Accounting Information Systems Analysis

This assignment delves into the realm of Accounting Information Systems (AIS), examining key factors that influence their successful implementation and the subsequent quality of accounting information generated. It analyzes various theoretical frameworks and empirical studies to understand the complexities of AIS adoption in diverse contexts, including universities and microfinance institutions.

ACCOUNTING
INFORMATION
SYSTEMS

EXECUTIVE SUMMARY
Accounting Information system is required in every organization as they help in maintain
financial account of the company. They are generally managed by person which are related to
finance. Various components are discussed and the need of AIS in the organization is evaluated.
Moreover, the report contain the details about the system requirement and How the selection for
the software are done. Following report contain comparison on the three main software which
are available in market and their complete analysis regarding performance in SME. At last,
selection of the vendors which can provide support to the organization in achieving their goals
and objectives. The organization taken is B bakery.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1. BUSINESS PROCESSES............................................................................................................4
(a) Baker’s work and the processes or activities of organization for understanding about
business........................................................................................................................................4
2. Developing business requirements..............................................................................................6
(b) Indispensable processes to be performed...............................................................................6
(c) Outcomes required to achieve the process of business objectives.........................................6
3. Determining the requirements of systems....................................................................................7
(a) Features and functions that firm should consider for achieving their IT objective................7
4. Selection of software....................................................................................................................9
(a) Visiting websites of accounting software package vendors...................................................9
(b) Suitable category of accounting software for the firm...........................................................9
5. Selection of vendor....................................................................................................................10
(a) Comparison and contrasting the features and functions of two accounting software
packages.....................................................................................................................................10
(b) Best suitable vendor for the bakery business with reason....................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In today era, organization needs better system in order to store large amount of data and
regular update it. For this process Accounting information system is required which helps to
organization to collect, store, manage, process, retrieve and reports its financial data. Such
structure are adopted by accountant, business analysts, consultants, manager and chief financial
offices. This report present about the software efficiency and effectiveness to enhance the work
effectively. This report presents the baker's usability to achieve the satisfaction level of the
customers. These reports also present the best software among the various software and also
present the work through which the organizer would safe their products more effectively. These
help them to reduce the paper work in the organization. It helps to the employees to do their
work more easily and faster. Under this report various topics to be presented such as, business
process, developing business requirement and also determine the system requirement in this
report. This report present the software selection also which is selected by the vendors.
1. BUSINESS PROCESSES
(a) Baker’s work and the processes or activities of organization for understanding about business
Baker refers to the person who make breads and pastries to sell the same to public with
an aim to earn money. They provide facilities through retail and wholesale outlets to the public
(Wijaya and et.al., 2015). B bakers provide their products mostly to local market and super
markets.
In the present scenario, Bakery manufactures can earn more profit as their product as
consumed every day and by almost all people. People love these product because of their taste,
quality and choices. Due to the same, sale revenue increases constantly and therefore, they
achieve huge amount of profits in the long run. They require large number of suppliers or
employees to supply their products and with the same, they generate high employment
opportunities. There are various activities and processes which used by the bakers to achieve
their goals and targets and also, through these activities they satisfy the needs and wants of
customers with enjoying various benefits from them (Lipi Rama and Agaraj, 2015). These
activities or processes provide high quality products to the customers for satisfying their wants

