Report on Accounting Information System and ERP for Commonwealth Bank

This report provides an analysis of the accounting information system (AIS) used by Commonwealth Bank (CBA) in Australia. It examines CBA's adoption of Xero as its accounting software package, focusing on its ability to handle financial data, particularly for small businesses. The report details CBA's organizational structure, operational issues such as customer overcharging and electronic service degradation, and the role of Enterprise Resource Planning (ERP) systems in addressing these challenges. It includes a flowchart of sales procedures and discusses potential issues related to Xero implementation, such as data deletion and user access rights. The report also evaluates the market size and leaders in the AIS market, highlighting Xero and MYOB, while also discussing limitations and recommendations for improvement, including cloud computing and enhanced security measures. The conclusion emphasizes the importance of input control and efficient data processing for internal and external financial transactions.

report

Summary
The report is based on the Australian software package which includes the Commonwealth Bank
for the proper processing of the technologies. The report is about how Commonwealth focus on
the operational issues with the usage of best ERP systems so that they can handle their
accounting software package. There are certain some issues in the organization, which are
discussed along with focusing on which AIS package is best for the market and for the company.
We have considered that Xero is found to be matching all the requirements of Commonwealth
Bank.

Contents
Summary..........................................................................................................................................1
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Organizational Structure..............................................................................................................3
Operational Issues........................................................................................................................4
ERP systems................................................................................................................................4
Flowchart.....................................................................................................................................5
Possible issues.............................................................................................................................6
Part B...............................................................................................................................................7
Accounting Information System Package...................................................................................7
Market Size..................................................................................................................................7
Leaders in the market...................................................................................................................8
Limitations...................................................................................................................................8
Recommendations............................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
The report focuses on how the accounting information system is able to handle the collection,
storage and the processing of the financial and the accounting data that is being used by the
different decision makers. The context of AIS is taken with respect to Commonwealth Bank in
Australia, where how it has been able to incorporate Xero as the accounting software package
which provides the secured data feed solutions for the business. All the small business customers
are also required to work on the applications for the data feed where Commonwealth Bank focus
on delivering the simple, and the best functionality to make the life of the people easy. The
report also focusses on the ERP systems and the structure which relates to managing the resource
planning with the improved setup process and secured connection. The company CBA will
define how the inefficiency and the errors need to be evaluated with the standards set to meet the
accounting forms. For Commonwealth banks, the accounting software is important to handle the
payroll management in the system along with the proper analysis of the inventory. Through this,
there is a proper access to the small business systems along with handling the data security. The
solutions are based on working over the NetBank and Xero systems that hold the reconciliation
of the functionalities.
Part A
Organizational Structure
As per the decision of the Managing Director of Commonwealth Bank, the structure is aligned
on the development of product and the service delivery. This is important for handling the
customer segments with the changed responsibilities for the leadership team (Commbank.com.au.,
2017). The structure focus on the customer base, where there are retail banking services where

the customers seek the accessible and the affordable banking procedures (Commbank.com.au.,
2017). The investments and the insurance services are also based on the third-party support
services from the brokers and the agents. The company works on the management of the
institutional and the business services that cater for the financial needs of the initiation and the
middle market business customers as well.
Operational Issues
As per the analysis, Commonwealth Bank is facing major issues related to the operational risks,
where there are scandals related to the chronic overcharging of the customers at the British
banking arm (Commbank.com.au., 2017). The CBA customers are left cashless with degradation in
the electronic services which are for the bank customers and the executive teams. The errors
riddled online platforms are also driving the customers away.
ERP systems
There is a need for the company to work and make use of Xero software which helps in handling
and balancing the improvement for a proper processing. The secured success and the connection
is possible through the transactions that are being done and delivered. The bank feeds also
include the improved and the secured connection (Commbank.com.au., 2017). This is mainly
through handling the cloud based technology where the ERP of the system works with easy
forms of the data transactions along with working on how to handle the savings account. CBA is
also able to cater to the needs with the reconciliation of the accounts and then controlling the
flow of cash with proper setup of business (Khairi & Baridwan, 2015). Here, the demands are
depending upon the records and the easy processing of the data. The modules are highlighted
with the easy management of the payroll and how the inventory standards are able to make a
better place for the in-house systems.

Flowchart
Here, the procedure of the sales includes the receiving agent, vendor, superintendent, buyer and
the customer. Here, there is a need to prepare a proper quote so that the process could be
reviewed along with preparing the invoice for making the payment (Bhiani et al, 2014). The
process also includes how there is a possibility to receive the orders of the different items and
then proceeding with the shipping officer. The review of the quote and the quote acceptance is
important for the proper flow of the data. The reviewing is based on the preparation of invoice
and how the system is able to handle the evaluation of RFQ (Request for Quote) (Collier, 2015).

