Accounting Information Systems for Metcash: Features, Functionalities, and Comparison of MYOB and Xero

This report discusses the background of Metcash, a company that deals in the wholesaling and distribution of groceries, liquor, and hardware products. It explores the features and functionalities of accounting software that the company should consider, with a comparison of MYOB and Xero. The report recommends MYOB as the ideal accounting software for Metcash.

Accounting
information systems

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
I. The background of the company selected................................................................................3
II. The Features and functionalities of the software that the company should consider.............4
III. Comparison between the two-accounting software present in the market............................6
IV. Recommendation of the Software client can go for..............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Internal users utilise an accounting information system (AIS) to gather, store, and process
financial and accounting data to present information to investors, creditors, and tax authorities.
It's a computer-based approach for tracking accounting operations using information technology
(Kumar, and et.al., 2020). An AIS blends conventional accounting procedures with current
information technology resources, such as the usage of Generally Accepted Accounting
Principles (GAAP). Various aspects crucial to the accounting cycle are contained in an
accounting information system. Although the information contained in a system varies by
industry and company size, a typical AIS contains data on income, costs, customers, employees,
and taxes. Sales orders and analysis reports, purchase requisitions, invoices, check registers,
inventory, payroll, ledger, and trial balance are examples of specific data. The following report is
based on the company Metcash. The company deals in the wholesaling and distribution of
groceries, liquor and hardware products. The report talks how the above-mentioned business can
use the different accounting software and integrate their operations for efficiency effectiveness.
MAIN BODY
I. The background of the company selected
Metcash Limited is a publicly traded local corporation that makes money by wholesaling and
distributing food, booze, and hardware. Metcash Ltd. is a fast-moving consumer products
wholesale distribution firm that specialises in groceries, liquor, hardware, and other fast-moving
consumer goods. Food and Grocery, Liquor Activities, and Hardware and Automotive are the
three segments in which the corporation works. The delivery of dry food, perishable, and general
goods supplies to retail outlets is included in the Food & Grocery section. The distribution of
alcoholic goods to retail outlets and hotels is included in the Liquor activities sector. The
distribution of hardware supplies as well as automotive parts and accessories to retail outlets is
included in the Hardware and Automotive section (Gomes, 2018). Joe David created Metcash in
1927, and the company is based in Sydney, Australia." The firm, which has a head office in
Macquarie Park, New South Wales, employs around 6,370 full-time equivalent individuals and
operates in Australia, New Zealand, and China. Metcash thinks that having a viable,
independent, family-owned company sector is critical for Australia. Independent merchants
contribute to the well-being of their communities. Metcash assists businesses in becoming the

Best Store in Town by offering merchandising, operational, and marketing support in the food,
booze, and hardware categories. Product line of the business is as follows:
 Food: Metcash serves more than 1,600 independently owned stores in Australia,
including the IGA and Foodland brands (Meiryani, Susanto, and Warganegara, 2019). Its retail
partners combine the charm, experience, and convenience of a neighbourhood business with the
quality and low costs of a national chain. Metcash's supported stores are at the heart of their
communities, getting the greatest items from local suppliers and contributing to the local
economy.
 Liquor: Metcash is Australia's leading supplier of independent liquor merchants and
wholesaler of a broad range of beverages. Metcash supports 2,700 outlets across prominent
independent retail brands such as Cellarbrations, The Bottle-O, IGA Liquor, Duncans, Thirsty
Camel, Big Bargain, and Porters Liquor through its Independent Brands Australia group.
 Hardware: Metcash is a pioneer in servicing the Trade sector and serves Australia's
biggest independent hardware company. Metcash serves Mitre 10, Home Timber & Hardware,
Hardings, Thrifty-Link Hardware, and True Value Hardware as part of the Independent
Hardware Group; Metcash supplies over 1,600 hardware retailers across the country.
II. The Features and functionalities of the software that the company should consider
An organisation or corporation, regardless of its size or power, has a few business procedures
that it follows to achieve its objectives. They've had a mixed record in terms of business
performance during the decades they've been in operation. There were few tie-ups that joined the
firm, and even fewer that departed along the process. They now employ 73 people at various
locations around the country. Metcash has had an impressive rate of expansion. Generations
changed, company performance improved, and opportunities grew in comparison to earlier
times. In recent years, they have introduced a new line of healthful beverages.
This specific healthy beverage line sparked interest among people of all ages. The firm was a
huge success in terms of earnings and feedback within the first week of its introduction. They
saw a significant increase in orders (Bonsón, and Bednárová, 2019).
As the business of Metcash is growing, they need better management of the different operations
in the business. The management of the business is required to maintain good relations with the
customers and the suppliers. The business is also required to maintain risk that the business is
facing while working in the market. The easiest approach to minimise issues is to keep risks to a

