Accounting Information Systems: B Bakery's System Requirements Report

This report provides a comprehensive analysis of the accounting information systems (AIS) for B Bakery, a firm currently using a manual accounting system. The study highlights the limitations of manual systems and emphasizes the benefits of implementing automated accounting software. The report details B Bakery's business processes, identifies their specific accounting requirements, and determines suitable system requirements. It explores various accounting software options, including XERO, MYOB, and DacEasy, and recommends MYOB as the most appropriate solution for B Bakery due to its user-friendliness and comprehensive features. The analysis covers the importance of accurate financial reporting, cost control, and customer demand understanding. The report emphasizes how automated systems can improve payroll processing, cash flow management, production cost determination, and the preparation of annual reports. Ultimately, the report serves as a guide for B Bakery to transition from manual accounting to an automated system, leading to improved efficiency, accuracy, and better financial management.

Running head: ACCOUNTING INFORMATION SYSTEMS
Accounting Information Systems
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
This study had been conducted to highlight the significance of automated accounting systems
and how far it is important for any business enterprise to implement it for recording financial
transactions. From the case study of B Bakery firm, it was noted that the bakery firm still uses
manual accounting system for recording accounting transactions that generate lot of error and
time consuming at the same time. To deal with this problem, the current study properly suggest
B Bakery all the available options present in accounting software packages and conducting
proper comparison as well that best suit the business requirements. It is suggested to B Bakery in
selecting medium-end accounting software as that does not cost much in comparison with high-
end software. B Bakery is a small family owned business, so investing lot of money in
implementation of accounting system is not possible, so keeping that in mind, medium-end
accounting software was suggested to the bakery firm. After that, it is now important select the
best accounting software packages and the available options that are discussed in the study are
XERO, MYOB and DacEasy. On comparing all these three accounting software, it is suggested
to B Bakery for implementing MYOB accounting software in their business as it is user-friendly,
easy to operate, capacity to generate 175 reports and many other unique features that are needed
for the case study company.
Table of Content

3ACCOUNTING INFORMATION SYSTEMS
s
Introduction......................................................................................................................................3
Question 1........................................................................................................................................5
Defining the work of Baker and its description of business process...............................................5
Part A...............................................................................................................................................5
Business Process of B Bakery.........................................................................................................5
Question 2........................................................................................................................................6
Identification of business requirements...........................................................................................6
Part B...............................................................................................................................................6
Indispensable business process........................................................................................................6
Part C...............................................................................................................................................8
Suitable outcomes of the business process......................................................................................8
Question 3........................................................................................................................................9
Determination of system requirements............................................................................................9
Part A...............................................................................................................................................9
Question 4......................................................................................................................................12
Part A.............................................................................................................................................12
Determination of adequate software..............................................................................................12
Part B.............................................................................................................................................12

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Adequate accounting software selected for the firm.....................................................................12
Question 5......................................................................................................................................14
Selection of suitable vendor...........................................................................................................14
Part A.............................................................................................................................................14
Comparison among various accounting software packages..........................................................14
Part B.............................................................................................................................................18
Selection of most suitable vendor..................................................................................................18
Conclusion.....................................................................................................................................19
Reference List................................................................................................................................21

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Introduction
The main aim of the assignment is to discuss the aspect of accounting information
systems as it directly help in keeping track over the financial activities of any business enterprise
in the most appropriate way (Worrell, Wasko & Johnston, 2013). In this current competitive
business environment, it is important for business enterprise to apply accounting information
systems as it had become a necessity of its own and provide lot of benefits associated with it.
Most of the business enterprise already finds it useful to implement accounting information
system in their operating activities that will make them ahead of competition from the nearest
competitors in marketplace. In that way, the present study defines the need of effective
accounting system for the firm B Bakery. Currently, B Bakery is following manual form of
accounting systems for recording of financial transactions that is quite time taking and
troublesome sometimes as it involves human effort and all the transactions are held manually. In
order to remain ahead of competition, the study recommends B Bakery to use automated
accounting software in their firm so that they can keep track of all the financial activities in less
time and with high level of accuracy that was not possible with manual accounting system
(Abduljalil et al, 2015). To explain in details, there are different accounting systems and
accounting software that is present and varies in terms of risk, sustainability, complexity and
many other factors. All these accounting software are evaluated for B Bakery based in its
limitations and advantages and suggested the best suitable accounting software that will help the
firm to track its financial transactions without any hassle. At the end, it becomes clear that using
automated accounting software will help B Bakery in solving all the issues that they are facing
currently as they are using manual accounting system (Williams, 2014).

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Question 1
Defining the work of Baker and its description of business process
Part A
A baker is a person who actually prepares or bakes different forms of breads and
confectionary products through use of heated source. To continue, bakery is a place where the
baker bakes or prepares and sells the breaks and cakes to the customers (Wijaya et al., 2015).
Business Process of B Bakery
The firm named as B Bakery actually carries out different range of business that is
explained as under:
 Manual accounting system- Currently, B Bakery is recording the financial transactions
by using manual accounting system that poses lot of threats to them and there is urgent
need for the firm to implement automated accounting systems. The bakery firm records
all the financial transactions and accounting activities by implementing manual
accounting system but they should adopt accounting software. The bakery firm faces lot
of difficulty as they uses manual accounting systems and it is suggested that this firm to
adopt proper ERP system in their business process for smooth functioning of business
enterprise (Weil, Schipper & Francis, 2013).

