Accounting Software Selection for B Bakery: Requirements and Analysis

This report analyzes the accounting information system of B Bakery, a small-scale enterprise dealing with bakery products. It highlights the importance of accounting software for the business, which currently relies on manual processes for transactions and payroll. The report details B Bakery's business processes, identifies requirements for an effective accounting system, and recommends suitable software options. It covers business process analysis, system requirements, vendor selection, and the benefits of adopting automated accounting software. The report emphasizes the need for cost control, efficient financial statement preparation, and improved sales forecasting through the implementation of an appropriate accounting information system. The analysis includes a comparison of different accounting software functionalities and provides justifications for the recommended software to enhance B Bakery's operations and financial management.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Student Name:
University Name:
Author Note:

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Executive Summary
In the current report, importance of accounting software system has been demonstrated along
with conducting analysis of the given case study. B Bakery is a small-scale growing enterprise
that is involved in preparing, selling and distributing bakery products. Organization relies on
manual processing for recording their daily transactions and employees payroll. Various software
that would assist organization in smooth running of their business operations are depicted in the
report. Later part of report deals with justification of the recommended accounting software that
should be employed by organization.

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Table of Contents
Introduction:....................................................................................................................................3
Answer to Question 1:.....................................................................................................................3
Business Process of Baker...............................................................................................................3
B bakery Business Process..............................................................................................................3
Answer to question 2:- Developing baker’s business requirement.................................................5
Part B: Indispensable business processes of Baker.........................................................................5
Part C: Achieving business outcomes for achieving business objectives........................................6
Answer to 3:-Determination of system requirements......................................................................8
Answer to question 4:....................................................................................................................10
a) Selecting proper accounting software....................................................................................10
b- Accounting Software selection suiting B Bakery business process..........................................11
Answer to Question 5: Vendor Selection.....................................................................................13
Contrasting and comparing functionalities of accounting software packages:.............................13
Conclusion.....................................................................................................................................17
References......................................................................................................................................19

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Introduction:
The financial activities of organizations are tracked in a systematic manner using system
of accounting information. It has been recognized that environment at in which modern business
operates is complex and faces tough competitions. In light of complexities and competitive
environment, it is required by modern organizations to employ and adopt various types of
advance technologies that would help them in remaining competitive and sustaining their
business. In present accounting report, the need of effective accounting system for firm B bakery
has been analyzed and identified. As per case study, it was ascertained that products of Bakery
Ltd were not produced at competitive prices. The firm followed a manual form of accounting
system and Bakery firm did not yet adopt automated accounting software (Aidoo-Buameh,
2015). Furthermore, report will demonstrate different forms of accounting software and
encompass suggestions to firm for adoption of technology suiting the produce capacity of firm.
Answer to Question 1:
Business Process of Baker
Part A
B Bakery is a firm that is engaged in different forms of breads and cakes using heated
utensil known as baker. Products sold by bakery is flour based and they might sell or serve goods
to consumers who wish to consume.

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B bakery Business Process
Wide ranges of activities are carried out by business of B Bakery and this comprised of
followings acts listed below:
Distribution of products-
Distributing products is another business activity of B bakery and they are engaged in this
activity for over fifty years. Supplying of confectionary products and breads are main business
activities and products are distributed to supermarkets, pub chains and different types of
business.
Bakery products production-
Various forms of bakery products are produced by firm include confectionary products
and bread. It is engaged in manufacturing the bakery products or items. One of the factor that act
is unique selling proposition of B bakery is that while manufacturing products, firm places
importance on health related factors (Jones, 2014).
Manual business process-
The business process of B bakery is carried out manually and this is regarded as one of
major shortcomings in their operation. Financial statements of each year is produced by
accountants and records transactions. However, this has created inefficiency in carrying out
business operations. Manual process of recording transactions and activities of accounting rather
than employment of technical accounting software has forced them to switch to some latest
technology (Boulianne, 2014). B Bakery has failed to adopt any appropriate ERP system or
process that would assist them in running their business efficiently.

