HA2042 - Accounting System Analysis and Selection for David Jones

This report provides an analysis of accounting software options for David Jones, an Australian department store. The report begins with an executive summary and introduction, outlining the purpose of the analysis and the challenges faced by David Jones, including inventory management and the impact of head office relocation. It then offers an overview of David Jones's business activities, key procedures, and problem identification. The core of the report compares two accounting software solutions: Xero and SAP. It delves into the key features and functionalities required by David Jones, such as automation, security, payroll, international utilization, and business process management. The report provides a detailed description of Xero and SAP, comparing their features and suitability for David Jones. The analysis concludes that Xero is the most suitable accounting software for David Jones, considering the company's specific needs and challenges. The report also includes references to support its findings.

Running head: ACCOUNTING SYSTEM
David Jones
Accounting Information System
5/23/2019

ACCOUNTING SYSTEM 1
Executive Summary
The purpose of this report is to discuss the use of accounting software in the business and
how it can be used by David Jones in order to overcome the challenges it is presently dealing
with. The report has provided the detailed description of the operations and processes of
David Jones from which it has been identified that it is dealing with challenges related to
inventory management and effect of the relocation of the head office of the company. In
order to overcome these challenges, the report has provided a description of two accounting
software, that could be used by the company are XERO accounting software and SAP
accounting software. Considering the features of XERO that is business operation
management, invoice creation, etc. will support the company in handling its financial and
non-financial operations effectively.

ACCOUNTING SYSTEM 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of David Jones and its business activities.............................................................3
The key procedure of David Jones.........................................................................................3
Problem Identification............................................................................................................5
Key features and functionalities required by the company....................................................5
Automation.........................................................................................................................5
Security..............................................................................................................................6
Payroll and Time tracking..................................................................................................6
International Utilization.....................................................................................................6
Business process management...........................................................................................6
Description of accounting software.......................................................................................7
Xero Accounting Software.................................................................................................7
SAP Accounting Software.................................................................................................7
Comparison to Two Accounting Software.............................................................................7
Key Features of Xero Accounting Software......................................................................7
Key features of SAP Accounting Software........................................................................8
Suitable Accounting Software for David Jones.....................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

ACCOUNTING SYSTEM 3
Introduction
The intent of this report is to present a comprehensive discussion of the key procedures and
activities of David Jones in order to identify the required features of the accounting software
by the company. Today, more and more businesses are moving towards an accounting
solution to manage their financial transactions. Hence, it is very important for the business to
search for the best accounting solution for the business (Accounting tools, 2018). This report
is performing the comparative analysis between two accounting software that could be used
by David Jones in order to enhance its operations. From the analysis, the report will identify
the best accounting software solution for David Jones that it can use for expanding the
business as well as expanding product lines.
Overview of David Jones and its business activities
David Jones is the upmarket department store of Australia, which is owned and managed by
Woolworths Limited, the largest retail group of South Africa. David Jones was established in
the year 1838 by David Jones who is the Welsh trader and future politician after moving to
Australia (David Jones, 2019). In addition to this, David Jones is one of the oldest department
stores across the world still operates under its original name. Presently, David Jones operates
45 stores in the territories and states of Australia. One of the key competitors of the company
in the upmarket department store category is Myer. The stores of David Jones offer bags,
shoes, clothing, grooming products, intimates, accessories for men, women, and kids. In
addition to this, the company also offers skin care, electronics, bath products, technology
products, gifts sets, cards, mail, makeup, etc. (Bloomberg, 2019)

ACCOUNTING SYSTEM 4
The key procedure of David Jones
The procedure of David Jones business is to work in collaboration with the entire group to
offer services to the stores and supporting center while working on key strategic projects. The
business procedures of David Jones are comprised of a variety of key departments that offer
continuous support, nationally and regionally to every location across the channel of sales.
By recognizing the developing consumer trends and new service initiatives all over the group,
the operations team confirm that they deliver and meet their promises made to the customer
(Woolworths Holding limited, 2018).
Being the specialist member of the Woolworths Group, David Jones work towards
confirming that the employees under direct contact with the customer are equipped with all
the required resources and tools needed to attain the vision and make David Jones the best
place for shopping. Being part of the operations team of the Group, David Jones also
confirms that consumers receive a seamless experience each time they visit the stores.
Leading Retailer
The company also focus on offering quality, fit, and fashionable products, comprising
exciting, newness and design led to a variety of products of David Jones.
Driving Synergies and Efficiencies
The group has adopted a number of business transformational ingenuities that have resulted
in driving synergies and competences in David Jones and across the group. One of the key
initiatives of the company was the co-location of David Jones to the new head office in
Melbourne. The relocation of the office offers retail excellence and one single hub for the
operations of the Australian market. The relocation, with retailing and finance systems,
resulted in impacting the performance of the company (Woolworths Holding limited, 2018).

