUSINESS IN BANGKOK

Abstract

      The objectives of the research were 1) to study the needs of management regarding accounting information for planning and control; 2 ) to study the traditional accounting recordkeeping system and related problems; 3) to suggest improvements to the accounting system according to the Requirements of executives for planning and controlling business operations, case studies. The research is an action research. It consists of interviews with two executives regarding the need for accounting information in planning and controlling of the business operations. The researcher went to the area to observe the work of the bookkeepers and analyze the exiting accounting system. The work is recorded with a flowchart to later analyze and recommend improvements to the existing accounting system to meet the needs of the management for planning and controlling the business.

      The research found that; 1) From the interview, management recognized the importance of accounting systems for business planning and control and needs information to make decisions to plan and direct service trucks to ensure that each trip doesn't cause deficit to the business and be able to maintains delivery times that guarantee to the customers; 2) The observing the exiting accounting records found that the lacks of knowledge and the design of the old accounting system needs to be improved in order to record and present the information required by the management; and 3) Research has suggested improvements to the accounting system for planning and control to meet the needs of management by modify the chart of accounts to have separate income and expense records between each service truck, calculate the break-even point in money term for each service truck. The result of the improvement of the new accounting system enable management to know that the break-even point per trip of the service truck was 1,094.50 baht per trip, and accounting staff are provided with the knowledge and practices that can present information
to the needs of the management. The improvements can help management make effective business decisions.