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Implementation of Accounting Information System: B Bakery

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Added on  2023/06/12

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This report depicts the current status of B Bakery, a family owned Bakery firm in Australia. It has been found that recently due to some major managerial and operational issues B bakery is facing few challenges, which are required to be mitigated. Both the AIS/ERP are beneficial from the business perspectives.

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Running head: Implementation of Accounting Information System
Implementation of Accounting Information System: B bakery
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1IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
1. Defining business process............................................................................................................2
a) Role of a baker.........................................................................................................................2
Discussion on business activities and processes followed in B Bakery......................................3
2. Developing business requirements..............................................................................................5
a) Indispensible processes to be performed in B Bakery.............................................................5
b) Outcome expected and required from this process.................................................................6
3. Determining the system requirements for B bakery....................................................................8
a) Possible software features or functionalities that B Bakery should consider for achieving IT
investment objectives...................................................................................................................8
4. Selection of suitable software for B Bakery 300.......................................................................10
a) After visiting 3 software vendor websites finding the suitable one for B Bakery.................10
Justification for the selection.....................................................................................................11
5. Selection of vendor for B Bakery..............................................................................................12
a) Compare and contrast two Accounting Software Packages..................................................12
b) The most suitable vendor for B bakery and why...................................................................14
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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2IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
Introduction
This report depicts the current status of B Bakery, a family owned Bakery firm in
Australia. It has been found that recently due to some major managerial and operational issues B
bakery is facing few challenges, which are required to be mitigated. Both the AIS/ERP are
beneficial from the business perspectives.
For their quality and unique products ranges the company has gained high brand value
but in order to take their business to the next level they are willing to implement an Accounting
software package (Al-rabei et al.2015). After analyzing the business activities and their
objectives a comparing the features and functionalities of different accounting software packages
B Bakery has to adopt the mist suitable one for them. For adopting the AIS the steps to be
followed by B Bakery are elaborated in this report.
1. Defining business process
a) Role of a baker
In case of any bakery store the bakers play the most vital role mainly in regards with the
culinary arts. They are responsible to prepare unique bakery items for those bakery stores where
they are being hired. The taste and flavors of the bakery item always help any organization to
grab many consumers. For B Bakery also, Bakers are the individual who prepares speciality
bakery items like breads, cakes, baked goods, pastries for those who love eating these food
items.
Sometimes this is easy task but sometimes this stands as a challenge because the end
result for the preparation is required to be tasty and unique from other bakery store’s products.
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3IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
Overall, only preparing tasty food items are not enough for the bakers rather they are responsible
to compete the other bakery stores with their uniqueness in taste (De Jong et al.2016). Staring
from the taste the ingredients those are using for preparing the cakes are another sector of
concern. The more the food items will be healthy the more they will be able to grab consumers
from other sectors. The cooking ingredients chosen for preparing this bakery items should be fat
free and cholesterol free also (Dunbar, Laing and Wynder 2016). In order to gain competition
advantages the food products are required to be very much unique and tasty at the same time.
Discussion on business activities and processes followed in B Bakery
The integrated Information system is referred to as one of the most important and widely
used technology that helps the business organizations to gain effective competitive success and
commercial benefits as well. The business activities followed by the company are as follows:
Operational process: The business process of B Bakery uses value chain model for
preparing and delivering tasty food items for their consumers. If this model is properly followed
by B Bakery then it will offer the company accurate consumers value with good products and
services (Gupta and Sawyer 2015). For successfully accomplishing the business activities all
essential operational process representation is necessary to be represented. The examples for
such process are the banking accounts, consumer’s order, the delivery approach used by the
company etc. The operational head of the B Bakery is responsible to create the most suitable
operational approach for the company.
Supporting business process: Besides the business process the company B Bakery is
also focused on developing supporting business processes. The supporting business process is
referred to as a secondary business process that is used by the business organizations when the

