Comparative Analysis of Accounting Software for B Bakery

The provided content discusses the importance of implementing an accounting information system (AIS) for a small business, specifically B Bakery. The text highlights the benefits of using software such as Xero and MYOB, which are considered simple and flexible, allowing employees with basic accounting knowledge to manage daily transactions. The assignment also emphasizes the need for accurate and timely financial reports, which can be generated by AIS implementation. Furthermore, the text suggests that the chosen accounting package should not be complicated, as it requires successful implementation. In conclusion, the implementation of an AIS, such as MYOB, is considered suitable for B Bakery, assisting in reducing human errors, payroll administration costs, and overall business growth.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Student Name:
University Name:
Author Note:

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Executive Summary
The reports deals with the discussion of various acting information software. B bakery is an
organization seeking employment of accounting software due to their inefficiency in carrying
operational activities. System requirements and business process of organization depicted in case
study is also demonstrated. Different types of accounting software packages are compared and
contrasted for their implementation in B bakery.

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Table of Contents
Introduction......................................................................................................................................4
Answer to Question 1:.....................................................................................................................4
Definition of Baker and Business Process description....................................................................4
Part A...............................................................................................................................................4
Business Process of the organization...............................................................................................4
Answer to question 2:......................................................................................................................6
Developing business requirements..................................................................................................6
Part B: business processes that are indispensable to be performed................................................6
Part C: Suitable outcomes of the business processes.......................................................................8
Answer to 3:...................................................................................................................................10
Determining system requirements.................................................................................................10
Answer to question 4:....................................................................................................................13
Determining selection of software.................................................................................................13
a) Determination of adequate software..........................................................................................13
b- Category of Accounting Software selection for the B bakery...................................................14
Answer to Question 5: Selection of appropraite vendor for B bakery:........................................16
Contrasting and comparing the two accounting functionalities software:.....................................16
Conclusion:....................................................................................................................................19
References:....................................................................................................................................20

4ACCOUNTING INFORMATION SYSTEM
Introduction:
Small business are impacted by factors that helps in informational decision making that
helps in generation of valid, reliable and accurate information. Accounting information system
helps in tracing and appropriate recording of the financial transactions of organization. They are
capable of interpreting and analyzing the financial data for producing relevant information that
would assist in decision-making. Incorporation of tool of accounting information helps in control
of business related activities and makes the arrangement of budgeting and planning. In this
modern era, business faces tough competition and complex operational procedures.in order for
small business to sustain and remain competitive in the complex environment, it is required by
them to adopt advance system of technology. It is depicted from the evaluation of case study that
B Bakery was not capable of producing products at competitive prices. A manual form of
accounting process is followed by organization and following report demonstrate the technology
adoption for suiting the requirement of firms (Bodnar and Hopwood 2013).

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Answer to Question 1:
Definition of Baker and Business Process description
Part A
Business Process of the organization
B bakery is a family owned business that is operated by around seventy employees.
Business has been in industry for over fifty years and they are producer and distributor of bread
and confectionary products. Over the years, business of B Bakery has experienced mixed
fortunes but due to healthy product ranges, they have experienced growth. Nonetheless, there has
not been significant growth in business of B bakery over the last few years. This has led to
expansion of business activities and increased operational activities. Currently, business of B
Bakery has been facing difficulties with accounts. Accountant team cannot assist in competitive
decision-making activities (Adenike and Michael 2016). This has led to failure of business to
sell products at competitive prices as they have lost some of important accounts. B bakery
performs a wide range of activities and this involves following:
Production of Bakery products:
Bakery produces products such as bread and confectionary products and is engaged in
manufacturing as well as supplying products. Supplying confectionary products and bread to pub
chains, supermarkets and number of different businesses. Production is done on small scale and
this has led to inefficiency in business operations. The core process of business are production,
supply chain management, accounts and human resource management (Simkin et al. 2014).

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Manually business process-
There was a manual process of recording books of accounts and preparing financial
statement of organization. Currently business did not have any efficient way of performing
business. The unique selling proposition of business of Bakery is that products ranges are offered
on healthier platform. Offering healthy products, ranges would help organization in gaining
competitive strength. Organization has been compelled to switch to some of latest technology
due to their continued reliance on manual process of recording transactions.
Product Distribution
B bakery along with manufacturing the products such as bread and confectionary
products is engaged in supplying the products to various forms of business, pub chains and
supermarkets.
Ineffective human resource management
As provided in the case study that three are seventy employees working in organization
and organization does not have any pay roll structures. The recording of salaries and payment
done to employees are recorded manually as there is not any proper accounting system. For the
past years, there has been increase in sales revenue. Due to incapability of staff members and
employees within organization to produce the products, any competitive price has led to loss of
some key accounts of business. This lead to inefficient management of operations of business.
Accounting department of organization does not have any accounting software. Human resource
department of B Bakery is not sufficient for managing all the records of employees and staffs
engaged with business (Suryadi et al. 2014).