and needs. Basically, customers require the best quality of products in less amount of money and
so, bakers need to focus on the tastes and preferences of target people along with the
technologies that will incur less cost and lead to provide high quality output.
This provides bakers huge amount of profits in the long run. Bakers need to make
products more effective and efficient to meet the needs of people and run their organization with
more productivity and profitability. Another activity or process of the bakers is to provide
product at competitive price so that the customers would get attracted. Price of the product plays
a major role in running business because if competitors provide same product at less price than
customers will take the product from them.
Having variety of food is the major requirement of customers. They want more choices
and different food items to eat in the bakery. According to the baker’s business, food and bakery
product provided must be tasty and should contain multiple choices which can attract more
customer. All these happen only when the bakers are well educated and efficient in making tasty
food items. This needs to provide better services to them and they have to maintain healthy
relation between the employees and customers for getting the maximum benefits. Furthermore,
efficient staff is considered as they provide quick services to the customers which attracts them
and make organization earns more profits (Abduljali and Zainuddin, 2015).
From all these activities, baker can run the entire business efficiently with increasing
profits. The baker needs to be very careful about the price of competitor and market situation so
that they would achieve more attention of people. Moreover, for the success of any business,
decision making power is also important due to change in the price. Along with that, it is
significant to offer high variety of products to gain attention of customers.
2. DEVELOPING BUSINESS REQUIREMENTS
(b) Indispensable processes to be performed
The indispensable processes denote those activities which need to be performed by the
organization for running their concern profitably in the long run and to satisfy the needs of
customers. These processes increase the revenue level of organization to expand their business
and increase goodwill. B bakery have more essential features which increase the efficiency and

effectiveness of their products are high quality and quantity of products. It refers that products
which bakers offer to their customers must be well prepared, that is, with high quality and
quantity must also be according to the price charged. The product differentiation is essential for
every baker to gain the attraction of customers to enhance the level of revenue. Unique product is
more demanded by the people with good taste and high quality that increases the revenue of
organization. Another process which needs to be considered by the bakers is online payment
system (Sudaryanti and et.al., 2015).
For making the potential customers this process is more helpful because today's cashless
environment peoples loves to pay online bills. They do not want carry cash in their pockets. For
making the concern more productive, organization needs to be more careful about their decision.
Product price decided by the organization is very necessary to attract customers. Price of
product provides major effects on its sale as if the baker sells their products in less amount of
money than huge crowd purchases the same from them and if not, no one wants to purchase the
product. Due to this, the sale of products get reduced as well as which ultimately put a huge
impact on the profits of baker..
(c) Outcomes required to achieve the process of business objectives
According to the process of business objective, an organization needs to maintain a
healthy relationship with customers. Business objectives can be further achieved through proper
strategies and planning (Prasad and Green 2015). This step increases work efficiency and
effectiveness. Employees of the organization is another important aspect as they are the people
satisfy the needs and wants of customers by directly interacting with them. They are the people
who manage the entire business organization. Without employee’s, organization cannot run
properly and so good employees are always demanding. Baker always require efficient staff to
maintain a healthy relationship with customers.
To satisfy the needs of customers and to enhance profits, every organization requires
efficient employees (Al-Hiyari and et.al., 2013). Next output which is needed for achieving the
process of business objectives is to maintain the quality of products and provide large variety to
meet the needs of people and to satisfy them.

In today’s scenario, people majorly require the quality of product. They do not consider
the amount of product which states that to maintain the quality, bakers can charge higher amount
of money and customers pay them happily. This is necessary to maintain the quality along with
quantity of product so the organization would earn high amount of money. These are the major
necessities for organization so that increases in productivity is there.
3. DETERMINING THE REQUIREMENTS OF SYSTEMS
(a) Features and functions that firm should consider for achieving their IT objective
IT objectives of the firm denotes to the application of the computers to store, study,
retrieve, transit and manipulate data or information according to need of organization. The faster
communication is created among employees through this technology and information circulated
effectively. Furthermore, objective of IT is to develop the products which can support
organization in maintaining data. (Amran and et.al., 2014). Through the development of
product, bakers provide different tastes and preferences of products to customers and earn high
amount of profit. Next is stakeholder integration which is required to collect the project
definition and approvals and required to identify the demands and needs of stakeholder . These
steps surely increase the revenue and productivity of organization in the long run.
Next objective is to improve the process of enterprise so that cost of product decreases
and benefits will be earned by both suppliers and customers as if cost goes down then margin of
profit will be increased. Due to the same, supplier and customer both will have similar benefits
as supplier will receive their estimated delivery rate and customer will get reduce price rate of
the product. This process supports organization to achieve their goals or targets in the long run.
Competitive advantage can be easily resolved using IT because the firm receives the advantage
management done in simple and limited time period with accuracy.
Functions and feature of the IT supports the functioning of the organization and act as
important part (Dandago and Rufai, 2014). By hiring eligible employees the organization can
increases the satisfaction level of their costumer and increases their revenue. Training and
development department is most important in organization. Management is required in order to
provide training to staff so that they can perform with full potential. If the training and