minimum. Business management software is increasingly a popular choice for small and large
businesses alike. The process of selecting accounting software is a little pricey. The management
at Metcash has opted to invest in accounting software to manage the company's present financial
predicament. Although accounting software is expensive, it is capable of handling the financial
status of a firm a hundred times better than a manual accountant. Even a little flaw in a firm
carries the danger of financial loss. The accounting software, on the other hand, is capable of
carefully processing a big quantity of data; as a consequence, multiple debts will be consolidated,
and the invoice record will be protected.
Accounting software makes it simpler to review a company's cash flow since it allows the user to
track minor changes and anomalies in the data (Astuty, and Pasaribu, 2021). As a result, people
are able to take the essential precautions well before a risk arises. Accounting software makes
internal and external review and auditing easier. The functionalities of accounting software are
summarised above. The following are the advantages or characteristics of accounting software.
Accounting software is characterised by its simplicity. As a consequence of their ability to
carefully manage numbers and data, the computations are smooth. With or without training,
anyone may take on the duty of financial control by utilising this programme. Accounting
processes are simpler to manage and may be accessed from any device (mobile, desktop, or
laptop) by business owners. Accounting software can also help you save money. Accounting
software can conduct all of the operations and responsibilities that an accountant can. This
reduces the requirement for external or manual specialists. Printing and document dissemination
expenses become less expensive. They can also store sensitive, confidential information in safe,
secret, and monitored areas. Another advantage of the programme is financial transparency,
which is achieved by automating calculations and so avoiding corporate crises (score.org, 2012).
Accurate forecasting is one of the most essential benefits of accounting software. They are aware
of current financial and commercial trends, and they implement plans accordingly. They are both
productive and compliant with the law. This programme is devoted to payroll support and
provides all necessary audit data. They are secure and polite to customers.
Accounting software is divided into several sections. Enterprise resource planning solutions, on
the other hand, are the most in-demand software in business operations. This system combines
all of the above listed characteristics. They are able to plan items more precisely, which makes
material procurement easier. This system combines accounting, marketing, and finance, among

other activities. Based on Metcash's present circumstances, Enterprise resource planning systems
are an appropriate accounting software category for them since they satisfy all of the enterprise's
intended needs, allowing them to achieve their goal.
III. Comparison between the two-accounting software present in the market.
The two-accounting software discussed following are MYOB and Xero. Following is a detailed
discussion of both the software followed by Comparison of same.
MYOB
MYOB is a popular accounting programme. Users may shift their emphasis from accounting
books to business operations using this programme. It's web-based software that allows users to
access your accounts from anywhere. Users can keep track of their business's success in real time
and adjust their activities accordingly (Cong, and Du, 2021). It estimates their cash flow, profits,
and taxes, and gives them a quick overview of everything. MYOB has approximately 150
banking and financial institutions as partners. Commonwealth Bank, ANZ (Australia and New
Zealand Banking Group), NAB (National Australia Bank), and Westpac are just a few of them.
Tanda, Neto Commerce Platform, EzyCollect, ServiceM8, HR Central, and over 300 more apps
are also interconnected.
Features:
1. Professionally Manage Users Accounts: This web programme eliminates the need to
manage spreadsheets and manually record each item. It manages your cash flow,
invoicing, inventories, bills and payments, payroll, and taxation, among other things. It is
a one-stop shop for all of your financial needs. It also maintains track of the 'who pays'
and 'who must pay' lists. It allows your clients to pay directly on their invoices using
credit cards, debit cards, and other methods.
2. Effective Tax Management: It calculates tax automatically using your financial data. It
is the finest accounting software for small companies in Australia. It calculates GST
(Goods and Services Tax), PAYG (Pay As You Gain), and BAS (Business Activity
Statement) reports so you don't have to worry about anything during tax season. The
ATO also acknowledges it (Australian Taxation Office)
3. Multi-Currency Exchange: It maintains track of your currency exchange rates and
converts money into more than 150 other currencies. This allows you to conduct business

