Summary

The report focuses on Bettinehoeve, a notable goat diary company based in the Netherlands. It starts
by explaining how the company is structured and what the mission, vision and purpose is of the
company. The report continues with describing the business form and portraying the rights and
responsibilities for each of the actors and bodies of Bettinehoeve. The report then goes on with
illustrating the advantages and disadvantages of the business form.

The report also talks about the industry specifics and gives a detailed look into the internal and
external stakeholders of Bettinehoeve. A key part of the report is about how information flows within
the company. It gives a comprehensive overview of what each of the actors and bodies need in order
to successfully execute their responsibilities. There’s also a section that highlights the involved
departments creating the annual financial report. The report continues by detailing the importance
of AIS within a company particularly Bettinehoeve.

The report progresses further into describing the Accounts Payable (AP) process and Accounts
Receivable (AR) process of Bettinehoeve. The processes are later illustrated by comprehensive
flowcharts. The report further unfolds in formulating the importance of contract law in those
processes and describing what kind of contract are necessary for optimizing the AR and AP process.

The report intensifies in depicting the current internal controls for the AP and AR process and
identifying the weaknesses of those controls. The report closes with a recommendation on
improving the AR and AP process utilizing internal controls.

Overall, the report gives an overview of Bettinehoeve and how it’s structures. Then the report
continues with detailing the current AR and AP process and identifying weak controls and
formulating a recommendation.
Table of contents
Summary .................................................................................................................................... 2
Table of contents ........................................................................................................................ 3
Introduction ............................................................................................................................... 4
Methodology .............................................................................................................................. 5
About Betinnehoeve .................................................................................................................. 5
Business form of Bettinehoeve .................................................................................................. 8
The Advantages and disadvantages of Bettinehoeve business form ....................................... 10
Industry specifics and overview of the stakeholders ............................................................... 11
Information flows ..................................................................................................................... 14
Departments Contributing to the Annual Financial Report ..................................................... 15
How does AIS add value to Bettinehoeve? .............................................................................. 17
Overview of Bettinehoeve specifics within the business process ........................................... 19
Accounts Payable & Accounts Receivable business Process .................................................... 20
Flowchart Accounts Payable .................................................................................................... 22
Flowchart Accounts receivable ................................................................................................ 24
The importance of contract law in this process ....................................................................... 25
Identification of weaknesses in the internal controls .............................................................. 28
Recommendations ................................................................................................................... 29
Conclusion ................................................................................................................................ 30
Bibliography ............................................................................................................................. 32
Introduction
Bettinehoeve has become a significant player in the Dutch goat dairy business by
demonstrating a dedication to quality, sustainability, and innovation. The essential
components of the accounts payable and accounts receivable processes are at the core of its
operational strength. This research sets out to investigate how these procedures could be
optimized at Bettinehoeve, using internal controls to improve operational effectiveness and
reduce financial risk. With Bettinehoeve's operational framework and the importance of its
Accounts Payable and Accounts Receivable processes in mind, this report seeks to address
the question: "How can Bettine Hoeve streamline its Accounts Payable and Accounts
Receivable processes using internal controls to bolster operational efficiency and mitigate
financial risks?" These questions will all be answered within this report.
Methodology
Within our report we have utilized various methods to come up with our information and sources.
Throughout the report we had to find ways to optimize BettineHoeve, using things like internal
analysis, internal controls, examining the organizational structure by reviewing their internal
stakeholders and providing recommendations based on how we can improve their accounts
receivable and accounts payable process. We received insight from the visit we had at Joost Tuckers’
house, where he discussed the different ways, he and the company have been optimizing their
business up until now with aspects like, customer feedback and analyzing the different risks involved
in the goat dairy sector.
Here is a list of the types of research we used to accumulate this report:
• Desk research- like google (for references and data related information) Visio (to create
flowcharts) also using our ais book specifically (romney, accounting information systems,
2021) for the symbols on page 91)
• We also used field research. An interview conducted by Mariette Badal-Damien, and we
interviewed Joost tucker)
We each had to prepare questions from our business research class to prepare for the interview. We
conducted this report based on a lot of the questions asked by our class and the answers Joost
Tucker provided. This methodology is designed to guide the process of conducting a thorough
analysis of Bettinehoeve, with a structured approach to examining its organizational structure, using
AP and AR flowcharts to help visualize the different steps and decisions used during the processes,
and internal controls. Adjustments can be made based on specific requirements and available
resources.

About Betinnehoeve
Introduction
Bettinehoeve, with its clear mission and vision centered on quality and sustainability, has created a
niche in the goat dairy products market. This chapter delves into the company's target customers,
ranging from retail consumers to international markets. Furthermore, we explore the internal and
external analyses that shaped Bettinehoeve's strategic decisions.

Mission: Producing and marketing tasty goat dairy products from high-quality goat milk.

Vision: Bettinehoeve has focused on automation and sustainability, leading to the decision to
implement Objective MES for more efficient and transparent production. Automation and
sustainability are key focus areas for Bettinehoeve and the industry.

Purpose: The company aims to provide clarity about the origin, quality, and sustainability of its
products and ensure their continuity.

Types of customers:

• Retail Consumers: Individuals who purchase Bettinehoeve goat cheese for personal
consumption from supermarkets, grocery stores, or online platforms.
• Restaurants and Cafes: Businesses in the hospitality industry that use Bettinehoeve goat
cheese as an ingredient in their dishes.
• Wholesale and Distributors: Companies that buy Bettinehoeve products in bulk for
distribution to smaller retailers or hospitality businesses.
 • International Markets: Bettinehoeve may export its products to various countries, serving a
global customer base.
• Specialty Stores: Health food stores, organic markets, or specialty cheese shops that cater to
customers with specific preferences or dietary requirements.
• Food Service Industry: Caterers, event planners, and institutions (such as schools or
hospitals) that purchase Bettinehoeve goat cheese for their food service operations.
• Cheese Enthusiasts and Connoisseurs: Individuals who have a specific interest in high-
quality cheeses and may actively seek out specialty products like those from Bettinehoeve.
• Online Customers: Those who prefer to shop for Bettinehoeve products through the
company's website or other online platforms.

