Computerized Accounting Systems in SMEs

This assignment delves into the effects of computerized accounting systems on Small and Medium Enterprises (SMEs). It examines a range of research studies and real-world case examples to illustrate how computerized systems influence various aspects of SME operations. The analysis covers topics such as efficiency, accuracy, cost savings, and challenges associated with implementation.

Running head: INFORMATION MANAGEMENT SYSTEM
Information Management System: B Bakery Scenario
Name of the student:
Name of the university:

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Executive summary
This report reflects the role of accounting software package those are necessary to be adopted by
B Bakery a family owned bakery. It is expected that the issues associated to finance management
system can be resolved absolutely with the help of the ASP. However, after analyzing the
business application details of B Bakery it has been found that, among different software
packages the most suitable package is MYOB.

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Table of Contents
Introduction..........................................................................................................................2
1. Defining the business process..........................................................................................2
1.1 Role of a baker in B bakery.......................................................................................4
1.2 Discussion on the business activities or process of B bakery....................................4
2. Development of business Requirements..........................................................................5
2.1 Different processes those are indispensible to be performed....................................5
2.2 Outcomes required from these processes for achieving business objectives............6
3. Determining system requirements...................................................................................7
3.1 Some possible software features or functionalities that the firm should consider for
achieving their IT investment objectives.....................................................................................7
4. Software selection............................................................................................................8
4.1 Visit the websites of account software package vendors...........................................8
4.2 Suitable accounting software suitable for the firm....................................................9
4.2.1 Justification.........................................................................................................9
5. Vendor selection..............................................................................................................9
5.1 Comparison and contrast between XERO and MYOB.............................................9
5.2 Selection of the most suitable vendor of the bakery................................................12
Conclusion.........................................................................................................................14
References: Harvard..........................................................................................................14

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Introduction
This report depicts the importance of using advanced Accounting Information System
(AIS) and Enterprise Resource Planning (ERP) system for managing large set of information
with high level of security and time and service efficiency as well in B Bakery. It helps the
company to gain effective success and competitive advantages from the marketplace (Sriyono
2017). Different business processes are there and based on the background of B Bakery the most
suitable business process is needed to be incorporated by the company. In order to resolve the
issues of finance management B Bakery should adopt MYOB software package for their
company.
1. Defining the business process
The business process is referred to as a series of steps those are collectively performed by
the stakeholders group of the company in order to achieve the business goal. Business process is
a wide range of structured, chained, tasks and activities those are widely conducted by the
stakeholders and the specific equipments of the company to deliver service and products (Tam
2017). In order to accomplish the predetermined goal of organization business processes are
needed to be determined by B Bakery. In each of the organizational level, the business processes
might occur. These kinds of processes are sometimes visible to the consumers and sometimes
these are not visible to the consumers.
Three different types of business processes are there such as management processes,
operational processes and supporting processes (Wagle and Maiya 2015). It is the responsibility
of the management head of B Bakery to make sure that the business operations are running

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successfully. With the help of the management process, the operation of a system could be
governed. In order to create the primary value stream a process that constitutes core business of
the organization should be incorporated (Seck 2017). The different examples of business
processes include invoice, shipping, order receiving, personal data update; determine marketing
and other budgets for the business process.
1.1 Role of a baker in B bakery
The main role of a baker is to made fresh baked treats with affective aroma and fragrance
for the consumers. In order to grab new consumers from different geographical boundary it is
necessary to deliver the products with affordable price (Rajasa and Faturachman 2015). This
family owned bakery holds around 70 employees and due to its affordable price and product
tastes the revenue of the company has increased up to $13.5 Million in the last few years.
Due to its business performance it has gained mixed business experience from the past
few years . However, due to lack of managerial approaches, B Bakery failed to produce some of
the products with affordable price in the competitive market. While preparing food they must try
to make it better than the other bakery stores to gain effective revenue and competitive
advantages as well.
1.2 Discussion on the business activities or process of B bakery
In addition to this, they are also responsible to attract their consumers through turning
their company into industrial bakery store. With the growing numbers of products and
employees, the management of the products and employees also become very difficult. In order
to manage them B Bakery has incorporated Accounting Information System (AIS) in their
company (Mayasari 2015). For managing the expansion of the company, this accounting

