Eureka Limited Case Study: Strategic Information System Analysis

This report presents a case study evaluating accounting software solutions for Eureka Limited, a beverage production and distribution company. The analysis begins with an executive summary and introduction, followed by an overview of Eureka Limited, detailing its key business processes, including production and distribution, and identifying major control risks. The report then explores the need for accounting software, outlining the required features such as cost reduction, account receivable, inventory management, and audit trails. Two software options, FreshBooks and SAP Intacct, are then examined, comparing their functionalities and suitability for Eureka Limited. The conclusion recommends FreshBooks as the optimal solution, addressing the company's financial issues and supporting its strategic information system needs. The case study also includes references to support the analysis.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
May 23
2019

STRATEGIC INFORMATION SYSTEM 1
Executive Summary
The aim of this report is to evaluate and recommend the best possible accounting solution for
Eureka Limited, which is one of the oldest small and medium businesses. The company is
involved in the production and distribution of beverages. The report has highlighted the key
business processes of the company which has supported it in gaining a respectable position in
the market. However, the company is dealing with financial issues due to the unavailability of
accounting software. In order to overcome this, the report has presented a description of two
accounting software that is FreshBooks and SAP Intacct. Both the software offers the best
solutions to the businesses; however, FreshBooks is the suitable accounting software for
Eureka Limited.

STRATEGIC INFORMATION SYSTEM 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of Eureka limited...................................................................................................3
Key Business processes of Eureka Limited...........................................................................4
Production Procedure.........................................................................................................4
Quality Standards...............................................................................................................4
The Process........................................................................................................................4
Water Treatment.................................................................................................................4
The Syrup...........................................................................................................................4
Filling and Packaging.........................................................................................................5
Distribution Procedure.......................................................................................................5
Major Control Risks for business processes..........................................................................5
Possible features of Accounting Software System.................................................................6
Overview of the Accounting Software...................................................................................8
Fresh Books according to Software...................................................................................8
Intaact Accounting Software..............................................................................................9
Category of Accounting Software........................................................................................10
Comparison of Selected Software........................................................................................10
Fresh Books Accounting software...................................................................................10
Sage Intaact......................................................................................................................12
Suitable system.....................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

STRATEGIC INFORMATION SYSTEM 3
Introduction
Accounting software is utilized to gather information regarding financial operations and
reporting the financial viability of the company. This software is vital for the appropriate
management of the business. Before deciding which software to be used it is very important
to understand different types of possible accounting software solutions available in the
market (Sure Payroll, 2019). In order to identify the different types of Software, this report is
being presented, which is suggesting the best possible accounting software for Eureka
Limited. The report is providing a detailed description of the organization and its key
processes in order to identify the risk areas present in the business. Further, in order to
resolve those issues, the report will provide the name and features of the most suitable
software.
Overview of Eureka limited
Eureka Limited is one of the family owned businesses with over 73 employees. During the
last past years, the sales revenue of the company has been increased to around $ 18.5 million.
The company is involved in the business for around 55 years and known for supplying
beverages to different businesses comprising pub-chains and supermarkets. Over years, the
company has experienced different ups and downs of fortunes in consideration to the
performance of the business; but, in last few years it has experienced development due to
offering some of the healthy product variety in the market. On the negative hand, the
company has also lost some of the loyal customers in the market because of being incapable
to deliver the products at competitive prices in comparison to other players present in the
market.

STRATEGIC INFORMATION SYSTEM 4
Key Business processes of Eureka Limited
Production Procedure
The company is known for monitoring its procedure of production with refined control gear
and programs of testing to fulfill the expectations of the customers.
Quality Standards
Eureka Limited promise to making and bottling quality drinks is reinforced by the
international standard ISO 22000 and ISO 9001. Along with this, the company follows the
Quality and Food Safety policy and the international beverage production standards in order
to be accepted by the customer as a legal enterprise in the market.
Eureka Limited has installed the electric bottle inspection mechanism in its reusable bottling
production unit to recognize and reject the smallest fault in their beverages.
The Process
The production cycle of the company commences with fruit juices, flavors, beverage base or
concentrate, and sugar. The finished beverages of the company are then packaged in glass
bottles or PET, kegs, or metal cans.
Water Treatment
The water that is utilized in the procedure of production is exposed to distinct treatments that
safeguard the microbiological security and the precise concentration of dissolved salts, in
defiance with precise compositional and sensory characteristics.
The Syrup
The syrup for the beverages is primed in singular tanks by mixing sugar in the treated water
and then cleaning the water in order to eliminate any kind of impurities. After this, the simple

