Implementing ERP for CAB Bank

The assignment analyzes the benefits of implementing an Enterprise Resource Planning (ERP) accounting system, such as MYOB, Xero, or Saasu, for CAB Bank. It highlights the drawbacks of their current system and argues that ERP software can address these issues by providing advanced features and streamlining accounting processes. The analysis emphasizes the relevance of ERP in today's technologically advanced market.

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Student Name
Institute Name

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Executive Summary
The report will discuss in detail about the traditional way doing accounting which can be
used in organizations and further highlights the benefits as well as usage of ERP system
associated with Accounting software solutions. The company in discussion will be
Commonwealth Bank Australia. The report will also discuss in detail about the limitations of
the present accounting system in the organization followed by detailed discussion of the
advantages of ERP based solutions like Xero & Saasu and MYOB. There will detailed
discussion on advantages and market shares along with recommendations.

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Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Part A.........................................................................................................................................4
Organization structure................................................................................................................4
Issues in operations of Accounting System...............................................................................5
Acquiring the ERP based Accounting Software -Xero..............................................................5
Flowchart....................................................................................................................................6
Issues and frauds........................................................................................................................6
Part B..........................................................................................................................................7
Accounting software packages...................................................................................................7
Market size of accounting software...........................................................................................7
Leaders in Accounting Software................................................................................................9
Drawback of traditional accounting structure..........................................................................14
Recommendation of ERP related accounting or Xero.............................................................15
Conclusion................................................................................................................................15
Reference..................................................................................................................................17

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Introduction
The meaning of software of accounting is that it is a type of application which assist in
recording the different type of accounting data associated with company. For instance, the
software further records the work of a specific companies on the routine basis, record
payment option, record receiving work, discussion of general ledger of varied accounts,
showing the trial balance by the year end of the month and act as per data based framework
about the accounts (Šimůnek et al., 2016). The accounting based software is further divided
into two various kinds. First one is the branded one and it is formed by the software company
and the second one is made by the company and it usage is done exclusively by the company.
Part A
Organization structure

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The Commonwealth Bank of Australia is multinational bank of Australia with existence
across different countries like New Zealand, Asia, Fiji, USA and UK. The company is also
referring as the CBA or Commonwealth Bank (Nielsen, 2014). It provides a range of
financial based services consisting retail, institutional banking and business along with
management of funds, superannuation, investment, insurance and many more services like
broking. The bank is considered as the largest organization among Australian listed company
on the security exchange of the country in 2015.
Issues in operations of Accounting System
The accounting system of the organization have created many mistakes many times in the
structure of the transaction since the bank is using it in traditional manner of accounting by
using this way of every accounting based work is done in a manual manner. This is done
since the system develops a lot of mistakes in the accounting system and in balancing the
account. There is a possibility of wrong entry as well because of the traditional manner of
accounting (Schlagwein et al., 2014). The other issue is time taken to work because of the
usage of old methods and do all the work with hand and it also takes a very long time to
perform a specific task and it takes a lot of time and more workforce to perform the complete
task. In the current system of CAB, it is also found that many consumers have reported the
accounting and balancing based figure which further leads to the loss of consumer for the
bank. There are many consumers that must wait for a day to perform their personal
transaction.
Acquiring the ERP based Accounting Software -Xero
There are several types of accounting mistake because of traditional accounting system used
by CAB and thus the company determined to used ERP based accounting software which

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further assist to eliminate distinct kind of accounting based errors in the structure. The
management further determined to apply the accounting software of Xero and it is ERP based
software. The software is developed in New Zealand and is based on cloud based software
which also come under the SaaS model (Pagan and Wilcox, 2015). The software can further
assist the company to perform their duty in advance and make the accounting data in the right
manner. As software, the data is associated with customer that can be stored in hard drive
online.
Flowchart
Figure 1: flowchart of workflow in bank
Issues and frauds
The issues can take place with the Xero software since it is a full web based software which
needs a network based connection to run and need proper web based browser to function.
This software does not give complete right to the user; therefore, the privacy level of the

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system is low in nature (Weill and Woerner, 2013). There are times when the link connection
of the system fails and take a lot of time in recovery.
The answers of eliminating the issue is that when the user is functioning with the file, the
destination of the file should be on the local drive of the system so that the user can
comfortably function in offline mode without proper connection with the internet. To
properly maintain the privacy level of the database of the software where it must link with the
local hard drive of the structure therefore the user here can easily get update about the data.
Part B
Accounting software packages
The packaging in the country consist of software like MYOB, Saasu and Xero. These
programming solutions for bookkeeping are highly cost effective for small as well as medium
companies. They are also finished with sales as well as purchasing models and accounting
models and inventory models. The system is intense and yet very simple in use associated
with business programming and are crucial for any kind of business (Phipson et al., 2015).
These businesses based bookkeeping virtual answers will help in dealing and buying, keeping
track of the payables along with GST.
Market size of accounting software
MYOB system saves more amount of income per unit in comparison with Xero. But it also
has a higher stir rate and with high edges, the system of MYOB is also higher and the
specialists further expect after a specific time that Xero can increase as it further increases the
net margins.