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Lack of efficacy in human resource management
Around seventy employees are employed by B bakery and recording of their monthly
salaries are done manually. Employees of firm has been affected to large extent due to lack of
proper accounting system or it can be said that due to inexistence of accounting department
employing accounting software.
Answer to question 2:- Developing baker’s business requirement
Part B: Indispensable business processes of Baker
Sales revenue of B bakery is continuously increasing and hence it can be said that bakery
has a good turnover. In this regard, organization is successful. Nonetheless, in near future due to
lack of any proper accounting system, business process of organization would suffer. Therefore,
in order to efficiently run business and to smoothly continue business in long-term, suggestions
to business process are made.
Appropriately analyzing the costs related with different outflow and inflow activities:
It is required by organization to make classification of different types of activities in
production and manufacturing process, this is so because B bakery is a growing organization that
required classification of different costs. For organization to sustain in near future in light of
competitive environment, operating costs should be minimized. Employment of automated
accounting software would assist organization in reducing cost of production and operating
costs.
Employing automated accounting software lading to proper pay roll structure

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In the current scenario as depicted from case study, it is ascertained that for providing
salaries to employees, organization relies on manual structure of pay roll. B bakery is a growing
firm and therefore, they should have an automated pay roll structure for crediting employee’s
salaries.
Deciding upon products appropriate market value:
Market value is required to be determined by organization when it comes to adopt
suitable accounting system. They are needed to analyze the price of accounting software.
Liability of taxation on B Bakery regarding their taxation should also be determined.
Preparing annual reports and financial statements:
Organizations are required to publish their financial statements annually or semiannually
to their stakeholders. Business process of organization are able to be identified with the help of
financial declarations made in annual reports and they are indispensable part and cannot be
prevented.
Determining Cost of Production
It is essential on part of organization to determine production cost and cost of goods sold
by employing effective process. This comprise of determining raw material costs, work in
progress and finished goods. If B bakery continues to carry out their operations using manual
process, it is not possible on part of organization to carry out business activities.

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Part C: Achieving business outcomes for achieving business objectives
Firm would achieve several positive outcomes if they adopt above-mentioned process of
business. All these outcomes are as follows:
Control over different types of operating costs and existing variable
Successful adoption of automated accounting software by B Bakery would contribute in
reducing and controlling operating costs. Controlling variable costs would be effective by
enabling management to employ the automated system, as they will be able to determine highest
and least producing unit. Furthermore, adopting the automated system would make the cost
management effective. Production units of organization would be minimized using the
automated system and this will assist firm in lowering their operating coats.
Customer Demand determination
Organizations are able to determine estimated loss and profits associated with selling
products by employing proper accounting software. Supply and demand of their bakery products
are analyzed with the implementation of automated business process. Firms minimize total
amount or value of stocks that are not used by employing production process (Jones, 2014). If B
Bakery is able to employ inevitable business process resulting from business, process and they
can attain above listed outcomes.
Effective preparation of financial statements
With the help of adopting the automated accounting software, firm would be able to
publish error free and effective financial statements. Proper depiction of financial declaration

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will help organization in analyzing the trend of their financial performance over five years. In
addition to this, it will assist organization in planning their business activities.
Sales increment
With the employment of this technique, organization would be able to estimate cost of
production or cost of sales per unit. It would make organization capable of deciding upon pricing
strategies for both long-term and short-term. This will help bakery in forecasting the sales and
thereby value of revenue. Using the suitable pricing strategy would help organization to
appropriately their goods produced and this would positively influence profit figures.
Answer to 3:-Determination of system requirements
Various types of accounting system are required by organizations such as bakery firms
and such requirement can take several forms. Such requirements can be effective analysis of
financial statements that is performed in proper manner. Moreover, another requirement can be
documenting various forms of records of customers, suppliers, creditors and debtors.
Analysis of Financial Statement
In an attempt to properly record financial transactions of bakery firm, it is essential to
have different forms of accounting software. There are various types of accounting software that
can be adopted by organization such as DacEasy and MYOB. All the mentioned are basic
software that can be employed by organization as in current scenario, they do not have any
accounting software. Adoption of this basic accounting software would help them in sustaining
their business and continuity as going concern. Track of daily transactions are kept using the
given accounting software. Adoption of appropriate accounting software will be secured by

