Accounting Software Selection for Eureka Limited: A Business Report

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Strategic Information System
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Executive Summary
The Eureka Limited facing accounting issues in the company. Its product accounts are
also lost by the accounting department. Due to these effects company concern towards
accounting software’s which helps to handle accounting information and operation by n
efficient manner. It identifies the overall concept about the accounting software. The
report will discuss the business requirement, system requirements, software selection
and vendor selection. These are some primary responsibility which Eureka needs to be
the focus before the implementation of any software.
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Table of Contents
Introduction................................................................................................................................................4
Business Requirement.............................................................................................................................5
System Requirements..............................................................................................................................7
Software Selection....................................................................................................................................9
Vendor Selection.....................................................................................................................................11
Conclusion...............................................................................................................................................13
References..............................................................................................................................................14
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Introduction
This report will discuss accounting, which helps to maintain effectiveness in the
business. This report is based on a case, Eureka Limited, which lost all the detail of
products. It significant issues that it is categorized in competitive pricing. Due to these
crises, the company hires a new accountant and its strategy is to implement accounting
software by which the accounting department will work efficiently in the future. For this
purpose, the report will focus on business requirements, system requirements. Business
requirements highlight those factors which are based on essential business processes.
System requirements will be discussed about the accounting software’s features and
functionality. This report will address these vendors who provide software to the
enterprises. This report helps to identify that which h vendor provides its reliable service
Eureka Limited.
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Business Requirement
What are the key business processes for Eureka Limited?
The critical business process requirement of Eureka Limited is the strategy of business
relationship management, the development of the product, financial analysis, capital
management and reporting.
Central relationship management: It is the significant business process of Eureka
Limited is to maintain the relationship with the customer. This company provides its
product i.e beverages to supermarkets and other stores. It needs to balance between
the loyalty and quality of the product. It will include in clued in a Business relationship. It
will help in promoting and establish boundaries in the business.
Product Development: The critical business process of business is to develop the
product according to the demand of the customer. The competitive market analyzed the
expectation of the customer and recommended from the supply chain markets. The
product development involves the modification and in an existing product or completely
change the outcome (Vom Brocke and Mendling, , 2018).
Financial Analysis: It analyses the stability of the business. It entirely focuses on the
income statement, cash flow and balance sheet. Eureka Limited needs to maintain the
financial report in the industry. It helps in evaluating that company entity is profitable,
stable or solvent.
Accounting Management: It is essential for accounting approach which needs to be
the focus on maintaining the transparent sheet of balance. Effective management in
asset and liability helps to cover financial obligations and increase the earning of
business.
Technology Management: Nowadays, business used technology in the company to
run efficiently and effectively. It helps to improve the resultant factor of the project. It is
used for manufacturing, marketing, communications etc.
Reporting: It refers to the report of public operations and the financial records of
business enterprises. It helps in taking the appropriate decision, which helps to support
the organization. It is based on task and activity. It provides a set of the report which
allows the process for a long time (Popovič, Puklavec and Oliveira, T., 2019).
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What are the major control risks for the business processes of the company?
Risk management in business helps to identify and address the risk of the business.
Eureka Limited is facing the threat of accounting statements. The company identifies its
mistakes and appoints the new accountant, for them, it required reliable software which
helps to increase the effectiveness of the business. Risk management helps to improve
the planning, priorities and decision making. It encourages the company to do
something new or unique by which the employees will be satisfied with the respective
delivery service.
The major control risks of the business are:
1) Strategic and compliance risk: These risks are arisen from the merger of activity,
from the research development and the demand of the customer. Compliance risk is
associated with the hen company are distracted from the laws and regulation.
Eureka faced these risks, which directly effects on its business. For resolving and
reduce the effects on these risks. The company needs to improve its team of research
and development. Eureka Limited need to follows every law designed by the
government for small business enterprises.
2) Financial risk: These risks are associated in the company when the respective
accountant departments are not able to maintain proper financial statements, when a
company owes its money, extend the rate of creditors and doubtful debts.