Most important elements of internal and external analyses

Internal Analysis:
1. Resource Assessment:
o Physical Resources: Evaluate manufacturing facilities, equipment, and technology.
- Connection to Bettinehoeve: Bettinehoeve has exclusive technology to make cheese from
goat milk.
o Financial Resources: Analyze the company's financial health, including cash flow,
assets, and liabilities.
- Connection to Bettinehoeve: After analyzing the company documents given, Bettinehoeve
generally health is good when they spend more outlay to invest on automation process.
2. Core Competencies:
o Identify the unique strengths and capabilities that give the company a competitive
advantage.
- Connection to Bettinehoeve: Unique taste of the products and their long-lasting history
3. Brand Image and Reputation:
o Evaluate how the brand is perceived in the market and among consumers.
- Connection to Bettinehoeve: Bettine Grand Cru has been voted the best goat cheese in the
world at the Nantwich International Cheese Show in the UK. The expert jury chose this
cheese as the winner out of 2140 entries.
4. Organizational Culture:
o Understand the values, norms, and culture within the company, as it can impact
employee morale and productivity.
- Connection to Bettinehoeve: The owner still tries to keep the family feeling, even though the
company now employs as many as 140 people. Their international growth rests on the gently
mild flavor and quality of our cheese.

External Analysis:
5. Market Trends:
o Identify current and emerging trends in the manufacturing and retailing industry.
- Connection to Bettinehoeve: Is there any trend emerging recently relating to cheese goat?
6. Customer Analysis:
o Understand customer behavior, preferences, and expectations.
- Connection to Bettinehoeve: Is there any change in the taste of customers or in their
expectations?
7. Competitor Analysis:
o Identify major competitors, their strengths, weaknesses, and market share.
- Connection to Bettinehoeve: Making use of different analyses such as SWOT analysis to
identify rivals or substitutes to the company.
8. Regulatory Environment:
o Stay informed about regulations and compliance requirements affecting the industry.
- Connection to Bettinehoeve: Does the manufacturing process release emissions? The
company needs to keep track of this process to prevent over-emitting.
9. Technological Factors:
o Evaluate how technological advancements can affect manufacturing processes and
retail operations.
- Connection to Bettinehoeve: With the rise of AI and automation technology, Bettinehoeve
can save up a big amount if they apply appropriately the right technologies to the whole
company.
10. Supplier Analysis:
o Evaluate the reliability and strength of the supply chain, including relationships with
suppliers.
- Connection to Bettinehoeve: The company should maintain reliability and good relationships
with its suppliers. They are one of the most important factors determining the success of the
company.
Business form of Bettinehoeve
Introduction
Bettinehoeve operates as a 'besloten vennootschap' (bv), a form of private limited company in the
Netherlands. This chapter outlines the distinct roles and responsibilities within this structure, from
shareholders to directors and auditors. Dive in to understand the core dynamics that shape
Bettinehoeve's corporate framework.

The business form of Bettinehoeve is a private limited company. Known in Dutch as a ‘besloten
vennootschap’ (bv), you start a private limited company (bv) on your own or with others by going to
a civil-law notary. After that, you need to register it with the Netherlands Chamber of Commerce
KVK. A private limited company is a legal personality. This means it is separate from you as an
individual. The company is responsible for paying any debts, not you. As a director of a private
limited company, you work for the company and act on its behalf. You can also reserve profits within
the company and build up equity, which is money that belongs to the company.

In a private limited company, various actors and bodies have specific responsibilities and rights. The
exact structure and roles may vary depending on the jurisdiction and the company's articles of
association, but here are the typical roles and responsibilities:

Shareholders:
Rights:
Voting rights at general meetings.
Right to receive dividends.
Right to inspect company records.
Right to transfer shares (subject to any restrictions).
Responsibilities:
Electing directors.
Approving certain major decisions (e.g., changes to the articles of association).
Directors:
Rights:
Decision-making power for day-to-day operations.
Access to company information and records.
Responsibilities:
Formulating business strategy.
Making operational decisions.
Ensuring compliance with laws and regulations.
Financial management and reporting.
Duty of care and fiduciary duty to the company.
Company Secretary:
Rights:
Access to company records.
May attend board meetings and general meetings.
Responsibilities:
Ensuring compliance with statutory and regulatory requirements.
Maintaining company records and registers.
Facilitating communication between the board and shareholders.
General Meetings:
Rights:
Shareholders have the right to attend and vote.
 Directors have the right to attend and present reports.
Responsibilities:
Approving financial statements.
Electing directors.
Approving certain major decisions.
Auditors:
Rights:
Access to company records and information.
Attendance of general meetings.
Responsibilities:
Conducting audits and providing an independent opinion on financial statements.
Reporting to shareholders on the accuracy of financial records.
Employees:
Rights:
Employment rights and benefits.
May have share options or other incentives.
Responsibilities:
Fulfilling their job responsibilities.
Contributing to the success of the company.
Creditors:
Rights:
Right to be paid in accordance with the terms of any credit arrangement.
May have the right to attend meetings in certain circumstances.
Responsibilities:
Providing goods or services as per contractual agreements.