STRATEGIC INFORMATION SYSTEM 5
syrup is them mixed with the concentrate and with diverse basic preparations utilized for
different drinks, which results in preparing the final syrup.
Filling and Packaging
The treated water is then mixed with the final syrup for preparing the sparkling drinks. After
this, the drink is then packaged in the clean container with hermetically sealed, coded, tested,
and labeled, in the automatic plant of the company. The bottles are placed in different carton
boxes, whereas the PET bottles and cans are packed in different packs.
Distribution Procedure
Eureka limited has adopted an indirect distribution channel for the supply of its different
variety of beverages to supermarkets and pub-chains. This distribution channel is comprised
of different intermediaries like wholesalers, distributors, and retails who are responsible for
providing delivery to the end users. The indirect distribution system has allowed different
advantages to the business like passing of ownership and accountability to the intermediaries,
quick delivery of products to the customer, and effective feedback of the customer regarding
the company’s product (Rambocas, Meneses and Brito, 2015).
Major Control Risks for business processes
Control risks are said to be the possibility that financial statements are substantially
misstated, because of failure in the system of control utilized by the company (Zhang, Zhang
and Wan, 2014). The business placed at the location with major disasters, is likely to deal
with the undocumented asset losses, which reflects that its financial reports may highlight a
profit when there is a loss. The supervisors of the company are accountable for creating,
executing, and upholding a control system that is passable for averting the loss of the asset
(Accounting Tools, 2018). It is generally not simple to uphold a strong control system,
because the system should be intermittently changed to fill continuing alterations in the

STRATEGIC INFORMATION SYSTEM 6
procedures of the business and to deal with completely new transactions of the business.
Also, the management of the company may expressively evade the execution of a few
controls, on the basis of their higher cost of maintenance.
In consideration to the present condition of Eureka limited, it has been analyzed that
company has reported the increased revenue of more than $18.5 million in recent years,
which suggests that company has viable business profits in the market. However, on the other
side, the company has also lost some of its customer bases due to being incapable to deliver
products at competitive prices. This situation reflects that the company is dealing with losses
and however its financial reports are showing a different picture. Hence, it could be said that
the financial accounts of Eureka Limited are being misrepresented. This situation has risen in
the business due to the unavailability of effective accounting software which could work to
detect all type of misconduct. In addition to this, a control system also provides useful
financial and non-financial information of the business through which the managers of the
company can use for taking effective decisions for the organization (UPM, 2019).
There are increased chances of the financial misconduct or any general fault in presenting the
financial report of Eureka Limited because it does not have an effective accounting
information system, which can automatically calculate the financial results of the company.
Possible features of Accounting Software System
Accounting software is used as a computer program that guides business in bookkeeping.
This system helps the accountant in reporting and recording the financial transactions of the
business. The functionality of the software of the accounting varies from product to product.
Big organizations may like to execute a tailored software solution which can include a huge
amount of data of diverse departments of the company. Small businesses frequently choose
an off-the-shelf product (Dimitriu and Matei, 2014).

STRATEGIC INFORMATION SYSTEM 7
Features and Functionality Required by Eureka Limited in accounting software
The accounting software is said to be the most valued resource of any business because it
allows comprehensive tracking of the financial transactions and prompt analysis as well as
reporting. Eureka Limited requires accounting software which is comprised of the feature of
tracking and recording of the financial information. This will result in reducing the manual
efforts as well as avoid any type of human errors at the highest level.
Reducing Business cost - The use of accounting software into the business also results in
decreasing the cost of accounting and enable improved financial decisions by adopting timely
reporting.
Cost Predictions – Reports are very helpful in recognizing the trends, but a system report is
good as it helps identifying the trends, because it understand data, make analysis, and
forecasts can support business in taking financial decisions depending on different factors
(Business.Com, 2017). Hence, it is important to search for the system that can comprise
different costing functions like budgeting, and future estimations.
Account Receivable - Accounts receivable ledger are comprised of thorough listing of
patrons and the amounts all of them owe the company, along with other data, like date
incurred, phone number, and address. The business which is considering the execution of the
account receivable software must first go through searching for different available
alternatives in order to confirm that it comprises the key competencies for enabling the
integrity and accuracy of the financial reporting (Accounting Software, 2018). The correct
accounts receivable software possesses the capability to make updates in the ledger with
proper transactions in real time. Invoices should be included and payment of the customer
towards outstanding invoices should be deducted. The software should have the capability to

STRATEGIC INFORMATION SYSTEM 8
check whether the payment has been applied to an exact invoice or identify that it involves
multiple invoices.
Inventory management – The accounting software also works for maintaining the stock and
controlling the inventory which assist in recognizing the items present in the stock, reordering
requirement, and helping business in identifying the level of stock and the purchasing budget
of the business.
It is important for the business to confirm the proper stock level by making use of automatic
ordering which guarantees stock in the stated range. This evades the stress of lack of stock in
the business at the time of urgent need. Accounting software helps the business to maintain
the level of the stock in order to avoid any type of barrier in the operations of the business.
Audit Trail – An effective accounting software offers the opportunity of internal audit trails.
This enables the individual to examine the transactions reported by anyone else. An audit trail
makes it simple to correct the transactions by specifying each transaction step. Few of the
accounting software offers this facility.
Overview of the Accounting Software
Fresh Books according to Software
Fresh books allow the business to operate smarter, and not harder. It is very simple to work
on the FreshBooks accounting software as it does not demand any specific experience in the
accounting software. FreshBooks also allow business in managing their expenses with ease,
tracking the business time, and collaboration with clients. In addition to this, FreshBooks
accounting software looks good and professional (Accounting Software, 2019). The products
of FreshBooks accounting software are generally planned for small to medium size business
and provide the cloud-based application of accounting that works in sending the invoices to
the patrons. FreshBooks was established in the year 2003 and the head office of the company

