Holmes Institute: Accounting Information System Selection Report

This report analyzes the accounting information system (AIS) needs of Broo Ltd, a company listed on the ASX, and evaluates potential software solutions. It begins with an introduction to the importance of AIS for modern businesses and then assesses the system requirements of Broo Ltd, concluding that an Enterprise Resource Planning (ERP) system would be highly suitable. The report explores the background of Broo Ltd's operations and the need for improved accounting practices. It then delves into two potential ERP solutions: MS Dynamics and SAGE 100, comparing their features and suitability. The report highlights the benefits of SAGE 100, particularly its focus on minimizing paperwork and its suitability for growing businesses. The selection of SAGE 100 is justified based on its ability to integrate various business functions and support consumer-centric operations. The report concludes by emphasizing the critical role of AIS in ensuring financial transparency and smooth business operations, recommending software choices based on business scale and specific needs.

ACCOUNNTING INFORMATION SYSTEM

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Executive Summary
With the due passage of time, there has been a considerable change in the pattern of
innovation. The new and varied mechanism has completely changed the scope of the
business. Businesses are now aided with the latest technology that helps in the formulation of
plans and leads to a better result. In this report, the main emphasis is on the selection of the
software for Broo Ltd, a company listed in the ASX. The report revolves around the business
of Broo Ltd and the use of accounting information in it. Further, the report helps to select the
best vendor for the company and is done as per the business requirement.
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Contents
Introduction...........................................................................................................................................3
System needs.........................................................................................................................................3
Background............................................................................................................................................3
MS dynamics.........................................................................................................................................5
SAGE 100...............................................................................................................................................6
Selection of SAGE 100............................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9
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Introduction
Accounting information is of vital importance to the organization as it helps in ensuring the
finalization of various tasks with ease and flexibility. This has led to a reduction of the
manual work and hence, the system is more automated in nature. The tasks are now
completed with ease with the help of the installation of software. The report revolves around
Broo Ltd, a company listed on the ASX. The report is majorly linked to the methods of
internal control that helps in the smooth functioning of the organization. In the current
scenario, it is vital that business can be operated and enhanced only when the business has a
proper mechanism (Barney & ray, 2015). Hence, an accounting information system is the
need of the hour and the report is based on the best option available for the company.
System needs
From the functioning of Broo Ltd, it can be said that the company requires AIS system.
Hence, ERP will be strong suitability for the company. The implementation of ERP will
enable the business to attain the desired goals. At present, the reach and availability of Broo
Ltd are not far fetched and with the help of this software, the business will get a top edge and
able to collect, interpret and manage the data. The introduction of AIS will be a boon to the
company and hence, will help in the transactions. With the help of AIS, the business will be
able to procure the information (Uzunidis, & Boutillier, 2012). The collection of storing and
retrieving data will be easier and hence, planning can be effectively done. the presence of
AIS will help the owner of Broo to process the data as per the needs and help the
management in taking a decision at the appropriate time by providing information that is
relevant (Barney & Ray, 2015). Further, it will help in imposing a strong internal control
thereby ensuring that quality will be maintained. With the aid of AIS, the business will be
able to compute the cycle of expense, a production that can aid in proper decision making.
Background
The tasks are executed at levels in Broo Ltd. The skills and proficiency decide the task that
needs to be assigned to the employees of Broo Ltd. Such a practice allows the entity to have a
better level of accountancy function. The interdependence of tasks on one another as the
same are assigned at levels can also become troublesome for the company. This is because of
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the fact that negligence at one level can automatically disrupt the other processes. This will
ultimately affect the overall functioning of the entity (Broo Beer Ltd, 2018). Therefore, it is
the responsibility of the management of the company to maintain the efficiency of each and
every department by means of regular checks and appropriate monitoring. The management
of Broo Ltd must focus on enhancing the performance of the company which is possible
when all the departments operate in sync with one another (Weedmark, 2017).
The success of a company is not just confined to one process rather the same is dependent on
all the departments of the same. Though the tasks are segregated and performed at different
levels in the company yet these levels are interdependent on one another and must act
together as one. Broo Ltd is into the beer segment and for such a business production holds
utmost significance. Production is undoubtedly the most essential activity for such a business
that is engaged in beers (Freedman, 2013). Accounting and financing activities are too
significant functions of a firm that deals in the production and selling of beer. The need for
accounting cannot be ignored in any entity. Accounting is important for all the entities no
matter what the size of the same is (Evan, 2014). Accounting is required at all levels of an
entity. The financial statements and book-keeping functions of Broo Ltd were handled by an
accounts department in the company. However, the company fails to offer extended
information which can be seen from the following report.
