Accounting Information System Report: Origin Energy Software Analysis

This report provides a detailed analysis of cloud-based accounting software for Origin Energy, an ASX-listed energy company. It begins by outlining the company's business processes and system requirements, emphasizing the need for an automated system to handle complex financial transactions. The report then explores the features of cloud-based accounting software, highlighting the benefits of automation, improved accuracy, and centralized data management. It compares and contrasts two leading vendors, Xero and MYOB, evaluating their invoicing, banking, payroll, inventory, and mobile application features. The comparison reveals MYOB's strengths in inventory management and advanced features, while Xero is noted for its multi-currency capabilities. Ultimately, the report recommends MYOB as the most suitable accounting software package for Origin Energy, emphasizing its ability to support payroll, inventory, invoicing, and financial reporting activities, which will aid in fostering business growth and expansion. The report concludes by summarizing the benefits of cloud-based accounting software in simplifying financial operations for businesses.

Accounting Information System
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Executive Summary
This report is being carried out for examining the need of integration cloud-based
accounting software for an ASX listed company, that is, Origin Energy. As such, it has examined
the software features required by the company that can be met with the adoption of a cloud-based
accounting software application. It ahs also provided detailed comparison of MYOB and Xero
accounting software package and has recommended the company to integrate the use of Myob as
per its business needs and requirements.
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Contents
Introduction.................................................................................................................................................4
Background..................................................................................................................................................4
Description of Company & its Business Activities....................................................................................4
Business Processes of the Company........................................................................................................4
System Requirements..................................................................................................................................4
Software Features and Functionalities to be used by Client Company....................................................4
Selection of two different accounting vendors and description of vendor and their products...................5
Xero.........................................................................................................................................................5
MYOB.......................................................................................................................................................6
Detailed comparison and contrast of functions or features of two selected cloud based accounting
software packages.......................................................................................................................................6
Most Suitable Accounting Software Package for the Client Company.........................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
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Introduction
The integration of Accounting Information Systems (AIS) is proving to be largely helpful
for the business entities to adequately manage their accounting functions and activities. The
cloud-based accounting software is regarded as the most effective AIS system that is being used
by business entities within Australia to conduct their accounting processes. This report has been
developed for the purpose of examining the use of cloud-based accounting software for an ASX
listed entity from the perspective of a management consultant. The ASX listed entity selected as
a client company to be provided recommendation for the adoption of cloud-based accounting
software is Origin Energy. The report has outlined the software features to be used by the client
for supporting its business activities by examining the features of the accounting software
package such as such as XERO, MYOB or SAP and recommending the best software to be used
by the company.
Background
Description of Company & its Business Activities
Origin Energy is a leading integrated energy company that is publicly traded on ASX and
is estimated to provide energy products to about 4.3 million customers in Australia. The
company is mainly involved in exploring, producing, generating and sale of energy products and
services across Australia. The major business segments of the company include exploration,
production, generation and selling of both renewable and non-renewable forms of energy. It is
also regarded a leader in developing and providing renewable energy and natural gas. The
company is emphasizing largely on empowering the customers by reducing the carbon footprint
through investing in renewable sources of energy such as wind and solar.
Business Processes of the Company
The key business process of the company includes exploration and production of gas,
generation of electricity, creation of renewable energy sources and sales of energy products and
services. All the business processes of the company involve creation of accounts and processing
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of different types of financial transactions for allocation of financial resources to meet the
various requirements of carrying out the business processes (Origin Energy Limited, 2017).
System Requirements
Software Features and Functionalities to be used by Client Company
Origin Energy has to manage complex business operations and processes involved in
large-scale production of energy and gas products. It has to manage its energy contracts with
large number of contractors and this involves them to record and maintain its large volume of
trading accounting transactions developed with its numerous contractors. As such, the recording
and maintaining of energy contracts is quite complicated and time-consuming task fro the
accountants of the company. Also, the recording of its invoices, bills, inventory cost, expenses
and revenue also requires significant time and labor cost for the company. Therefore, the
company requires the use of an automatic information technology system that is able to reduce
manual handling of large volume of financial data and improving the accuracy in the processing
of accounting and financial results. Therefore, the integration of cloud-based online accounting
software will prove to be suitable for meeting the varying accounting and financial processing
needs of the company (Kosalge and Ritz, 2015).