Possible issues
There are different issues which relates to how the functioning and the processing could be done
when there are issues related to the system of Xero. The foundation is based on the possibility
where the false data need to be evaluated and then linked for the system accounts. The
employees ID along with handling the deletion of data for the previous employees is a major
issue. Along with this, there is a need to set up the connection to the bank account with the ID so
that it is easy for the money to float in the account. Some of the users work on accessing and
making use of the network connections for the system, where the software is never able to give a
proper access to the rights of the user (Commbank.com.au., 2017). Hence, it is seen that the system
of the user is set at a lower pattern. With this, there are issues related to the system storage
upgradation, where there is a time wastage in the conversions that all require a proper amount of
time for money that comes when there are changes in the business principles (Ismail & King,
2014). The major focus is on the time and how the expense efficiency could be satisfied with the
proper designing of the software. For this, it is important to take note of how to balance any of
the unbalanced error and work towards reporting and setting a better business performance.
The best solution for the same is to work on the evaluation of the system where the user can
easily handle the system of the file on the local driver. Through this, there is a major possibility
where the user could also maintain and work towards the setup of the system privacy. This is
only possible when there are monthly updates about setting and deleting the data of the files
which are irrelevant.

Part B
Accounting Information System Package
The AIS has been launched by IBM which is considered to be able to setup the system dynamics
along with working on the proper generation of reports. The working is based on the regulatory
and the tax agencies where there is a need to handle the different financial transactions and
record keep that is important to work on the real-time applications. AIS is also important to work
with the inventory order and how the notifications are processed for the accounting. The sales are
made where there are invoice customers and the warehouse to assemble the order and get
notified for any receivable. The functionality is based on the flexibility and how the investments
are processed for the effective development (Wang et al, 2014). The functioning could be
worked on through the Peachtree which includes the expansions and the working on the system
integration. The structural standards are based on working with the accounting applications and
how the different requirements could be met with the major focus on quickening the processes
and handling the processor systems (Bodnar & Hopwood, 2013). MYOB includes the company
acquiring with the Australian standards set to meet the research and work with the business that
is based on the small and the large number of the organization structure. The adaptation is based
on the software standards with the reduced paperwork (Wang et al, 2014).
Market Size
The market size depends on the AIS software requirement, where there are people 1600
approximately who are working on the management. Along with this, there are certain investors
and the creditors who are able to proceed with the accounting systems and management. ERP
includes the basis where the software packages are defined under the choice of ERP. Hence, for

this, the architectural format is based on the larger forms where the setup is through the data that
is collected and worked on for the proper storage of the information. The accounting information
is also depending upon the fact about how the clerk tends to enter and work on the details related
to the invoice with the check on how it is easy to provide with the accounting vendor information
(Simkin et al., 2014). The characterization is based on the costs with determining the different
ledgers. Here, the purchasing format and the patterns are generated to handle the accounts with
effectiveness that is based on working for any of the medium and the small sized companies. The
check is on the cloud computing factors.
Leaders in the market
With the change in the market standards, it is seen that Xero is considered to be one of the
leading companies that is able to handle the different transactions. The company is able to work
on the different standards of accounting and how the information could be processed through it.
It is important to analyze about the different set of factors which is for maintaining the system
standards as well as the accounting software. The check is important to maintain the consistency
where the company like Commonwealth Bank tend to make use of Xero and the implementation
for this is also based on the considerable reliable standards with the ignorance to the system
inconsistency.
Limitations
The check is on how the issues could be evaluated with the system security and the inconsistency
factor. The integration is based on the fact how the users are able to take hold of the third party
vendors along with easy handling of the fast time to market. With this, the check is also on the
limitations which relates to the system of fraud that is to take hold of the other individual forms
of recommendations (Wang et al, 2014).

Recommendations
The company needs to work on the cloud computing with the focus on how the encryption could
be done. The flexibility will also work to handle and solve all the issues related to the
development of system structure. The challenge is related to the desktop factors and other forms
of the associated software which relates to cryptography. The measures are also set for the cloud
computing and to handle the competitive edge that will improve the efficiency and the
information security factors. The focus is on the needs and how the processes could be reported
mainly to deal with the limits of consolidation along with evaluation of the system in a proper
manner. With this, all the risk management techniques and the governance is also important to be
evaluated.
Conclusion
Here, the check is on the documentation with the standards required to meet the system patterns.
Xero and MYOB has been able to handle the system of the ERP market. Here, the users are also
able to work on how to design the input control with the proper functioning so that there is an
easy process that could be followed for handling the system transactions. The procedures and the
instructions are based on collecting the information, storing and then retrieving the records which
are for handling the internal and the external sources. The customer online orders and the
procedures are processed to store the information where there is a major need to work on the
impacts of different users and the different type of the information.
References
Bhimani, A. and Willcocks, L., 2014. Digitisation,‘Big Data’and the transformation of accounting
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Bodnar, G.H. and Hopwood, W.S., 2013. Accounting Information Systems: Pearson New International
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Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making.
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Ismail, N.A. and King, M., 2014. Factors influencing the alignment of accounting information systems in
small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small
Business, 1(1-2), pp.1-20.
Commbank.com.au., 2017. Annual reports - Commonwealth Bank Group. [online] Available at:
https://www.commbank.com.au/about-us/shareholders/shareholder-information/annual-reports.html.
Khairi, M.S. and Baridwan, Z., 2015. An empirical study on organizational acceptance accounting
information systems in Sharia banking. The International Journal of Accounting and Business
Society, 23(1), pp.97-122.
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John Wiley & Sons.
Wang, P., Che, F., Fan, S. and Gu, C., 2014. Ownership governance, institutional pressures and circular
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perspective. Chinese Management Studies, 8(3), pp.487-501.