Accounting Information System Report: B-Bakers Company Analysis

This report examines the implementation of an Accounting Information System (AIS) within the context of Enterprise Resource Planning (ERP) for B-Bakers Company, a family-owned baking business. The executive summary highlights the importance of AIS in streamlining financial transactions and the evaluation of various accounting packages, including SAP, Xero, and MYOB, to determine the best fit for the company's needs. The report delves into the business processes, requirements, and system requirements, emphasizing the need for interoperability and automatic updates. It then analyzes the features and functions of SAP and Xero accounting software, ultimately recommending Xero as the most suitable option for B-Bakers Company due to its online capabilities and ability to facilitate informed decision-making across different departments. The report concludes with a discussion on vendor selection and the strategic advantages of implementing the chosen accounting software.

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Accounting information system
Student name
Institution affiliation
Due date

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EXECUTIVE SUMMARY
Enterprise Resource Planning is the process which a business firm illuminates the
essential components of business operating systems. Amongst the fundamental aspect of
Enterprise Resource Planning is the embracing of accounting information system while they
operate their financial transactions.
The main purpose of this paper is to examine and elaborate the key concepts of strategic
information systems under the implementation of Enterprise Resource Planning. Accounting
information system will be the main component that forms the basis of the paper, accounting
information system act as the foundation constituent of Enterprise Resource Planning.
On the other hand, the study will evaluate and scrutinize different accounting packages and their
relevant features that are best for the business organization. The paper will discuss on accounting
software that are significant to a particular type of business, where baking business organization
is form the subject in the study.

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Table of Contents
EXECUTIVE SUMMARY..........................................................................................................2
INTRODUCTION.......................................................................................................................4
BUSINESS PROCESS................................................................................................................5
BUSINESS REQUIREMENTS...................................................................................................5
Business requirement...................................................................................................................5
Business requirement outcome....................................................................................................6
SYSTEMS REQUIREMENTS....................................................................................................7
System Requirement....................................................................................................................7
Interoperability.............................................................................................................................7
Automatic updates........................................................................................................................8
SOFTWARE SELECTION.........................................................................................................8
SAP accounting software.............................................................................................................8
Xero accounting software............................................................................................................9
MYOB accounting software........................................................................................................9
Category of accounting software suitable for the firm................................................................9
VENDOR SELECTION............................................................................................................10
Features and function of two accounting software packages.....................................................10
SAP Accounting Software.........................................................................................................10

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Feature of SAP Accounting Software........................................................................................10
Function of SAP Accounting Software......................................................................................11
Xero accounting software..........................................................................................................12
Feature of Xero Accounting Package........................................................................................12
Functions of Xero accounting software.....................................................................................13
Best accounting software vendor...............................................................................................13
CONCLUSION..........................................................................................................................14
References......................................................................................................................................15

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INTRODUCTION
Baking business activities encompass producing prolong foodstuffs such as meat, cakes,
and bread with limited exposure to heat. B-Baking company is one of the business enterprises
that operates its operations of producing foodstuffs that are considered consumable for a longer
time.
B-Bakers Company is a family owned business organization, it has in operating for more than 50
years. The company has employed over 70 employees who have to play the central role to
sustain and improve the company performance. The company has increased its revenue to more
than $13 million during the past financial years. As the company revenues are increasing, it is
noted that the company management is implementing on strategic management measures that
will ensure that the company is attaining its goals and objectives, these strategic theories have
been the basis of company success. B-Bakers Company has considered the relevancy of
installing Enterprise Resource Planning components such as accounting information systems.
Enterprise Resource Planning is a strategic management approach where a business
organization involves its operation to new information systems (Umble, et al., 2003). The
business organization coordinates all the business activities. Accounting information system is an
essential element of enterprise resource planning, it comprises using the new technology to
coordinate the company financial transactions. Strategic information system provides
information on how the firm’s financial resources are transacted and how they are being utilized
to meet the company targets. B-Bakers Company has incorporated new accounting systems
which are purposefully concentrated to provide the accounting information relating to all the
departments, from production to sales (Sumner, 2007). The accounting system ensures that the