The online accounting software applications that are cloud-based will prove the company
the feature of automating the manual accounting and bookkeeping processes. The automation
capabilities provided by the cloud-based online accounting software would enable in the
company to reduce the time involved in carrying out different accounting processes. The
reduction in the error will also improve the operational efficiency and therefore ensuring
accurate aligning of financial resources as per the different business operations. The reduction in
the complexities of the accounting operations would help them to emphasize more on developing
long-term financial strategies for promoting business growth. The accurate processing of the
large volume of financial data related with its energy contracts with different contractors would
help in improving the operational efficiency of the company. Also, it would enable the company
in creating a centralized database that enables the data to be accessed irrespective of location or
device. It would also enable in reducing the paperwork that is required in manually creating the
documents for recording and maintaining the accounting and financial data (Smith, 2019).
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The use of cloud-based accounting software would also enable the company in gaining
advantage over its traditionally used desktop accounting software. The traditionally used
accounting system by the company does not provide the advanced features of inventory
management, creation of financial reports or ensuring the protection of the accounting and
financial data. However, with the use of cloud-based accounting software would enable the
company in maintaining the data protection and also creation of financial reports in an easy
manner by integration of accounting data from each individual department. It can also easily
process and create bills for its large number of contractors and suppliers that will help the
company in easily maintaining its accounts payable and receivables (Cleary and Quinn, 2016).
Selection of two different accounting vendors and description of vendor
and their products
The two selected accounting vendors who provide cloud based accounting package are XERO
and MYOB.
Xero
Xero, an Australian Stock Exchange listed public software company was formed by Rod
Drury in 2006, in Wellington, New Zealand. Xero Limited is one of the fastest growing
accounting software company works on software as a service (Saas) Model employing a huge
team of more than 2,500 people.
Only one product is offered by Xero but having different features and functions subject to the
product type chosen by customers. Xero has been divided in Starter, Standard and Premium
(Xero Limited, 2019).
MYOB
MYOB (Mind Your Own Business) is an Australian multinational corporation providing
cloud based accounting software which provides taxation and other similar services hand in hand
with accounting services to small and medium enterprises. MYOB Limited was earlier known by
the name of Data-Tech. It is listed on Australian Stock Exchange in the name of MYOB Limited
on 9 July 1999.
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MYOB provides various products based on type of customers and their needs such as for small
Business, For Bigger Business, for Accountant and bookkeepers etc.
Products which are mostly used by the customers are-
 MYOBEssentials: It is online accounting software built for small business to manage their
accounting work fast and easy and provides tax updates on time.
 MYOB Accounting Right: It is available in both the state online and offline having amazing
features as job tracking, multicurrency option, inventory management etc.
 MYOBAccountedge: This product is MacOS-based and offline which is designed for more
complex accounting (About MYOB, 2019).
Detailed comparison and contrast of functions or features of two
selected cloud based accounting software packages
The selection of two cloud based accounting software are Xero and MYOB provides accounting
packages to their customers as per their needs with some similar and different features and
functions. These both accounting software have some similarity as well as some differences
with regards to features and functions. Comparison between the two cloud based accounting
software can be done based on their features and functions as discussed in detail through below
points.
 Invoicing and Bills: Both the accounting software named MYOB and Xero has the facility
of creating or recording invoices or bills. Customer can customize the invoice format as per
their preferences in both the software. If compared MYOB has highly advanced features of
invoice booking than Xero with many other features with regard to invoice booking. Xero
works online mode only so it cannot be used if invoice is required offline.
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 Banking and Cash Management: Both the Cloud based accounting software has
partnership with the Australian banks to make it easy for their customer by linking their
banking details and provide facility to export their banking information and bank and credit
cards statements in accounting software in real time so that customers can easily reconcile
their banking transactions done with transactions recorded in the software. As we all know
there is time difference between the occurrence of the transactions and recording of the
transaction which need to be reconciled. However MYOB provides better features to
reconcile bank statements in real time as compared to Xero (Lane, 2018).
 Payroll Features: Both MYOB and Xero provide facility of calculating and processing
wages and salaries of employees with an advance facility of payG taxation. Both the software
maintains employee’s names, per period payout and process payroll in their payroll features.
Xero has limited payroll options and it is for limited number of employees too. On the other
hand there are no such restrictions in MYOB.
 Inventory: Both the accounting software MYOB and Xero come up with the features of
inventory management. Through which customers can manage and control their cost of sales,
EOQ, and inventory by ABC analysis,just in time analysis in the software itself in real time
which prevents users to record sales without the inventory actually available in store. MYOB
Accounting right plus has the feature of advance inventory management which is lacking in
Xero (Macpherson, 2019).
