Accounting Information System: Analysis for Lion Dairy & Drinks

This report provides an analysis of the accounting information system (AIS) requirements for Lion Dairy & Drinks, an ASX-listed company. It emphasizes the importance of AIS for smooth business operations and expansion. The report examines the company's background, system needs, and the selection of appropriate software solutions. It explores the functionalities of MS Dynamics and SAGE 100, ultimately recommending SAGE 100 as the most suitable ERP system for the organization. The analysis covers internal controls, financial reporting, and the benefits of implementing an AIS to enhance data management, decision-making, and overall business efficiency within the dairy and drinks industry context. The report highlights the need for a robust AIS to streamline processes, improve financial performance, and facilitate strategic planning.

ACCCOUNTING INFORMATION SYSTEM

Lion Dairy and Drinks
Executive Summary
The need for AIS that is Accounting Information system is the need of the hour because it
helps in the smooth functioning of the business. The presence of AIS further helps in
expanding the business and in this regard there are various softwares available as per the
needs. The present report is based on Lion Dairy and drinks listed on the ASX and there is a
strong requirement of AIS. The report effectively provides a great understanding in terms of
the system needs and the selection of the software. At the end, it comes to the forefront that
the selection of ERP 100 best suits the organization.
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Contents
Introduction...........................................................................................................................................3
Background............................................................................................................................................3
System needs.........................................................................................................................................4
Software selection.................................................................................................................................5
MS dynamics.........................................................................................................................................5
SAGE 100...............................................................................................................................................6
SAGE 100 selection................................................................................................................................7
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10
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Introduction
It is very important for the organizations to properly assess the accounting information
because it will help them to ensure the flexibility of various tasks that are to be carried out.
The automated systems have also reduced the manual work that is to be done by the
management system of the organization. This report clearly states the methods of internal
controls that are linked to Lion Dairy and drinks for proper functioning in the market. The
organization is listed on ASX. In today's world, it is only possible for a business to succeed in
a particular market is by enhancing the management system and implementing the proper
mechanism in it. Therefore, the organization should implement the best information system in
the management so that the best options are available for the company (De Wit & Meyer,
2010).
Background
Lion Dairy and Drinks is a company that deals in the production and sales of its dairy
products across Australia. The dairy products that the company offers are cheese, yogurt,
milk, dairy beverages, soy, and juice. The company sources milk from Australian dairy farms
and then sells the same in Australia. Not less than 1 billion liters of milk is sourced from a
minimum of 550 Australian dairy farmers for the purpose of sales and distribution across the
nation (Lion Dairy & Drinks, 2018).
The organization takes every possible step towards strengthening its relationships with its
farmers, consumers, and employees. The company upholds the interests of its consumer and
therefore, focuses on providing quality and reasonable products. As the dairy products are a
daily necessity for an individual therefore, the organization recognizes selling of such
products as its strength. At Lion Dairy and Drinks, the tasks are performed at various levels.
This means that the company has apportioned tasks level after level. The tasks are
apportioned to employees based on their knowledge, skills, and excellence in a particular
area. Following such a ritual enhances the deliveries of the task. Segregating tasks based on
an employees’ talent and interest will definitely uplift the accountancy function (Uzunidis
and Boutillier, 2012).
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However, the organization also suffers issues pertaining to the correlation of the departments
with one another. As the departments rely on one another, therefore, it may happen that a
discrepancy in one might ultimately impact all other departments which can eventually distort
the financial performance of an organization to a huge extent. In this regards, the top-level
executives of an organization must take charge of the functioning of all its departments by
means of initiating frequent checks and monitoring the activities of the same. In this light, it
can be said that the management of the aforesaid company must ensure that the departments
of the same are functioning in full coordination and harmony with each other (Abbas,
Magnusson,, Yngstrom & Hemani, 2011).
When the departments of an organization operate in synchronization with each other than
nothing can stop such an organization from achieving success. This is because of the fact that
all these departments have an individual status in an organization but they are working
towards one common goal that is allowing the organization in attaining its long-term goals
and this is only possible when all these departments respect each other and collaborate
together in full harmony.
