Accounting Information Systems: B Bakery - An Automated Approach

This report provides a comprehensive analysis of the accounting information systems (AIS) for B Bakery, a family-owned business currently using a manual accounting system. The study highlights the advantages of adopting an automated accounting system, including improved financial tracking, easier analysis, and streamlined online transactions. It explores the business processes of B Bakery, identifies the limitations of its current manual system, and recommends the implementation of MYOB accounting software. The report compares different software options, emphasizing the benefits of automation for cost control, financial statement preparation, and overall business performance. The report also considers the requirements of a bakery firm for financial statement analysis and documentation of records, as well as the benefits of online accounting. The report concludes by emphasizing the positive impact of automated accounting systems on B Bakery's ability to manage costs, improve financial reporting, and make informed business decisions, ultimately increasing sales revenue and profit.

Running head: ACCOUNTING INFORMATION SYSTEMS
Accounting Information Systems
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
The current segment explains the significance of adopting automated accounting systems. In this
study, a research on Accounting Information Systems has been conducted on the case study
organization named as B Bakery. The family-owned trade presently follows manual system of
accounting. There are different benefits of automated accounting system that need to be
highlighted and help business firm to attain success in the near future. There are different factors
that comprise credentials recording, easy financial declaration analysis as well as online
transactions and computerized accounting software. In addition to that, there are various types of
software that had been compared and best had been selected that suit B Bakery. MYOB
accounting software should be used by B Bakery and proper justification is mentioned in the
recommendation section of the study.

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Introduction
This study deals with discussing the concept of accounting information systems that
actually help in tracking all the financial activities of a given firm in a proper way. In the modern
competitive environment, application of accounting information systems in organization has
become a necessity as the system has lot of advantages of its own (Worrell, Wasko and Johnston
2013). Nowadays, all types of modern organization are showing interest in adopting various kind
of modern technology so that they can sustain in the business as well as able to compete with the
competitors. The present study identifies the importance of efficient accounting system for the
firm B Bakery. The business is currently following a manual form of accounting systems and has
not yet adopted and automated accounting software (Diatmika, Irianto and Baridwan 2016). This
study suggests B Bakery in using automated accounting software for the keeping track of all the
financial activities. Different types of accounting system as well as accounting software had been
mentioned to B Bakery that even explains about the benefit of each process. Therefore, B Bakery
should adopt automated accounting software as it will solve the current issues faced by the firm
due to manual accounting system (Williams 2014).

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Question 1
Part A
A Baker is an individual who really produces different forms of breads and cakes with
the help of heated source. In addition, Bakery is a place or workplace where the baker prepares
and sells their respective breads or cakes (Weil, Schipper and Francis 2013).
Business Process of the organization
B Bakery mainly carries out various range of business that is explained below with
proper justification:
B Bakery is a medium-size enterprise that deals with different forms of bakery products
such as manufacturing of bread as well as other items. The Unique Selling Proposition
for the given product items offered by B Bakery is that it give importance to health
related factors at the time of manufacturing its products (Sutton and Arnold 2013).
Carrying out the business manually- B Bakery still carries out their business activities
through manual accounting system and this is one of the disadvantageous factor that need
to be corrected on urgent basis (Deegan 2013). B Bakery records all their business
transactions as well as accounting activities through adoption of manual process rather
than technical accounting process such as use of any of the accounting software. Using
manual accounting system is one of the limitations of B Bakery as the firm failed to adopt
any proper ERP process in their business activities (Sousa and Oz 2014).

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B Bakery involves in allocation procedure of its diverse types of bakery products. Here, it
is noted that B Bakery sells their breads through use of various channels of distribution
such as supermarket chains (Dillard, Yuthas and Baudot 2016).
Less effective in human resource management- B Bakery employs 70 employees who
work for the firm. B Bakery still uses manual process for keeping track of monthly
salaries. In addition, lack of proper accounting department had negatively affected the
employees of the firm by large amount (Simkin, Norman and Rose 2014).
Figure: Manual Accounting versus Computerized accounting systems
(Source: Simkin, Norman and Rose 2013).

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Question 2
Part B
It is noted that B Bakery is highly successful in making a good amount of turnover in
their business activities (Collier 2015). For this reason, the business process of B Bakery will
suffer largely because the firm had adopted manual accounting system for tracking the financial
transactions. It is suggested to B Bakery to adopt accounting software for smooth functioning of
business enterprise (Simkin, Norman and Rose 2013).
Payroll structure with automated accounting structure- B Bakery currently follows
manual payroll structure to give away salaries to their employees. B Bakery is a growing
firm and it is essential that the firm should have a proper automated payroll structure in
order to credit the salaries of their respective employees (Belfo and Trigo 2013).
Proper analysis of costs for various inflows as well as outflow activities- B Bakery is
a growing organization and it is essential for the firm to categorize its various types of
costs in their respective production as well as manufacturing process. B Bakery should
minimize their operating costs as it will help the firm to sustain in the upcoming financial
year. The problem can be sorted when B Bakery adopts automated accounting software
(Patel 2015).
B Bakery need to adopt an effective process so that they can properly determine the cost
of production or cost of goods sold. In addition, the process mainly involves
determination of costs starting from raw materials to finished goods. This type of
activities is not possible if B Bakery continues to use manual accounting process
(Apostolou et al. 2014).

