Accounting Information Systems: Impact & Success Factors

This assignment delves into the significance of Accounting Information Systems (AIS). It examines how AIS influences the quality of financial information, impacting firm performance and user satisfaction. The analysis draws upon research studies highlighting key factors contributing to AIS success, such as organizational culture, intrinsic motivation, and effective implementation strategies. Students are encouraged to critically evaluate the role of AIS in modern business environments.

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

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ACCOUNTING INFORMATION SYSTEM
Executive Summary
The present study represents the significance of undertaking mechanized system of
accounting. This study conducted on AIS/ERP system is explained with the help of the
business case on the corporation B Bakery. The corporation presently follows a manual
accounting system. Thus, several benefits of a mechanized/automated system of accounting
can be reflected in this study that in turn can help the corporation to achieve strategic
objective. Criteria of software can be prepared as well as presented to the corporation
founded on several facets. Again, these facets include recording and documentation,
mechanised and easy financial assertion evaluation, online business dealings and many
others. Besides this, there are diverse categories of software that can be analytically evaluated
and the software MYOB can be recommended to the corporation founded on the necessities.
This study also provides an appropriate validation behind the selection of particularly the
MYOB software for the corporation B Bakery.

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Table of Contents
Introduction................................................................................................................................3
Solution to Question 1:...............................................................................................................3
Solution to Question 2:...............................................................................................................5
Solution to Question 3:...............................................................................................................7
Solution to Question 4:...............................................................................................................9
Solution to Question 5:.............................................................................................................10
Conclusion................................................................................................................................14
References................................................................................................................................15

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ACCOUNTING INFORMATION SYSTEM
Introduction
Accounting system software assists in tracking different financial actions of the corporation
in a very systematic way. The contemporary business environment is essentially particularly
competitive in nature. Owing to this, different forms of contemporary corporations have the
need to adopt diverse types of advanced technology in a bid to maintain their business and to
compete with their rivals. The current study analytically evaluates the requirement of
effectual accounting system of the corporation B Bakery. In particular, this corporation B
Bakery follows a manual version of system of accounting and has not yet undertaken the
mechanized accounting software. Different forms of system of accounting as well as
accounting software is hereby proposed to the corporation and the advantage of this kind of
processes is also elucidated in detail in this study.
Solution to Question 1:
Explanation of Baker and description of business processes
Part A
As rightly mentioned by Prasad and Green (2015), individual manufactures different kinds of
breads as well as cakes with the assistance of a heated source can be regarded as a baker.
However, bakery is referred to as the place of work in which the baker essentially utilizes and
markets their own bread as well as cakes.
Procedures of business of the business concern B Bakery
The business entity B bakery essentially undertakes a wide range of business actions that
includes the following:
Production or Manufacture of Diverse Bakery Products

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The corporation under consideration deals with diverse bakery products in different forms
such as manufacturing of bread as well as other items. The chief unique-selling proposition
also simply referred to as the USP of the company is that it attaches importance to different
health associated facets while manufacturing the products of the company (Du et al. 2015).
Annual Business Actions of the firm
The most critical limiting factor of the corporation B Bakery is that it undertakes the business
actions manually. However, this specific factor recommends that the corporation records
business dealings and accounting actions by following a manual practice rather than a
technical accounting procedure by utilizing any specific kind of accounting software (Prasad
and Green 2015). Essentially, this can be regarded as a limitation of the business concern
since it has failed to adopt any suitable ERP procedure.
Distribution of Product
The business entity B Bakery is engaged in the process of distribution of bakery products in
diverse forms. As such, this further proposes that the corporation markets their own products
by deploying diverse distribution outlets that include supermarket chains and many others.
Less effectual in management of human resource
The business case mentions that the corporation employs around 70 employees. Nevertheless,
this corporation also utilizes diverse manual procedures to generate monthly salaries. It can
also be hereby concluded that inadequacy of proper accounting division has adversely
influenced the employees of the corporation by a huge amount (Tazik and Mohamed 2014).
Solution to Question 2:
Development of different necessities of business