The resolving factor of these risks is company need to concern towards accounting
department. The most prominent requirement is to improve the maintaining records in
the business. Planning may help to reduce the probability of risk factor in the company
3) Operational Risk: This risk consists of the recruitment, It systems and supply chain.
Eureka Limited faced the issues in competitive price due to the less involvement in the
market, and its accounting strategies are not working correctly.
These risks are reduced if the company is hiring an efficient candidate for a specific job
role. It needs to establish appropriate IT software which makes efficient working culture
in the company (Hao., 2019).
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System Requirements
What are some of the possible accounting softwares features and functionalities
that the company should consider to achieve their business objectives and
minimize the control risks?
The software which is used in accounting of the small business enterprises is working
on the fundamentals of applications, which allows the company to maintain the record of
money flow. The internal and external investment need to making review and audit of
the accounting. Accounting software’s are required to develop the ledger, stocks, billing,
and accounts payable and receivable. These records are automatic generation from
these records. It provides reliability towards records and helps to expand the timesheet,
payroll and electronic receipts.
The accounting software does not only reduce human efforts, but it also minimizes the
risk regarding the accounting department. Eureka Limited needs to manage the
potential danger because according to the experience, it already lost the data of some
products. The backup or restore is the most significant factor of software’s because it
ensures that it will quickly recover the data in very less time. Nowadays the companies
are using software’s in the accounting department because it is the most sensible part
of an organization which contains different information of the company and it will be
helpful to take the further decision regarding the company (Ayala,et.al., 2018).
The features and functionality of these accounting software’s are:
Electronic invoice processing: It is one of the most significant features which ensure
that there will be no delay in the invoice. It automatically processes the invoice and
sends it to the buyer. It has the automatic remainder in for the pending bills. From this
accounting, details are updated according to the respective other details. The print of
the invoice is sent via an email to the respective individual or group.
It helps to minimize the potential risk of manual invoice in the process because most of
the time, employees forget or they have to face a lack of sufficient information as per
the invoice. It does not require maintaining every record again and again. It helps to
reduce the time of the same information.
Processing of payment: This accounting software is not only reliable, but it is also
secure in terms of the transaction. This software’s can transfer the money or can be
able to the transaction by a secure method. It is a fast processing method with greater
security. Business is run over credit and debit account, so it needs to manage these
aspect and transaction need to approve from the accounting department and allow the
transaction on the respective deadline.
The business needs to require payment daily at any time. It is not efficient to deal to
move bank daily for every transaction process. IT software’s are enabled to processed
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transaction 24hours and seven days. It gives reliability to the business that there is
proper detail of total amount and total expenditure in records.
It is also able to maintain the status of business activities. From this software’s company
have no fear regarding fraud and other corrupt markets. Transaction process is directly
one by one method.
Automatic Tax calculations: This software’s are helps to calculate or estimate the tax
tables. It needs to handle them, and quarterly tax deposit report. Tax is derived from the
total income and total expenditure.
These software records all the revenue from the bills receivable, and investments
evaluate from the statements payable accounts. It needs to handle compensation or
other insurance records.
Eureka Limited is small business enterprises, so this can involve in fewer taxes, but its
tax calculation is needed a proficient charted accountant. Due to this, the company
decided to work on software so that it can easily estimate the total tax payments at the
end of the year. All the operation is based on the financial situation of the company, so it
helps to analyze the current status of finance.
Restore data: It is a significant factor of software’s in the accounts department. It
requires storing the massive amount of data, and manual records have a probability of
loss. Like Eureka Limited lost some product accounts in which the company lost all
account details. If they used the software, the companies have capable of restoring the
data due to backup processing in the software.
If the data has been lost, the accounting software will be helpful to collect the
information back. Eureka Limited already lost its product information. So, it required this
software to make efficient accounting in the company. Data loss not only loses the
information also lose for the company in terms of money, total production and
manufacturing efforts.
Payroll: According to the new area, manual payment required lots of efforts and
effectiveness in maintains a complete record of each employee. It includes its login and
logout time from the company, leaves, half-day and overtime. This IT software is
updating the payroll of every employee according to the biometric record.