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software stands helpful. It helps the company to track all the financial details and transaction
details as well.
In order to improve the rate of its earning profit, specialized accounting software is needs
to be incorporated by the company (Magerer 2017). In order to maintain the confidential
information the company has adopted the below business process:
 Development of accounts for the consumers of B Bakery
 Development of vendor accounts
 Bank accounts should be created for the employees
 Providing proper security to the accounts to avoid external assaults
 Account charts should be enhanced accurately
 Availability of both offline and online payment processes
2. Development of business Requirements
2.1 Different processes those are indispensible to be performed
In order to boost up the productivity of the employees who are working for B Bakery it is
necessary to utilize the essence of time management tools accurately. Time taken for billing and
accounting is the reason for lost of web browsing, social media check and other distractions. Due
to lack of organizational management the company is facing this issues majorly throughout
(Kamaruddin and Ramli 2017). From analyzing different survey it has been found that, most of
the medium and large companies are facing time waste as a issue due lack of processes. Proper
project management tool is needed to be used by the project head to overcome the organizational

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challenges. Particularly for B Bakery the main challenge that was interrupting the company to
gain effective revenue is lack of accounting management aspects.
In order to maintain and track the details of financial transaction of the company it is
necessary to install accurate Accounting software Package in terms of SAP, MYOB. Based upon
the requirement of the consumer and employees the company should select the most suitable
accounting software package for their company (Darmawan, and Nugroho 2016). Considering
the business objectives the most suitable package is needed to be selected. The two most vital
and specific requirements of B Bakery are maintenance of the business requirements and running
those aspects accurately (Choong 2016). The efforts must be done for increasing the revenue of
the company. At the same time the finance management can be done if the company uses SAP
software.
2.2 Outcomes required from these processes for achieving business objectives
From the existing business background of B Bakery it has been found that the company is
facing major challenges due to lack of financial management. In order to track and monitor the
financial structure of the company, it is necessary for the company to adopt proper Accounting
Software Package (ASP). With the growing time phase the number of information are also
increasing respectively for which the data management is also becoming difficult for the
company (Arcega et al. 2015). The company is willing to expand their business in the upcoming
future and in order to make it possible adoption of accounting software stands to be the most
helpful one. For gaining volatility, this particular accounting software package is very much
helpful. For reducing the organizational complex situation, this approach is very much helpful.

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In order to achieve the business objectives, the range of outcomes those are required
includes the following:
Time saving: Compared to manual bookkeeping system this particular approach is very
much helpful as it helps to save lots of time (Alfred 2014). This package has the ability to front
process simultaneously end documentation as well.
Cash flow management: The route of transaction from the consumer’s account to
company accounts become save and secure due to the implementation of AS.
Scalable solution: Apart from these benefits the objectives in terms of getting scalable
solution and computerized solution become also adoptable from the consumer’s end with the elp
of accounting software.
Continuous financial monitoring: In order to maintain and monitoring the financial
records of the company Accounting Software is useful over manual bookkeeping.
3. Determining system requirements
3.1 Some possible software features or functionalities that the firm should consider
for achieving their IT investment objectives
In order to achieve as per the company requirements the possible features of all the
Accounting Software are required to respectively analyze (Choong 2016). The main objective of
the Company is to keep and maintain the transactional records accurately through Accounting
Software Package. Based upon the requirements the IT level investments are needed to be done.
The common features of the AS are as follows:

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 It can document back end transaction.
 Apart from this, the additional features from which the company could create
check and even deposit in the banks. It can also generate feedback or invoice
through this solution
The possible functionalities those should be considered to achieve the objectives of
OT investment are as follows:
 Windows XP, Windows SP 2 and Widows 7
 In the company file around a 35 MB disk space is needed
 Microsoft office of version 2000, 2007 are needed
 1 GHZ Pentium Intel Processor with a 1 GB RAM
 For Apple QuickTime minimum v7
 Free hard disk 200 MB for installing program
4. Software selection
4.1 Visit the websites of account software package vendors
The websites those have been visited are as follows:
MYOB: https://www.myob.com/au
XERO: https://www.xero.com/
SAP: https://www.sap.com/india/index.html

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4.2 Suitable accounting software suitable for the firm
4.2.1 Justification
After analyzing the application detail, operational and functional activities those are
generally served by the software package it has been found that, through different online
software packages are available in the market such as MYOB, XERO, SaaSu, Reckon, SAP etc
but still for B Bakery the most suitable accounting software is MYOB. It helps the company to
gain effective business level solution in terms of time management budget management.
In addition to this, it also helps the company to overcome different obstacles by reducing
the human level errors. It provides useful as well as added service capability to the consumers.
The rates of resource availability are also referred to as enough in case of MYOB ( Darmawan
and Nugroho 2016). The rate of subscription packages is also affordable compared to other
vendors. The features for which the company has decided to adopt the MYOB software package
include reliability, flexibility, disaster recovery, application resilience and information backup.
5. Vendor selection
5.1 Comparison and contrast between XERO and MYOB
Details of the factors that
have been considered
MYOB XERO