It is significant to remember that the articles of association of the firm and any applicable
shareholder agreements may have an impact on particular rights and obligations. The functions of
these players within a private limited corporation may also be impacted by differences in the legal
and regulatory environment between jurisdictions. Additional positions or committees with distinct
duties and responsibilities, such an executive committee or compensation committee, may also exist
in businesses.
The Advantages and disadvantages of Bettinehoeve business form
Introduction
Bettinehoeve's status as a private limited company offers advantages like shared ownership and
limited liability. However, it also introduces challenges such as increased administrative costs and
complexities. This chapter examines both the benefits and drawbacks of this corporate structure.

Advantages
• Private limited companies are owned by one or more shareholders. Quite often these
shareholders are supportive family members. In our case with Bettinehoeve, the Swiss diary
giant Emmi has most of the shares.
• Profits are only shared between shareholders. They receive this as a dividend.
• Limited companies can raise money by borrowing and through the share issue of ordinary
shares.
• If the company fails, the investors in a limited company are protected by the rules of limited
liability.

Disadvantages
• A private limited company cannot count on certain tax benefits that do apply to a sole
proprietorship or general partnership.

• It is not possible to set up a private limited company without the intervention of a notary.
You can only establish a private limited company with a notarial deed.

• Another disadvantage of the private limited company that you can consider is the higher
costs involved in keeping the administration. Annual accounts must be drawn up for the
private limited company once a year. Audit fees will be charged for this.

• A disadvantage of the private limited company is that liquidating it is slightly more

complicated than closing a sole proprietorship or partnership. For example, the liquidation
must be reported to the Tax Authorities and the Chamber of Commerce.
Industry specifics and overview of the stakeholders
Introduction
Bettinehoeve, nestled within the specialized landscape of the Dutch goat dairy industry, thrives on a
tradition, innovation, and family legacy. Central to its success and decision-making are a diverse set
of stakeholders, both internal and external. From the essential role of employees shaping its growth
trajectory to the strategic influence of its shareholders and the familial ties steering its direction of
Bettinehoeve. Furthermore, external stakeholders, ranging from customers and suppliers to
regulatory bodies, have an immense impact in shaping the operational landscape. In this chapter, we
delve into these stakeholders.

Industry specifics
Bettinehoeve is positioned within the goat diary industry in the Netherlands. This industry is
characterized by an emphasis on quality and driven by continuous innovation. Especially in the
Netherlands the goat diary industry is a specialized and dynamic sector with a high level of expertise
and a rich tradition.

Internal Stakeholders
There are three primary internal Stakeholders; Employees, Management and Executives,
Shareholders/Owners. But because Bettinehoeve is a real family company we identified another
internal stakeholder, Family.

Employees
Bettinehoeve is a growing company with over 140 employees, there are currently six open vacancies
and that perfectly illustrates that they are indeed still growing (BETTINE, 2023) They also offer
multiple traineeships for (soon to be) graduates. Lastly, they also offer internships for students. The
140 employees are the cornerstones of the company, so they are a very important internal
stakeholder.

Management and Executives

Below you can see the organizational chart of the managers and executives of Bettinehoeve.
Management and executives are responsible for guiding the employees. So that employee behavior,
values, commitment etc. aligns with the dominant company culture and overall goals, vision, and
mission of Bettinehoeve.

Shareholders/Owners
The Swiss diary giant “Emmi” has 60% stake of Bettinehoeve (boer, 2016). The remaining shares are
owned by Bettinehoeve itself. Shareholders/owners are responsible for, among other things the
financial performance and growth. Furthermore, they determine the direction in which Bettinehoeve
steers its strategic initiatives and shaping the overall course of the company’s growth and success.

Family
John Ewijk started the company Bettinehoeve and 60% of the shares are in hands of the Swiss diary
giant Emmi as mentioned. The Management Director of Emmi is Sybren Ewijk, the son of the founder
of Bettinehoeve John Ewijk. This is also showcased in the organizational chart. Besides that, John
Ewijk is still involved as an advisor. (DEONDERNEMER, 2022) Thus, you can state that the business is
in some sense a family succession. That’s why we added “Family” as an additional internal
stakeholder. John Ewijk is still involved as an advisor and his son is now at the helm of Emmi, that’s
why the family is an important internal stakeholder of Bettinehoeve.

External Stakeholders
We have assessed 5 primary External Stakeholders, which we will address below.

Customers
Bettinehoeve delivers its products to several supermarkets and wholesalers, those are the direct
customers. The direct customers include. (BETTINE, 2023)
Albert Heijn (supermarket)
• Plus (supermarket)
• Coop (supermarket)
• Hoogvliet (supermarket)
• Bidfood (wholesale)
• Sligro (wholesale)
• Hanos (wholesale)
• Makro (wholesale)
• De Kweker (wholesale)
• Hocras (wholesale)

Some of the above-mentioned direct customers are companies that export/sell Bettinehoeve’s
products to not only the Netherlands but also internationally. Bettinehoeve furthermore has indirect
customers which include supermarket customers, wholesale customers, restaurants, other cafeterias,
companies that receive the products from Bettinehoeve direct customers etc.

Suppliers
Just like any other company, Bettinehoeve has multiple suppliers. Some of the most important
suppliers for Bettinehoeve include:

Milk suppliers: Bettinehoeve partnered up with circa 60 goat farmers and they provide Bettinehoeve
with goatmilk. (suppliers, 2023)

Packaging suppliers: The core business of Bettinehoeve is selling and creating goat dairy products.
They don’t produce the packaging themselves, so this indicates the existence of a packaging supplier.

Transportation/Logistic suppliers; Bettinehoeve don’t transport the raw materials and end products,
they also have suppliers for this part of the business. For example, Jochems Melk transport is the
milk transporter of Betinnehoeve. (bettinehoeve, 2022)
Some other examples are their HR business partner Van Oers (VAN OERS, 2016), Equipment
suppliers, Energy suppliers, cleaning suppliers, Technology, and software providers etc.