Eureka Limited is a small business enterprise so its payroll is ca; calculated by an
accountant, but there are chances of mistakes and errors. The errors result survives by
the employees and company both. If the accountant credits the salary more in the
respective employee, it is the loss of the company or if it is credits less in employees
account. Then, there is a loss of employees.
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Software Selection
Visit the website of atleast three accounting software package vendors and
provide a brief description of each vendor and its products.
MYOB (Mind Your Own Business) is the multinational company which provides
software’s of accounting, tax related to the companies (small and medium enterprises).
It is the Australian based company which works on Information and Technology
industry. It was founded in 1991. Its product is accounting software’s only. The outcome
of MYOB for small business is MYOB ESSENTIAL (for all online store), MYOB
ACCOUNT RIGHT (for online and offline, it is used for job tracking), MYOB ACCOUNT
EDGE (based on MacOS and designed for complex accounting). Software’s for
accountants and the bookkeepers are the solution for the practice and solution for the
client.
The product for large businesses are MYOB EXO (It is sturdy and flexible for HRM
solution), MYOB ADVANCED (customized and cloud-based software) and MYOB PAY
GLOBAL (payroll software which helps to manage the payroll of employees)
MYOB partners are accountants, developers and the training providers. The
accountants have defined as the issues which need software for resolving issues in the
company. Developers are designed the software by using SDLC (software development
Lifecycle). For the implementation of this software, it requires proper training methods
which need to provide an accountant to the respective company (Myob., 2019).
SAP (System Application and Product) is a multinational corporation which manages
the business operations and customer relations. The headquarters’ of the SAP is in
Germany. These software enterprises in the spread in around 180 countries and its
customers are more than 4, 20,000 who take benefits from their services.
Its products are developed according to the demand of customer; some known products
are as follows:
ERP and Digital Core: This software is a cloud-based product which is designed for
middle size enterprises. Financial aspects are also included in this software. Example:
SAP S/4 HANA Cloud, Cloud ERP, SAP S/4 HANA etc.
Analytics: This kind of software works on business intelligence, enterprise planning and
SAP analytics cloud.
HR and People Engagement: For this reason, SAP develops the software which
maintains the core HR and payroll. Software’s for time management and the recruitment
process (Sap., 2019).
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Xero is a public software company in Australia. This company offers software which
mostly works on cloud-based technologies. It’s software’s work on small and medium-
sized enterprises.
Its popular software’s are invoicing (maintain the cash flow records and send the invoice
in online payment) , Inventory (it tracks and manage the stock easily ), Gusto Payroll
(Automatic payroll generator), Information security (protect the business information)
Xero offers reliability in its software, and it proves that its software protects the business
information from the clients and others. It provides smart accounting using online. Small
Medium Enterprises demands from the Xero for accounting software’s. It helps to
secure the data protection at the time of the transaction process (Xero., 2019).
Which category of the accounting software suitable for the company?Give your
justification in detail.
The medium category is appropriate for the accounting software for Eureka Limited.
According to the detail, Eureka is a small business enterprise in which only 76
employees. The low employee's rate described that company does not require high
technology-based software. Eureka Limited has fewer amounts of data because it only
deals with the manufacturing of the product and directly sold in the large group of stores
(Hu, 2018). It is the first time for the company when it promotes the software in the
accounting department. It is convenient to handle and manage the software the first
time in the company. Implementation of software’s requires training method in the
company for the accounts department employees. SME's initiated from the low or
medium category of software by which they can understand the advantage or
disadvantage of the software’s. If in the case of loss, the company will not survive the
enormous loss. There is a chance of recovery. Instead of large category product is the
expensive product which is used to stores and manage the massive data operation in
the accounting. There is no need for the broad category for the Eureka (Adamyk.,
2018).
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Vendor Selection
Compare and contrast the features and functionalities of two accounting software
packages offered by accounting software package vendors within your selected
category.