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Figure 1: MYOB vs. Xero LTV calculation
Source: (Evans & Partners, 2015)
Decreasing the client mix is important considering the space in cloud because clients have
high and lifetime esteem which is in contrast with the advertisement at desktop. As discussed
in the report the system of MYOB there is annual churn over it the cloud client base and is
around 16.8% (Ehret et al., 2016).
Figure 2: MYOB vs Xero shares
Source: (Evans & Partners, 2015)
Leaders in Accounting Software

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Following is the detailed discussion: -
Feature Saasu MYOB Xero
DASHBOARD
Indicating and outlining the present money
based position
Option of tailoring the system
DATA IMPORT/ EXPORT
Operations like import and export the
contacts, record outlining, charges,
solicitation, manual diaries and bank
explanations (Contractor et al., 2015).
MULTI-USER SCOPE
Considering more than single customers to
operate with the product at one point of time.
BANK FEEDS
The information of bank is bolstered
especially into the bundle or overall capacity
to manually important bank based

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explanation into the bundle.
Simple level of conciliation and rapid money
based coding.
Right kind of interface especially from
internal of the bundle.
CUSTOMERS
Form and send the required solicitation to
customer straight out of the bundle
Forming the estimates as well as the right
orders.
Customised based solicitations, changing of
the notes and further proclamations.
SUPPLIERS
Making the payment based solicitations from
inside of bundle
Purchase orders
Dealing with expenditure assertions

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GST & BAS
Measuring overall capacity to advance the
level of BAS reported as per the usage of
handling the actions based proclamations
(Contractor et al., 2015).
Functions like GST Audit based recording &
GST based calculation log
MULTI-CURRENCY
Providing multi-currency based operations.
REPORTS
Providing full collection of reports
Formation of bolsters for Taxable Payments
in Annual Report
Consideration of transferring and appending
the records to reports as well as different
exchanges (Contractor et al., 2015)

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Offering international exploration based
utility
BUDGETS
Providing the planning and its usefulness
Prediction of the required Cash flow
INVENTORY
Offering finished incorporated stock
PAYROLL
Providing finished incorporated finance
Forming the tables based on tax and further
refreshed consequently
POINT OF SALE
Supporting the current POS operations
CONTACTS

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Measuring overall capacity to transfer the
clients and provide contact based data
(Contractor et al., 2015)
TIME TRACKING
Worker based timesheets
JOB TRACKING
Ability to track the work and classifications
MOBILE APP
Android and iOS
ADD-ONS
Ability to relate with various online
programming with the help of API
(Contractor et al., 2015)
SUPPORT
Presence of free amount support

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PRICING
Saasu
Pricing
$29/month including
finance for 1
representative
Xero
Pricing
Drawback of traditional accounting structure
Following is the detailed discussion: -
1. The traditional form of accounting framework has many limitations as well since
people in regularly wind up by providing wrong costing based data prompted by
taking wrong options from the high-level administration when used for the control
methods or at setting the offer cost or by sending the citation (White et al., 2016).
Moreover, the overall distribution of many kind of aberrant level costs does not really
work as the assets that are devoured by the complete outcome.
2. There are many kinds of recuperation based on overhead rates, for instance, machine
based hour rate, work based hour rate and further use of ingestion of many kinds of
present aberrant cost which also means the overhead.
3. The aberrant level of cost is specifically designed and further reallocated at item level
simply because it happens in the wake of collecting the item.
4. There is also a lot of trouble and issues in collecting, arranging, portions and
recuperation of various overheads to one single item specifically (Contractor et al.,
2015).
5. The part of expenses which are settles and changing the constant and far-fetched
items.

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6. In the current time, innovation developed based business world and the greater part of
the work is done with the help of computerisation which also means automation of
manual based work.
Recommendation of ERP related accounting or Xero
This form of bookkeeping and associated framework helps in associating many kinds of
angles to see the company in the right manner. The process of reconciliation of data over the
venture further guarantees that there is prominent level of work at every step of the business
and it goes from routine work to a crucial level based on choices (Badgery et al., 2014). It is
important to understand here that use of ERP based accounting solutions like Xero helps in
many ways and following is the detailed discussion: -
1. Overlooking the operation from more than one area of office
2. Eliminating the cost as well as assets based on wasted features.
3. Upgrading the profit level, consumer based loyalty, adapting and control.
4. Increasing the level of correspondence along with the joint efforts between all parts of
the business (Badgery et al., 2014).
5. Enhancing and maintaining the ideal control of the process and operations.
Conclusion
The report has discussed in detail about the Commonwealth Bank of Australia. It is obvious
that the traditional accounting system has become a redundant concept and it is no longer in
use anymore. In the current time of advance technology and fast-moving market, usage of
ERP related accounting system in the form of software is associated with de-facto of the
industry (Badgery et al., 2014). There are so many characteristics that provides along with

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usage of accounting software like MYOB, Xero and Saasu and it will help and assist CAB
bank in overcoming the current drawbacks in their system.