Lion Dairy and Drinks are also engaged in the manufacture and distribution of dairy
products. The most important department of organizations engaged in the dairy product is
production. Accounting and financing activities hold utmost importance for the effective
functioning of an organization especially for the ones that are engaged in the manufacture and
distribution of dairy products. Accounting is the essence of an organization’s well being. The
implementation of accounting in an organization does not depend on its nature, size, activities
or other factors. Accounting should be necessarily done by all the departments of an
organization. The financials and auditors’ report of Lion Dairy and Drinks signifies that there
was a failure on the company’s part in the presentation of adequate disclosures even though
there is an accounts department in the same.
System needs
After analyzing the organizational activities of Lion Dairy and drinks it can be clearly stated
that the company requires a proper accounting information system. Therefore proper entire
resource planning should be conducted for implementing a suitable accounting information
system. By conducting proper enterprise resource planning the organization will be able to
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determine the desired goals that are needed to be achieved by it. The present position of the
organization is not appropriate but with the help of this software, the organization will be able
to collect and interpret its data in a much more elaborate manner. By implementing a proper
in accounting information system in the organization the company will be able to analyze all
the transactions that are taking place in the business and collect important information in
relation to them. By properly storing and receiving the data, the organization can plan all the
strategies effectively. The presence of a particular accounting information system will not
only process the data according to the needs of the organization but will also provide
appropriate information whenever necessary. The strong internal control system can be
injured by the organization for maintaining the quality of the tasks that are being conducted
by it. The use of proper accounting information system the business will also be able to
complete all the expenses that are being incurred by it for carrying out the production
process.
As per the operations of Lion Dairy and Drinks it can be commented that the company needs
AIS system. Therefore, in this scenario the best selection will be the system of ERP. The ERP
system will help in attaining the desired goals of the business. For the dairy and drinks
business it Is essential that the business must have a widespread market that will help in
attaining the superior goals. With the ERP implementation the business will gain a higher
edge and this will lead to collection, interpretation and management of data. The transactions
of the business will be sorted out and hence procurement of information will be easier. With
the help of AIS, the owner of Lion Dairy and Drinks will be able to process the data and this
will enable the management to take decision that best suits the organization. With this the
business can even gain a paramount control over the internal control process and hence,
maintenance of quality will be easier. With the help of AIS, the business will perform in an
effective manner and the business cycle will perform effectively.
Software selection
Lion Dairy and drinks is a medium scale enterprise and therefore, it must go for medium
scale business solutions. Quickbooks, Microsoft Dynamics, etc are few companies that offer
ERP services.
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MS dynamics
Microsoft offers a wide range of products. MS dynamics if too a product of Microsoft
designed especially for ERP purposes. Microsoft is one of the leading, oldest and best brands
when it comes to software. Microsoft enhances its products from time to time. This is why
the demands for the products offered by Microsoft are ever increasing. Microsoft focuses on
enhancing the reliability of its products.
MS dynamics is preferred as the software can be personalized as per the needs of the users.
Customizing the software is super easy and it does not require the users to have expertise in
information technology or programming. The features of MS dynamics are listed below-
1. Cloud & On-Premise Hosting Options: Microsoft Dynamics CRM On-Premise or
Microsoft Dynamics CRM Online are the 2 options offered in MS Dynamics CRM.
CRM On-Premise allows users to have complete control of the data. The users can install the
application in their own space and can use anytime and precisely anywhere. Partner Hosted is
an alternative of CRM On-Premise that works very similar to this application.
The files can be remotely accessed and edited within a fraction of seconds with the
installation of CRM Online. CRM Online can also be used in the absence of hardware. The
software can be easily upgraded with CRM Online system. It can function without having an
infrastructure and it also provides next level security protection. It generates a fixed cost
which must be paid every month.
2. Integration with other Microsoft Products: MS Dynamics can be integrated with any
Microsoft products. It can be used with Outlook and Office 365, SharePoint, and
ProntoForms. Therefore, MS Dynamics CRM offers the best integration options.
3. Sales & Marketing: MS Dynamics CRM also serves sales and marketing purpose. The
software helps in enhancing the overall performance of the employees, minimizing the sales
cycle and increasing the customers at the same time.
4. Customer Service: MS Dynamics CRM focuses on offering enhanced customer services
by means of recording the issues and feedbacks of the customers in one folder. This makes it
convenient for the CSE to locate and resolve the customer grievances on time.