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company is harmonizing its financial resources as they determine the best price for their
products.
BUSINESS PROCESS
B-Bakers Company operates many business activities that require the company to
demonstrate its performance in the market in order to gain competitive advantage. The company
activities comprise the process of evaluating the production materials and production cost used
during the production process. Inventory evaluation techniques compel the business firm to
invest on new accounting approaches (Bodnar & Hopwood, 2013). The application of new
inventory techniques reliefs the business firm from making any losses, losing arising from the
company are due to higher or lower inventory turnover.
The enterprise resource planning is a complex strategic management measure that
activates as well as incorporating the application process of all the internal and external business
activities of a business enterprise (Camilleri, E & Camilleri, 2017). The activation and
incorporation of all the internal and external planned procedures provide a holistic realization
and achievement vision and mission for the company. Accounting Information System is
considered to be an essential element of EPR, the use of new accounting system have increased
steadily because of its growing market in many business sectors. Consequently, the measure of
data in many business organization has turned out to be essential compelling business enterprises
to apply the new data management frameworks (Diatmika, et al., 2016). The procedure of
utilizing the new data management systems embraces the importance of organizational
management involving their management techniques to implement on Enterprise Resource
Planning.

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BUSINESS REQUIREMENTS
Business requirement
B-Bakers Company provides several types of product that are supplies to the targeted
market. Wholesalers and retailers act as the intermediaries between the consumers and the
company. The business requirement is simply what the business organization needs to do and not
what to improve (Leon, 2014). The company is required to make relevant and specific obligation
that will seek to accomplish the strategic missions and visions. The requirement should be based
on what the company needs in order to produce the quality products that meet the customer
demands in the targeted market (Miles, 2012).
B-Bakers Company is obligated to make critical decisions re-directed to navigate better
business performance. The company is required to allow its employee to contribute in making
comprehensive decision making, more specifically on deciding the installation of Enterprise
Resource Planning. However, the company is required to implement the strategic measures that
are relevant to its business activities (Dy & Halabi, 2007). Amongst is the implementation of
adopting new accounting information systems. Adoption of new accounting information system
contributes to the company financial success by reducing errors relating to financial transactions
(Ward & Peppard, 2016).
Purchasing of equipment is considered the primary requirement for the company. B-
bakers Company is required to ensure that the equipment’s to be procured and purchases are
relevant to baking services, these equipments should not increase losses but rather increase the
profits by utilizing the raw materials.

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Business requirement outcome
B-Bakers company is mandated to produce desirable products that costly friendly to
customer. The outcome of producing the desirable bakery products is attained by allowing
employees to contribute to decision making, especially in designing products such as cakes as
well as increasing nutrient to meet the customer test. The company has to consider the fact that
employees are the key stakeholders, they play a critical role in contributing the general business
success (Dominici, 2009).
While working towards accomplishing its strategic goals as well as improving its baking
reputation in the market, B-Bakers has to ensure that new information systems are well
comprehended with regard to the business activities (Diatmika, et al., 2016). The strategic
measures of adopting new accounting information system should be ordained and to be made as
part of the company avenue to success. The top management at B-Bakers Company should use
the accounting systems that reflect the business activities, especially systems that are used to
determine the cost of material used during the production process. Cost reducing accounting
systems allows the company to make relevant pricing decision to its product in the market
(Dominici, 2009).
SYSTEMS REQUIREMENTS
System Requirement
Accounting Information System embraces the general application of information
technology (IT). B-Bakers Company is guided to invest in information Technology, this will
allow the company to determine on the administrative systems that will aid in the
accomplishment of strategic goals and objectives (Diatmika, et al., 2016).

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Increase in profit making is one of the major company objectives, the accounting
information system allows the company to conduct an accurate financial transaction that reduces
errors. The process of reducing errors and frauds advocates the company management to involve
their management procedures with the Information Technology approaches (Dy & Halabi, 2007).
B-Bakers Company should invest in Information based accounting features this is by considering
the relevant accounting packages (Camilleri, E & Camilleri, 2017).
Interoperability
Interoperability is a critical feature that the B-Bakers Company should focus while
pushing its activities towards achieving its strategic missions and visions. Interoperability is
described to be an element of accounting software that provides data used in different company
department, the data obtained from the accounting package are considered to be the foundation
of decision-making process (Edirisinghe & Perera, 2016).
Automatic updates
The automatic update is a prime aspect that should be considered by B-Bakers Company
while implementing on ERP strategic management approach. The company should consider
selecting the accounting package that will provide the automatic data update, the updated
information should reflect the general business production process (Ehie & Madsen, 2005).
SOFTWARE SELECTION
Accounting software is outlined as the information application system that is used to
record and process the financial transaction that is within the company financial modules such as
inventory approaches, payroll systems, accounts payable and receivable (Kathy , 2016).
Accounting application package is a key component of Enterprise Resource Planning in an

