Accounting Software Implementation Report: Eureka Limited

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STRATEGIC INFORMATION SYSTEM
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Executive Summary
This report evaluates and measures the success of accounting software in small and
medium enterprises. The case is regarding a Eureka Limited, which faces the issues of
competitive pricing in eth market, and it lost the records of some products. Due to these
challenging issues, the company decides to adopt accounting software in the accounts
department to improve the business. Accounting software can maintain the records,
generate a payroll of the employees and able to recover the data any time. Eureka hired
a new accountant for the implementation of specific software. Eureka needs to
implement the accounting software which deals with the offline and online business.
Eureka improves the business process after enabling the accounting software in the
accounts department.
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Contents
Executive Summary......................................................................................................................2
Introduction....................................................................................................................................4
What are the key business processes for Eureka Limited?...................................................5
What are the major control risks for the business processes of the company?.................6
What are some of the possible accounting software features and functionalities that the
company should consider to achieve its business objectives and minimize the control
risks?...............................................................................................................................................7
Visit the websites of at least three (3) accounting software package vendors (e.g. SAP,
MYOB, Xero, etc.) and provide a brief description of each vendor and its products.........9
Which category of accounting software (low, medium or high-end) suitable for the
company? Give your justifications in detail.............................................................................10
Vendor Selection.........................................................................................................................11
Conclusion....................................................................................................................................13
References...................................................................................................................................14
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Introduction
This report will be addressed about significant accounting software. It needs to maintain
the effectiveness and active business in an accounting role. Accounts play a substantial
role in the company, so it requires working according to the demand of the company
and needs to fulfill the achievement, which helps to take the significant decision in the
future. The report consists of the business requirement in which it addresses those
points which is essential to run the business expertly. The system requirements will
discuss which system needs to be required for Eureka Limited to resolve its issues. For
this purpose, software selection will be addressed that which software is appropriate for
the company which removes the barrier and improve the business manner. Last, the
vendor selection will also be discussed because it is the most important to the company
to select the vendor who offers reliable service and productive software to the buyer.
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What are the key business processes for Eureka Limited?
A business process is a cluster of steps which business needs to be taken for the
smooth running of the business. A business process consists of various activities. The
process of the business must be framed carefully as it is a lengthy procedure. The
benefits of the business process are apparent in the organization. Product development,
technology development, financial analysis, relationship management, and capital
management are the key business processes for Eureka Limited.
Relationship Management: Management of the relationship with the stakeholders is the
key business process for the company. The company delivers beverages to the
supermarkets and to other retail stores. The company needs to build an effective
relationship with all the stakeholders to stay in the competition. Building an effective
relationship is essential to manage the functions of the business (Jraisat and Hattar,
2019). Relationship management helps the company to enhance the relationship with
the customers and it enables the company to deliver a good quality of the products.
Development of the Product: Product development is another process of business. The
product should be developed according to the needs of the customers. At the end all the
products manufactured by the company is consumed by the customers hence the
products should be manufactured to provide maximum satisfaction to the customers.
Product development means introducing changes and innovation in the product in
accordance with the needs of the customers. The product should be developed carefully
and it should be developed in such a manner that most meets the requirement of the
consumers.
Financial Analysis: It is essential for the company as it assists the company to manage
the inflow and outflow of the cash. It analyses the overall financial condition of the
company. This analysis reflects the positioning of the business in the market. It is a
procedure of gauging the stability and profitability of the business. Regular monitoring of
the maneuver of the business is very necessary for the company in order to regulate all
the activities for protecting the data from financial loss.
Management of Accounts: managing of accounts is vital for the business. Proper
management of accounts of the business assists the company to reduce the cost and
bring efficiency in the operations of the business. Correct accounting helps the company
to know the financial position and to furnish the financial reports of the company. The
account of the company should be maintained on a daily basis for the determination of
overall positioning of the business (Kapustenko, et. al., 2018).
Management of Technology: Management of technology is the core business process
for the company. Nowadays the businesses are going digital and introducing
technologies in almost every business process. For the company is crucial to develop
advanced technology in order to deliver high quality of the services to the customers.
The company needs to be updated with technology and should produce innovative
products with the help of technologies. Management of technology is vital to remain in
the competition and to give tough competition to the other firms.
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What are the major control risks for the business processes of the company?