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SAGE 100
SAGE 100 is a software used to manage the business of an organization and it was
previously, termed as Sage ERP MAS 90, 200, and 200 SQL. Sage 100 focuses on the actual
necessities of an enterprise. It was designed considering the significance and effectiveness of
combined modules over individual modules. Combining multiple modules minimizes or
eliminates the shortcomings and maximizes the benefits arising out of individual components.
An enhanced version of an ERP system can be generated as a result of blending various
modules which will eventually result in the creation of a better-integrated system (Capterra,
2018).
An enterprise whose business is growing at a fast pace can opt for Sage 100 ERP. This
indicates that the enterprises which are excelling can derive better results from Sage 100 ERP
in comparison to those enterprises that are pacing on an average rate or are not performing
well. Sage 100 ERP provides various features thus making it convenient for the users to
analyze the data of an enterprise. Sage 100 ERP also provides a business intelligence module
thus making it easy for the users to construe effective decisions (SAGE, 2019).
The system is formed with an intention to reduce the burden of paperwork and time
consuming and this is why Federal and State e-Filing and Direct Deposit and Reporting are
incorporated that cuts the need of paper-work and time consumed. It is also why most
organizations are opting to implement this software in comparison to other options
(Moncrieff, 2013).
The software is extremely user-friendly and also aids the users in creating presentations. The
software focuses on deriving pre-determined results. With the help of Sage 100 ERP, an
enterprise can also construct appropriate policies.
The benefits derived from the implementation of Sage 100 ERP are immense. The only
drawback of Sage 100 ERP is that it is an expensive option and it must be necessarily
updated at regular intervals.
SAGE 100 selection
This software can extend the manufacturing activity and sales activity of the organization
which will further help them to improve their revenue generated by them. This accounting
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information system will help the organization to track and report every method that is
involved to complete the manufacturing process of a particular product. The accounting
software is one of the most important statues in the manufacturing industry because it takes
care of all the bills of materials which further help to develop sales order in the most
appropriate manner for all the finished goods. This will not only have the organization to
maintain accuracy in the transactions but also will help them to ensure an effective customer-
centric based system that can provide them potential results (Cameron,2014). This software
not only allows customers to connect with the organization on another level but also improve
the customer services that are being provided to them.
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Conclusion
Implementation of ERP will help the organization in generating an enhanced level of
transactional information. An entity can magnify its reporting purpose with the
implementation of ERP. ERP’s application varies from one organization to another. The level
of ERP is determined on the basis of the size of an entity. There are three different levels of
ERP designed especially considering the size of an organization. Small scale enterprises can
opt for entry-level ERP where not more than 5 users can operate the system. Medium scale
enterprises can opt for medium scale business solutions where between 5 and 100 users can
operate the system. Large scale enterprises that have above a hundred employees can opt for
high-end enterprises accounting software.
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References
Abbas, H; Magnusson, C; Yngstrom, L & Hemani, A. (2011) Addressing dynamic issues in
information security management. Information Management & Computer Security 19(1), 5–
24. Available from https://doi.org/10.1108/09685221111115836 [Accessed 22 May 2019].
Barney, J. and Ray, G. (2015). How information technology resources can provide a
competitive advantage in customer service. Planning for Information Systems. 3(2), p. 444-
460. DOI: 10.4236/me.2015.63038
Bieger, T. & Beritelli, P (2013). Management v. Destination. München: Oldenburg Verlag.
Cameron, B.T. (2014) Using responsive evaluation in Strategic Management, Strategic
Leadership Review, 4 (2), pp. 22-27, Doi: 10.5539/gjhs.v7n2p56
Capterra. (2018) Accounting Software. Available from:
https://www.capterra.com/accounting-software/ [Accessed 24 May 2019]
De Wit, B. and Meyer, R. (2010) Strategy Process, Content, and Context International
Perspective, 4th Edition, Cengage Learning
Lion Dairy & Drinks. (2018) Lion dairy and drinks 2018 annual report. Available from:
https://www.lionco.com/about-us/our-business/lion-dairy-drinks [Accessed 24 May 2019]
Moncrieff, J. (2013) Is strategy making a difference? Long Range Planning Review 32 (2),
2014, pp. 273–276. Available at
https://www.researchgate.net/publication/289712696_The_Interplay_of_Strategic_Managem
ent_and_Information_Technology [Accessed 22 May 2019].
SAGE. (2019) Sage 100cloud. Available from: https://www.sage.com/en-us/products/sage-
100/ [Accessed 24 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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