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Answer to question 2:
Developing business requirements
Part B: business processes that are indispensable to be performed
The business requirements that are essential for B Bakery firm is enhancing accounts,
making investment in some available accounting software and customization according to the
process of business. Informed and better decision-making by integration of business process and
accounting system. Business would require implementation of accounting information system
and enterprise resource planning that would help in providing better platform for the business
process (Liu et al. 2013).
Pay-roll structure with automated accounting software:
B Bakery currently faces difficulty in providing salaries to employees as they have an
annual process of transactions recording. Since, the organization is a growing firm, it is required
by them to have an automated system of processing and crediting salary payment to employees.
Proper analysis of costs of different inflow and outflow activities
Products involved in manufacturing and processing of activities requires classification of
different types of activities. It is essential for organization to have the proper classification of
items of cost that will help in analyzing the cost and benefits associated with every items.
Cost of Production determination:
In order for organization to have effective employment of the process of carrying to
operations, it is required to determine the appropriate cost of production. For ensuring internal

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control within organization, implementation of accounting software would help in ensuring the
information reliability that are being produced by software (Barkhi and Kozlowski 2017). This
would help in ensuing the business activities and accordingly helps in achieving the objectives of
management of business.
Financial statements and preparation of annual reports:
An efficient and effective processing of data that is acquired by different transactions of
company that will help in capturing of all the transactions and documentation process. Such
transaction should be recorded to journals and data needs to be sorted based on different
accounts. Publication of annual reports to stakeholders is of utmost importance to organization.
Financial declarations of organization is of utmost important to stakeholder of organization
Determination of appropriate market value of products of organization along with
determination of tax amount:
Adopting a suitable accounting software would help organization in determining the
appropriate products market value by analyzing the pricing of products. B bakery is also required
to make payment of taxes because it is a growing organization. Therefore, the amount of tax that
should be payable by organizations should also be segregated that is possible with the
implementation of software.
Organization would be able to gain information from analysis and database using
accounting software as some categories of information are required to be shared by management
that involves financial statements and management reports.

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Part C: Suitable outcomes of the business processes
Adopting the business process that is discussed above would help organization in
achieving several outcomes of business. In order for organization to improve their business
processing, various key outputs are required to be achieved from the process of business of B
bakery. Operational and transformational information are required by business. Some of
information that are required for achieving the business outcome are stock in inventory, payment
made to suppliers, cost of raw materials, labor charge and possible margin that is achieved by
business.
Control over variable and different types of operating costs
The controlling of operating cost of business can be done by implementation of
automated accounting software by B Bakery that would further assist in reducing the operating
costs. Organization would be able to determine the producing units by segregating into higher
and lower operating cost. Variable cost of materials would be controlled by the employment of
automated software by management. Cost management and accounting system of organization
would be effective along with minimization of the production unit.
Effective preparation of financial statements
An effective management information system would help organization in properly
recording their book of accounts. Such software implementation helps in accurately recording
books of accounts and assist in producing quality financial report. The business transactions
including sales, cost incurred, asset and stock details and payment to workers are recorded using
the software. Some of software programs comes with facilities of making order to suppliers,
email invoices to customers and filing tax return to Australian tax office. Software also helps in

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creating back up of all relevant and financial records that would have great impact on
performance of organization.
Increase in sales
Using accounting software would assist bakery firm is properly forecasting the sales
volume by accountant. This will help in ensuring customer service, infrastructure, inventory,
customer service and account management procedures that would help in handling the increase
in growth. Accounts are able to derive clear picture of expense of business and analysis of
expenses would help in tracking the sales record using software. Such software helps in
identifying some profitable ideas that will help in shooting up sales by eliminating services
causing business to lose money.
Determination of demand of the customers
Implementing the proper accounting software would help in determining the profits and
loss that is related with selling of various range of products by organization. They would be able
to set the price of products at competitive prices by taking and gaining the information related to
labor charge, cost of supplying products and possible profit margin that can be arrived. Stocks
that are not used frequently in production of products would be minimized that assist in cutting
down operational cost (Powell 2015).
The above listed outcomes produced by B bakery would be achieved if the business
process using the automated software were performed.