Risk management refers to the management of all risks and threats of the business
which may affect the functioning of the business. It is a critical process of classifying,
evaluating and controlling the threats and vulnerability on the revenues and profitability
of the organization. it is very essential for a company to protect the functions of the
business. Risk management of the company is necessary to protect the business from
the risks and danger. Risk management improves decision-making and overall
effectiveness of the company (Kapustenko, et. al., 2018).
Major control risks for the business are as follows:
Compliance Risk: Compliance risk in the company occurs due to customers demand
and from product development. When a company fails to act in accordance with laws
and regulation then it is called as compliance risk. It is known as integrity risk as well.
The company due to meet the needs and expectation the customers may face this risk.
To avoid this risk the company needs to stick to the laws which are framed by the
government for the companies. In order to reduce the compliance risk, Eureka Limited
should abide by the policies and rules. To regulate this risk the company should follow
all the policies made by the government for the corporate sector.
Financial Risk: It is a risk which is associated with the capital of the business. This risk
puts the money of the investors and shareholders in danger. This risk affects the overall
profitability of the business. Top avoid this risk the company should do strategic
planning and all the financial records should be marinated properly. There are multiple
types of risk such as liquidity risk credit risk and so on. It is the most critical risk as it is
associated with the revenues and earnings of the company. For the management of
financial risk, the company needs to evaluate accounting and audit reports. Financial
risk leads the business in danger hence to mitigate this risk careful planning is vital.
Operational Risk: operational risk is associated with the day to day operations of the
business. This risk occurs due to system failure, mistakes from the employees and form
any fraud or criminal activity. The company Eureka Limited is facing the risk of
competitive prices in the products.
To reduce this type of risk all the operations of the business should be designed
correctly and the performance of the employees should be measured timely. By taking
appropriate steps the company can suppress operational risk. The hiring of the
employees should be done carefully and the company should develop internal control to
reduce the system failure (LEE., 2018).
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What are some of the possible accounting software features and functionalities
that the company should consider to achieve its business objectives and
minimize the control risks?
Accounting software is used by accounting professional to manage and to perform the
accounting functions. It is a type of computer software. It allows the accounting
professional to perform all the accounting procedures. Accounting is a systematic
approach of recording, summarising and interpreting the financial information of the
business. The accounting software not only reduces the manual accosting but also it
reduces errors and mistakes.
By the use of accounting software, an accounting expert can maintain all the records
and generate reports with ease. Eureka Limited requires accounting software for the
maintenance of the paperwork and o run the business more smoothly. Accounting
software is used by various companies as it becomes difficult for companies to maintain
the data for the years. Accounting software reduces human effort and performs
accounting functions in an approved manner (Brandts, et. al., 2019).
Features and functions of accounting software are as follows:
Accounting: It is the main feature which is performed by the accounting software. The
software is able to perform all the accounting functions which are performed by the
accounting experts manually. In the company, accounting is done by the accountant
manually. Accosting software enables a company to be more updated and perform all
the activities in an organized way.
Budgeting and Forecasting: Accounting software has the feature to analyze the
financial performance of the company. It can record the inflow and outflow of the cash
and prepare budgets for the company. This feature is very beneficial for the company as
they can get the correct and accurate data regarding the financial position of the
company. it helps in decision making for all areas of the business.
Restoration of Data: It is the major function performed by the software. Eureka limited
lost the key accounts of some products as it was maintained manually by the company.
With the use of the software, the company can restore the data lost. The company
needs accounting software for decision making and for the effectiveness of the
company. if a company maintains all the records on the papers and the papers are lost
then it is tough to find the information again and prepare the records again.
Payroll: With the payroll feature accounting software can calculate the amount of bonus
gratuity and other payments to be paid by the company to employees. It can maintain
the record of every employee. It reduces the burden of the company by performing
numerous activities. Under this function, the software can calculate the earnings of the
employees.
Electronic invoice processing: Software can process E invoice without delay. It
automatically sends it to the buyer by processing the invoice. It sends the print of the
invoice through emails. It mitigates the risk of losing the invoice or mistake in the
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recording of the amount of the invoice. It reduces the processing time and with the help
of this software company can focus o the core business areas.
Tax calculations: this software calculates monthly and quarterly tax. His feature is very
beneficial for companies. It reduces the chances of wrong calculation of taxes. The
output generated by this software is accurate and trustful. Tax calculation is complex.
By this feature, the software can compute various taxes.
Generation of reports: This is a key function of the accounting software. It can
generate and furnish the financial reports on a monthly or quarterly or annual basis.
With the help of generated reports, the company can plan the activities in such a
manner that maximizes the profit of the company. Through this function, a company can
know the market position of the business and can make efforts to improve the position
of the business (Jraisat and Hattar, 2019).
