Usefulness of Accounting Software for Improving Business Efficiency: A Case Study of Eureka Limited

HI5019
Strategic Information Systems for Business and Enterprise
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Executive Summary
This report has been prepared for examining the usefulness of accounting software such
as Xero or Myob for improving the business efficiency by better management of the complex
accounting activities. The overall analysis has been conducted in reference to the case study of
Eureka Limited which is currently facing the problem of maintaining accuracy and integrity in its
accounting activities to support its strategic goals and requirements of business innovation and
expansion. This has been carried out through analyzing the features of cloud-based accounting
software that matches the needs and requirements of the company. The comparison of the two
accounting software, that are, MYB and XERO is demonstrated for examining the best required
as per the company requirements. The overall discussion has recommended the use of MYOB
online accounting cloud-based software to meet the business goals and objectives of Eureka
Limited.
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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Business Requirements....................................................................................................................4
Business processes in Eureka Limited.........................................................................................4
Major Control Risks for the Business Processes of the Company...............................................6
System Requirements......................................................................................................................6
Software Selection...........................................................................................................................8
Brief description of the following accounting software and its products....................................8
Category of accounting software (Low, medium or high end) suitable for Eureka Limited.....10
Vendor Selection...........................................................................................................................11
Comparison and contrast of functions or features of cloud based accounting software packages
Xero and MYOB:.......................................................................................................................11
Most suitable vendor and accounting software package for the company................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Introduction
This report has been developed for the purpose of examining the use of accounting
software such as MYOB, XERO, SAP and others for the purpose of recording and interpreting
the accounting and financial information. This has been conducted through examining the
accounting issues presented in the given case study of Eureka Limited. As given in the case
study, Eureka Limited is a family owned company having about 73 employees and is realizing
sales revenue of $18.5 million during the last year. The company is involved in developing
beverages products for different businesses and is conducting its operations from about 55 years.
However, it is facing some performance issues over the past few years and as such is focusing of
developing new healthy ranges of beverage products for improving its performance. The
company at present is facing problems regarding developing competitive prices of its products. It
has also hired an accountant for bookkeeping but the company is still not able to adequately
collect record, manage and interpret its accounting information. In this context, this report is
developed for evaluation and recommending accounting software for the company that can
adequately meet its different business needs and requirements. The report presents an analysis of
key business processes and their major control risks and provides an analysis of the accounting
software features to be considered by the company. This is followed by conducting an analysis of
the three accounting software vendor that are, QuickBooks Xero and Myob and evaluation of the
category of accounting software suitable for the company. Lastly, the comparison regarding the
features of MYOB and XERO is conducted and the most suitable vendor out of them for Eureka
Limited is identified and recommended on the basis of discussion held.
Business Requirements
Business processes in Eureka Limited
On the basis of information given, Eureka Limited is involved in the business of
manufacturing and supply of beverages to many different types of business. The business
structure of Eureka Limited is privately owned company with no subsidiaries. All the business
process is centralized with manufacturing and distribution centre at one place. Following are the
main business processes of Eureka Limited:
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