ACCOUNTING SYSTEM 5
Implant the Good Business Journey
The company’s good business strategy includes six key focus areas that are the environment,
community investment, employee engagement and wellbeing, ethical sourcing, and diversity
and inclusion (Woolworths Holding limited, 2018).
Problem Identification
As discussed above the company regularly plan some changes and initiatives according to the
changing trend and demand in the market. David Jones has been also involved in such type of
changes such as relocation of the head office to Melbourne has resulted in impacting the
performance of the company. As the relocation of the business was comprised of key
business operations and accounting system, the company has to deal with some losses
(Woolworths Holding limited, 2018).
In addition to this, handling the large departmental store that is extended to diverse portions
of the continent could challenge it the right type of technique and tool are not utilized by the
marketer. Considering the situation of David Jones, it is dealing with a number of challenges
due to internal as well as external factors. The company is involved in different upgrades in
its technological model in order to meet the changing needs of the target customer. In
addition to this, the company also has to manage the operations activities that are operated in
numerous stores across different places. The major issue that David Jones is dealing is
aligning the operational activities of every outlet which support the group in making revenue.
This complexity experienced by David Jones is becoming intense due to the engagement of a
number of stakeholders like employee, managers, suppliers, supervisors, etc. the company is
struggling in managing its inventory system, managing the customers and suppliers, and
reducing errors in the operational procedures and setting the price.

ACCOUNTING SYSTEM 6
Key features and functionalities required by the company
Automation
The traditional methods of accounting like manual ledgers for documenting the financial
activity are complex, cumbersome and slow. Unless the person is not trained in accounting,
he/she cannot understand the detailed procedure. Accounting software works in automating
financial transactions. The tailored software support business in creating multiple documents
through a single entry. David Jones requires efficient accounting software that can help it in
managing all the data under single click such that it can ignore any defaults due to relocation
(Brenner, 2019).
Security
Accounting software offers security to the financial as well as non-financial data of the
company. The owner of the company cans assigner users with the password for precise
accounting areas. The accounting software does not provide access to an unauthorized
individual or group (Tyndall, 2018).
Payroll and Time tracking
The accounting software must include the facility of payroll calculation comprising time
tracking, which will be useful for the hourly workforce.
International Utilization
David Jones operates its business in domestic as well as international market due to which it
works with different clients and for this, there is a need for internalized accounting software.
But, all the software of accounting does not support foreign currencies so it is very important
for David Jones to consider this point before selecting software (Pickell, 2019).

ACCOUNTING SYSTEM 7
Business process management
One of the key requirements of David Jones that must be offered by the accounting software
is the management of business processes such as inventory management, logistics
management, and pricing (Compare Business products, 2014).
Description of accounting software
Xero Accounting Software
Xero is one of the financial collaboration software in the market. This software is created to
fulfill the needs of the small as well as large business irrespective of their industry. Xero is
the usable and friendly software, which incorporates only top features that support in closing
the important accounting gaps. Even users with limited or no accounting information can also
use it because it converts few of the standardized and multifaceted concepts of finance into an
enjoyable voyage. For example, Double bookkeeping could be followed back to the origins
of the business, but Xero helps in managing to break the stigma that it cannot be managed by
the non-expert users (Finance Online, 2019).
SAP Accounting Software
The SAP provides accounting products for all size of business. The products of SAP are said
to be scalable, so if the business has been grown from a time business to the large
organization, then it can endure to use and upgrade SAP at each step of the business. For the
small business who desires to touch the success heights, SAP is the significant tool in
comparison to other popular accounting software present in the market like QuickBooks or
Sage. The products of the SAP could be organized in the premise (Blount, Abedin and
Erfani, 2016).