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Visit the websites of at least three (3) accounting software package vendors (e.g.
SAP, MYOB, Xero, etc.) and provide a brief description of each vendor and its
products.
MYOB is an international company which provides accounting software to business
organizations. It is established in 1991 which the aim of making accounting simple. The
full name of MYON is Mind Your Own Business. This software is a solution to the
accountants from complex accounting. The partners of this company are developers,
accountants and so on. Products MYOB EXO, MYOB ADVANCED, and MYOB PAY
GLOBAL are invented for large enterprises. MYOB essential, MYOB account edge
MYOB account right is invented for the small business enterprises. To operate this
software the accountants needs to be trained enough. It provides multiple services to
the customers. The services offered by the company are based on high technology. The
core product of the company is accounting software (Myob, 2019).
SAP operates its business worldwide. Germany. The company manufactures the
products according to the needs of the customers. The full name of the SAP is system
application and product. It is known as ERP (enterprise resource planning) as well. It
operates in more than 180 countries and the headquarter of the company is in
Germany. It is founded in 1972. It covers various aspects of the management of the
business. The information generated is correct and accurate (Sap, 2019). It offers a
range of services to its customers. Some famous products of the company are as
follows:
ERP and digital care: It is planned for medium-sized business organizations. It is a
cloud-based product. This product helps out the company in the strategic decision of the
business.
Analytics: This software is based on businesses intelligence and enterprise planning. It
carries out the functions in an organized way.
People engagement and HR planning: The Company offers such products which help
the business organizations in payroll management and overall management of the
employees. it is a useful product as it reduces the burden and improves the
engagement of the employees in the operations of the company.
XERO provides public software and it is established in Australia. It frames the software
on the basis of technology which does error-free accounting and performs other
functions. The company produces products for small and moderate businesses. It
executes the functions on the cloud-based technology. Numerous functions are
performed by the software produced by this company such as inventory management,
recording, and interpretation of data and so on (Xero, 2019). The software of the
company maintains the cash flow and assists the company to manage the record of
each and every employee.
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Which category of accounting software (low, medium or high-end) suitable for the
company? Give your justifications in detail.
The medium category will be apt for the company. Eureka Limited is a medium
company and it has 76 employees hence the medium category will be most favorable
for the company. The company has limited employees and limited data. The company
wants to invest in the software to reduce the risk of data loss and to take the decision
for the business appropriately. The company is not very large hence investment in the
high-end software will not be suitable. Eureka Limited should adopt medium sort of
software to so that that the company can manage all the books of accounts and can
generate the reports for making policies and procedures in the operation to bring
efficiency in the functions of the business. Correct selection of software is essential for
the enhancement of the business. After careful consideration, the selection should be
made. By investing in the medium-sized software if the company faces loss then it can
be bear by the company easily. If the company invests in high-end software and the
company faces loss then the survival of the company will be in danger. As the company
has a limited workforce and the business of the company is small-sized hence the
medium category will be right for the company.
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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
MYOB accounting software SAP accounting Software
 The accounting software of MYOB
is useful in tracking the cash flow in
the company.
 It is readily available in the direct
request and less expensive
 Calculate the taxes of the company
 Due to this software companies can
able to estimates its profit and
losses
 Inventory and audit are uses this
accounting software
 It can track each, and every during
activity occurred in the company
 It is easy to manage, and its
functionalities are properly
understandable
 Its feature is to generate payroll,
maintain the record of leaves, a half
day of the employees
 The balance between credit and
debit amount
 The software establishes the
connection between supplier and
client
 It will be helpful to take a backup of
the old data
 MYOB offers to the online and
offline business to their software
(Blount., 2016)
 SAP accounting software is useful
to the business owner. It helps to
take better decision in accordance
with the company
 It requires an application for getting
the software and highly expensive
software in the market
 It helps to create financial
accounting and reporting
 Maintain the record of each activity
occurred in the company. It is
challenging to handle manually
 The files can be accessed at any
time and helpful in the resolution of
issues.
 Financial capabilities and data
handling are improved
 Data records are maintained
monthly and quarterly
 The system is capable of accept
multiple currencies
 Its software’s are easy to access, a
professional accountant can easily
understand its features
 Its software’s are work under IFRS
and GAAP. It makes the accounting
software more trustworthy
 SAP software’s are enabled for
multiple languages. For this reason,
accounting software is used in the
various branches of the same
company (LEE., 2018)
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