Investors
Apart from the shareholders, there may be other investors, such as venture capitalists or institutional
investors, who provide financial support to Bettinehoeve.

Creditors
Creditors are entities that provide loans or credit to the company. This means that they received
third-party capital and that’s a liability on the balance sheet.

Government and Regulatory Bodies

These are government agencies and regulatory bodies at various levels that ensure the company
operates within legal and regulatory frameworks. For example, the municipality of EttenLeur or the
government of the Netherlands can exert influence in some level on Bettinehoeve to mitigate
greenhouse gas emissions or reduce noise pollution etc. (if there were to be). Another example is the
Nederlandse Voedsel- en Warenautoriteit (NVWA), they oversee and regulate food and consumer
product safety in the Netherlands. The NVWA are allowed to take percussions against Bettinehoeve
when they don’t meet the standard of the NVWA.
Information flows
Introduction
Effective communication is essential in today's business world. This chapter explores how
information flows among departments, stakeholders, and external entities, highlighting its crucial
role in organizational decision-making and success.

Information Needed by Stakeholders, External and Internal Parties, and Departments:

• Legal and Compliance Departments:
o Regulatory Compliance: Understanding of relevant laws and regulations applicable
to the industry and business operations.
o Contractual Obligations: Details of legal obligations and compliance requirements
within contracts.
o Risk Assessments: Information on potential legal risks and strategies for mitigation.
- Connection to Bettinehouve: This will allow Legal and Compliance Departments to comply
with the national and international laws as well as avoid litigation since Bettinehouve has
done countless exports over the world.
• Finance and Accounting Department:
o Financial Statements: Accurate and up-to-date financial statements for budgeting
and financial planning. The statements also include the balance sheet, income
statement, and cashflow statement
o Contractual Financial Implications: Awareness of financial implications related to
contracts, such as payment terms and penalties.
- Connection to Bettinehouve: This will allow the Finance Department of Bettinehouve to
distribute the budget effectively and efficiently, especially for technology investments.
• Sales and Marketing Departments:
o Customer and Market Information: Insights into customer needs, market trends,
and competitive landscapes.
o Sales Contracts: Details of contracts with customers, including terms and conditions.
- Connection to Bettinehouve: This will help the Sales and Marketing Departments sale
products more effectively when they are able to understand the insights of customers need
and the whole market.
• Human Resources Department:
o Employee Contracts: Details of employment contracts, including terms of
employment, benefits, and obligations.
o Labor Laws and Compliance: Information on labor laws and regulations affecting
employment contracts.
- Connection to Bettinehouve: This will allow the Human Resources Department to create a
better workplace for their employees. Since employees enjoy their work, the company will
develop further.
• Operations and Supply Chain Management:
o Supplier Contracts: Details of contracts with suppliers, including terms, pricing, and
delivery schedules.
o Supply Chain Information: Transparency into the supply chain, logistics, and
operational processes.

- Connection to Bettinehouve: This will allow Bettinehouve to separate the responsibilities of

different parties doing business with the company. Also, these contracts will help to settle
down more easily in case of litigation.
• Risk Management Department:
 o Insurance Contracts: Details of insurance policies and coverage to assess risk
mitigation strategies.
o Risk Assessment Reports: Regular reports on identified risks and potential impacts.
- Connection to Bettinehoeve: This helps Bettinehoeve avoid bankruptcy or at least losing
benefits when doing business.

Information Provided by Stakeholders:

• Each stakeholder will provide different contracts, but generally each one requires at least
one contract:
o Sales Contracts: Details of contracts with customers, including pricing, delivery
terms, and conditions.
o Supplier Contracts: Information on contracts with suppliers, covering terms, pricing,
and delivery agreements.
o Employment Contracts: Details of employment agreements, including terms,
responsibilities, and benefits.
o ...
• Operations and Supply Chain:
o Supply Chain Information: Updates on supply chain processes, logistics, and
potential disruptions.
o Operational Updates: Information on production processes and efficiency
improvements.
• Customers:
o Customer Feedback: Customers can provide feedback on products, services, and
overall satisfaction. This input is valuable for understanding market perceptions,
identifying areas for improvement, and showcasing customer-centric initiatives.
• Suppliers:
o Supply Chain Information: Suppliers may offer insights into the organization's supply
chain, sustainability practices, and supplier diversity efforts. This information is
crucial for stakeholders interested in ethical and responsible business practices.
• IT Department:
o Technology Contracts: Providing information on contracts related to technology
licenses and software agreements.
o Data Security Reports: Updates on data security measures and compliance reports.
• Marketing and Public Relations:
o Campaign Reports: Updates on the performance of marketing campaigns and
advertising efforts.
o Public Relations Updates: Information on public relations strategies and outcomes.
• Risk Management:
o Risk Assessment Reports: Providing reports on identified risks and potential impacts.
o Insurance Policies: Sharing details of insurance policies for risk mitigation.

Departments Contributing to the Annual Financial Report

Introduction
The annual financial report captures a company's yearly financial journey, offering shareholders and
potential investors valuable insights. While the structure of an annual financial report can vary, key
elements like financial statements and CEO letters remain constant. This chapter explores the
collaborative efforts of Bettinehoeve behind creating these reports.
An annual financial report is a thorough report that outlines the operations of a business for the year
that has passed. Its goal is to provide users like shareholders or prospective investors with
information about the business's financial performance and activities.

