ENE3296: Accounting Information Systems Report on B Bakery Software

This report examines the implementation of Enterprise Resource Planning (ERP) systems for B Bakery, a family-owned business currently using a manual accounting system. The report analyzes B Bakery's business processes, including sales and marketing, purchasing, inventory management, and manufacturing. It identifies the need for accounting software to improve accuracy and efficiency. The report evaluates various accounting software options, such as SAP, MYOB, and XERO, assessing their advantages and benefits. It also outlines system requirements and vendor selection considerations, ultimately recommending a suitable accounting software package to meet B Bakery's specific needs and facilitate business expansion. The study emphasizes the importance of automated accounting systems for financial management, decision-making, and competitive advantage.

ACCOUNTING INFORMATION SYSTEMS
Accounting Information Systems
ENE3296 – Gayanka Goonatillake
PFEC3327 – Lakran Fernando
STRC3019 – Pasan Gajadeep
PRT3138 – Chamith Perera

2ACCOUNTING INFORMATION SYSTEMS
Executive Summary
The main purpose of the assignment is to explain the concept of Enterprise Resource Planning.
The case study on B Bakery firm explains their operational functions that they currently follow.
The study explains that B bakery firm still uses manual accounting system for recording their
financial transactions. For this, the bakery firm now needs an accounting system or software that
can help them in getting accurate results in minimum time period. The studies evaluate main
accounting software such as MYOB, SAP and XERO with its advantages and benefits for
different types of software. The study even recommends B Bakery to use the best accounting
software package that meet their present requirements and expectations of the company.

3ACCOUNTING INFORMATION SYSTEMS
Table of Contents
Introduction......................................................................................................................................5
Question 1........................................................................................................................................6
Defining Business Processes...........................................................................................................6
Part A...............................................................................................................................................6
Who is a baker and what are the activities performed by B Bakery currently................................6
Question 2......................................................................................................................................12
Developing business requirements................................................................................................12
Part B.............................................................................................................................................12
Process that is crucial to be performed..........................................................................................12
Part C.............................................................................................................................................14
Suitable outcomes of the business process....................................................................................14
Question 3......................................................................................................................................16
Determining the systems requirements..........................................................................................16
Part A.............................................................................................................................................16
Question 4......................................................................................................................................17
Software selection..........................................................................................................................17
Part A.............................................................................................................................................17
SAP................................................................................................................................................17

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MYOB Software............................................................................................................................19
XERO............................................................................................................................................21
Part B.............................................................................................................................................23
Adequate accounting software selection for B Bakery..................................................................23
Question 5......................................................................................................................................24
Vendor Selection...........................................................................................................................24
Part A.............................................................................................................................................24
Part C.............................................................................................................................................25
Explanation of selecting best appropriate vendor (accounting software vendor) for B Bakery....25
Conclusion.....................................................................................................................................26
Reference List................................................................................................................................27

5ACCOUNTING INFORMATION SYSTEMS
Introduction
The current study explains the concept of Enterprise Resource Planning. Here, Enterprise
Resource Planning means the flow of business activities where companies make effort to
improve different problems that they face currently (Worrell, Wasko and Johnston 2013). The
problem can be related to purchasing, inventory, finance and marketing of any business
enterprise. ERP software is one of the famous accounting software that helps company when
they implement the software in their operations. This accounting software helps in maintaining
and sharing of information in and within the company. The accounting software enables database
sharing among various units in company. For instance- Employees specialized in various field
remain content while communicating with other employee in the same grounds for exchange of
information (Wijaya et al. 2015). Using Enterprise Resource Planning help companies to get
access to accurate information at the time of final decision-making process
Nowadays, Enterprise Resource Planning had extended their scope as they have reached
Business Intelligence (Turner and Weickgenannt 2016). It mainly include concept of E-
commerce and market automation. In addition, Cloud computing is other concept that help
companies to increase growth and enhancement of business opportunities. Enterprise Resource
Planning help in improving financial related problems in compliance with regulatory standards
and leading to risk avoidance
From the case study, it is understood that B Bakery is a family-owned business that has
70 employees. The firm earns revenue at $13.5 million for particular year. This firm offer bread
and confectionary products that engage in business process. B Bakery analyzes business growth