STRATEGIC INFORMATION SYSTEM 9
is placed in Toronto, Canada. FreshBooks provides products based on the subscription that
comprises accounts payable, fixed asset depreciation, payroll, expense claims, and standard
business and management reporting. The entire financial information is stored by the
software in the cloud on the unified ledger, which enables users to get access to a similar set
of books irrespective of location on desktop and mobile. FreshBooks provides a free API that
allows consumers and vendors of 3rd-party software in order to integrate the external
applications with the FreshBooks. FreshBooks also provide assistance in multiple currencies
and multiple tax rates. It also offers the facility of payroll and other financial operations to the
business (FreshBooks, 2019b).
Intaact Accounting Software
Sage Intaact previously called as Intaact Corporation, is the American business provider of
financial management services. The business was established in the year 1999and it was
acquired by the Sage Group Plc for around $850 million in the year 2017. The products of the
company provide cloud-based applications of accounting that allow business payments, pay
bills, payroll operations, etc. Sage Intacct possess the suite of accounting products that are
based on subscription. The web-based applications of the company are created on the top of
its developer platform (Software Advice, 2019). The application of Sage Intacct comprises
cash management, general ledger, dashboards, accounts payable, order management,
accounts receivable, collaborate, purchasing, and reporting and dashboards. Besides the core
financial products of the system, Sage has introduced add-on software applications used for
subscription and contract to the bill, fixes assets, sales and use tax, contract revenue
management, expense management, multi-entry, vendor payment services, global
consolidation, project accounting, and project billing. This software enables the mixing of
third-party software like ADP, SAP Concur, Salesforce, Certify, and others (Sage Intacct,
2018).

STRATEGIC INFORMATION SYSTEM 10
Category of Accounting Software
Medium category of accounting software will be suitable for Eureka Limited as it an SME
which operates in the market with a total of 70 employees. The medium business does not
require high storage or facilitated system for their operations because it results in increasing
the cost of the business. In addition to this, there is a requirement of the high maintenance of
the huge software due to their advanced features and functionalities. As Eureka is one of the
oldest Small businesses and possesses small scale business operations there are chances of
fewer errors and faults into the system. On the other hand, implementing a medium category
of accounting software will be highly beneficial for the company because it will support
business in identifying even the minor mistakes or misconducts into the financial statements
of the company. Besides this, implementing a medium category of software will result in low
maintenance cost and high results.
Comparison of Selected Software
Fresh Books Accounting software
Owners of the small business Small businesses mostly possess a number of things on their
plate. They have to meet their patrons, manage administrative responsibilities, which results
in leaving lesser time for financial operations. This is one of the major issues for the small
and medium enterprises to manage the financial activities, hence it is important for them to
implement FreshBooks as the accounting software (Finance Online, 2019a).
FreshBooks is one of the accounting solutions that is known in the market for providing
powerful and easy-to-use features, which makes it the most perfect platform for the small and
medium businesses who are planning to implement this type of system in the business. This
software works by automating the income tracking, simplifies the procedure of payroll,
provide reminders for the payments, and provide collaboration tools to rationalize the
procedure of accounting for the owners of small business (FreshBooks, 2019a). Furthermore,

STRATEGIC INFORMATION SYSTEM 11
dissimilar to traditional tools of accounting, because of it mainly intents to discuss the
invoicing requirement which accounts for around 90% of the financial task of the company.
Through this way, the business can reduce the time that is spent on tracking the hours of
production, making project billing, and making invoices for individual projects.
Features
Invoicing – It is known that preparing the statements of billing for the patrons becomes
complicated, particularly when there is the responsibility of handling multiple customers at
the same time. This is the place where FreshBooks’ work arrives. With the help of this
system, the company can simplify the sales creation invoices by filling out the existing fields
in the system.
Payment Processing – Receiving payment from the client and paying the amount to the
vendor also becomes easier using this FreshBooks. With the help of this system, the business
can do quick bank deposits, allow credit card processing, and creating single-click setups. In
addition to this, this software directly links with the bank accounting of the business such that
all the transactions are performed automatically recorded in the business dashboard (Finance
Online, 2019b).
Reporting and Analytics – To support companies in getting a better idea regarding the
company's profit and loss and their impact on the business in the long term, it is important to
make use of analytics solutions. With the help of the custom reporting tool of FreshBooks’, in
order to get the data at a glance that is impacting the business operations. These can be in the
form of expense reports, sales tax summaries, or profit-loss statements (Software Connect,
2019).