development program organized by the B bakery are not provided in appropriate way than their
bakery will not get profit.
According to B Bakery, organization use all these IT objectives to increase their
productivity and work efficiency. The baker appoints proper educated or knowledgeable people
to meet the needs of customers (Reimers, 2014). Due to this, baker earns more amount of money
and expand their organization continuously. Through this, baker earn $13.5 million with its 70
employees and they run their businesses over the 50 years. In this long period, their growth
continuous to increase as they have effectively met their IT objective.
Baker's use the training and development program, for improvement and exploring best
employees so that they can take good decision power to achieve the objective of IT. They use
this feature constantly and deliberately to fulfill the needs of customers. Using software reduces
the work, increase the effectiveness and efficiency of the organization to achieve their goals.
Such implementation in every organization are required to achieve more success and build the
name and fame in market. Main aim of the organization is to earn higher profit and satisfy
customer’s needs to run their business in the long run. Organization can easily earn huge amount
of profit and increase the level of satisfaction of customers by using these features and functions.
They can also easily expand their business for gaining higher success.
4. SELECTION OF SOFTWARE
(a) Visiting websites of accounting software package vendors
Accounting software package vendors are used to increase the efficiency or effectiveness
of work to satisfy the needs of customers. These are essential software which help the
organization to leading uniqueness in the work. There are many software which helps
organization to do their work easier such as SAP, MYOB and XERO etc. SAP stands for system
application product which provides end to end business problem solution to the organization.
This software increases the effectiveness of work so that client would be satisfied. This software
circulates the common information to employees of organization.
Another software is MYOB which is easy to be handled by the organization and can
enhance capabilities of business as well. MYOB denotes to mind your own business which

provide the information about the tax and many solutions to enterprises. Basically, this
Australian software is used by the small organization to ease their working. XERO also support
the organization to meet the needs of customers and help in making decision in the critical
situation. XERO is the New Zealand software which helps organization to meet the need of
business. It is mostly used in stock market such as Australian security exchange. Such software
are used in 180 countries and are necessary for effective working.
(b) Suitable category of accounting software for the firm
There are various categories of software available for reducing the working of
organization. Here, the report presents three major software named as SAP, XERO and MYBO.
Through this software, organization meets the need of customers to attract them and also these
software help firm to reduce the work pressure and increase safety of data. SAP software comes
first in this category as employees can effectually and easily work on this software within less
time duration and cost (Domeika, 2015). XERO is the Australian based software which is used
by small vendors because it carries less cost for installation but it is less effective as compared to
SAP and MYOB. So, it is used by only few organizations and the last category is MYOB which
helps in taking the decision of organization for their expansion or product development. This
helps in calculating the tax and to determine the solutions of problem so that organization will
definitely achieve higher benefits. For SME, Xero is the best choice as it provide the more
extension, functionality and support than others competitors.
5. SELECTION OF VENDOR
(a) Comparison and contrasting the features and functions of two accounting software packages
There is very much resemblance in the software of SAP and MYOB. The system can be
additionally accessed in more than one language and therefore, it preferred at the global level
(Susanto, 2016). Along with that, the system allows to have access in multiple currencies
and therefore, transactions are easily carried out by firm’s foreign branch. Different options that
support money management are:
General Ledger:

