JJ Tunes: Cloud Accounting System Report, Analysis, and Recommendation

This report, prepared for JJ Tunes, a startup wholesaler, evaluates the suitability of Xero cloud accounting software. Part A presents financial reports generated from Xero, including Profit & Loss, Balance Sheet, Trial Balance, and inventory summaries, based on transactional data. Part B compares Xero with QuickBooks and Saasu, assessing features like pricing, inventory management, and resource pooling to recommend the most effective cloud accounting system for small businesses. The analysis concludes that Xero is a beneficial accounting software for JJ Tunes to improve their accounting methods. The report also includes references to relevant academic sources.

Running head: ACCOUNTING SYSTEM
Accounting System
Name of the Student:
Name of the University:
Authors Note:

ACCOUNTING SYSTEM
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Executive Summary:
The assessment aims in evaluating the possibility for John and Jenny, the owners of JJ Tunes
for detecting the significance of Xero cloud counting software. In addition, the overall data
presented in the part A provide information about the extracts that is provided by Xero
software after accommodating all the transitions in the software. Moreover, in Part B the
overall comparison of the features of Xero, Saasu and QuickBooks is mainly evaluated in the
assessment to determine the most suitable software, which can be used by small business to
improve their efficiency in the long run. Hence, Xero accounting software is mainly detected
to be the most suitable accounting software, which can help in improving the efficiency of the
accounting methods used by the small businesses.

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Table of Contents
Part A:........................................................................................................................................3
Profit & Loss..............................................................................................................................3
Balance Sheet.............................................................................................................................4
Trial Balance..............................................................................................................................5
Aged Payables (detail)...............................................................................................................5
Aged Receivables (detail)..........................................................................................................6
Inventory Item Summary...........................................................................................................6
Part B..........................................................................................................................................6
1. Comparing the features of Xero and two cloud accounting systems:....................................6
2. Recommendation to client regarding the cloud accounting system for their business:.......10
References:...............................................................................................................................11

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Part A:
Profit & Loss

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Balance Sheet

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Trial Balance
Aged Payables (detail)

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Aged Receivables (detail)
Inventory Item Summary
Part B
1. Comparing the features of Xero and two cloud accounting systems:
Features Xero QuickBooks Saasu
Pricing Pricing starts from Pricing starts from Pricing starts from

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$20.00/month $10.00/month $9.00/month
Inventory
Management
The inventory
management system
of Xero software is
relatively adequate
for small businesses,
as it allows the
organization to
micromanage its
entire inventory and
reduce the level of
storage cost (Dimitriu
& Matei, 2014).
The software QuickBooks has
adequate inventory
management system that can
help the small business to
improve their overall cost that
is associated with the
inventory storage. Moreover,
the investments that can be
conducted in QuickBooks
would eventually allow small
businesses to improve their
current it inventory conditions.
The inventory
management system
of Saasu accounting
software is not
appropriate, as it is
not able to detect
the level of
sophistication that
is required for
supporting the
inventory
management.
Resources
Pooling
The source pooling
system is appropriate
and can allow the
small companies to
micromanagement
their activities and
make adequate
improvements in cost
cutting
The resource pooling
management is adequate but
not sophisticated as other
software’s.
The resource
pooling
management of the
software is not
appropriate for
small business, as it
lacks micro
management, which
is required is SMEs.
Economical
and Secure
The analysis has
mainly indicated that
The pricing of the software is
appropriate, as it is not too
Analysing the
pricing of Saasu has

ACCOUNTING SYSTEM
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the pricing of Xero is
more in comparison
to other software,
which indicates that is
software is not
cheaper. The security
features are
impeccable, as
introduced by the
companies
expensive or cheap. The
security features are
impeccable, as introduced by
the companies (Tarmidi et al.,
2014).
indicated that the
accounting software
is more economical
than its competitors.
The security
features are
impeccable, as
introduced by the
companies
Features Xero QuickBooks Saasu
ACH Payment Processing No Yes Yes
API Yes Yes Yes
Activity Dashboard Yes Yes Yes
Ad hoc Reporting Yes Yes No
Automatic Backup Yes Yes No
Bank Reconciliation Yes Yes No
Billing & Invoicing Yes Yes Yes
Budgeting Yes Yes Yes
Cash Flow Statement Yes Yes Yes
Charting Yes Yes No
Check Printing Yes Yes No
Contact Management Yes No Yes
Credit Card Processing Yes Yes Yes

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Currency Conversion Yes No Yes
Customer Database Yes No Yes
Customer Segmentation Yes No Yes
Customizable Branding Yes Yes Yes
Customizable Reporting Yes Yes Yes
Customizable Templates Yes Yes No
Data Import/Export Yes Yes No
Document Templates Yes Yes No
Drag & Drop Interface Yes Yes No
Electronic Payments Yes Yes Yes
Email Integration Yes Yes No
Expense Claims Yes Yes Yes
Expense Tracking Yes Yes No
Forecasting Yes No Yes
Inventory Management Yes No Yes
Inventory Tracking Yes Yes Yes
Invoice Management Yes Yes Yes
Invoice Processing Yes Yes Yes
Mobile Integration Yes Yes No
Monitoring Yes No Yes
Multi-Currency Yes Yes Yes
Payroll Management Yes Yes Yes
Profit / Loss Statement Yes Yes Yes
Purchase Order Yes Yes No

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Management
Purchasing Management No Yes Yes
Real Time Data Yes Yes Yes
Real Time Reporting Yes Yes No
Receipt Management Yes Yes No
Recurring Billing Yes Yes No
Sales Tax Management Yes Yes Yes
Sales Tracking Yes Yes No
Search Functionality Yes No Yes
Third Party Integration Yes Yes Yes
Time & Expense Tracking No Yes Yes
2. Recommendation to client regarding the cloud accounting system for their business:
After analyzing all the relevant features of Xero software, Saasu accounting software
and QuickBooks, it could be identified that Xero accounting software is much useful for
small businesses. The accounting software would eventually allow small businesses to reduce
the level of exertion on their current accounting conditions and focus only on improvements
and expansions. Software provides adequate information about all the relevant transactions
and current conditions of the organization, which is helpful for management to adequately
improve their decision making capability to obtain sustainable growth in future.

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References:
Dimitriu, O., & Matei, M. (2014). A new paradigm for accounting through cloud
computing. Procedia economics and finance, 15, 840-846.
Tarmidi, M., Rasid, S. Z. A., Alrazi, B., & Roni, R. A. (2014). Cloud computing awareness
and adoption among accounting practitioners in Malaysia. Procedia-Social and
Behavioral Sciences, 164, 569-574.