The structure of annual reports undoubtedly will vary according to each company, but most annual
reports will generally contain the following:

Financial Statements:
Income Statement (Profit and Loss Statement): This statement summarizes the
company's revenues, expenses, and profits or losses over a specific period.
Balance Sheet (Statement of Financial Position): This document provides an overview
of the company's assets, liabilities, and shareholders' equity at a specific point in
time.
Cash Flow Statement: This statement details the cash generated and used by the
company's operating, investing, and financing activities during the reporting period.

Letter from the CEO (to shareholders):

The letter from the CEO is addressed to shareholders and provides a summary of the
company’s performance in the previous year. CEOs typically spend a lot of time on
their letters to highlight the company’s achievements, as its performance is relative
to the industry it operates in. The letter would likely mention the information of
interest to shareholders since they are the primary readers of the report.

Performance Highlights:
Annual reports usually dedicate a section to highlighting some of the company’s key
achievements, such as special initiatives, goals reached, or awards received by the
company or its employees. The main goal of the section is to ensure that
shareholders are satisfied with their investment in the company and persuade
potential investors to do the same.

The annual financial report is made most of the times by a collaboration between the different
departments of the company such as the finance department, the accounting department, sales
department, etc.
In our case, Bettinehoeve mentioned in the interview that the annual reports are made by the
financial and the sales team.
How does AIS add value to Bettinehoeve?
Introduction
In today's complex business world, the integration of advanced systems has become crucial for
efficient operations and well-informed decision-making. For Bettinehoeve, the Accounting
Information System (AIS) isn't just a technological addition. It's the cornerstone that ensures financial
accuracy, operational efficiency, and strategic foresight. This chapter delves into the multifaceted
value that AIS brings to Bettinehoeve.

AIS adds significant value to Bettinehoeve, in fact without an AIS system the company wouldn’t
function in correct motion. These are the different factors of AIS that add value to the organization:

• Improved Financial Management: AIS provides accurate financial information and outcomes,
allowing management to make informed decisions, budgeting resource allocations and
investment strategies. It contributes to a more transparent, reliable, and well-controlled
financial environment within Bettinehoeve.

• Enhanced decision-making: AIS generates real-time reports and analysis, facilitating

better decision-making. With access to comprehensive financial data, managers can
evaluate the profitability of different products or services, assess the financial viability
of potential projects, and identify trends or patterns that can influence strategic
planning.

• Streamlined operations: An efficient AIS automates various accounting processes,

reducing manual effort, minimizing errors, and improving overall operational
efficiency. Tasks such as recording transactions, preparing financial statements, and
reconciling accounts can be automated, freeing up time for accounting personnel to
focus on more value-added activities.

• Internal controls and risk management: AIS incorporates internal controls to safeguard
financial data and mitigate the risk of fraud or errors. It enables segregation of duties,
access controls, and audit trails, ensuring data integrity and enhancing the
organization's ability to detect and prevent irregularities. (romney, accounting
information systems )(332-340)

• Compliance with legal and regulatory requirements: AIS helps organizations comply
with various accounting standards, tax regulations, and reporting requirements. By
automating financial reporting processes, AIS ensures accurate and timely submission
of financial statements, tax filings, and other compliance-related documents.

• Efficient resource allocation: AIS provides valuable insights into the organization's
financial position and performance, enabling better resource allocation decisions. It
helps identify areas of excessive costs or underutilized resources, facilitating effective
budgeting and resource optimization. Bettinehoeve are also using a kpi system to
measure desired production %, measure cost of production by kilo, measure if there
are any losses and are they more than expected. (Tucker, 2023)

• Integration and data sharing: AIS can be integrated with other systems within the
organization, such as enterprise resource planning (ERP) systems or customer
relationship management (CRM) systems. This integration enables seamless data
 sharing and collaboration across different departments, improving overall operational
efficiency and facilitating better decision-making.

Overall, an accounting information system serves as a valuable tool for Bettinehoeve in terms
of their financial management, decision-making, risk management, and compliance. By
providing accurate and timely financial information, streamlining processes, and enhancing
transparency, an AIS adds significant value to an organization. Currently the company is using
cloud to store a lot of their AIS data. (Tucker, 2023)
Overview of Bettinehoeve specifics within the business process
In the context of business processes, we are focusing on the AR (accounts receivable) sales process
and the AP (accounts payable) expenditure cycle process. When optimizing their business
Bettinehoeve has had to make sure the specific departments that the stakeholders are working in are
running smoothly. The AR/AP process within Bettinehoeve is as follows:
• AR (account receivables) Revenue cycle
Sales team- initiates the sales transactions and generates invoices.
Credit department- assess the credit worthiness of the customers.
Billing department- creates and sends out invoices to customers.
Customers- receives and reviews invoices.
• AP (accounts payable) Expenditure cycle
Procurement (purchasing department)- they handle the processes of buying materials and supplies.
interacts with vendors.
Receiving department- confirms the receipt of goods and sales.
Accounts payable department- verifies and processes vendor invoices.
Finance department- manages the overall finance aspects, including cashflows and budgeting.
Vendors and suppliers- supplies good and services and submit invoices for payments.
These are the multiple departments working within this process (Romney, 2021)
(kompass, n.d.) this cite showed some of the departments involved in the buying selling process in
Bettinehoeve.) Both these process cycles will help us delve more into the different internal and
external parties with the company and this specific process.
Accounts Payable & Accounts Receivable business Process
The accounts payable process (1:00-25 :00)
First Bettinehoeve creates purchase order, then they approve purchase order, then send purchase
order to supplier that’s within their Purchase order department. Then you move onto their receiving
department, so Bettinehoeve receive goods from suppliers, there are 2 systems (goods for resale is
done by a system and the other isn’t, then it’s approved by management), record quantity received,
then Inspect received goods they make sure there’s a quality inspection by quality team to flag for
any discrepancies, External lab tests on the milk quality (standard process in the dairy industry)Once
everything is clear you move onto the accounts payable department.
Next is AP department, it starts with receiving invoice to payment, invoices can be generated
automatically by a system or manually by employees (no duplicate invoices), finance team processes
it, receive invoice from supplier, then the invoice received electronically and manually, compare
invoice, PO, receiving docs (3-way match) to make sure they all match. Then the invoice is approved
for payment. Once the invoice payment has been executed the invoice and all receiving documents is
kept in record keeping as storage in the accounts payable ledger. Next stage is the aging report
department. Bettinehoeve needs to create an AP aging report, and aging report is a financial
document that categorizes and displays the outstanding balances of the companies’ payable invoices
based on their due dates. They then receive transaction data, analyses the data, then they generate a
status report for stakeholders in position to check and consult with the people in the aging report
department. Then in the payment department, a Double authorization of payments and invoices are
required, then they choose a payment selection, then hold account until bank statement is received,
then once bank statement is cleared and the transaction is stored then it is passed to the Finance
department where the whole process is finalized. (Tucker, 2023)

