Bakery Business Accounting Software Case Study

This case study analyzes the business operations of a bakery, focusing on the need for improved accounting software. It explores various aspects of the bakery's operations, including procurement, logistics, and the need for automation. The study evaluates different software packages like SAP, MYOB, and XERO, considering their features, advantages, and disadvantages. It recommends SAP as the most suitable option for the bakery due to its comprehensive ERP capabilities, which align with the company's growth and operational needs. The case study also discusses the importance of customization, security, and interoperability in selecting accounting software. The analysis concludes with a detailed comparison of SAP and MYOB, ultimately suggesting SAP for its ability to provide all-around services to the business.

By student name
Professor
University
Date: 12 September ,2017

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Contents
Question 1………………………………………………………………………........2
Question 2………………………………………………………………………........3
Question 3……………………………………………………………………….........5
Question 4………………………………………………………………………..........6
Question 5………………………………………………………………………..........7
Refrences………………………………………………………………....................9
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Question 1
The bakery business is the kind of business in which the baker will produce and sell flour based
products, by baking them in an oven and make yummy products like bread, cookies, pastries, cakes etc.
There are several popular bakeries around the world that provides such services to the people. Along
with these products the company will also provide various ancillary services like selling their products to
the grocers, households and other multinational stores. It also provides services that are related to café
and areas for dinning out. These are the basic services that a bakery company might provide to the
people. The B Bakery is one of the best bakeries with more than 70 employees and earning sales
revenue of around $13.5million. Over the years the company has been doing great business but because
they lack somewhere in the technological changes that are being incorporated these company is facing
stiff competition. New products are being launched and people are shifting to new healthy products and
this has affected the bakery business a lot. So the companies are trying to launch healthier option of
already popular products. But with the increase in the recent years with competition, the company has
lost all lot of business and the new accountant is appointed to help the company in taking important
steps that would help in improving the business of the company (Bromwich & Scapens, 2016).
The major baking process will include, maintaining high volume sales. The products that the
company needs like sweets, fruits, coffee, and all these similar items will cost only very less. But to
maintain the profitability the company needs to maintain high sales volume. Because the bakery
products are perishable, in that cases if the company is not earning enough good sale days, then there
are chances that the overall profitability of the company will be affected very badly. It is important that
the companies must have a good customer base so that there is no wastage. So the first step that the
company needs to take is to make sure that before starting the business proper research must be
undertaken and that will have the company in deciding the total cost and the deciding the target
customers.
The other step will be to indulge in specialty goods that will provide the bakery an edge over its other
competitors. The bakery should make a list of the products that it is planning to make and should
indulge in little innovation in the products and should that there will be a reduction is the total amount
of the cost. Cost cutting is very important for a new bakery and should try that they are able to make the
best use of the resources that they have (Belton, 2017).
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The third method that the bakery business consists of is generating proper information about
the product that would help in overall marketing and promotion. Brand promotion is very important in
today’s time and if the companies do not indulge in promoting their products then the overall business
would not improve. In recent days there has been improvement in the technological method that are
used by companies to improve their position in the market and thus the bakery company should try to
make use of these methods so that they can promote their products. These will be helpful in improving
the position of the company and help it getting over their losses. Thus these are the few methods that
will help the bakery company. Other methods will include introduction of better software technologies
that will help them in improving the overall business structure and the organization of the company
(Auken, 2016).
Question no 2a
The major processes that are indispensible to be performed for the company will include
Procurement and management of the raw material – The major bakery business runs on the fresh raw
materials that it procures and uses for its products. It is important that the company does its research
beforehand, before going for products that are high in quality and also helps in effective cost
management. The companies needs to a list of the vendors that might supply them with special
ingredients that they might need for special products that are healthy and all that the customer might
demand.
Logistic management- One of the most important features of any business is effective logistics
management. It refers to management of the vendors who are supplying the raw material and other
services and then delivering finished goods to the customer. Thus the entire process of procurement of
raw material and delivering of the final goods is known as logistics management. Keeping proper track
record of all the delivering units and the vendors who are delivering the products is very important to
prevent unwanted wastage.
Automation of major services – So many companies nowadays are opting for removal of many manual
services that includes, payrolls, time sheets, employee expenses, management of the company budgets,
purchase requisition among others (Linden & Freeman, 2017). All these features can be effectively
managed with the help of better accounting softwares that can help the company and provide better
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services to the same. These are the few services that the company needs to perfrom and help in better
management of their resources. Same can be said for the bakery business, that needs to manage its
employees, its resources and make timely delivery of its fixed products if it wants the business to run
smoothly. It will help in removing many loopholes from the maangemnt of the company and help in its
betterment (Charlton, Ilott, Borgeaud, & Drew, 2017).
