Cloud Based Accounting Software for Rio Tinto

This report analyzes and recommends the best cloud based accounting software for Rio Tinto, an ASX listed entity. It provides a description of Rio Tinto and its core business activities, compares and contrasts MYOB and XERO accounting software, and concludes with a recommendation.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting information system
Name of the student
Name of the university
Student Number
Author note

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Table of Contents
Executive summary.....................................................................................................................2
Introduction.................................................................................................................................3
Company description and its activities........................................................................................3
Key business process of the company.......................................................................................3
Software functionalities and features those shall be considered to support business activities 4
Suggested accounting software..................................................................................................5
Comparing and contrasting above mentioned 2 accounting software package.........................6
Conclusion regarding most suitable vendor and accounting software.......................................7
Reference....................................................................................................................................8

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Executive summary
Objective of the report is analysing the cloud based software and recommending the best
suitable software for Rio Tinto, an ASX listed entity. The report will provide description
regarding Rio Tinto and its core business activities. Different cloud based software those will
be considered for recommending to the client are MYOB and XERO. For analyzing the
software, apart from the description both the software will be compared and contrasted in
context of their functions or features offered by the vendors. Based on the findings and
analyses best suitable software will be recommended to the client that is Rio Tinto.

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Introduction
Key objective of the report is to evaluate the cloud based accounting software for the
ASX listed entity Rio Tinto and recommending the best software to it. The report will provide
description regarding the entity and its core business activities. Further it will discuss key
business activities of the entity. Different cloud based software those will be considered for
recommending to the client are MYOB and XERO. For analyzing the software, apart from the
description both the software will be compared and contrasted in context of their functions or
features offered by the vendors. Based on the findings and analyses best suitable software
will be recommended to the client that is Rio Tinto (Redpath and Gourdie 2017).
Company description and its activities
Rio Tinto is the ASX listed entity that is engaged in exploration and mining activities.
Main products of the entity are copper, coal, diamonds, salt, iron ore, gypsum and uranium. It
is also engaged in processing some materials like bauxite into aluminium and alumina and
the iron ore into the iron. Further the by-products include lead, silver and gold. The company
was formed in 1973 through the syndicate including Deutsche Bank, Clark, Matheson,
Punchard and the company. Further, in the year 2007, Rio Rinto acquired the Canadian
aluminium company Alcan for an amount of $ 38.1 billion. The entity operates through various
business segments including ore, copper and diamonds, aluminium, energy and minerals and
other operations. Aluminium segment produces alumina, primary aluminium and bauxite. The
copper and diamond sector offers molybdenum, silver and gold. Further the minerals and
energy sector includes the business products including borates, uranium, titanium oxide, salt
along with the coal operations (Riotinto.com 2019).
Key business process of the company
Rio Tinto Plc employs the uniform process for negotiating, establishing, entering into
as well as administering the contracts with the suppliers. Key processes includes –
Sourcing –
 The company test all the material commitments competitively for assuring that the
entity will obtain best available value considering all the relevant factors like quality,
safety, price, specification, communal and environmental impact and the sustainable
development
 Personnel from business unit provide sufficient lead times to the entity for processing
orderly tender (Riotinto.com 2019).
 Personnel from business unit assure the quality and completeness regarding scopes
and specification of the work delivered to the company including the local sourcing and
various other considerations for sustainable development
 Then the assessment for documented risk is provided by the business personnel with
development of new tender (Owen and Kemp 2014)
 List of the prospective suppliers are suggested and the entity invites the additional
prospective suppliers for participating where it is appropriate
 In case there is only 1 potential supplier for the required service or goods,
representative of business unit requests the service or goods to complete the
exception request with stating the reason why the service or goods could not be

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tendered competitively. This shall be authorised by relevant departmental managers
and shall be forwarded to the entity for recording
 The company provides standard terms of the contract (Riotinto.com 2019).
 Clearly the business will articulate the specific term, if any. The unit will provide safety,
health and the environmental standards to which the suppliers are required to adhere
 The company then consults with business units for understanding the requirements
and the desired outcomes
 The entity then will manage entire process of procurement including engaging of
supply market, developing the business case and delivering business unit with
recommendation for the award.
 Suppliers then respond to tender requests that is issued by the entity along with
addressing all the required aspects (Owen and Kemp 2014)
Buying –
 The personnel from business unit place the orders in the basis of lead times in ERP
system of the business
 All the requisitions issued to the entity refer the existing suppliers with whom business
unit has made the contracts for supply and all the goods are referenced from business
unit services or material catalogue in purchasing system
 All the orders for the purpose of onsite services are executed as per the requirements
of business unit catalogue in purchasing system (Cirulis et al. 2015).
Delivering –
 The entity is engaged by business unit for developing the assets of business unit for
assuring that the function of supply chain can support the strategies effectively
 Business unit then forecasts as well as provide the entity with prior notice for material
changes with the consumption requirements (Uhl and Gollenia 2016)
 In consultation with business unit and on the basis of business unit in aspect of
management strategies the company seeks to (i) optimise accurate and timely delivery
for the required material sad parts to point of use (ii) freight requirement of the
business units are consolidated in cost effective manner (iii) consolidate supplier base
for the off-site repairs (iv) provide the structured material management including the
consumption management and cost controls (Riotinto.com 2019).
Software functionalities and features those shall be considered to support business
activities
Accounting software is a must have item for business activities and keeping track of
expenses, revenues, customer information and other financial data. As the accounting
software is crucial for the business, it is important that before implementing particular software
proper research shall b e carried out for that based on the need and appropriateness of the
software for the business (Darmawan and Nugroho 2016). Some of the features or
functionalities those are considered for implementing the software are as follows –
 Modules included – once the business scope and the purpose of accounting package
is defined screening of the software possibilities becomes easier as eliminating those
which are not covering the items in the scope list are easier. For each of the