Accounts Receivable Process (30:00-40:00)

The AR process starts with Customer places order via (EDI, email, or by phone) A purchase order is
then created automatically and stored in the database.
Order is automatically verified by the system. And the system checks if the order is correct or
incorrect.
If the order doesn’t match the minimum quantity, the system automatically uplifts the quantity. If
there are other things incorrect about the order customer service will contact the customer.
After that the adjustments are made, or the order was correct on the first try the process continues
with an automated credit limit check.
If there isn’t enough credit limit available, the customer is informed about the unpaid invoices and
the order is put on hold and the customer is contacted again about adjusting the order.
An order can also be above the credit limit of a customer. Then the system will send an automatic
notification to the finance team.
The order is then checked by the finance team and if necessary, by Joost Tukker.
If the difference is still too excessive the customer is contacted about adjusting the order.
If the credit limit check is approved the first time or after a few steps the process continues with an
automated process where the system matches the Invoice to the purchase order.
The system then automatically determines the customer and the payment terms.
After that the system automatically generates the invoice.
The invoice is then stored in the database.
The process then continues with a decision about the shipping method.
Every month the invoices are sent and are checked automatically according to KPI’s and other
statistics.
If there are any identified/displayed mistakes on an invoice the amendments will be made manually.
If there are no identified/displayed mistakes the process continues.
The customer will then receive the invoice. If the customer has any problems regarding the invoice,
the customer will contact customer service.
If the customer doesn’t pay, customer service will notify the customer about the outstanding invoice.
If the customer still doesn’t pay, customer service will call the customer. And the sales team will
contact buyers about the outstanding invoices.
If the customer still hasn’t paid, Joost Tukker involves management. And every delivery is
automatically stopped.
After that the management will handle it further.
If the customer doesn’t pay after 1 year, the invoice is automatically written off the Accounts
Receivable.
If the customer paid after Joost Tukker involved the management. Joost Tukker will decide to trade
again on credit with the customer or will accept cash only.
After that new agreements and conditions are created.
These new agreements and conditions are stored in the database.
When the customer pays the invoice in one of the above-mentioned steps, the process continues
with automatically receiving the bank payment.
The system automatically matches the bank payment with the invoice.
If the full invoice wasn’t received there’s a manual claim sent to the customer.
Then there’s a decision point. The customer can claim a non-correct delivery, or the customer will
pay an additional amount.
If the customer claims a non-correct delivery, the customer needs to send the packing notes.
The packing notes of the customer and transporter are then manually checked.
If Bettinehoeve delivered the promised goods, there will be a reminder sent to the customer that
notifies the customer about the open account.
The customer then pays the open account or doesn’t pay, if so, the abovementioned steps will be
followed.
When Bettinehoeve receives the full payment, then this will be recorded and stored in the database.
After that step the process ends.
Flowchart Accounts Payable
Bettinehoeve accounts payable
Purchase order department Receiving department Accounts payable data entry

A B

Purchasing Order AP data

entry
Receiving
goods

Purchase requisition

Electronic
Inspection of receiving docs invoice Purchase order
notification
goods
of shipment

Approval of
requisition

Confirmation to ap Invoice
scanning and
data capture
Prepare
Flagging
purchase
discrepancies
order

yes Invoice
Fix any data
Supplier problems entry
No Fix discrepencies that occur
selection
no

Yes
Verify invoice
Receiving report

Po no
creation

Order sent to Conduct an

B
supplier Payment authorised invoice match to
check any errors
with invoice an
po
Po approved

Good/ services
receipt Payment
execution

A
Integration with
finance system

Record keeping

C
Bettinehoeve accounts payable
AP report status department Payment department Financial department

D E

Receive transaction
data

Receipt of approval Receive payment

condition
Analyse the data no Fix discrepencies

Verification of
yes payment details

Record
Generate status transactions
reports

Payment method
selection
Customising
reports for
stakeholders

Financial reporting Audit preperation

Generate batch
Archive reports

Financial
analysis

Recheck the
Authorisation batch make
reports no
batch sure no items
are missing

Vendor
reconciliations

Yes
D

Financial controls
Payment
Initiate
authorisation from
payments
joost tucker

Payment Record
confirmation payment

Stored as
Payment
transaction

E
Flowchart Accounts receivable
Accounts Receivable Flowchart
Order Placement department Credit approval department Sending of invoice department

Start
Automated credit Invoice matched to invoice
A B
limit cheack purchase order
Identifying the po
different credit
limit
Order is placed Under Determine type of
the limit Type A Type B
No customer