Broo Ltd has its main office in Mildura, Australia. The company is engaged in the production
and sales of beer. It sells beer in China and Australia. Broo Ltd sells beers under its own
brand names- Australia Draught and Broo Premium Larger. The company functions via
various divisions. These divisions are namely Chinese Brewing, Hospitality, and Australian
Brewing. The company also has its own boutique brewery and pubs.
The implementation of ERP differs from company to company. This means that the size of an
organization decides what level of ERP it must use (Garfield & Edelglass, 2011). Entry level
ERP is applicable for small scale businesses. This level of ERP can only be used by a
minimum of 1 and a maximum of 5 people. Medium scale business solutions are suitable for
medium scale business (Fowler, 2014). This level of ERP can be used by a minimum of 5 and
a maximum of 100 users. Such kind of ERP is suitable for organizations that have
approximately a hundred employees. High-end enterprises accounting software is best suited
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for large scale business that is organizations that have more than 100 employees. Therefore,
each level of ERP is designed especially keeping in mind the size of the company.
Broo Ltd must opt for medium scale business solutions as it is a medium scale company. The
organization can develop a higher level of transactional information with the help of ERP.
Implementation of ERP will allow the organization to maximize its reporting purpose. The
company can opt for Quickbooks enterprise, Microsoft Dynamics, etc for ERP purposes.
MS dynamics
MS dynamics is a product of Microsoft. Microsoft is best known for creating user-friendly
products and this is why it makes regular developments in its MS dynamics features. This
makes the product look more desirable in the eyes of the users. The best part of MS dynamics
is that the users can customize the same accordingly as per their needs and requirements. The
users may not necessarily need to hold proficiency in IT or programming to make customary
changes in MS dynamics (Gillon, 2015). Following are some of the best-known features of
MS dynamics-
1. Cloud & On-Premise Hosting Options: There are two variations offered in MS dynamics
CRM namely Microsoft Dynamics CRM On-Premise or Microsoft Dynamics CRM Online.
CRM On-Premise enables users to have full in-charge of the data. It allows the users to install
their application and servers in their own environment. Partner Hosted is another hosting
option that operates on a Microsoft partner’s server (MS dynamics, 2019).
CRM Online is of great utility as it enables the users to have remote access to files and edit
the same in no time. It helps in the auto-management of the software updates. It offers better
security protection and doesn’t necessarily require an infrastructure. CRM Online yields a
fixed cost that needs to be paid every month. The best part of CRM Online can also work
without hardware.
2. Integration with other Microsoft Products: MS Dynamics CRM provides the best
integration functions. MS Dynamics can be used along with all other Microsoft products may
it be SharePoint, Outlook and Office 365. MS Dynamics CRM can also be used along with
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ProntoForms that allows offline access of mobile, Adobe Document Cloud that is used for
digital signatures and Sage or Xero which offers a single view of consumer data.
3. Sales & Marketing: MS Dynamics CRM is convenient for sales and marketing purpose
as well. It is easy to use and it improves the efficiency of the workers with respect to
productivity and learning about the needs of the consumers and the goals of the company. It
also helps in shortening the sales lifecycles. It also helps in attracting more and more
customers by means of various marketing campaigns.
4. Customer Service: MS Dynamics CRM also aids in providing the best customer services.
The application records the feedbacks and complaints of all the present and potential
consumers in one location. This allows customer service executives to easily trace and
address the queries and complaints on time.
MS Dynamics CRM features are updated regularly with new features. This facilitates the
organization to gain more efficiency.
SAGE 100
Sage 100 ERP was initially known as Sage ERP MAS 90, 200, and 200 SQL. It is a business
management software. Sage 100 is designed specially so as to meet the real needs of an
organization. The individual components are good but it is undeniable that combined
modules are better. This is highly due to the fact that combined modules allowed in the
development of a better ERP system and therefore, a stronger integrated system shall be
generated (Sage 100, 2019). Sage 100 ERP can be implemented effectively in an organization
whose business is rapidly growing. This means that Sage 100 ERP works best for
organizations that are doing better business. Sage 100 ERP strongly focuses on less
paperwork and therefore, there is an implementation of certain modules such as Federal and
State eFiling, Direct Deposit and Reporting so as to minimize paperwork and time-taken.