6ACCOUNTING INFORMATION SYSTEMS
for past five years. B Bakery lost some of the key account and was facing difficulty to compete
with their competitors (Worrell, Wasko and Johnston 2013). The firm currently uses manual
accounting system for recording their financial transactions that is time consuming and not
accurate all the time. To that, the firm felt the importance to invest money for implementing
computerized accounting software.
Question 1
Defining Business Processes
Part A
Who is a baker and what are the activities performed by B Bakery currently
Baker is a person who bakes breads and other confectionary items and sells it to the
customers (Trigo, Belfo and Estébanez 2016). In addition, B Bakery is a well-known baker shop
that is owned by family and they planned for expansion by using accounting software. Using
accounting software will help B Bakery at the time of recording financial transactions in the near
future. The firm has 70 employees who are working together and currently uses manual
accounting system. The firm is not a big one but decide to expand their operations so that they
earn profits by implementing accounting software (Worrell, Wasko and Johnston 2013).
It is important for every business organization to keep a record of financial transactions
on daily basis. Below is the process mentioned that should be used by business enterprise in
order to get access to accurate data (Sutton and Arnold 2013).

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 Step 1- Creation of customer account
 Step 2- Creation of Vendor account
 Step 3- Creation of bank account
 Step 4- Chart of accounts prepared for proper enhancement
 Step 5- Cash or cheque received from customers
 Step 6- Payments need to be done either by cash or cheque
 Step 7- Journal entry preparation
“Sales and Marketing Department”

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Sales and Marketing Department Process
Creation of Sales Order
Sales orders picks up as well as packed in nice way
Shipping Orders
Creation of Sales Invoice
Return of items for any detection of defects
ACCOUNTING INFORMATION SYSTEMS

9
Purchase Department Process
Order of Purchase
Time assigned for orders for picking up from warehouses
Invoice Purchase
Purchase Returns
ACCOUNTING INFORMATION SYSTEMS
Figure: Sales and Marketing Department Process
(Source: Sousa and Oz 2014)
“Purchase Department Process”
Figure: Purchase Department Process

10
Inventory Management Process
Creation of Stock items
Stock issued for future reference
Stocks needs adjustments on physically ways
ACCOUNTING INFORMATION SYSTEMS
(Source: Simkin, Norman and Rose 2014)
“Inventory management process”
Figure: Inventory Management Process
(Source: Rainer et al. 2013)
“Manufacturing Department Process”

11
Manufacturing Department process
Creation of material bill
Creation of work orders
Creation of work orders in recording of WIP receipts
ACCOUNTING INFORMATION SYSTEMS
Figure: Manufacturing Department process
(Source: Prasad and Green 2015)

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Question 2
Developing business requirements
Part B
Process that is crucial to be performed
B Bakery is a family owned trade who decides to install new accounting software so that
they can record all financial transactions (Worrell, Wasko and Johnston 2013). There are some
processes that need to be followed by business enterprise to get access to performance based
objectives. Business enterprise should set specific objectives and carry out the business
according to that so that there is smooth functioning of operations in the upcoming years. The
bakery firm should invest money in new accounting software as it will directly link to get
increased profits or revenue in the business. The new accounting software that will be
implemented by the bakery firm will guide and instruct ways for performing business in next
level. Use of SAP accounting software will help in achieving excellence in finance management
and accounting activities at the bakery firm. The bakery firm needs to decide upon which
accounting software to be used so that they can achieve further profits, set objectives and
excellence. This bakery firm decides to expand their operations by implementing accounting
software for recording financial transactions. Use of accounting software will help business
enterprise to achieve volatile in operations. This accounting software will solve complex
problems and guide managers at the time of decision-making process. Accounting software help
in learning innovative technology solutions and enables deliver of higher values for smooth