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Answer to 3:
Determining system requirements
For the smooth and efficient operation of business, B bakery would require
implementation of accounting information system and enterprise resource planning.
Implementation of such software is essential for achieving the objective of business. Software
implementation would help in integration of business process of organization and creation of
central database. Information of all the business process would be accessed by software that
produces efficient, better and accurate information.
Easy Online accounting
The financial transactions of organization are shifted in online platform the software due
to increase in competition among various business. It becomes essential for small enterprise such
as B bakery to implement the system that would ease in receiving and making payment to
vendors, distributing materials to supply chain. In order for small business to make proper
decision management are required to take appropriate and prompt action in the process of
business for which they seek relevant financial information. The firm would experience growth if
the system of recording inventories becomes seamless that is possible due to accounting software
implementation (Seyal and Rahman 2015).
Financial statement evaluation and analysis
Recording of financial statements and financial information of organization can be done
by implementing various accounting software available in market. B bakery can make the
adoption of software such as Xero, MYOB and DacEasy. Adoption and implementing to such

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software would help organization to continue and sustain in the growing competitive era of
business. Internal system of organization will be in control and systems would be efficient for
handling the recording of transaction that will lead to producing reliable accounting information.
Daily accounting transactions of organization will be properly recorded by such software
implementation.
Performing several cost analysis
The total cost and operating cost of organization such as B bakery should be regularly
analyzed that is certainly possible by the implementation of accounting software. One of the
important component of transaction recording is preparation of cost sheets that would assist
management of organization in effective presentation of transactions details in front of vendors.
Cost sheet is a document that provide detailed estimates of cost in respect of cost unit of
organization (Iskandar 2015). This would involve detail of payment made to employees in terms
of salaries and operational cost details. Implementation of accounting software deals with the
analysis of meeting short and long-term objective of organization.
Documentation several records and comparing them
Irrespective of scale on which organization that is small scale and large scale, they are
mostly engaged in accounting transactions that requires proper recording. Nonetheless, equal
importance is placed on all types of transactions. Therefore, it is required by organization and is
considered of utmost importance that implementation of such software should be done that takes
into account all types of transactions recording. Development of financial indicators by
organization is considered essential for properly recording and achieving financial performance

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(Bodnar and Hopwood 2013). Therefore, for having eased in recording financial transactions
would be possible by the implementation of such software.
Three types of fundamental functions are provided by accounting information system in
the process of business and they are as follows:
 An efficient and effective processing of data that make use of data acquired from various
transactions of organization. This requires capturing of documentation and sources of
transactions that should be recorded to journals. It helps in chronologically recording of
all transactions and different accounts will help in sorting of data (Hejazi et al. 2014).
 Required internal control within organization are provided by the implementation of
accounting system software that would ensure data reliability and ensure business
activities effectiveness.
 Financial statements and managerial reports are the two types or categories of
information that is required by management of organization.
Answer to question 4:
Determining selection of software
There are three classes of accounting information software based on size of business and
this is classified as entry-level solutions, small to medium scale business solutions and enterprise
accounting software.
Entry-level solutions are suitable for small-scale business, they are capable of delivering
some of basic financial functionalities, and some of the software includes Freshbooks, Xero and
Quickbooks.

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Software employed by small to medium scale of business are able to provide
functionalities more than above listed software. Associated database provided by such software
will be robust and they are highly scalable. Some of the example of such software are CYMA,
SAP, 100 MRP and SAGE.
Enterprise accounting software includes Oracle, SAP and SAGE ERP and they offer and
provides users with extended functionalities.
a) Determination of adequate software
Selection of software by small-scale business is a challenging task and accounting
software packages are offered by such software. Selection of appropriate software by such
organization sometimes becomes confusing task and they need to conduct proper benefit and
cost analysis prior to the implementation of such software. Some of accounting software that
accounting software are well equipped with involves planning budget, charts, monitoring of
spreadsheet, planning of cost spreadsheets, automatic updating and rapid file categorization
(Friedl and Pedell, 2017).
The business process of organization forms the basis of adoption of accounting software
system. In this regard, B Bakery should adopt following accounting software that are listed
below:
 MYOB
 SAP
 Xero