This is a profound reason as to why Sage 100 ERP is preferred over other software. Sage 100
ERP allows the users to make presentations. It also allows an entity in the formulation of its
policies. Sage 100 ERP is very user-friendly and it aims at providing desirable outcomes. The
software offers various features so as to make it easy for users to understand the data of an
organization. It also becomes easy to construct necessary decisions as the software offers
business intelligence module (Sage 100, 2019). However, the software requires to be
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upgraded from time to time and is also a little on the expensive side. These are the only
shortcomings of Sage 100 ERP which makes it less preferable over others.
Selection of SAGE 100
Sage 100 ERP can be extended from the manufacturing activity to the sales activity. It offers
an appropriate tracking and reporting method for the overall manufacturing process. In the
manufacturing activity, the software takes care of all the bills of materials as it enables in the
development of multilevel bills of materials while in the activity of the finished good the
software takes care of the Sales Order. This facilitates not only in having an accuracy of the
reports but also aids in seamless transactions. The software aims at ensuring effectiveness in
consumer-centric operations by means of taking feedbacks from existing and potential
consumers. The software allows the organization to be able to connect with its customers on a
better level and therefore offer excellent consumer services (Zissis & Lekkas, 2012).
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Conclusion
Implementation of AIS is essential for an entity to function smoothly. Also, the financials of
an entity must be desirable in the eyes of users which is only possible through necessary
disclosures and facilitation of utmost transparency. The accounting mechanism of the
company must be profound and appropriate enough so as to offer transparency in the
financials of the same. The company should choose software on the basis of its scale of
business. As SAGE 100 ERP is automatic in nature, it will assist the entity in syncing with
various platforms in a unique manner. Therefore, the overall functioning of the company can
be improved with the use of an integrated platform for the purpose of data collection.
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References
Barney, J., & Ray, G. (2015) How information technology resources can provide a
competitive advantage in customer service. Planning for Information Systems. 3(2), 444-460.
DOI: 10.4236/me.2015.63038
Broo Beer Ltd. (2018) Broo Beer company profile. Available from
https://www.broo.com.au/home [Accessed 22 May 2019]
Evan, F. (2014) The 5 W’s of Information Security. Available from
http://www.frsecure.com/the-5-ws-of-information-security/ [Accessed 22 May 2019]
Fowler, M. (2010) Patterns of Enterprise Application Architecture, Addison Wesley.
Freedman, L (2013). Strategy. Oxford University Press
Garfield, L. & Edelglass, W. (2011) The Oxford Handbook of World Philosophy. Oxford
University Press.
Gillon, K. (2015) Artificial Intelligence and the future of accountancy. Available from
https://www.icaew.com/en/technical/information-technology/technology/artificial-
intelligence-the-future-of-accountancy [Accessed 22 May 2019]
MS dynamics. (2019) Microsoft Dynamics CRM. Available from:
https://www.getapp.com/customer-management-software/a/microsoft-dynamics-crm-
online/features/ [Accessed 22 May 2019]
Sage 100. (2019) SAGE 100 ERP. Available from:
https://www.sage.com/na/~/media/site/sage-100-erp/responsive/resources/sage-100-erp-
overview-brochure [Accessed 22 May 2019]
Uzunidis, D. and Boutillier, S. (2012). Globalization of R&D and network innovation: what
do we learn from the evolutionist theory? Journal of Economics, Innovation and
Management. vol. 10 (2), p. 23 – 52. Available at https://www.cairn.info/revue-journal-of-
innovation-economics-2012-2-page-23.htm#. [Accessed 22 May 2019]
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Weedmark, D. (2017). What is the Key Feature of a Multinational Corporation? Available at
https://smallbusiness.chron.com/key-feature-multinational-corporation-81029.html.
[Accessed 20 March 2019].
Zissis, D. & Lekkas, D. (2012). Addressing cloud computing security issues. Future
Generation computer systems 28(3), 583-592. Available from:
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