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accounting package that covers all the scopes, which module includes the base cost
and which one include the additional cost shall be determined (Harvey 2018).
 Scope of the business – 1st and most crucial thing that shall be documented by the
business owner before selecting the software is scope of business and what are the
accounting tasks those shall be performed by the software apart from the basis
accounting requirements, list of other functions like inventory management, payroll,
required by the business shall be made. Software that perfectly matches with the
requirements shall be considered for implementation (Curtis 2015).
 Access and portability – as Rio Tinto has several location of its business and are
expected to change, the accounting package that can be installed on network server
only is not suitable for it. Hence, it requires considering how the field employees will be
able to access the software, when required. Further, if the entity does not have
employee with expertise knowledge of the particular software setting up or server
logins may become complicated in case any problems. Hence, these things can be
considered before implementing the software (Flaherty 2017).
 Cost – once the software those do not fulfil the scope and requirements are eliminated
last and most important factor to be considered is the cost of the software. While
considering the cost, its account fees for upgrade, annual support and license fees
shall also be taken into consideration. Finally the costs and additional fees of the
shortlisted software shall be compared for making final decisions (Young and France
2017).
Suggested accounting software
MYOB –
MY-OB stand for ‘Mind Your Own Business’ and it is exactly the same that the entity
intend to provide to the business. MYOB is the Australian tax and accounting software related
entity that provides wide range of products and services for big as well as small businesses
including cloud based, browser based and software based on physical installation. It has
number of partnership for maximising the usability of the software (MYOB 2019). The
software is Microsoft Gold certified Partner that means it smoothly operates with the Microsoft
programs. MYOB also partnered with PayPal, a handy integration for the e-commerce.
Further, the On The Go app of MYOB for android and iOS is compatible with both
AccountRight and Essential accounts makes it easier for managing and performing the
accounting functions while the user is away from the desk. Further, the app does not include
the full access to every aspect of the plan but cover the contacts adding, invoice tracking,
payment processing and in-app invoice creation (Sriyono 2017).
XERO –
XERO is among the most favourite apps for financial collaboration that is listed high on
the preference list of business hoses. It is designed for meeting the requirements of small as
well as big business irrespective of the industry and is generally shortlisted by the
accountants as handiest asset to manage the financial activities. It can be used even by the
new users with very few accounting knowledge as it transforms some of complex and
standardized financial concepts into the enjoyable journey (Xero Accounting Software 2019).
In brief, XERO is the competent system for accounting management and works in line with
the business priorities and rules. Further, it manages the money out and money in of the
budget in such way that it coincides with the long term mission and goals. Further, it allows

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the editing on the go that enables transacting fast and accurately. Apart from that, most of the
functionality of the system is concentrated on dashboard where invoicing and billing of the
entity can be monitored and compared (Jenkins 2016)
Comparing and contrasting above mentioned 2 accounting software package
Features XERO MYOB
Overview  Web bases
 Supports both android and
iPhone app
 Web bases
 Supports both android and
iPhone app
Typical
customers
 Freelancers
 Small businesses
 Freelancers
 Small businesses
 Mid-size businesses
Support  Online support
 Video tutorials
 Knowledge base
 Online support
 Video tutorials
 Knowledge base
 Phone support
Pricing Starts from $ 20.00 per month
 Does not require credit card
 Free trial is available
 It is subscription based (MYOB
2019).
Starts from $ 13.50 per month
 Does not require credit card
 Free trial is available
 It is subscription based (Xero
Accounting Software 2019).
Features  Cash flow statement
 Activity dashboard
 API
 Billing and invoicing
 Bank reconciliation
 Contact management
 Customer database
 Credit card processing
 Customizable branding
 Customizable templates
 Customizable reporting
 Document templates
 Expense claims
 Electronic payments
 Expense tracking
 General ledger
 Data export/import
 Purchase order management
 Real time data
 Quote management
 Payroll management
 Multi currency
 Profit and loss statement
 Invoice processing and
management
 Cash flow statement
 Activity dashboard
 API
 Billing and invoicing
 Bank reconciliation
 Contact management
 Customer database
 Customizable reporting
 Expense claims
 Electronic payments
 General ledger
 Purchase order management
 Real time data
 Quote management
 Payroll management
 Multi currency
 Profit and loss statement
 Invoice processing and
management
 Tracking of Project time
 Timesheets
 Expense and time tracking
Integration  PayPal
 Stripe
 Salesforce Sales Cloud
 FreshBooks

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 Workato
 Zapier
 Authorize.net
 FreshBooks
 Office 365
 Dropbox
 Mailchimp (Taylor et al. 2016)
 Shopify
 Mailchimp (Smith 2019)
Conclusion regarding most suitable vendor and accounting software
From the above comparison of MYOB and XERO in context of their features, it can be
concluded that both the accounting software provides almost all the functions and covers all
the scopes required by Rio Tinto for its accounting activities. However, if anyone is required to
be chosen among the two it is suggested to chose MYOB for various reasons as follows – (i)
for bigger firm like Rio Tinto MYOB is more suitable as compared XERO (ii) price is a big
factor while any business considers any software implementation and monthly expenses for
MYOB is lower as compared to XERO (iii) it can be accessed from phone also which is not
possible for XERO.

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Reference
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