abroad and monitor how much money you're generating in real time from the global
market.
4. Remote operation: It is an internet tool that may be controlled from anywhere. You may
receive live reports and remain up to date on the situation as long as you are connected to
the internet. It also has a mobile app, allowing you to work even when you don't have
access to a computer.
Xero
In Australia, Xero is a professional and free accounting software. It is a safe and secure online
platform that allows users to manage their accounts from any location. It allows them to see their
cash flow. This programme allows them to import bank transactions and send invoices. As a
result, they have more time to focus on other elements of their business (Ayoub, Potdar, Rudra,
and Luong, 2019). It has a fantastic ecosystem of applications and features that may help them
solve all of their business problems. In Australia, the Xero accounting software keeps track of
their payroll and lets them submit to the ATO (Australian Taxation Office) with a single click.
Users can keep track of their transactions and taxes with the aid of Xero.
Features:
1. Manage Accounts Like a Pro: It enables the organisation to have hassle-free, automated
accounting. They can effortlessly import files and transaction information and access
them all in one location. It allows you to import and describe bank transactions, credit
card costs, and PayPal and Stripe transactions for bank reconciliation. It also calculates
your payroll, payments, taxes, and other financial obligations for you in one convenient
location.
2. Visible Dashboard: This accountancy package has a dashboard that allows you to keep
track of your business's success at a glance. It may be customised to meet your needs, and
you can then keep track of your finances. It generates reports on daily transactions in the
form of easy-to-read charts and data.
3. Supports Numerous Currencies: It accepts and converts multiple currencies. It keeps
track of your losses and winnings and generates a detailed report for you. It also handles
any overdue payments and provides an automated payment reminder option.

4. Know everything, From Anywhere: It's internet software that you may access and use
at any time and from any location. It also has a mobile app that includes all of the tools
and capabilities. As a result, it may help you with invoicing and payroll.
Difference Between the Two Software:
MYOB Xero
 Unless the user is utilising the new
web-based AccountRight Live option, they
need to install software on your PC.
 Provides a huge number of default
reports.
 Quotes can be sent by email.
able to submit invoices
 Monthly costs are lower.
 It works in the cloud and requires an
internet connection to function.
 It's possible to access it from anyplace
with an internet connection.
 Can submit bids and have them turned
into invoices once they've been accepted.
 Can send branded invoices and see who
has looked at them.
 Monthly costs are higher.
 Connects to more software solutions
and includes an asset registry.
IV. Recommendation of the Software client can go for.
MYOB and Xero are both cloud-based accounting software that can be used from any
contemporary device with an internet connection. There are free trials available, and the monthly
rates are tiered based on the size of the user business and the services they require. MYOB is the
accounting software that will be ideal for Metcash Business Company after examining the many
characteristics of different accounting software such as MYOB and Xero. Since, despite the fact
that Xero offers considerably higher benefits than MYOB, Metcash prefers MYOB because it is
not a huge firm, with only 73 people, and using a high-cost accounting software is not practical.
MYOB is commonly used in a large-scale organisation, and it comes with a slew of perks and
features (Binh, Tran, and Nga, 2020). MYOB has been around since the 1980s, and in order to
stay up with Xero, it has just been updated to a cloud-based system.
The project management capabilities in MYOB are highly powerful and robust, and they can be
utilised by a wide range of businesses from small to large. After weighing the pros and cons of
the various accounting software providers, MYOB comes out on top since it offers an infinite

payroll system, whereas Xero does not. MYOB allows up to two corporate accounts per
subscription, but MYOB AccountRight premier allows up to two company accounts per
subscription. Apart from this, the corporation benefits from a slew of additional positive
elements. MYOB EXO is chosen over MYOB account among MYOB accounting packages
because MYOB EXO business is a sophisticated ERP software that comprises of an integrated
financial and company management system. It also includes a number of modules, the majority
of which help finance. It facilitates task costing consolidation as well as cross-company
reporting. W hile MYOB Accountright is suited for use in a wholesale business, having access to
cloud-based services allows data to be stored in a system and offers protection against theft (da
Silva, Fernandez-Feijoo, and Gago, 2020). The data will be available to local customers on their
own server without the need for an internet connection. Generally, it is practical to pick MYOB
EXO when both criteria are considered, as it is overall helpful, as most firms are switching from
MYOB AccountRight to MYOB EXO.
CONCLUSION
From the above-mentioned report, it can be concluded that there are different accounting
software available in the market and it solely depends upon the business and its operations that
what kind of accounting software will be essential and useful for a business. the client business
taken in the report is Metcash business listed in the A S X. MYOB accounting software is
recommended to the company after having a detailed analysis of the different accounting
software present in the market.

REFERENCES
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