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Part B: Essential procedures of business
The corporation is extremely successful in generating adequate amount of turnover.
Nevertheless, it is also apparent that the business procedures of the corporation might suffer
in the upcoming period owing to the manual adoption of different procedures of business.
The following actions involved in the business procedures can be proposed to the corporation
in a bid to make their procedure even in the long run.
Structure of the pay roll with computerised accounting software
Presently, the corporation essentially follows a manual structure/framework of pay roll for
the purpose of providing salaries to the workforce. It is very important for the corporation to
adopt an automated pay roll framework for crediting salaries to all the members of the staffs
of the corporation since it is a developing corporation (Tazik and Mohamed 2014).
Appropriate evaluation of diverse inflow along with outflow actions
It is very crucial for the corporation B Bakery to categorise diverse kinds of costs required
for firm’s production as well as manufacturing procedures. Essentially, this corporation B
Bakery also has the requirement to minimize the overall operating costs and this in turn can
assist in sustaining in upcoming period. Essentially, this can be made possibly only if the
corporation adopts computerised accounting software (Diatmika et al. 2016).
Determination of Production Cost
The corporation B Bakery has the necessity to adopt an effectual procedure for determination
of the production cost or else the costs of goods sold. Essentially, this procedure also helps in
of determination of costs of the entire procedure of processing different raw materials to
finished products.

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Preparation of financial assertions and annual declarations
In contemporary times, majority of the corporations declare their financial declarations along
with annual reports. Essentially, this has become an obligatory function of the corporation
since this assists in evaluating their business procedures (Romney and Steinbart 2012).
Ascertainment of apposite market value and disbursement of taxes
Business concerns have the necessity to determine the market value whilst adopting a
appropriate method of accounting. Besides this, the bakery business also has the need to give
back all the liabilities such as make payments for tax and many others.
Part C:
Fitting results of the business procedures
The firm can seamlessly achieve several results in case if the business concern can adopt all
the above mentioned procedures of business. As such, these results that can be achieved are
hereby mentioned below:
Maintenance of control over different variable as well as operating costs
The business entity B Bakery can seamlessly achieve numerous positive results and control
operating costs by adoption of the automated system of accounting. The business concern can
get to know about the highest along with the lowest unit of production and by this the firm
can control the entire variable costs of operation. Essentially, this might further help the
business entity to minimize those production units that incurs greater amount of costs of
operation (Adenike and Michael 2016).
Effectual method of arranging and preparing financial assertions

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The business entity can introduce effectual along with fault-free financial structure with the
assistance of the automated software for accounting. Fundamentally, this can aid the firms in
analyzing the business performance over the preceding years and accordingly can plan
different business actions to be undertaken in the upcoming period (Collier 2015).
Enhancement in sales
The business concern can understand the overall cost of sales or in other words the
production cost along with per unit cost (Khalil and Zainuddin 2015). In essence, this can
additionally help the management in determining an effectual strategy for pricing for both
short as well as long term period. By applying a fitting strategy for pricing the business
entities can enhance the overall revenue from sales. This in turn exerts a positive influence
the profit figure of the business concern.
Determination of customers’ demand
It is essential for any business concern to evaluate the demand as well as supply conditions in
the market for their products and services. Using this automated procedure of business,
management of the firm B Bakery can analyse the demand and supply conditions and
accordingly optimize the process of production and minimize the overall unused stock
(Collier 2015).
The business concern can achieve these results by appropriately adopting the above
mentioned indispensable procedures of production.
Solution to Question 3:
Determination of specific system requirements