Follows all the legal procedures of aggregation and IFRS and therefore is incredibly
trustworthy. They additionally helps by supporting other ways of accounting and for maintaining
data book.
Accounts Receivable:
Entries related to billing and sales are included in it. On further integrating it with
Supply chain management improves the delivery time and supports the inventory management of
the organization which helps in reducing the operational cost.
Accounts Payable:
They maintain the records of all payments that corporate receives. This helps in
Liquidity Management by synchronizing the activities of SAP with money services.
When comparing SAP and MYOB, similarity were observed but there are various other features
which are different from MYOB and provide leverage to SAP over MYOB.
SAP integrates all the functions of a company and once analyzing them assists in coming
up with the goals and targets of a corporation. The software additionally helps to
operate, manage and monitor the price which will increase the profit of company. The
highest level of management will therefore identify totally different methods for future
and additionally, prepare themselves for any uncertain situation that may occur (Muhammad and
Kusuma, 2014). SAP offers digital ways of recording the sales figures which can be updated at
the same time and in different functions too. The system additionally synchronizes fund collected
from customers and lists downs the unfinished quantity which helps in managing the money.
Money management is required by B. bakery in order to keep balance between the product
purchased and sold. Further this can help during time of inflation as they would be already
preparied .
SAP provides a consolidated report on finance and accounting which
might be copied simply any time. Thus, it can help B bakery to even share their data in market to
promote the organization. Since the software provides many features, this increases the use of
such things in organization. Along with this, software also provide other features which can help
to maintain and evaluate the data with its previous values. (Alewine, Allport and Shen, 2016).

Thus, using SAP results in new, higher and well managed processes and allows integration with
all the departments resulting in economic use of resources, potency in processes
and magnified profits. Besides these major offerings, SAP additionally provides supplementary
services that act as a support to those main offerings.
Major advantage of this is that the client can choose offers and also the variety of support
services that they would need. There are various number of common supplementary
services area units in SAP Service Marketplace which are like extranet, SAP notes service and
SAP answer manager (Abduljalil and Zainuddin, 2015).
Pricing
Pricing can be described as the price allotted to the products and goods by the
organization. Pricing of the product must be under the budget of the customer so more customer
can prefer and utilize those product. B Bakery can effectively manage the prices of the product
using the software.
BENEFITS
Major advantages of MYOB software package are:
 The software package updates information on a real time basis and so, generates
comprehensive data reports.
 The software package simply synchronizes with the accounting applications and thus,
it helps in creating knowledge entry changes in these applications directly with
the dynamic knowledge.
 The software package helps calculating actual figures and is trustworthy (Collier, 2015).
 The software package is straightforward to use with the latest graphic programmed
 The software package conjointly calculates and offers probable sales figures as well as
help in predicting the demand of consumers by analyzing the past patterns. So, it helps in
effective business management and observance through which
vital strategic selections can be made by the management to achieve targets and goals.

(b) Best suitable vendor for the bakery business with reason
The best suitable software in the bakery business is SAP i.e. system application product.
This software increases the efficiency and effectiveness of baker to meet the needs of people.
Mostly, for the safety of data, this software is used by the bakers so that quality and uniqueness
of product would remain maintained (Romney and Steinbart, 2015). This software provides them
opportunity to make better revenue o and also help in getting higher amount of profit as it gives
better facts and figures through which organization can take better decisions. SAP helps the
baker to reduce work stress so that they can move on increasing the productivity and enhancing
profits.
CONCLUSION
It is to be concluded that this report provides information about various software so that
business can easily operate. Majorly, this report presents the software which helps them to earn
efficiency and effectiveness in their work like SAP, XERO and MYOB that help them to reduce
the cost of products and earn more profits. B bakery uses this software for enhancing their
productivity and profitability. By using above software’s the organization can work more
effectively and efficiently and satisfy the needs and wants of the customers. The B baker's
completed over 50 years in this business and continuously earn more amount of profit. Using
above software in organization can meet the need of people in long run.

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