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Figure: Manual Accounting versus Computerized accounting systems
(Source: Uyar, Gungormus & Kuzey, 2017)
 Bakery products production- The bakery firm prepares bakery products such as breads
and cakes and sells it to the customers. B Bakery The bakery firm aims at giving
importance to health factors while they manufacture the products and this is the Unique
Selling Proposition of B Bakery (Vanhoof et al., 2016).
 Minimum engagement of human resource management- At B Bakery, there are only
70 employees employed who are working for the bakery firm. This particular firm is still
using manual process for recording of monthly salaries. B Bakery does not have proper
accounting department who can carry out the accounting activities in desired form and

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this factor negatively affects the employees who are working in that firm for particular
time span (Uyar, Gungormus & Kuzey, 2017).
 Product distribution- At B Bakery, the bakery firm engages in distribution process of
various kinds of bakery products. The bakery firm sells their breads by making use of
different channels of distribution like supermarket chains.
Question 2
Identification of business requirements
Part B
Indispensable business process
B Bakery is a firm that has high turnover in their regular business practices. Due to this,
B Bakery faces several issues that take place because of manual accounting system for keeping
track of financial transactions (Tazik & Mohamed, 2014). To this, it is recommended to B
Bakery for adopting accounting software so that they can carry out their accounting activities
with high level of accuracy.
 Payroll structure adopted by B Bakery- B Bakery is still computing the salary of their
employees through use of manual accounting system that is time consuming and
inaccurate most of the times. It is known that B Bakery is a growing firm where the
management should think of adopting automated accounting system for recording of
salaries for their employees as it saves time and generate accurate results.

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 Evaluation of cash inflows and outflow practices- It is important for B Bakery to
categorize their cost based on manufacturing and production attributes that are incurred
by this growing business enterprise. It is recommended to B Bakery for minimizing their
operating costs so that they have the ability to sustain in the future years. The above-
identified issue can be properly solved when they adopt automated accounting systems
(Susanto, 2016).
 Determination of production cost- It becomes necessary for B Bakery to adopt an
effective process where they can easily evaluate with the cost of production or cost of
goods sold. The process starts from raw materials and end till finished goods are
produced by any business enterprise. The process cannot be used by B Bakery if they
continue to follow manual accounting system (Simkin, Norman & Rose, 2014).
 Preparation of annual reports and financial statements- It is mandatory for every
business enterprise to prepare annual reports and financial statements for a particular year
for recording of financial transactions as and when needed. In order to perform that, B
Bakery need to adopt automated accounting system otherwise preparation becomes
troublesome and time consuming for the accounting department.
 Determining adequate market value payment of taxes- Evaluating the valuation of
market is essential to keep into account by B Bakery where the bakery firm should decide
on using suitable accounting methods. Furthermore, B Bakery should pay off liabilities
like tax on time.

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Part C
Suitable outcomes of the business process
The above-identified business process is mentioned in detail that needs to be adopted by
B Bakery so that they can easily get the access to implement suitable automated accounting
system. After adopting automated accounting system, it will be easy for B Bakery to carry out
business process in smoother terms (Prasad & Green, 2015).
 Control over variables and identification of different types of operating costs- By
implementing automated accounting systems; it will be easy for B Bakery in getting
access to control over the operating costs. The bakery firm will get to understand about
highest and lowest production unit when variable costs can be controlled in some form or
other. After implementation of automated accounting software, B Bakery will be able to
get access to effective manufacturing systems. By adopting the automated accounting
system, the bakery firm can easily minimize their production units that incur higher
amount of operating costs (Pearlson, Saunders & Galletta, 2016).
 Accurate preparation of financial statements- Adoption of automated accounting
system will help B Bakery to publish accurate and error-free financial systems. The
bakery firm can easily get proper access to analyze the performance of their business for
a particular time frame and plan for the business activities for future years.
 Increase in sales- After adopting automated accounting system, it will be easier for B
Bakery to have proper understanding regarding cost of sales or cost of production per unit
cost. Automated accounting system will guide B Bakery to get access to best pricing

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strategy from the perspective of both long-term and short-term. After adopting automated
accounting system, the bakery firm can easily increase their revenue in sales and that will
have positive impact at the time of deciding the pricing policies.
 Understanding the demand of customers- For any business enterprise, it becomes
important to understand the demand of supply of its products and services. After using
automated accounting system process, it will be easier for B Bakery to evaluate demand
and supply of bakery and confectionary products. The automated accounting system will
guide B Bakery in their process of production and reducing total amount of unused stock.
It is therefore important for B Bakery to use the above strategies for attainment of smooth
functioning of business enterprise.
Question 3
Determination of system requirements
Part A
B Bakery is a growing firm that needs to evaluate from various types of accounting
systems in their business operational activities. Some of the requirements are present at the time
of evaluating financial statement in appropriate way and prepare documents, records to present in
front of vendors, creditors and debtors.
 Easy online accounting- It is noted that companies are showing interest to implement
online accounting system where they can record financial transactions. In addition, the
bakery firm should be implementing an accounting system so that they can receive or