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4IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
primary business processes are found to be difficult to use (Ismail and King 2014). The
supporting business process associated to B Bakery are human resource management system,
accounting management system, safety measurements approaches etc. After analyzing the
primary and secondary support processes it has been found that, the support process of the B
Bakery is unable to deliver the consumers requirements directly.
Management process: Different business enterprises use this management process for
monitoring and controlling their business processes. It also helps to keep the track of the business
progress, so that the objectives and other interruptions that may act as an obstacle can be
measured by the business owners (Lim and Perrin 2014). The management process includes the
following factors: internal communication, governance, strategic planning, budget estimation,
infrastructure management, capacity management etc.
Apart from this the business process of B Bakery also maintains a sequential business
workflow in terms of the followings:
Parallel process: In this particular approach all the business activities will move forward
paralelly.
Sequential process: In this case the processes will move one after another, it means that
without successful completion of one phase the next one cannot be started (Padilla, Milton and
Johnson 2015).
Status driven process: The status driven process does not consists of any accurate
starting and ending point.
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5IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
2. Developing business requirements
a) Indispensible processes to be performed in B Bakery
According to the current status of B Bakery it has been found that, the company lags
some of the managerial and operational activities these lags may lead the B Bakery business
towards massive failure. The chances of data redundancy, information hijack and process failure
may occur in indispensible process, thus the company is focused to take their business to a next
level of success by implementing Accounting Information system (AIS)/ Enterprises Resource
Planning (ERP) (Seethamraju 2015). Among two of these technologies the most suitable one is
the AIS. Though it is used mostly in the finance sectors but for B Bakery this is a suitable one.
The adoption of this technology is not enough but also its application should have to be done
absolutely accurately.
The activities that will be analyzed with the Accounting Information system include
accounting, HR management, capital investment management, sales management, inventory
management etc. In addition to this, the other functionalities that can be served and easily
operated by the AIS system include supply chain management system, material management,
distribution management, support and integration management etc. If all of these processes are
properly followed then, B Bakery will experience mixed level of fortune and future success as
well (Wyslocka and Jelonek 2015). It has been found that, the confectionary products prepared
by B Bakery is gaining mixed fortunate however recently the company has lost some of their key
accounts those are effective.
For improving their business activities the B Bakery has adopted the AIS system for
managing their business process and approaches. All of the activities should be performed
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6IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
efficiently by the company to gain measurable success and commercial revenue collectively.
From few years for the unique quality and taste of the products, the consumer focused supply
and a delivery product the B Bakery was obtaining high competitive advantages and commercial
growth accordingly (Zhi and Junmin 2015). For establishing trustworthy relationship between
the suppliers and the service providers B Bakery has planned to adopt the accounting information
system for their company. In order to meet this objectives the company must have proper support
from the suppliers end.
b) Outcome expected and required from this process
If the company successfully adopts the concept and functionalities of Accounting
Information system then it will be able to deliver desired products to the consumers. The B
Bakery has an expert accounting team who manages all their finance oriented works during the
information system development phase (Seethamraju 2015). For lack of accounting facilities, the
business of B Bakery has lost some of their credentials related to offers, products, product price
etc. In order to gain fluent business success in terms of commercial revenue and competitive
advantages, the company is currently planning to adopt accounting information system for
managing all the business activities and operations properly. The company should adopt the AIS
so that they can take strategic decisions as well. Moreover, it can be said that with the successful
implementation of the AIS the company will be able to integrate all its objectives together and
can take their business to the next level of success (Wongsim and Hongsakon 2015). If the
accounts department maintains all the operations properly then it can deliver the expected
business outcomes for their consumers.
Proper business strategies will help B Bakery to make effective decisions over the
business requirements and company objectives. Effective business strategies will help the bakery

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7IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
farm to increase their profitability, productivity, staff retention, consumer’s loyalty etc. The
business drivers’ act as the catalyst that helps the company to lead their business towards success
and the driving catalysts are culture, sense of urgency, innovation, flow of information,
accountability, system, team work etc (Mayasari 2015). Non-compromise leadership serve by the
leaders of the B Bakery, will lead the company towards success.
There is no wide range of discrimination between the business objectives. The business
objectives and the expected outcome from any business are always similar for all organizations.
In case of B Bakery, the expected business outcomes are as follows:
High commercial profitability
Quality productivity
Effective consumer’s services
Employee retention
Customer retention
Core business values
Next level of business growth
Finance maintenance, change management and successful sales
Benefits from sales and suppliers
Competitive advantages
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8IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
3. Determining the system requirements for B bakery
a) Possible software features or functionalities that B Bakery should consider for
achieving IT investment objectives
Accounting information system (AIS), is a formal process that is used for collecting
information, processing information and distributing data for the users. The main purpose of
using the Accounting Information system is to gather, store and process the accounting
information securely and to produce all informational reports. In order to process the financial
and accounting information accordingly, informational reports are to be produced that managers
and all other interested parties are allowed to use for making business decision for B Bakery
(Padilla et al.2015). Accounting Information System is an automated system which does not
require manual data entry within the server rather it can reduce the issues of data redundancy and
manmade error. Information System serves integrated operational and functional excellence to
the consumers and the employees also who are working in the business organization.
However the accounting information systems are used for the accounts related functions
such as financial credential of the employees and the consumers. B Bakery offers the consumers
online service also it means that the consumers can afford and book for their desired food items
online and pay through online payment gateway. In order to keep the accounts details safe and
secured from the external attackers the accounting information system is widely used (Zhi and
Junmin 2015). Accounting Information system is as computer based system which holds
different ranges of features and the features are as follows:
The Accounting Information system offers efficient, effective collection and
storage of data those are concerning the financial activities of the business
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9IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
organization in terms of gaining the transaction information from all the sourced
documents, the transaction are recorded in the journals and posting of those
information to the ledgers from the journals.
Another role of the accounting information system is to supply those set of
information which are helpful to take effective organizational decisions including
the production of managerial reports, all relevant financial statements etc
(Wyslocka and Jelonek 2015).
The most effective function of the accounting information system is to ensure that
all the functions are under control and also can record and process data properly.
Not only this but also the other parts of the accounting information system are as follows:
People who are using the system in terms of accountants, managers, business
analysts
The processes and procedures which defined the way through which information
are gathered, processed, stored and fetched accordingly
All information that runs within the accounting information system
For processing data different software those are to be used within the computer
programs (Ismail and King 2014)
The infrastructure of the information system including the software, hardware and
operating functionalities etc
In order to protect information usage of proper internal control systems