 Mobile Application: Both the software provides their customers the mobile application
facility and allows them to track and generate accounting transactions which are of highly
important. MYOB provides highly advanced mobile application features to their customers
as compared to Xero.
 Multi-Currency: Only Xero Deals with multi-currency features in its software. There is no
such facility is available to MYOB Customers.
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 Pricing:Xero and MYOBare available on subscription basis at different price as per the
software type and features. However no substantial difference can be seen in monthly pricing
of these two software. MYOB offers highly advanced features whereas Xero offers valuable
features at lower price which made Xero more popular in small and mid-size enterprises
(Schaeffer, 2017).
Most Suitable Accounting Software Package for the Client Company
The maintaining and improving the operational efficiency could enable Origin Energy in
maintaining is distinctive position within highly competitive energy sector of Australia. The
operational efficiency can be improved by the company by centralizing its decision-making
system and complying with the different energy rules and regulations present within the country.
This is required to promote innovation within the organization by reducing the cost of operations
and also gaining support of government by complying with various rules and regulations (Coyne,
2016). As such, the company is recommended to adopt the use of Myob accounting software for
improving the accounting and financing operations of the company. The use of MYOB
accounting software is recommended for the company to provide support to its payroll, inventory
management, invoicing and financial reporting activities. The adequate management of financial
and accounting data with the use of MYOB accounting software would embed the company in
fostering its plan of business growth and expansions. The arranging of data in a centralized
manner would improve the decision-making and eliminating nay king of financial and
accounting errors (Yigitbasioglu, Mackenzie and Low, 2013).
Conclusion
It can be stated from the overall discussion carried out that cloud-based accounting
software package such as Myob or Xero are helping the business entities to simplify and easily
processing their various types of accounting and financing operations. The origin energy is
recommended to select the Myob accounting software for carrying out its diverse accounting
processes in a simplified manner and improving the accuracy in processing and interpreting of its
large volume of financial data. The use of Myob or Xero accounting software provides the
advance features to business entities such as creation of invoices in an easy manner, paying bills,
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recording of expenses and revenue, better management of inventory and integration of various
accounting information for development of annual accounts. As such, it helps the accountants in
reducing the complexity in their daily job role and also improves the speed and accuracy of the
various accounting and financing processes within a firm.
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References
About MYOB. 2019. [Online]. Available at: https://www.myob.com/au/about [Accessed on: 25
May 2019].
Cleary, P., and Quinn, M. 2016. Intellectual capital and business performance: An exploratory
study of the impact of cloud-based accounting and finance infrastructure. Journal of Intellectual
Capital, 17(2), pp.255-278.
Coyne, A. 2016. How Origin Energy is using data to save corporate clients millions. [Online].
Available at: https://www.itnews.com.au/news/how-origin-energy-is-using-data-to-save-corporate-
clients-millions-418653 [Accessed on: 25 May 2019].
Kosalge, P.U. and Ritz, E., 2015. Finding the tipping point for a CEO to say yes to an ERP: a
case study. Journal of Enterprise Information Management, 28(5), pp.718-738.
Lane, S. 2018. Which one is the best cloud accounting provider? [Online]. Available at:
https://www.listonnewton.com.au/information-centre/xero-vs-myob-which-will-work-better-for-
your-business [Accessed on: 25 May 2019].
Macpherson, S. 2019. The latest in online accounting software in Australia. [Online]. Available
at: https://www.intheblack.com/articles/2018/12/01/latest-online-accounting-software-australia
[Accessed on: 25 May 2019].
Origin Energy Limited. 2017. Who we are. [Online]. Available at:
https://www.originenergy.com.au/about/who-we-are.html [Accessed on: 25 May 2019].
Schaeffer, E. 2017. Industry X.0: Realizing Digital Value in Industrial Sectors. Germany: Kogan
Page Publishers.
Smith, H. 2019. Xero For Dummies. USA: John Wiley & Sons.
Xero Limited. 2019. Accounting software made for your retail business. [Online]. Available at:
https://www.xero.com/au/why-xero/your-business/retail/ [Accessed on: 25 May 2019].
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Yigitbasioglu, O., Mackenzie, K. and Low, R. 2013. Cloud Computing: How does it differ from
IT outsourcing and what are the implications for practice and research? The International
Journal of Digital Accounting Research, 13, pp.99-121.
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