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organization, B-Bakers Company should consider different aspects during the selection of
accounting package (Hall, 2012).
SAP accounting software
SAP accounting package offers several financial functions to the company, it provides
the financial management capabilities. SAP accounting program empowers the business
organization to understand the relevance of accurate accounting information (Kathy , 2016). SAP
application package is a liberal element of ERP that enables the adoption of open communication
channels within the organizational structures and departments (O'Leary, 2004). The software
gives the business organization deceivability of harmonizing the financial process to reduce
errors and frauds (Leon, 2014).
Xero accounting software
Xero accounting application is an accounting software developed in 2006 by Xero
Company in Australia. Xero accounting package is an alternative QuickBooks accounting
package, it has a unique feature of online service as compared with Intuit QuickBooks
accounting software (Phillips, 2014). The development of Xero accounting software is
considered the advancement of easing the activities of an organization. the application package
has unique features and functionality that cannot be performed by other accounting software’s
(Pfaff, 2016).
MYOB accounting software
MYOB is an accounting package developed by a group of Teleware and Christopher Lee.
The parent company of MYOB provides online service of hosting websites for SMEs in
Australia and other parts of the world (Curtis, 2015). The accounting software provides

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accounting services relating to employee payroll system and inventory evaluation activities
relating to B-Bakers production process (Neish, et al., 2009).
Category of accounting software suitable for the firm
Enterprise Resource Planning is explained as the strategic management approach that
allows the business enterprise to adopt the intergraded application and information system in
their operations (Scapens & Jazayeri, 2003). B-Bakers Company is a developing business
organization that seeks to develop the relevant solutions to the relevant business risk as well as
sabotage factors preventing the company from achieving its strategic mission and missions. The
company management is mandated to implement the Enterprise Resource Planning measures, as
they will act as the pillars of the company success (Umble, et al., 2003).
Xero accounting software is an appropriate accounting system that suits a business
organization that operates in different markets environment. Xero accounting package provides
the variety of financial services including the payroll system, inventory evaluation techniques
(Camilleri, E & Camilleri, 2017). However, Xero accounting software provides online
accounting service where the Bakers Company can access its data and information at any time,
thus consenting the top management to make an influential decision that related to the company
baking activities (Kanellou & Spathis , 2013).
Apparently, Xero accounting package is suitable to be used by B-Bakers Company since
it allows the management to diversify their decision to different departments. The application
software allows the company to make a relevant financial decision since all the information
obtained are from all the operating departments and division in the market (Knudtzon &
Schmidling, 2006).

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VENDOR SELECTION
This section of the paper authenticates the functionality of accounting packages which
are ascertained as relevant to the B-Bakers Company. Enterprise Resource Planning and
Accounting Information System allows the business enterprise management to tail their
discussion in making a well-standing decision and judgment that seeks to support the positive
running of the organization (Laudon & Laudon,, 2016).
Features and function of two accounting software packages
SAP Accounting Software
SAP accounting package is listed as the one of the familiar accounting packaged used by
SMEs. It is an accounting software that provides several financial related services to an
organization. It has remarkable features which give it to gain a competitive advantage in many
business industries (Corbitt & Mensching, 2000).
Feature of SAP Accounting Software
SAP is an accounting package that supports global marketing principles, it allows a
business enterprise to operate in the different market using different language and currencies of
distinctive versions. B-Bakers Company is noted to have conducted its business activities for 50
years, the company is expected to expand its market to different countries which used different
language and currencies. The SAP accounting package will allow B-Bakers to operate in
different regions, as language is also considered a primary element that the package will provide
solutions to (Buyya, et al., 2009).
SAP is an accounting software that entails solution to core financial transactions
conducted by the company management. The package allows the company financial executive to
synchronize the financial transaction one by one, therefore aids in making the annual financial

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reports for the company. The management of B-Bakers has the mandatory of advocating in the
administrative system that will aid in positive coordination of company management functions.
The implementation of the administrative system should comply with the international
accounting theories (Diatmika, et al., 2016).
SAP is a key component of Enterprise Resource Planning and Accounting Information
System adopted by the SMEs, the accounting package has the ability to improve financial
operations of the company, customer relationship, procurement and supply procedure. The
package defines the functions of human resource contribution towards achieving the strategic
goals and objectives of the company.
Function of SAP Accounting Software
SAP Accounting Software plays a key role in an organization, especially SMEs that
operates in different markets. The accounting package covers the major business needs from the
financial management to improve the company customer relationship. However, SAP accounting
package provides a clear framework that is used in managing and observing stock for the
company. B-Bakers is advised to adopt SAP accounting package which allows the business
enterprise to get accessed to scalable business standards, giving the company an opportunity to
gain its competitive advantage in the market (Dy & Halabi, 2007).
Xero accounting software
As compared with SAP accounting package, the Xero accounting software has specific
features that resemble those of Intuits QuickBooks Accounting software. Xero accounting
application is an element of ERP that is widely used by SMEs in the current business market.
The package vendor is commonly used by SMEs because it provides online financial service.