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10IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
4. Selection of suitable software for B Bakery 300
a) After visiting 3 software vendor websites finding the suitable one for B Bakery
Fi
gure 1: Website of Xero
(Source: Xero Accounting Software 2018)
Fi
gure 2: Website of QuickBooks
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11IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
(Source: Xero Accounting Software 2018)
Figure 3: Website of MYOB
(Source: MYOB Accounting Software 2018)
Justification for the selection
After visiting the three of these official websites of the accounting software package
providers it has been found that among three of these the most suitable and beneficial features
holding AIS is the Xero (Lambert 2015). B Bakery should use this particular accounting
software packages because its dashboard is clearly visible and on a single dashboard all the
features are showing. It gives the users a clear vision and user friendly view (Khairi and
Baridwan 2015). Xero also offers a free trial version to the users, which implies that the users
can try up with this offer before adopting it finally. Both the XERO and MYB have account right
and each of them are having pros and cons. However, after analyzing the functional and
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12IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
operational abilities of these companies it has been found that, there are many reasons for which
B Bakery should adopt XERO for managing the financial detail of the company.
XERO can connect with more numbers of add on software than the other accounting
software package it means that, the users can add those values to XERO those are not available
in XERO. It is available through any of the browsers that are very much convenient like software
is never required to be installed. Foreign currency can also be used for keeping the track of both
the purchase and it sales for other currencies (Mayasari 2015). In addition to this it also offers
asses register that means the users can track and depreciate assets and print all the asset
schedules accordingly. Though the monthly subscription package of MYOB is cheaper than
XERO but still due to the other features the B Bakery should use XERO accounting software
package. MYOB offers services in Sydney whereas, XERO serves in USA (Rajasa and
Faturachman 2015).
5. Selection of vendor for B Bakery
a) Compare and contrast two Accounting Software Packages
In order to bring the accounting abilities for small businesses to a cloud platform there
are many accounting software package vendors available in Australia. It is the role of the
accounting software package vendors to deliver the most effective operating functionalities and
infrastructure to the companies so that they can manage their facilities and operations in a
professional manner (Wongsim and Hongsakon 2015). Based on the recent upgrades of the
MYOB core products based on accounting it has been found that, MYOB is focused to catch up
in all the accounting software packages. One of the most important accounting software modules
includes sales, purchase, repeating sales, inventory management, debaters etc.