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organization after having proper analysis and this will help in accessing internal system of
organization (Dillard et al., 2016).
Comparing Documentation of different kind of records
Business carrying their organizations on large scale and small scale are engaged in
performing various kind of transactions that are mostly accounting transactions. However, all
types of transactions are considered equally importance. Therefore, firms requires adoption of
effective accounting software that would take into account all the transactions. Moreover, for
measuring and comparing financial performance of organizations over particular time, it is
required by management to make the comparison of financial transactions. For measuring the
performance, organizations are required to compare their financial indicators with their
competitors. It is also essential on part of bakery to have proper recording of transactions related
to debtors, creditors, suppliers, accounts payable and distributors. Due to all the reasons
mentioned above, it is crucial on part of organization to have an automated accounting system
that would ease the transactions recording (Mancini et al., 2014).
Online accounting that are easy going
With increase in competitiveness between organizations, more of them are being shifted
to online platform for dealing with accounting transactions. Concerning this, it becomes essential
to bakery firms to implement and adopt system that would ease the transactions system when it
comes to receiving payment from vendors and making payment to suppliers. For enabling
organization’s management to take fast and prompt action, they are required to have proper
knowledge about financials that would assist them in decision-making. Inventory process of
bakery firm should be seamless, as this will positively influence firm’s growth (Belfo & Trigo,

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2013). Furthermore, for preventing information to be leaked to third parties, there should be
adoption of information security system within organization.
Different types of costs analysis
Growing organization such as B bakery should make the analysis of their operating and
total costs regularly and this would be assisted by implementing effective and automated
accounting system software. Preparing effective cost sheets report is an essential part of
accounting transactions as organization would receive assistance in presenting accounting
records in front of vendors. Cost sheets would also include total costs incurred by organization in
carrying their operating activities and this would involve salaries paid to their employees
(Charron & Raschke, 2014). When it comes to selecting accounting software, they have various
and specific requirements for meeting their long-term and short-term objectives.
Answer to question 4:
a) Selecting proper accounting software
For small-scale organizations or organizations, witnessing growth and selection of
software is regarded as challenging decisions for them. Several features are offered by such
accounting software packages. However, it can be confusing for organizations to select
appropriate accounting software. Organizations would be assisted in their decision making
process by sticking to specified budget, setting timeline and soliciting employees. In order for
organization to implement effective accounting software, small-scale organizations faces biggest
challenges. Current needs of business would be served by selecting right accounting packages
that can be easily adopted for meeting future needs of business. Accounting software are well

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equipped with several features like personal accounting spreadsheet, net wealth monitor, charts,
budget planner, automatic updates, categorization of rapid file and they are embedded with such
features (Riley & Ward, 2015).
Adoption of accounting software should be done based on organization’s business
process. Therefore, B Bakery depending upon their business process should adopt different types
of accounting software. Three types of accounting software are currently available to B Bakery
and they are listed below:
 SAP
 MYOB
 DacEasy
Software’s mentioned value have unique and specialized features. Depending upon requirement,
B Bakery cam employ software that are suitable and compatible with their business process.
b) Accounting Software selection suiting B Bakery business process
Accounting software (High end)
For the purpose of recording complex transactions, it is crucial for firms to implement
high end accounting software that takes into account different accounting process. Such high-end
accounting software are preferably used by big and large multinationals. High end accounting
system helps in recording of complex transactions as they incorporate advanced information
technology. Outcomes of such accounting software are of essentially important to organization.
This is the reason attributable to fact that installation of such accounting software incurs huge
amount of costs. Small and medium scale enterprises do not afford employment of such software