Evaluating SAP and Xero for Eureka: A Business Systems Report

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Strategic Information Systems for Business and
Enterprise
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Table of Contents
Part 3................................................................................................................................................2
References........................................................................................................................................5
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Part 3
Software selection:
SAP is software which is used in Enterprise Resource Planning and in order to manage the
activities of the organization in an efficient way.SAP or systematic ‘Applications and Products’
is a Data Processing software was first founded in 1972. It was founded by Wellenreuther, Hopp,
Hector and Tschira. This is application software which is best suited for large businesses in
order to provide a support to the complex business functions. The software SAP is designed in
such a way that it can handle all the operational areas of a business including finances, human
resources, administration, information technology and all the other business areas of the
concerned business through a single integrated system (Bizfluent, 2019).
The advantages of selecting this software for the firm are many. Some of them are listed as
follows:
 One of the best features of the accounting software SAP is that it allows the clients
(specifically business firms) to modulate the workings of the software as per the
requirements of the company. For example; with the usage of SAP a firm can fix which
transaction is under the heading of acceptable and which transaction is not under the heading
of being acceptable for the firm. so, the flexibility of this system proves to be the biggest
advantage for this system.
 The second benefit of SAP is that it allows the integration of data with a number of databases
in the firm. so, the exiting database of the firm Eureka can be aligned with the database of the
software SAP so as to make the software work for this particular firm and improve the
transactions of the firm.
 With the help of this software the firms and specifically the firm in concern named Eureka
can handle the transactions related to finance, product life cycles and also manage it’s supply
chain management.
However there can be a certain disadvantages of using this software for the firm Eureka which
are listed as follows:
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 One of the major limitation of this software is that is a very expensive software to buy. The
small firms which do not have high revenues to install such expensive software and also the
maintenance cost is high for this software. So, for a firm like Eureka, which is a medium
sized family owned firm, it could be difficult to buy this software owing to its high prices.
 The major drawback of this software is that it is complex software to maintain. The reason
for this is that it entails of a number of sub systems that becomes comprehensive for the firms
to install. So, for the given firm Eureka, installs the software even then operating this on a
day to day basis might prove to be a complex task for the firm.
The accounting software XERO can also be installed by the firm. This software is cloud based
software which offers accounting services. The main features of this software are that it is able
to work upon a number of accounting tasks such as depreciation calculations and accounting,
purchase order accounting, management reporting, accounting for accounts payables,
accounting for invoicing etc. The best part of this software is that it can work in multiple
languages and can do the accounting and calculations for a number of currencies. The
functioning of this software includes that all the financial data gets stored in a cloud which is
known as a single unified ledger. As the firm’s accounting gets handled by a single unified
ledger, the accounting does not need the physical presence of the person in the offices rather this
software can be operated from anytime, anywhere.
Some of the advantages of this software are given as follows:
 One of the biggest advantages of installing this software is the ease to operate. This
accounting software is not difficult to install and operate like SAP rather it is simpler
software in comparison to SAP (Technosap, 2019).
 The next big advantage which makes this software so popular among the organizations is that
it can be accessed from anywhere by the firms. The reason for this is that to access this
software the accountant/ employee does not need to be physically present rather this software
can be accessed anytime and anywhere through a mere virtual presence (Technosap, 2019)..
 The accounting software is cloud software so it can be easily connected with the other
accounting software of the firms. the firm Eureka can integrate a number of its software
such as banking software, customer relationship management and the applications of
inventory management with this particular software XERO. So, the attribute of being able to
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integrate with other accounting software can help the firm Eureka in a big way for its
accounting processes.
 As this is cloud based software the financial data gets stored permanently in it. So, there are
almost negligible chances of the financial and economic data of the firm being lost ever.
However there are certain disadvantages of this software as well which are listed as follows:
 The cost of this software exceeds the cost of normal and conventional accounting software.
This is because the conventional accounting software lack the cloud software whereas this
software XERO has a cloud software which makes it slightly expensive (Canstarblue, 2019).
 The biggest limitation of using the software XERO is that it is a bit unsuitable for a firm
which has high number of transactions happening simultaneously. Also, the functioning of
this software requires high network connectivity. If a firm lacks high connectivity, then
XERO is not suitable for that firm (Accountsplus, 2017).
Conclusion
If, the two software Xero and SAP are compared then it can be clearly concluded that for the
firm Eureka, the software XERO is better suited. This is because the firm requires keeping a
record of all of their business events / transactions to be able to run the business smoothly. And
therefore, it is the option that the firm Eureka must choose.
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References
 Bizfluent. 2019. SAP Advantages and Disadvantages. [Online] Bizfluent Available at:
https://bizfluent.com/info-8306440-sap-advantages-disadvantages.html [Accessed on : 23rd
may 2019]
 Canstarblue. 2019. Review of Xero accounting software. [Online] Canstarblue. Available at:
https://www.canstarblue.com.au/stores-services/brands/xero-accounting-software/ [Accessed
on : 23rd may 2019]
 Accountsplus. 2017. Is Xero right for your business? [Online] Accountsplus Available at:
https://www.accountsplus.ie/is-xero-right-for-your-business/ [Accessed on : 23rd may 2019]
 Technosap. 2019. SAP Advantages and Disadvantages Explain. [Online] Technosap
Available at: https://www.technosap.com/sap-overview/sap-advantages-and-disadvantages/
[Accessed on : 23rd may 2019]
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