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13IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
Sales approach: The sales approach of different accounting software package vendor
differs from each other. MYOB offers a complete sales system to the consumers that includes
different sales quotes, orders, feedback on the other hand XERO does not have any such quote
operation rather it acquires draft feedback only.
Purchase approach: Both the accounting software package enables payment process
through the ABA files those are uploaded to the banks. The system needs to email accordingly to
the suppers (Rajasa and Faturachman 2015). In case of MYOB the email program is required to
be installed but at the same time XERO does not require any such installation of the email
programs.
Repeating purchase and sales: Based on the given time frame, both XERO and MYOB
offer the users to create recurring feedback or billing as well as repeating this automatically. The
only thing that can be measured is their functional measures. In case of XERO there is no need to
logged on rather it generate all automatically but in case MYOB the users have to logged on for
repeating feedback from the other end (Mesbah, Jalil and Yuserrie 2015). The process for
MYOB will be a delay if the necessary logged on are not done.
The bank reconciliation approach: For this particular factor XERO has a weak bank
reconciliation screen, for this weak approach the clients can interact with the system very easily.
Due to the presence of the power tool the interaction from the client end become very easy on the
other hand, the reconciliation screen for the MYOB accounting information system not at all
strong (Zhi and Junmin 2015). Though MYOB tries to add on all necessary functionalities to it
but still they are failing to meet the criteria of XERO.
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14IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
Payroll management system: The payroll management of XERO is much better than
MYOB due to the presence of certain excellent functionalities altogether. The payroll of the
employees run accordingly based on the calendar. In addition to this, the tax is also added to the
service of XERO but in case of MYOB the payroll run for many times for this reason wrong tax
rates are charged (Erturk and Fail 2015). Besides the time sheet function MYOB offers add on
features through which it can generate billing. On the other hand, the subscription package rate
for MYOB is higher than XERO. N number of subscribers can subscribe the function at a time
however in XERO it is not possible (Lambert 2015). In XERO only the current staffs are allowed
to do the subscription.
User friendliness: While analyzing the feature of user usability, it has been found that
XERO is much user friendly whereas, MYIB is not that much user Friendly at all. XERO offers
a flexible and clear dashboard to the user from which the user can easily check for their bills,
expenses, current bank balance, consumer’s feedback etc.
Affordability: For small companies, XERO is much easy to afford than the YOB
because the subscription package of XERO is $25/month whereas, the subscription package rate
for MYOB is $35/month (Gärtner and Rockenschaub 2015.).
b) The most suitable vendor for B bakery and why
After operational, functional and commercial market analysis for all the accounting
software packages it has been found that though there are many accounting software packages
available in the Australian market such as SaaSu XERO, MYOB , Reckon etc. However, among
all theses accounting software packages the most suitable on is Xero (Dandago and Rufai 2014).
From the market research and current status of B bakery it has been found that, XERO is the
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15IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
most suitable accounting software package that should be adopted. The reasons for which it can
be adopted are illustrated below.
Figure 4: Current market size of MYOB and XERO
(Source: Cardoș and Cardoș 2014, pp-14)
Markets one of the most favorite financial collaboration accounting software package is
XERO. XERO has won the Expert choice award in the year of 2017. This particular system is
designed for reaching all the requirements of the business regardless of their industry size and
features (Bradshaw, Pulakanam and Cragg 2015). Sometimes this is referred to as one of the
handiest financial asset that has to be managed. The industry level features are also available in
the XERO accounting software system package. It implies that XERO offers user friendly and
clearly visible feature to the consumers.

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16IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
The storage areas or the memory size offered by this accounting software package is very
huge and secured at the same time. It means that the users can store large set of the information
in the server (Arcega et al.2015). Due to high level of security approach none of the external or
unwanted users can extract information from the server without permission. XERO is the biggest
competitor to Reckon. In the current days XERO is boasting more than over 850,000 subscribers
worldwide. If the business of B Bakery is analyzed under real time then it can be said that XERO
is the most suitable accounting software package.
It gives a clear view or single dashboard view to the consumers thus they can easily
check for their bank balance and other financial details very easily. It also gives up to date
account information to the consumers (Dimitriu and Matei 2014). The bank feed can be directly
linked up to the business accounts with the help of the accounting software package. Not only
this but also, it shows the incoming and outgoing transactional details the consumers. The
businesses who will be using the XERO accounting software package does not require any kind
of paper feedback. It can process a feedback in terms of email directly to the consumers to see
that the transaction is directly processed. XERO accounting software package offers automated
bookkeeping system to the consumers through which the smart scanning XERO AIS can add on
receipt bank, bills, expenses and data collectively (Cardoș and Cardoș 2014). Even if any
statement is found to be lost from the server then that can also be served by the retrieved if the
users are found to use XERO. It offers cloud platform to the users in addition with application
resilience, disaster recovery and data backup. The users will be able to gain mobile access to the
business information.
Whenever the users will be required to see the key numbers they can. It offers mobile
view of the business to the consumers. It helps to utilize the overall time much easily and
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17IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
effectively as well. It provides a collaborative way to the consumers to make the entire approach
simple and easier (Gärtner and Rockenschaub 2015). In order to run the accounts easily, it gives
simplified version to the consumers. Due to these reasons the B Bakery should use XERO
accounting software package. Even before adopting the software package they will get a chance
to subscribe the trial version which is absolutely free in cost.
Conclusion
From the overall discussion it can be concluded that, in Australia many accounting
software packages vendors are available and based on the business background and size (large,
medium and small) the most suitable AIS should have to be chosen by the owners to combat all
business managerial issues. After analyzing the functionalities offered by these AIS vendors, B
Bakery has selected and adopted the most suitable Accounting software package. After analyzing
al the functional details offers by three of these accounting software packages it has been found
that XERO is the most suitable software for B bakery.
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18IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEM
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