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Financial statements and preparation of annual reports- In modern business
environment, it is taken into account that most of the firms are publishing their financial
statements as well as annual reports. In addition, it had now become an indispensable part
on behalf of the business enterprise as it help in evaluating their business process at the
same time (Worrell, Wasko and Johnston 2013). Therefore, B Bakery should adopt such
type of business process so that they can sustain in the present competitive business
environment.
It is important for B Bakery in determining the market value at the time of adopting
suitable accounting methods. In addition to that, B Bakery is required to pay off its
liabilities on time such as tax (Diatmika, Irianto and Baridwan 2016).
Part C
Suitable outcomes of the business processes
If B Bakery adopts the above-mentioned business process in their operations, then it is
quite feasible that the firm can easily attain different positive and these are mentioned below
with proper justification:
Control over variable and various types of operating costs- B Bakery can easily get
access to control over its operating costs if they successfully adopt automated accounting
system process. After adopting the automated accounting system, B Bakery will come to
know about the highest as well as lowest production unit where the variable costs can be
controlled in the most appropriate way (Worrell, Wasko and Johnston 2013). In addition,
adopting the accounting system will help B Baker to get access to effective
manufacturing systems.

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By adopting automated accounting system process, B Bakery can publish effective as
well as error-free financial systems. It will even help B Bakery for analyzing their
business performance over past years as well as planning for the business activities for
upcoming financial years (Worrell, Wasko and Johnston 2013).
The accounting process will help B Bakery for determining an effective pricing strategy
for both short-term and long-term perspective (Diatmika, Irianto and Baridwan 2016).
Therefore, with the use of this accounting system, B Bakery can easily increase their
sales revenue as well as have positive impact on the profit figures as it will guide with
establishing suitable pricing strategy.
In addition, this will help B Bakery in their production process as well as minimizing
their total amount of unused stock (Diatmika, Irianto and Baridwan 2016).
Question 3
Part A
On analysis, it is noted that bakery firm need different types of accounting system in their
operations. These requirements can be present in form of financial statement analysis in proper
ways as well as documentation of various forms of records that relates to vendors, debtors and
creditors at the same time (Worrell, Wasko and Johnston 2013).
Easy Online accounting- Most of the business enterprise recently are opting for online
accounting transactions (Diatmika, Irianto and Baridwan 2016). It is an important factor
that needs proper attention where management of the business firm needs to track all the
financials of the firm so that they can undertake prompt decisions that benefits the
organization as a whole. It becomes essential that the inventory process need to be

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smooth for any business enterprise and this will have positive impact over the growth of
the business firm (Vanhoof et al. 2016).
Financial Statement Analysis- There are different types of accounting software that are
needed for bakery firm for recording their financial transactions. It is important to
consider the fact that where the firm can make use of software such as MYOB and
DacEasy. B Bakery does not have proper accounting software. It is for this reason that
basic software will help B Bakery for attainment of future success (Zhang and Ni 2016).
Documentation of various kinds of records and comparing at the same time- On
analysis, it is found out that any firm, be it small or large scale, need to track all types of
financial transactions (Diatmika, Irianto and Baridwan 2016). These transactions are
mainly in the form of accounting transactions and carries equal importance in real terms.
It is for this reason become necessary that B Bakery should adopt effective accounting
software that includes daily financial transactions. In addition to that, transaction over the
year is needed for making the comparison for measuring the level of performance for a
period of years. B Bakery needs to even get involved in comparing the level of
performance with that of its competitors. Therefore, there is a need for B Bakery to adopt
automated accounting system for keeping proper track of their vendors (Worrell, Wasko
and Johnston 2013).
Analysis of various types of costs- It is noted that the bakery need to adopt an effective
accounting software as it will help in analyzing different types of costs on daily basis. In
addition, this software will help in producing effective cost-sheet reports. The costs that
need to be taken into consideration are salaries of the employees through use of electronic
transactions (Dillard, Yuthas and Baudot 2016).

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Question 4
Part A
B Bakery can adopt various types as well as form of accounting software that will suit
their business process. To explain in detail, there are various software packages that are currently
available and these are as follows:
MYOB- MYOB accounting software help in managing the finances in better way for any
business who adopts or implementing this accounting software. This accounting software
will help any business enterprise to boost in the level of profitability and help managers
at the time of decision-making process with a real view of the finances. Using MYOB
accounting software by any business enterprise will save lot of time and increase in the
level of productivity for the business so that they can attain future goals and objectives.
This accounting software had been awarded by BRW for creating of small bills and it is
one of the significant features that allow SME customers to save up money.

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SAP- SAP accounting software is one of the financial accounting as well as reporting
software that mainly records transactions, operating data and reports at the end of every
month, quarterly for analyzing financial data. This accounting software has transform the
computerization of the accounting system that help companies of whatever size in
whatever industry to improve their data handling as well as financial processing
capabilities. In addition, SAP accounting software takes into account aspects such as
reporting, accounting as well as accounts receivable management. It increases the level of
efficiency that allows easy access of data as well as help managers to undertake better
business decisions (Dillard, Yuthas and Baudot 2016).

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DacEasy- The Payroll system or program of DacEasy works best in case of flexible
payroll products and used by larger organization. This accounting system adds multiple
warehouse capabilities to Version 10 but implementing this is overly cumbersome. The
window products of DacEasy are entry to mid-level accounting software products. This
accounting software is well-featured as well as performs suitably for most of the small t
medium-sized contractors, retailers, manufacturers and service business enterprise
(Dillard, Yuthas and Baudot 2016).