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B bakery can employ the software depending upon the suitability and compatibility with
business.
b- Category of Accounting Software selection for the B bakery
Accounting Software (Medium End)
Basic requirement of finance and accounts department of organization is easily met by
the implementation of medium end software. It leads to meeting of all the primary requirements
of business. Small-scale business and profit making entities employs such software as it assist
them in recording daily transactions and preparation of financial report. Medium end accounting
software are implemented by organization that mainly follows double entry system of
bookkeeping. There is integration of such software with the database, reporting tool and
information system of management that helps organization in meeting the required accounting
standard. It is recommended for organization experiencing growth to adopt such software.
Accounting software (Low End)
Small business operating on lower scale make use of low end accounting software for
merging several accounts, generating invoices for customers and handling the pay roll of
employees. Such software incorporates some features such as customer relationship
management, payroll, e commerce and financial reporting and transactions. Low-end accounting
software are employed by organization involved in complex business and lower accounting
transactions. Professionals such as lawyers and doctors mostly use this type of accounting
software. Such software are purchased on shelf software and from retailers. Such software uses a
wide spectrum and it is not related to any vertical market. Some of the accounting transactions
that take place in some functional areas of organization such as accounts payable, payroll, trail

16ACCOUNTING INFORMATION SYSTEM
balance and account receivable are recorded by such software and also deals with basic
accounting functions (Correia and Nayak 2016).
Accounting software (High end)
High-end accounting software are required to be implemented by organization that deals
with recording of complex transactions. This is so because it considers different process of
accounting. Multinational and organization that operates on large scale make use of such
software as they incorporates advance technology in their process. Outcomes generated by such
software is considered as crucial for the organization and implementation of such software
requires organization to incur huge amount of costs. They requires additional human resource
and higher cost and leads to expensive business applications. Compared to low and medium end
software, such software required high implementation suite (Tazik and Mohamed 2014).
Moreover, according to needs of organization such software can be easily customized.

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Answer to Question 5: Selection of appropraite vendor for B bakery:
Contrasting and comparing the two accounting functionalities software:
Figure 1: Factors of Comparison between various accounting packages
(Source: Hall, 2012)
Operating expenses:
Single version software are comparatively less costly to multiple version software.
Business process and structure of organization forms the basis of implementing the software for
running the operations of business.
Payment structure of employees:
Capability of recording adequate number of documentation
Payment related structure of the employees
Operating expenses
Scheduling of time and complexities
Sundry creditors and debtors
Flexibility

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Employee payment structure forms the differentiating factors between the
implementation of different software discussed above. When organization intends to reconcile
the bank statement, it is considered essential to adopt Xero software. For managing the salaries
of employees and status of tax payment, it is considered essential to adopt MYOB software
(King 2015). All the software make the difference in recoding of taxes payment and crediting
employee’s salaries.
Sustainability and risk factors
Implementation of software are regarded as free from errors and sustainable depending
upon the user’s capability. Management of B Bakery is required to handle the implementation of
software by dealing with specialization.
Complexities and schedule timing
Various software’s involves some degree of complexities in performance and
they differ in their timing while maintaining performance. When looking at the administration of
MYOB, it is considered simple as compared to other software’s and employees having basic
accounting knowledge and knowledge of bookkeeping are able to make recording of the daily
transaction of organization.
Flexibility
The implementation of software by small business provides with free training. Operations
of software such as Xero is flexible and they are advanced on payroll of third party. MYOB
software are regarded as enormously flexible as they have the capability of producing ample
report at a time. DacEasy software is considered as inflexible when it comes to adjust with

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recording of operation of business. Preparation of accounting reports helps accountants in
tracking of data that deals with customers, suppliers, transactions relating to third parties.
Sundry creditors and debtors
MYOB software helps in billing of suppliers and creditors along with recording of e
receipt and e payments. Purchase order of organization and claims regarding expense can be
arranged by the application of Xero. Accountants in management of organization are assisted in
cheque printing and calculation of purchase orders with the help of implementation of DacEasy
software (Worrell et al. 2014).
Most appropriate vendor for B bakery:
A suitable accounting packages needs to be selected by the management of B bakery. B
Bakery is an organization that is runned by family and they are not capable of incurring higher
costs that puts into them practice of accounting package. Accounting package that is elected by
organization should not be complicated as it helps in successful implementation of the software.
It is observed from the above analysis and evaluation of various accounting software that
implementation of Xero and MYOB would be considered suitable for dealing with operations of
business of B bakery. Business function of organization is suited by credit function of business
as they are engaged in supplying and distribution of the products.
Conclusion:
Organizations intending to take their business to another level requires of implement
appropriate accounting information software that would helps in sustaining and continuing as
going concern. Information security of organization and customer would be assisted by

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generating relevant invoices by such software implementation. The development and growth of
organization are assisted by the implementation of accounting software. Installation of
accounting software by B Bakery such as MYOB that helps in reducing the human errors in
calculation. Payroll of accounting departments of organization and overall administration cost is
also reduced by the implementation of MYOB software. Therefore, it can be concluded that
implementation of this particular software is compatible with the business needs and structure of
organization.

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