Accounting Software for Small and Medium Sized Businesses

This report provides insights about different accounting software which can be installed in a small and medium sized business. It recommends the best suitable software for the client in which they can make investment and earn benefits. The report discusses the features and functions required to be processed by the software so that the objectives of the business can be accomplished. It also provides a comparison between XERO and MYOB accounting software and recommends XERO as the best suitable software for a medium sized company like MICRvision.

RUNNING HEAD: ACCOUNTING INFORMATION SYSTEM
Accounting software

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Executive summary
This report provides insights about different accounting software which can be installed in a
small and medium sized business. It recommends the best suitable software for the client in
which they can make investment and earn benefits. The first two parts of the report provide a
brief introduction about client that is MICRvision, a sole trading company engaged in the
business of distributing new and used equipments, spares and all consumables. Its core activities
include supplying binding tape, thermal ribbons and stitching wire. In the third part, the features
and functions are discussed which are required to be processed by the software so that the
objectives of the business can be accomplished. The features include reporting, analysis,
automation, customization and many others. In the later parts, the software and vendor selection
are explained containing the differences between XERO and MYOB, explanation about different
software and comparison of the same. It has been observed that for MICRvision, XERO is best
suitable as it offers more advanced functions and easy to use. Moreover, it is less costly as
compare to other software and is very much appropriate for a medium sized company. The same
recommendation is provided in the conclusion section of the report.

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Software Selection
 XERO: It is a domiciled public software company in New Zealand that offers cloud
based accounting software for all the medium and small sized companies. The products
of XERO are based on software as a service (SAAS) model and are sold through
subscription. It provides wide range of accounting procedures that which makes the data
reliable and protects it at the same time. It offers smart accounting tools that can be easily
pact with book keeping, reconciliation of balances and many more. On a whole it
connects people from anywhere, anytime and from any device. Thus, it is best suited for
small sized business (XERO. 2018).
 MYOB: Mind Your Own Business is the multinational corporation operating in
Australia, providing tax, accounting and other business software services. It is also best
suited for medium and small sized companies. It has different type of products for the
businesses with different sizes. For SMEs, it has MYOB essentials, MYOB Account
Right, MYOB Account Edge and others. For the companies operating at large scale, it
offers products like MYOB Exo, MYOB Advance, MYOB Pay Global and others. It
automates the accounting process and makes the organization efficient. With greater
speed and high accessibility, it has been highly used by many Australian companies
(MYOB. 2018).
 QuickBooks Online: It was founded in 1983 after the launch of IBM first personal
computer. It is designed for small businesses only. It is pretty much reliable but it has its
scope limited to bookkeeping and accounting only. It is cheap and simple to use. It
provides various innovative tools of accounting which assist in recording transactions

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easily. It is user friendly and can be accessed through mobile phones (QuickBooks.
2018).
MICRvision is a sole trading and medium sized company which requires a medium end
accounting software. XERO is best suitable for its operations as it provides cloud based
accounting and is considered as the best accounting software in Australia. Cloud computing
allows the company to store all the data at servers and locate them by using internet. Being a
medium end category, it is easy to use and does not require a long implementation process.
Software of medium category means it takes less time to get installed and is focused on
providing different accounting procedures to the companies at reasonable prices. XERO has high
security and the information saved on the cloud can be easily accessed from anywhere and at
anytime. Being available at reasonable prices, it is best suited for MICRvision as it offers various
packages which can be purchased by the company for making their accounting system smooth
and accurate. Moreover, the primary aim of the firm is to enhance the technology and deliver
high quality of products and services. By adopting XERO, it can easily manage its accounts and
does not require an accountant for performing the same task. XERO remove the manual
requirement and make the company competent and efficient in its functions (Finances online.
2018).
Vendor Selection
The selection of accounting software packages for small and medium sized companies depends
upon their ability to record basic financial transactions including receivables, payables, payroll,
ledger accounting and others. With the help of such software, users should be able to download
and print the reports, sales and purchase orders and customizable professional accounting

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reports. The two accounting packages and vendors which can be compared are XERO and
MYOB. Both are of medium category but have different features and functionalities. A
comparison of the same is provided in the below table.
MYOB XERO
It is online accounting software, designed
for growing and small business.
It is a browser based model which means
user can easily access them from any
browser or internet device.
Reporting takes more time as one report is
run at a time.
Fast reporting is done and it can run
multiple reports at a time in browser tabs.
It includes payroll for one person only
and more staff requires an advance
version of MYOB (Finances online.
2018).
It includes Payrolls, Pay slips, summaries
of the staff remuneration and many others
in one interface.
It does not facilitate the processing of
purchases and sales against customer and
supplier cards.
In XERO, a single contact can represent
both the customers and suppliers.
In respect of international currency, most
of the MYOB versions are not available
without paid-on (Etax Local. 2018).
XERO offers multi-currency with the
rates calculated as per the current date.
From the above differences in functionality, it can be interpreted that XERO is better than
MYOB in some aspects and is best suited for small and medium size companies.

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For MICRVision, XERO is most suitable accounting software package as it cost less and has
more functions and features in comparison with MYOB. It is based on cloud which allowed
multiple users to access the entire file at one time. In addition, XERO does not require
MICRVision to provide complex trainings to its employees for using the software. It is simple to
use and most of its functions are linked to a dashboard, where all the billings, invoicing status
and finances can be compared through fancy charts. Overall, XERO is appropriate for
MICRVision as it has more advanced and simple features and functions. Also it is less costly and
easily affordable for the company (XERO. 2018).
Conclusion
From the above report, it can be concluded that there are various type of accounting software
which can be used by the companies to enhance their effectiveness and efficiency. The software
available has some functions and features which make them different from each other. For a sole
trading company like MICRVision, XERO is more appropriate as it powers the company to
manage the business in its own way and applying to it will certify that the company is obedient
with changes in tax provisions. Its update feature allows the business to adapt to the changing
requirements of laws and amendments in the accounting standards. So on a whole, it can be said
that XERO is suitable for MICRVision.

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References
Etax Local (2018). Xero vs MYOB. [Online]. Available at: https://www.etaxlocal.com.au/xero-
vs-myob/ [Accessed 20 September 2018].
Finances online (2018). 7 Best Accounting Software for Medium Sized Businesses . [Online].
Available at: https://financesonline.com/7-best-accounting-software-medium-sized-businesses/
[Accessed 20 September 2018].
Finances online (2018). Compare MYOB Essentials vs. Xero. [Online]. Available at:
https://comparisons.financesonline.com/myob-essentials-vs-xero [Accessed 20 September 2018].
MYOB (2018). Myob. [Online]. Available at: https://www.myob.com/au [Accessed 20
September 2018].
QuickBooks (2018). QuickBooks Online makes accounting easy. [Online]. Available at:
https://www.xero.com/us/ [Accessed 20 September 2018].
XERO (2018). Online accounting software for your small business. [Online]. Available at:
https://quickbooks.intuit.com/online/ [Accessed 20 September 2018].
XERO (2018). Why cloud accounting is good for business. [Online]. Available at:
https://www.xero.com/uk/resources/small-business-guides/cloud-accounting/cloud-accounting-
business/ [Accessed 20 September 2018].