Question no 2b
The main outcomes that the company wants to achieve from this processes is growth and development.
Automation of the services will help in reducing a large number of issues that is associated with the
management of the company that includes management of resources and other factors. Thus if the
company goes for effective accounting packages than that will help the company in management of its
resources, its services, it will help in timely delivery of goods and services. It will also help in reducing a
large amount of cost that might be associated with the company and will help in its overall growth and
expansion (Dichev, 2017). The company decsires from the above services is that there is timely
disclosures of issues and erros which the system is able to catch again and again. There is a development
in the overall demands of the consumer with the new products that the company will launch, it is
important that company opts for effective innovation so that the company is in par with its pears that
will help in getting an edge over its competitors (Visinescu, Jones, & Sidorova, 2017). So the main
objectives that the company wants to achieve from these services will include, better management of
resources, goods management, supply of timely products, innovation and skill dveleopment.Automation
of the major services will help in provding an edge to the company and help in saving a large amount of
cost that might be associated with the company and its development. Using the best accounting
software that is as per the needs of the company and helps in better management of the company and
its services is very important for long term survival and use of the same (Hall & Rapanotti, 2017).
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Question 3
Procurement of the ideal accounting software package that can supply the overall needs of the
company and help in its development is very important. It is important that before the companies are
going to purchase these software they must go for certain specific IT related features that can help in
achieving the IT related objectives of the company. Few of such features are given below-
Customization – The software should be easily customized as per the needs of the management
and what are the specific needs and objectives of the company. The company should always opt for such
software that always easy customization of forms, reports, system help, screens etc.
Automatic Updates – The software should be easily updated after considering all the necessary
new changes that are requires. Automatic updating is a key feature of any software that the business
purchases in today’s time.
Security – The kind of software that the company will use, must be secure and should be
safeguarded with efficient amount of antivirus and other security features. The company is using the
same for its long term development and management of all its resources, so all the vital data of the
company is entered into it. It is thus important that before using such software safety must be
considered in relation to the same.
Expandability – Along with the growth in the business, the accounting vendor should also
consider adding further moodle in the accounting packages, this will make the company more brand
effective and help in not opting for new packages and spending extra money in cases they are changing
their accounting packages (Alexander, 2016).
Interoperability – The data which is entered into the accounting software can be used by other
service lines like HR, sales management, logistics etc. The accounting software should be able to provide
software information to all the various related departments that is connected with it. This will help in
deciding the effectiveness of the software packages with other with other software before deciding on
whether to purchase it.
Automation – These accounting softwares that are used by the companies must help in
automation of many manual services like payroll management, employee management, time
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sheets, and many other services. Automation of services will help in reducing a large amount of
cost and will help in better functioning of the company. Many companies are now opting for full
automation as it will help in saving a lot of time and data.
Question no 4a
The three software packages that are very much popular in the present business arena include, SAP,
MYOB and XERO. After visiting the sites of all these companies, following points can be stated.
SAP is accounting based ERP software that is made to support the functionalities of big organizations. It
helps in providing variety of services to the consumer that includes supply chain management, logistics
management, financial management, human capital management etc. It is used by large number of top
companies to manage their accounts and provide them with the best services of account management.
It is mostly suited for large organizations that have many resources to manage (Charlton, Ilott,
Borgeaud, & Drew, 2017).
MYOB is a comprehensive all in one business software that aims to provide the needs of medium and
small sized companies in which the work load is less. It helps the medium sized organizations in getting
the solution to all business problems at all levels of the organization.
The key features of the product includes that it can be easily tailored to suit the overall needs of the
company, as per their needs and requirements and their business. It has a feature by which access of
data and services is possible from anywhere on any device, on the discretion of the company.
XERO is software that can be used in place of QuickBooks, and that help in awesome invoice
management. The main features of this software package will include a great user interface, affordable
monthly and yearly plans, inventory management, invoice management, payroll management etc. Thus
it specializes in one area of providing quality services to the company with regards to the overall invoice
management. It is mostly suited to small and medium sized organization (Guragai, Hunt, Neri, & Taylor,
2017).
Question 4b)
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On the basis on the overall functioning of the company and taking all the details into consideration, it
can be said that the company will need high to medium ranged ERP that will help in effective
management of the resources of the company. The company is a big bakery business but is not to a
multinational level, so company can go for the medium ranged ERP, that will provide all round functions
and which will be easy for the company to manage. On the basis of the points provided regarding the
needs of the company and the present operational and financial position, it can be said that medium to
high ERP software packages can be good for the company. The company can go for software packages
like SAP, MYOB that will provide quality assistance to the company in effective management. The
company must take into consideration its overall brand features, its overall budget, and should take
expert advices before purchasing such software packages for their development (Belton, 2017).
