BFA 504: Accounting System Upgrade for Lola's Pet Supplies Report

This report analyzes the accounting system upgrade options for Lola's Pet Supplies, a small to medium-sized business (SME) that is considering upgrading its current accounting software, MYBP, due to performance issues. The report explores the advantages and disadvantages of both buying and making a new accounting system, considering factors such as control, inventory management, data entry, employee training, and data security. It also examines the security risks associated with each option, including physical security, authentication, and virus protection. The report recommends buying a new system, highlighting its cost-effectiveness and the availability of support. Finally, the report evaluates the claim of Chris, supporting the long-term benefits of investing in a suitable accounting system. The report provides a detailed analysis of the decision-making process for Lola's Pet Supplies, offering valuable insights into accounting system upgrades.

BFA 504
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Contents
BFA 504...........................................................................................................................................1
Introduction......................................................................................................................................3
Advantages and the disadvantages of buying or making the new system.......................................3
Security risk that are associated with buying or making of the new accounting system.................4
Recommendation for making or buying of new system..................................................................5
Evaluation of the Chris claim..........................................................................................................5
References........................................................................................................................................6
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Introduction
The working system of every company is considered to be one of the most important aspect that
helps the business organisation to perform the objective of the management in the most impactful
manner. the companies in the current developing market needs to change the process as and
when there are various changes that occurs in the market and through this they are able to
generate high return for the company. For making the changes the company sometimes faces the
problem which are related to the company’s financial as well as the company’s workforce which
resist to the change.
The current video presentation is related to the identification of the requirement of change in the
system of operations for accounting and the tool through which they are able to generate high
return for the company. Lola’s pet supplies is currently using MTBP tool as one of the most
significant tool through which they are able to maximise the performance but are now
considering to the change the same so as to attain high return. The discussion would be made
keeping in consideration various advantages and disadvantages, security risk, recommendation
on the same.
Advantages and the disadvantages of buying or making the new system
The accounting software are considered to be one of the most important tool that the company
issues so that they are able to generate high return for the company. The companies at the time of
making the changes in the accounting system should consider whether they should buy the same
or whether they should contract with different contractors for making the custom software for the
company (Bajaj & Ojha, 2016). There are various advantages and the disadvantages of the same
which includes,
Advantages for making or buying the software
 If the software is custom make then the company would be having the high control over
the functions that the software would perform.
 The inventory of the company through the custom software would be able to generate in
the most effective manner. This would also help in reducing the errors that occur in the
company.
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 The data entry would also become easier and simple as this would lead to generation of
high return. Also the company would be able to generate a high return through which
they are able to gain high and long term answer for the same.
Disadvantages that are related to buying or making of new system
 The workers of the company would feel demotivated as they would not be able to work
on the new system at the initial stage hence this would take time.
 Also the company will have to invest in the training programme for the employees which
would impact the cost of the company having a low capital budget.
 If there is any lag in the accounting software then this would lead to loss of the data and
impact the cost of the company at the large.
 The cost of hiring full time developer and IT specialist would affect the company’s
performance.
Security risk that are associated with buying or making of the new accounting
system
There are various risk that are related to the buying or making of the new accounting system
which includes the risk of,
 Physical security: this is considered to be the small business problem where the company
may system must be safeguard against any of the losses or the theft. The problem that is
related to the server and its integration must be considered for the same. This can be
mitigated in the manner where the security is implemented and encryption of the same
are identified.
 Authentication: there are various authentication requirements which are required to be
considered by the company. The company must have the use of the login ID and use of
the password through which the authentic can only enter into the market. This can be
mitigated in the manner where the system should include providing the people with the
rights to the users who are authentic only.
 Virus protection: there is a risk of having a risk of attack that the virus may put on the
companies system. Here this is considered that this may lead to intrusion in the system.
This can be mitigated through the use of different antivirus and through the use of
encryption methods. This may be considered to be little high for the company.
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Recommendation for making or buying of new system
There are various advantages that are related to the buying or selling of the new system. Hence
the company has to check the best available system through which the performance would be
increase. Hence the company is recommended to buy the new system as this would lead to
provide the company various advantages and is considered to be cost effective. As most of the
products available are made for operating the company’s performance and hence this would lead
to generation of high return for the company (Pirayesh, et. al., 2018). The company would also
be able to get the help in the form of time as the product would be already available hence no
time would take to implement the product. Also there would be high end support team which
would solve the query on the timely manner.
Evaluation of the Chris claim
The claim of Chris is considered to be correct and is having the long term sustainability aspect.
As this is seen that the company once the best system is adapted then the company would be able
to gain high return and would also be able to perform in the most significant manner. Here it is
considered that the use of buying decision would also help in reducing the spend of the money
for the long term future as only the updates would be likely to be purchased. Also the training
and other aspects related to the company would not cost more as the system development team
would help in training of the employees.
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References
Bajaj, S., & Ojha, S. (2016, March). Comparative analysis of open source ERP software’s for
small and medium enterprises. In 2016 3rd International Conference on Computing for
Sustainable Global Development (INDIACom) (pp. 1047-1050). IEEE.
Pirayesh, R., Forouzandeh, M., & Louie, S. I. (2018). Examining the effect of computerized
accounting information system on managers' decision making process. Revista Publicando, 5(14
(1)), 68-82.
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