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A bakery firm has the need of certain requirements in an accounting system that can be
possibly be in the form of analysis of financial assertions in an effectual manner along with
documentation of various forms of records associated to specific debtors, creditors as well as
vendors.
Seamless system of online accounting
In today’s world, majority of business concerns adopt online system of business transactions.
Thus, it is essential for bakery firms to employ a system from where it can accept payments
or make payments related to business. It can be hereby conclude that the management of the
business entity B Bakery has the need to know about all the important information regarding
the financials of the firm easily and in a go, so that it can assume quick actions (Fitriati and
Mulyani 2015).
Analysis of financial assertions
The bakery firm B Bakery has the need of different types of accounting software for
recording and documenting different financial transactions. The business entity can make use
of software such as MYOB and DacEasy among many others. The management of B Bakery
can decide to adopt the basic accounting software for keeping track of daily business
transactions and financials that can sequentially help in attainment of future success (Fitriati
and Mulyani 2015).
Recording different types of financial information and carrying out analysis
As rightly mentioned by Bonollo et al. (2016), any kind of business entity whether be
engaged in large or else small scale of business get engaged in different types of business
dealings. However these dealings might be in the form of accounting/financial transactions
that are very important. Thus, this bakery firm also have the requirement of effectual

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accounting software that xan handle all the financial dealings of the firm. Besides this, the
recorded transactions also need to be compared in a bid to enumerate the financial
performance over a certain period of time and across different players operating in the
market. Additionally, the firm also have the need to maintain a record of all the traders
(retailers/wholesalers), distributors, debtors as well as creditors (Collier 2015).
Evaluation of diverse categories of costs
The business entity B Bakery can employ effectual accounting software for analysing diverse
categories of cost on a regular basis. This is essential for generating effectual reports on cost
sheet.
Solution to Question 4:
-a) Ascertainment of fitting software
The business concern B Bakery can implement different types as well as forms of accounting
software that are best suited to meet their business needs. Essentially, different types of
accounting software packages that are available are hereby mentioned below:
- MYOB
- DacEasy as well as
- SAP (Khalil and Zainuddin 2015)
-b) Selection of appropriate accounting software
Low end accounting Software
Zakaria and Ilias (2017) asserts that there are different types of low end software for
accounting that can be implemented for handling less amount of business dealings. In
general, different professionals such as lawyers, consultants as doctors make use of this type

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accounting system procedures. However, small scale firms hardly employ this kind of
software since these are not properly structured and are very intricate transactions cannot be
recorded using these software.
Medium End Accounting Software
Medium end accounting software is generally adopted by corporation to meet their basic
requirements that include preparation of pecuniary reports, recording, documenting and
presenting daily business transactions and many others (Sari et al. 2015). This type of
software is necessarily appropriate for particularly the double entry system and this is the
primary reason why different small as well as medium scale firms implement such kind of
accounting software
High End Accounting Software
A high end accounting software is necessarily fitting for diverse types of accounting
procedures and recording different intricate business transactions. It can be witnessed
majority of the large transnational firms implement this kind of system of accounting as this
high end software are essentially built using advanced technology with greater potency of
recoding all kinds of financial transactions. Essentially, the output generated by this process
and software of accounting is particularly useful for these types of large scale firms. As such
this is the primary reason why greater amount of cost is borne by firms for the purpose of
application of this high end software. Particularly, small as well as medium scale firms fail to
implement this software because of the huge cost requirements as well as necessity for human
resource (Abduljalil and Zainuddin 2015).
Solution to Question 5:
Selection of fitting software

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Relative comparison of accounting software package
The business concern B Bakery can implement certain accounting packages. The accounting
packages might be in different forms that include MYOB or else DacEasy and many others.
Thus, it is important for the corporation to compare different software packages in a bid to
select a fitting software package. However, the comparison between different software can be
carried out founded on different components such as capacity of recording and documenting
specific number of documentation, payment associated framework of the employees,
functional expends, risk as well as sustainability, time scheduling, understanding
complexities and sundry creditors as well as creditors among many others (Ibrahim 2013).
Thus, the comparison between specific software is as presented below:
Table: Representing comparison between diverse types of accounting package
(Source: Alewine et al. 2016)
Flexibility