60 days payment 30 days payment

No orders processed

Po created yes
Generating the
invoice

Inform
customer
unpaid Over the limit
Purchase order invoices

Invoice

Notification sent

System checks for Put order

Database
currections on hold

Database

yes
Identify the
Supplier recieves po Verifying order Excessive difference excessive amounts

Other things are incorrect

Fix
No Shipping method yes
Other things are incorrect discrepencies

no
Contact Not matching minimum quantity
customer
Postbox
EDI Email Printed
Checked System sents invoice System sents invoice and sent
Contact
yes by manually
customer Approved
finance
Incorrect about by joost
team and
adjusting tucker
Uplift quantity Joost
the order
Tucker
Monthly overview
KPI s/Statistics

Customer
Delete order moves on
to
purchase Amendments Information No amendments on
Incorrect Correct
order on invoice displayed invoice

A B C
Phase
Accounts Receivable Flowchart
Customer service department Payment Department

System matches
Invoice received by Receive bank
C E bankpayment with
customer payment
invoice

Identify the
Contact
problems Customer leaves
customer yes no
customers are page
service
facing Sent
claim

Notify Customer still

no
customer not paying

Send a Customer doesn t Customer claims a

reminder Send proof non correct delivery

Sales team contacts

Call the buyers about
customer outstanding Customer sends proof
invoices

Match packing notes

customer/transporter
Joost Tukker
involves Every delivery stops
management.
Management will
handle it further

yes
Trade again Joost Tukker
On credit decides Cash only Remind
Customer
customer
Other things are incorrect

Still not paid pays open

open
after one year account
account
Save (new) Save (new) bank payment
conditions in conditions in Invoice
system system

Write off AR
New conditions
agreement
D
Database

Database

End
Phase

The importance of contract law in this process

Introduction
Contract law is essential in shaping clear and accountable business relationships. This overview
delves into its significant role in both accounts payable and receivable processes, highlighting key
contract types and their importance in ensuring transparency and compliance.

Where contract law is important in Account Receivable:

Contract law is crucial in the context of accounts receivable for several reasons. Accounts receivable
refer to the amounts owed to a business by its customers for goods or services provided on credit.
Contract law helps establish and define the legal framework for these credit transactions. Customers
of Bettinehouve are obliged to pay the debts on time. The company can also keep track of the flow of
money and manage their budget more easily.

Where contract law is important in Account Payable:

Contract law is equally important in the context of accounts payable as it governs the legal
relationships and obligations between a business and its suppliers or vendors. Accounts payable
represent the amounts that a business owes to its suppliers for goods or services received on credit.
Due to these contracts, Bettinehouve will know which debts are due so that they can pay on time to
avoid extra fee and maintain relationship with the lenders.

What type of contract that will be?

Accounts Payable:

• Purchase Agreements:
o Description: A purchase agreement outlines the terms and conditions of buying
goods or services from a supplier. It includes details such as quantity, price, delivery
schedules, and payment terms.
o Case: Typically used in manufacturing and retail industries.
• Supply Agreements:
o Description: A supply agreement formalizes the terms under which a supplier agrees
to provide goods or services to a buyer. It may cover aspects such as pricing, quality
standards, and delivery schedules.
o Case: Common in industries where a steady supply of raw materials is essential.
Accounts Receivable:
• Sales Contracts:
o Description: Sales contracts detail the terms of selling goods or services to
customers. They include pricing, delivery terms, and payment conditions.
o Case: Essential in retail and B2B transactions.
• Invoice Agreements:
o Description: Invoice agreements establish the terms and conditions related to
invoicing, including the format, frequency, and payment terms.
o Case: Ensures consistency in invoicing processes.
• Credit Agreements:
o Description: Credit agreements outline the terms for extending credit to customers.
They may include credit limits, interest rates on overdue payments, and conditions
for credit approval.
o Case: Important for managing credit risk.
• Promissory Notes:
o Description: A promissory note is a written promise to pay a specific sum of money
at a specified future date. It may be used in accounts receivable financing.
o Case: Common in financing arrangements to provide a written commitment to repay.
Internal controls for the AP & AR process

Introduction
The Accounts Payable (AP) and Accounts Receivable (AR) processes stand as critical pillars in the
financial world. Robust internal controls within these processes not only ensure financial accuracy
but also minimizes potential errors and risks. This section provides insights into the internal controls
that increases the reliability and effectiveness of both AP and AR processes of Bettinehoeve.

Internal controls Accounts payable process.

• Making sure an invoice is approved in the accounts payable process is a preventative control
method. Requiring invoice approval is a preventive control because it helps ensure that only
legitimate and authorized invoices are processed for payment. By having a formal approval
process, a company can prevent unauthorized or erroneous payments.
• Segregation of duties is a key internal control mechanism that aims to prevent or detect
errors and fraud by dividing tasks and responsibilities among different individuals or
departments. In the context of the accounts payable process, segregation of duties for
approval and authorization falls under preventive controls.
• The approval hierarchy in the accounts payable process is primarily detective control.
Detective controls are designed to identify errors or irregularities after they have occurred. In
the context of the AP process, the approval hierarchy involves the review and approval of
invoices or payment requests by individuals at different levels within the organization.

Internal controls Accounts receivable process.

• Bad debt provision will establish and periodically review a provision for doubtful accounts or
bad debts. This ensures that the financial statements reflect a realistic assessment of the
collectability of accounts receivable. This is a preventive control when it performs a
transparent assessment on each account receivable, preventing unrealistic scenarios of these
accounts.
• Aging analysis conducts regular aging analyses of accounts receivable to monitor overdue
payments. This helps identify potential issues with customer payments and allows for
proactive follow-up and collection efforts. This analysis belongs to detective control as it
notifies account receivable clerk which accounts are almost due.
• Customer credit policies will establish and enforce clear policies for extending credit to
customers. This includes setting credit limits based on a customer's creditworthiness,
conducting regular credit reviews, and monitoring credit terms. This is a preventive control
when these policies set criteria for credit of customers, preventing some clients could exceed
the credit limit given.
Identification of weaknesses in the internal controls
Introduction
As mentioned in the last chapter, robust internal controls within the AR and AP processes
not only ensure financial accuracy but also minimize potential errors and risks. To create a
stronger financial framework, it's essential to recognize and address any existing weaknesses
in the Accounts Payable and Accounts Receivable processes. In this section, we delve into
the identified weaknesses of the internal controls within the AR and AP process.