SAP accounting software is a financial reporting and accounting software that record
each transaction, data and entries at the end of each month or year or quarter. This
software is very useful for the owners of the business as it enables them to come on a
better decision for the business (Kruger and Rudman, 2013). The data is recorded in
the software in such a manner that companies can improve their data handling and
financial capabilities. Tracking each and every transaction and recording that manually
becomes difficult of the companies hence this accounting software is designed with the
aim of providing assistance to the companies to record every transaction of business
effectively.
The functions of SAP accounting software can be learned easily by the staff of the
company. It can be used by more than one person at the same time. It is available in
more than one language hence this software can be used globally. The system is
available in multiple currencies hence the transactions recorded by the foreign branch
can be tracked by the home branch. This software allows companies to track the cost
of each transaction (Yahya, et. al., 2018). It integrates all the functions performed to
assist the company for the accomplishment of the end to end goals. This software
works according to the GAAP and IFRS hence the accounting done by this software is
trustworthy. As this system is available in multi-languages hence this system can be
used at all the branches of a company. It generates consolidated reports of finance and
accounting hence it assists the companies to carry out it all the activities more
proactively.
MYOB accounting software tracks the cash flow and evaluates the profits and losses
of the companies. Employees from different departments can access this system this
software is very simple to use and it calculates right figures. The major function which
this software can perform is payroll management. This software can generate reports on
the retirement of the employees. It keeps a record of leaves, arrears, and bonus and so
on. At the end of each quarter and month, it generates consolidated reports. These
reports can be accessed at any point in time. Management of inventory is difficult for the
company, and this software helps out the company to manage its inventory. It tracks
each and every activity of the inventory on a real-time basis. By tracking each and every
activity related to the inventory it enables the company to reduce inventory loss.
It performs multiple functions. It is well-matched with Microsoft outlook hence it made all
the procedure very easy. This accounting software supports the companies to track
each and every activity of the company in a comprehensive manner. It does accounting
and recording of the transactions and it is available in all multiple currency o this
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software can be used worldwide. It assists the company to manage all the suppliers and
clients in an effective manner.
Which one would be the most suitable vendor and accounting software package
for the company and why?
The SAP and MYOB have multiple similarities, however, SAP is more advantageous as
it provides more beneficial services and it performs more functions than MYOB. All the
auditing practices are integrated by this software which leads to a better auditing system
and better decision making. As the company records the transactions manually it lost
the data o the company. By the SAP accounting software, the company Eureka will be
able to record each and every transaction in the system and the stored data can be
accessed by the company at any time.
With the help of SAP accounting software, the company can generate reports of the
company at the end of every month that will help the company to find out the areas of
losses and can improve all performance of all the operations. By the use of this
accounting software, the company can maintain the record of every transaction. This
software will reduce the threat of loss of data (Blount et. al., 2016). The Eureka
Company lost its accounts as the company was not able to produce the products at the
competitive prices and by the result of that, the company lost the key accounts of the
products. SAP accounting software will be most suitable for the company.
Benefits of the SAP accounting software
Protection from data loss: This accounting software protects the companies from data
loss. The company Eureka lost its key accounts. With the help of this accounting
software, the company can keep a record of the accounts of its products and all the
information is stored in the system hence the data can be accessed at any time. This
software assists the company to keep full information of the product and the information
stored in the software can be kept safe for years and it removes manual account ting.
Effective running of the business: It allows the company to run its all operations
effectively by making the correct decision for the business to access the information and
reports provided by the software. This software performs accounting on the GAAP and
IFRS hence the data and the results generated by this software are reliable. The
company can use this software for decision making and can save the cost in all the
activities. The company can do strategic planning to gain a competitive advantage over
the other firms with the help of this software. As the company, Eureka wants to run its
business more effectively hence this system will be most favorable.
No need for manual accounting: This software removes the need for manual
accounting. There are various drawbacks of manual accounting. It is not necessary for
the manual accounting that the reports generated are error-free or are accurate. There
is a lack of security in the manual accounting system as the ledgers and books can be
accessed by the employees (Adamyk, et. al., 2018). The employees can misuse
financial information. Manual accounting is very time consuming. .This software
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