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Xero provides the company to keep its information until up to data, the information is used in the
decisional making process (Buyya, et al., 2009).
Feature of Xero Accounting Package
Xero accounting package widely applied accounting application in the market, it has
ample bookkeeping features that allow it to be used in the business market. Xero accounting
package allows the business organization to access the latest business accounting information
which is accurate, the obtained information will act as the foundation of decisions to be made by
the management (Dy & Halabi, 2007).
Xero accounting package is considered as a noble element of the accounting system with
exceptional accounting features, the package allows the company to connect its financial
transaction with bank accounts. The accounting package
Xero accounting package is considered to be the leading software which used by operating
business organization which operates it business activities using the internet. Xero software
possesses a unique and noble feature which allows the company to connect its transaction with
bank accounts; Xero accounting software automatically synchronizes banks accounts with the
latest banking services such as credit cards and PayPal transactions.
Xero accounting package allows the company to connect with its customers, the accounting
package allows the company to create an exceptional and professional invoice as well as
providing an even schedule.
Functions of Xero accounting software
Xero Accounting Package plays a key role in the company decision making, the online
services provisions allow the company to access its historical financial performance which is
used to determine the market position of the company (Bodnar & Hopwood, 2013). Therefore,

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the Xero accounting Package allows the management to make the comprehensive decision by
considering the historical performance of the company.
Best accounting software vendor
Enterprise Resource Planning enhances the accomplishment of company strategic goals
and objectives. B-Baking company is considered a small business enterprise that needs to
improve its products and services, the top management has the mandate of responsively
implementing the strategic accounting frameworks that suit the current market activities.
Adopting the best accounting application for the company will improve the company activities in
the market, and thus allowing the company to competitive advantage over the other market
players (Katz & Green, 2009). The automatic update of the data by the software shows that the
software is appropriate accounting package which allows the accomplishment of strategic
objectives of the company. Updating the company operates on the daily basis of the company
activities allows the company to cope with any changing aspects of the market environment. The
dynamic change in internal and external business environment compels the company to new
accounting framework, where Xero accounting package becomes the basic essential of the new
accounting system.
Xero Accounting Package is the leading accounting application in the market, it is widely
applied by Small Business Enterprises The B-Bakers Company is advocated to utilize the
software features, the vendor will seek to enhance that the company is having an up to date data
that will be used in the decision-making process. The accounting package is also costly friendly,
it is inexpensive compared to other competing accounting packages. It is also easy to be used and
not complex as compared to Intuits, Zoho, and MYOB accounting applications (Bodnar &
Hopwood, 2013).

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Xero accounting package offers multiple financial services such as payroll system and
inventory evaluation. Payroll system allows the company to use the limited time while
determining on employee salaries, the system also reduces the sabotages generated ghost
workers. The inventory evaluation allows the company to evaluate on effective cost reducing
approached that will ensure that the available material is utilized to meet the company produce
targets. As the dynamic changes in internal and external business environment of the company
are experienced, Xero accounting package is standing as a unique accounting component used to
adapt the changing business environment (Laudon & Laudon,, 2016).
CONCLUSION
Enterprise Recourse Planning is defined as umbrella strategic management approach that
determines the accounting information systems and packages to be adopted by a business
organization. B-Bakers Company is recommended to implement on Enterprise Resource
Planning policies and measures.
Accounting information system is an essential aspect of Enterprise Resource Planning. It
comprises the process where a business organization is primarily changing from using paper
based accounting process to technological accounting systems. Accounting information system
entails the adoption of accounting packages such as Xero, Intuit QuickBooks, MYOB, and SAP.
B-Bakers Company is a business organization that has been operating its business activities for
50 years, the company is advised to select the best software vendor and installed the application
software that is relevant to its business activities. The selection of accounting packages should
depend on the different feature such as adaptability, automatic update, and Interoperability

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