ACCOUNTING SYSTEM 8
Comparison to Two Accounting Software
Key Features of Xero Accounting Software
Easy creating and tracking the invoices
In the traditional accounting system, people used to track all the transactions and used to
create on Word document. With the help of Xero Accounting software, the invoices of the
David Jones will not be just customized but creating and tracking also becomes simple as
well as fast (Real, 2018). There is only a need of few clicks and business can easily create its
invoices on the computer system or on mobile devices. In addition to this, Invoices are saved
and recorded at the same time when they are created, and this result in easy tracking of the
payments.
Access from anywhere and any time
As, it is known that Xero Accounting Software is the cloud-based system, so it enables the
business to work from anywhere and anytime, without being restricted to a single PC. This
software could be accessed from a smartphone. There is no need for installation of any
software of IT maintenance.
Inventory Management
Xero Accounting software also allows businesses at domestic as well as international level to
manage their inventory effectively, by which the company can also set the prices of the
product without any faults or failure. This accounting software also supports handling
different business processes.
Key features of SAP Accounting Software
SAP offers complete and combined tools that efficiently handle every financial procedure of
the business.

ACCOUNTING SYSTEM 9
It operates all the accounting and financial activities of the business such as journal entries.
Accounts payable, and accounts receivable (Business Software, 2019).
It also executes automatically real-time accounting functions the time any transaction of
event takes place in the business.
SAP also supports powerful financial reporting of the financial statements such as profit and
loss account, cash flow statement, and balance sheets.
SAP also manages the time that is invested by the workforce on a specific project. The
system can monitor the status of the profit or loss and human costs incurred through the
project. In addition to this, it also tracks the progress of the procedure through a unified
system such that all the stakeholders of the company can be aware of the status of the project
(Simpli Learn, 2017).
Suitable Accounting Software for David Jones
The most suitable accounting software for David Jones is Xero accounting software.
Considering the problems and challenges that company is presently dealing with in the
international market, like declining performance of the company due to relocation and impact
of internal and external forces on the business performance, and incapability of managing the
extended inventory of each store of the company, it is very important to have an efficient
accounting software that could not just manage the financial aspects of the business but also
non-financial aspects. The Xero accounting software can be operated from anywhere which
results in eliminating the challenges of the relocation of the business. This software can be
used through a smartphone, which will result in managing all the operations of the business
quickly. In addition to this, Xero will also manage the inventory of the business such as cost
management, product management, etc. Xero is also usable and friendly software, which

ACCOUNTING SYSTEM 10
incorporates only top features that support in closing the important accounting gaps
(Accounts Management System, 2014).
Conclusion
From the above analysis, it has been identified that David Jones, which is one of the leading
departmental stores of Australia is presently dealing with some inventory management issues.
Besides this, the external and internal forces are also impacting the performance of the
company. The above report has provided a detailed description of two accounting software
that is XERO accounting software and SAP accounting software along with their key features
in order to identify the best solution for David Jones. From the analysis of the suitable
accounting solution, it could be concluded that David Jones can make use of Xero accounting
software for overcoming the challenges it is dealing in the market.

ACCOUNTING SYSTEM 11
References
Accounting tools (2018) Types of Accounting Software [online]. Available from
https://www.accountingtools.com/articles/types-of-accounting-software.html [accessed 23
May 2019]
Accounts Management System (2014) Xero: our top 10 beautiful features [online]. Available
from https://www.proams.com.au/xero-our-top-10-beautiful-features [accessed 23 May 2019]
Bloomberg (2019) Company Overview of David Jones Limited [online]. Available from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=8180957
[accessed 23 May 2019]
Blount, Y., Abedin, B., and Erfani, S. (2016) Integrating enterprise resource planning (SAP)
in the accounting curriculum: a systematic literature review and case study. Accounting
Education, 25(2), pp.185-202.
Brenner, L. (2019) What Are the Functions of Accounting Software Programs for Small
Business? [online]. Available from https://yourbusiness.azcentral.com/functions-accounting-
software-programs-small-business-17197.html [accessed 23 May 2019]
Business Software (2019) SAP Accounting Software Review [online]. Available from
https://www.business-software.com/article/about-sap-accounting-software-solutions/
[accessed 23 May 2019]
Compare Business products (2014) 10 Essential Accounting Software Features [online].
Available from https://www.comparebusinessproducts.com/briefs/10-essential-accounting-
software-features [accessed 23 May 2019]