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Access and setup The MYOB accounting
software is absolutely online
and the different devices
through which it can be used
include computers, tablets and
mobile phones (Daru 2015)
XERO is one of the most
widely used accounting
software that helps to
integrated and secures the
detail financial structure of the
company.
Updates Data updates took place
automatically
The system and data updates
are available automatically
Back up Constant online backup and
security is present
Continuous online backup and
security is present as well for
XERO and its services
Multiple access of users Yes Yes
Easy for usage Good Good and it can work faster
than others.
Reporting speediness In case of MYOB the
reporting approach took
longer time. It also helps to
report run one at a time
It can report faster than the
others. It could also run
multiple reports at once in the
browser tabs (Kamaruddinand
Ramli 2017).
Quotes A quotation system is also
offered by MYOB
It also offers quotation system
and can also convert
automatically into active jobs
Feedback or invoice It could send feedback Invoice is available

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Payroll Payroll is available for single
person. However more
number of staffs needs a
different version of MYOB.
Payroll approach is present
Login approaches of the
employees
Available only as a paid add
on
The staffs could access the
personal portal of the
employees and additionally
can also download payment
summaries, pay slip and can
also request for lodge leave
Debt follow up Present Present. It means through
follow up debt the company
could match the business.
Claimed expenses No availability It could handle the claimed
expenses separately. It can do
good job in accounting for the
claimed expense.
Cost Based on the background of
the business the overall system
cost varies accordingly. The
subscription package of the
software package varies
accordingly. Different
The price for XERO
accounting software is
absolutely simple and it starts
from $25 (Mayasari 2015).
However the plan for $50 is
absolutely suitable for the

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versions, plan and add on s are
available in case of MYOB.
The offers served by the
company are sometimes
referred to as a most confusing
one.
users with up to 5 staffs.
Payroll approach is also
available. It also allows
superannuation for only just
$10.
Learning software From online users could learn
about the software through
online learning.
Through online help, online
videos, Xero TV learn is
possible.
5.2 Selection of the most suitable vendor of the bakery
Different accounting software packages are available in the market such as SAP, XERO
MYOB etc but based on the background of the business the most accurate vendor is needed to be
chosen by B Bakery (Rajasa and Faturachman 2015). After analyzing the features and
subscription package details of all of these different accounting software packages it has been
found that installation of MYOB stands to be most suitable one for the bakery company.
In order to manage large set of data accounting software is referred to as one of the most
suitable tool that could be used widely by the companies. Even also in B Bakery due to sudden
business expansion the number of employees and data are also getting increased. Management of
those data is very much necessary to obtain successful market revenue from the competitive
market (Sriyono 2017). The different features of MYOB for which B Bakery should adopt this
accounting software packages are as follows:

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Real time data processing: The accounting software package has the ability to record all
necessary data including updated statement of income of the employees, balance sheet as well. In
addition to this, with this system the company would be able to manage the accounts specially
the real time cash-flow instead of the relying worksheet.
Operation on integrate system: This particular accounting software package could be
operated in the integrated systems (Wagle and Maiya 2015). With the help of the integrated
system the total time of financial transaction could be minimized and also the rate of error in
accounts also gets minimized accordingly.
Easy to use: According to the features of the MYOB accounting software it is very easy
to use thus it is user friendly. It means that the user can use this particular software easily without
any kind of system complexity (Tam 2017). In addition to this, online feedback or invoice
options are also present in its application which implies that, user can get access of it user ability
and based upon that they can select whether this accounting software can be used or not.
Presence of basic budget tool: Apart from above system features, MYOB accounting
software holds basic budget tool through which the company will be able to calculate its revenue
details accordingly.
Security: The MYOB software is very much secured from the users and employee
perspectives (Sriyono 2017). All the account holders have their own password through which
only the authorized users could access the accounts details. On the other hand the users who do
not have the account details are unable to access the account.
Ability to data backup: The other features associated to the accounting software
package are automatic data backup, disaster recovery and application resilience (Rajasa and

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Faturachman 2015). It means that, due to external assault if any information gets lost from the
server then, MYOB software has the ability to store the data as in terms of backup form.
Conclusion
For developing the business process the features of the Accounting Software Packages
are needed to be considered. It has been found that, based on the possible objectives proper IT
based investment is also needed to be done by B Bakery. MYOB, Xero, SAP are the different
Accounting Software Packages those should be incorporated to the company to gain effective
solution from the company. However, based on the software features it can be said that, B
Bakery should implement MYOB accounting software package.

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