Question no 5a
The two major accounting software packages that can be used by the company for its account
maintenance are SAP and MYOB. Both the products are phenomenal packages and the vendors are
providing quality services to the businesses, but there are certain advantages and disadvantages that is
associated with these products. The following major differences between both the software packages is
given below-
SAP MYOB
 SAP is accounting based ERP software that
is made to support the functionalities of
big organizations. It helps in providing
variety of services to the consumer that
includes supply chain management,
logistics management, financial
management, human capital management
etc. It is used by large number of top
companies to manage their accounts and
provide them with the best services of
account management (Kew & Stredwick,
2017).
 MYOB is a comprehensive all in one
business software that aims to provide the
needs of medium and small sized
companies in which the work load is less.
It helps the medium sized organizations in
getting the solution to all business
problems at all levels of the organization
(Werner, 2017).
 The key features of the product includes
that it can be easily tailored to suit the
overall needs of the company, as per their
needs and requirements and their
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 The key features include management of
the overall cost of the company by
procurement of better services. It helps in
providing optimum support to the
manufacturing process from end to end. It
helps in getting better quality assistance
from on boarding to the overall career
management. It helps in effective
management of the finances from
customers to the sellers to the other
vendors. It helps in improving better
customer satisfaction by promoting better
and strong customer services. It cannot be
canceled easily once installed and the
companies have to comply with large
number of legal formalities before using
these accounting packages (Venezia,
2017).
 It is more cost expensive and hence the
total cost of the company will increase in
using these software for data maintenance
and data security. It cannot be easily
curtailed as per the needs of the company
and doesn’t carter to the needs of small or
medium sized enterprises.
business. It has a feature by which access
of data and services is possible from
anywhere on any device, on the discretion
of the company. It is automatically linked
to large number of Australian banks and
building societies. It helps I implementing
security of the information by providing
back up facilities from any given point. It
can be cancelled any time as there are no
long term contracts with the company,
thus if the company doesn’t want to use
these product it can easily remove it from
their system. It relies on full support with
compliance with the relevant Australian
laws and tax laws (Abbott & Kantor, 2017).
 These software packages are more cost
effective and can be easily used by all type
of organization. But in comparison to SAP
it provides fewer services to its customer.
But overall it is a good package suited for
all kinds of business. This is the best
advantage of the product that it can be
customized.
Question 5b
On the basis of all the analysis taking into consideration the needs of the company and the various
features of all the accounting software and packages that the company might consider for its operations,
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SAP would be the best choice. SAP is accounting based ERP enterprise sector that provides major
services to the top companies on the basis of their demands and needs. In the given case we see that
the main aim of the bakery business is
 To improve the overall sales of the company
 To perfectly manage the logistic so that goods can be produced and delivered with any extra
wastages.
 To improve the overall market credibility of the company by promoting their products and its
advantages those are associated with the same.
 To get an advantage over their competitors by better product development and management.
The company can achieve all the above with the help of the SAP. The vendor is also ready to provide
some discounts and there are also options to customize the software as per the needs of the
management. The main benefits of using this software that it will all around services to the business,
from supply chain management, logistic management to management of the resources. The key
features of the SAP package includes many points like procurement processes for all round
development, helps in overall manufacturing process from end to end, helps in getting quality assistance
that will help in better management of the human resources. It also helps in better management of the
overall finances of the company. Thus it provides an all round services to the company that helps in total
development of the same. In the given case we see that the bakery company is a large company already
with so many employees, earning revenues to the tune of $1.5 million. Now when the company wants
to make changes in the line of service, the companies can opt for this software. This will help in better
management of the company. For small bakeries that are in the initial stages using the MYOB would
have been a good option because the overall cost that is associated with it is less, it can be altered as
per the needs of the company, and when required the contract can be cancelled, Thus in all those cases
the MYOB is a better option, because using the SAP is only fruitful for very large organsations that have
to manage large amount of resources, hire large number of people and whose operations are huge. So
in the case of this bakery business they can go for SAP if they want an all round high level service for
which they are ready to spend a fortune, or they can simply opt for MYOB, but that won,t suffice their all
over needs. So initially the should go for SAP when they are looking for growth and innovation and want
to expand their business. The vendor must be selected on the basis of various criteria that includes, the
total cost, the post sales services, the complications involved in management of the resources of the
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company, how much is the overall budget of the company. All these factors can contribute in long term
development of the company, and they should always go for such vendors that provide them with
quality services at the cheapest cost possible and suffice their long term needs, by having a long lifetime.
Thus on the basis of all the factors, we can say that SAP software will be the best for the company
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