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ACCOUNTING INFORMATION SYSTEM
Capability of recording suitable number of data
MYOB is capable to registering and recording suitable number of data within a specific
system. Besides this, MYOB can also present output in a swift manner after providing input.
However, this is principally due to the fact that the software contains a button present on each
and every page at the time when input is given. Contrarily, DacEasy also utilizes a specific
index to discover the requisite information on the device’s screen. Essentially, both the
software is capable of recording suitable number of requisite information and documents,
although the process is entirely different (Rahman et al. 2015).
Operating Expends
The operating cost and the cost of implementation of both of these software can be
categorised as either medium or else high end accounting software. As such, the single
version of this software is comparatively less costly, while the multiple version of these
software is relatively more costly. Thus, it depends entirely on the specific corporation that
decides the software that they need to be used for undertaking operating actions (Simkin et al.
2014).
Structure related to disbursement to the employees
In essence, there exists a difference between particularly the MYOB, DacEasy as well as
Xero based on the framework of payment of the employees. Mancini et al. (2015) asserts that
the software DacEasy is quite useful when considered in terms of effectiveness of depositing
salaries of the members of the staff of the corporation. Additionally, the accounting software
also assists in the process of classification of the entire amount of tax liability that needs to be
paid. Again, on the other hand, it can be said that the accounting software XERO is extremely
helpful when considered in terms of effectiveness of system of mechanized bank

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reconciliation. Besides this, MYOB is useful for the purpose of creation of different types of
alternatives to monitor and control the entire salary process as well as tax pay off system of
the members of the staff of the corporation (Tazik and Mohamed 2014).
Risk as well as sustainability
It can be hereby mentioned that all the above mentioned software is necessarily free of any
kind of error and is sustainable at the same time depending on the overall potential of all the
users (Prasad and Green 2015). Additionally, administration of the business entity B Bakery
also has the need to develop the overall speciality before managing the software.
Time Scheduling and intricacies
Essentially, XERO has successfully provided easy online accounting dealings, yet, the initial
procedure is a bit intricate. Again, DacEasy is also useful for users for simple operations
(Diatmika et al. 2016). Contrarily, the function of the software MYOB is exceedingly simple
and can be comprehended by individuals having basic knowledge on accounting as well as
bookkeeping.
Flexibility
XERO can be considered to be very flexible and it functions on improved payrolls of
different third parties. Again, DacEasy also generates nearly fifty reports and cannot be
regarded to be very flexible, while, MYOB can be regarded as exceedingly flexible and has a
potential to generate over and above 175 reports (Du et al. 2015).
Sundry creditors as well as debtors
Adenike and Michael (2016) assert that MYOB backs the system of e-payments as well as e-
receipts and helps in the process of billing of different creditors along with suppliers.

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Contrarily, it can be hereby mentioned that DacEasy primarily functions in the process of
printing cheques and enumeration of different quotes of diverse purchase order. Essentially,
Xero helps in creation of purchase orders and present claims of different expends when
considered in terms if creditors (Wijaya et al. 2015).
Selection of suitable vendor
The bakery firm have the need to select an apt accounting software package that can serve the
purpose of operating different business functions. This system needs to be simple so that it
can be applied in a successful way. MYOB can be adopted since it has the potential to
develop a broad range of pronouncements that is fitting for diverse functionalities of the
business. Besides this, MYOB manages different credit functions that can suit the style of
business functions (Salehi et al. 2010). However, these features are not obtainable in case of
software such as DacEasy as well as Xero. Transfer facility is present in MYOB and is not
present on other software. However, Xero can enumerate the mechanized bank reconciliation
assertions whilst MYOB aids in enumeration of costs of inventory using mechanisms of
LIFO and FIFO.
The corporation B Bakery can develop its operations by means of producing reports that
essentially MYOB produces. Besides this, the security level of the corporation can be
improved with apposite execution of software (Romney and Steinbart 2012).
Conclusion
In conclusion it can be hereby mentioned that it is extremely important for business entities to
enhance their operations. The corporation B bakery is expected to develop their operations
and attain strategic objectives with the implementation of the accounting software MYOB.
This can also assist the corporation in improving the security issues and gaining access to

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customer’s invoices. The corporation can attain success by evaluating different reports of
various vendor and this can again aid the corporation to apply effectual pricing and
distribution strategy founded on the outcomes.
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