Accounts Payable
• Invoice Approval Process:
Meanwhile this internal control can prevent unauthorized or erroneous payments, there
are a few weaknesses.
- The approval process can rely too much on a single individual or a small group
resulting in a hold up or delays if the respective person isn’t available.
- Reviewing previous transactions may be challenging if the approval decisions are not
well-supported by extensive documentation.
- If the approval process is done electronically, there may be risks of unauthorized
access or manipulation.
• Segregation of duties:
- In a small team it may be difficult to achieve complete segregation of duties.
- If employees collide, the effectiveness of task segregation may be compromised.
• Approval Hierarchy:
- A purely detective control, like an approval hierarchy, could result in errors or
anomalies that would go unnoticed for some time.
- This internal control might not provide a comprehensive view of the entire process.
- Individuals in the approval hierarchy could miss crucial information or be unable to
spot anomalies if they are not properly trained.

Accounts Receivable
• Weak Credit Policies:
- Weakness: Undefined or lax credit policies, including inadequate credit checks and
infrequent credit reviews.
- Impact: This can result in extending credit to high-risk customers, leading to
increased bad debts and potential financial losses. This will cause financial losses
regarding financial aspect to Bettinehouve.
• Insufficient Aging Analysis:
- Weakness: Infrequent or inadequate aging analyses of accounts receivable.
- Impact: Delayed identification of overdue payments may result in missed collection
opportunities, increased bad debts, and potential cash flow problems. This could
cause bankruptcy when Bettinehouve does not have enough cashflow to pay off the
upcoming debts. Additionally, Bettinehouve does not have enough cashflow to invest
on further development.
Recommendations
Introduction
Based on our thorough research and analysis of Bettinehoeve's financial operations, we have
identified key areas within the Accounts Payable and Accounts Receivable processes that
demand attention. This section presents our recommendations designed to enhance these
processes and ensure optimal efficiency and accuracy.

Recommendation for Accounts Payable process

• Invoice Approval Process:
- Having backup approvers should be taken into consideration or a system to manage
approvals efficiently.
- Ensure that every invoice has an accurate and comprehensive record of approvals.
- Implementing strong encryption and access controls in place to protect electronic
approval systems.
• Segregation of duties:
- The responsibilities should be periodically reviewed and adjusted when needed.
- To prevent and discover collusion, rotate duties on a regular basis or conduct surprise
audits.
• Approval Hierarchy:
- Think about adding more real-time monitoring tools to the hierarchy to supplement
it.
- Implementing periodic reviews or audits to ensure that the hierarchy is working
effectively and that the company gets a more extensive view of the process.
- Ongoing training should be provided to those that are involved in the approval
process.

Recommendation for Accounts Receivable process

• Professionals' consultancy: Consult professionals in the same area to get the most
suitable policies and then program these policies in the system. By doing this, policies
will be customized with the structure of the company.
• Using right analyses for calculating and predicting overdue debts: The main reason
for uncollected debts is wrong calculation. Account receivable clerk need to use the
right formula for the right debtor. Debtors could come from different countries with
different time zones or different areas requiring various methods of debts
calculation. Customization for everyone is necessary.
• Automation process: after customizing policies and calculation methods, these data
need to be set up in a financing and accounting software such as Exact Online. From
now on, everything will be automatically and be less manual, therefore possible
problems will be prevented.
Conclusion
Having explored various aspects of Bettinehoeve's inner workings, it's important to highlight
the main accomplishments we found in this investigation. We focused on improving how
payments are made and received, which was the main goal of our research.
After getting a better understanding of the accounts payable and accounts receivable
processes and their controls, we investigated the shortcomings of these and developed a set
of recommendations.
The recommendations for enhancing the Accounts Payable and Receivable processes aim to
fortify the financial mechanisms of our company. For the Accounts Payable process,
emphasizing the importance of backup approvers, meticulous record-keeping, and the
implementation of robust security measures for electronic approvals are pivotal steps.
Additionally, maintaining a dynamic segregation of duties through periodic reviews and
preventive measures against collusion ensures a resilient internal control framework. The
suggestion to expand the approval hierarchy with real-time monitoring tools and regular
audits underscores the commitment to continual improvement. Ongoing training for those
involved in the approval process further strengthens the overall effectiveness.
Turning our attention to the Accounts Receivable process, seeking professional consultancy
stands out as a key recommendation to tailor policies that align perfectly with the company's
structure. Emphasizing the significance of using accurate analyses for debt calculations,
especially considering diverse debtor profiles, reflects a commitment to precision and
customization. The proposed automation process, involving the setup of customized data in
accounting software, presents a strategic move toward efficiency and error prevention. By
following these recommendations, the Accounts Receivable process is poised to become
more streamlined, adaptive, and less susceptible to potential challenges. In essence, the
combination of these measures strives to elevate the financial processes, fostering a more
secure and efficient financial environment for our company.
In essence, these comprehensive recommendations aim to elevate Bettinehoeve's internal
processes, fostering a more secure, efficient, and adaptable financial environment. The
successful implementation of these measures promises to contribute significantly to the
company's overall operational excellence and financial well-being.
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