The current study explains the concept of Enterprise Resource Planning. Here, Enterprise Resource Planning means the flow of business activities where companies make effort to improve different problems that they face currently (Worrell, Wasko and Johnston 2013). The problem can be related to purchasing, inventory, finance and marketing of any business enterprise. ERP software is one of the famous accounting software that helps company when they implement the software in their operations. This accounting software helps in maintaining and sharing of information in and within the company. The accounting software enables database sharing among various units in company. For instance- Employees specialized in various field remain content while communicating with other employee in the same grounds for exchange of information (Wijaya et al. 2015). Using Enterprise Resource Planning help companies to get access to accurate information at the time of final decision-making process
Nowadays, Enterprise Resource Planning had extended their scope as they have reached Business Intelligence (Turner and Weickgenannt 2016). It mainly include concept of E-commerce and market automation. In addition, Cloud computing is other concept that help companies to increase growth and enhancement of business opportunities. Enterprise Resource Planning help in improving financial related problems in compliance with regulatory standards and leading to risk avoidance
From the case study, it is understood that B Bakery is a family-owned business that has 70 employees. The firm earns revenue at $13.5 million for particular year. This firm offer bread and confectionary products that engage in business process. B Bakery analyzes business growth for past five years. B Bakery lost some of the key account and was facing difficulty to compete with their competitors (Worrell, Wasko and Johnston 2013). The firm currently uses manual accounting system for recording their financial transactions that is time consuming and not accurate all the time. To that, the firm felt the importance to invest money for implementing computerized accounting software.
Baker is a person who bakes breads and other confectionary items and sells it to the customers (Trigo, Belfo and Estébanez 2016). In addition, B Bakery is a well-known baker shop that is owned by family and they planned for expansion by using accounting software. Using accounting software will help B Bakery at the time of recording financial transactions in the near future. The firm has 70 employees who are working together and currently uses manual accounting system. The firm is not a big one but decide to expand their operations so that they earn profits by implementing accounting software (Worrell, Wasko and Johnston 2013).
It is important for every business organization to keep a record of financial transactions on daily basis. Below is the process mentioned that should be used by business enterprise in order to get access to accurate data (Sutton and Arnold 2013).
- Step 1- Creation of customer account
- Step 2- Creation of Vendor account
- Step 3- Creation of bank account
- Step 4- Chart of accounts prepared for proper enhancement
- Step 5- Cash or cheque received from customers
- Step 6- Payments need to be done either by cash or cheque
- Step 7- Journal entry preparation
B Bakery is a family owned trade who decides to install new accounting software so that they can record all financial transactions (Worrell, Wasko and Johnston 2013). There are some processes that need to be followed by business enterprise to get access to performance based objectives. Business enterprise should set specific objectives and carry out the business according to that so that there is smooth functioning of operations in the upcoming years. The bakery firm should invest money in new accounting software as it will directly link to get increased profits or revenue in the business. The new accounting software that will be implemented by the bakery firm will guide and instruct ways for performing business in next level. Use of SAP accounting software will help in achieving excellence in finance management and accounting activities at the bakery firm. The bakery firm needs to decide upon which accounting software to be used so that they can achieve further profits, set objectives and excellence. This bakery firm decides to expand their operations by implementing accounting software for recording financial transactions. Use of accounting software will help business enterprise to achieve volatile in operations. This accounting software will solve complex problems and guide managers at the time of decision-making process. Accounting software help in learning innovative technology solutions and enables deliver of higher values for smooth functioning of business enterprise. The bakery firm can manage large volumes of data after implementing accounting software (Peppard and Ward 2016).
B Bakery is a medium-sized enterprise that has high turnover while they undertake regular business activities. In addition, the bakery firm faces various difficulty as they still uses manual accounting system for keeping a track of all financial transactions. In order to overcome the difficulty, B Bakery had decided to implement accounting software in their operations so that they get access of information with high accuracy and within short span of time (Pearlson, Saunders and Galletta 2016).
The bakery firm should find innovative ways so that they can minimize their operating costs and are capable to sustain in the future financial years. After adopting automated accounting system, all the above issues can be solved at B Bakery in smoother terms (Parkinson, Riro and Waweru 2015).
If B bakery still continues to use manual accounting system, they will not be able to follow the production cost in systematic way and fails to compete with their competitors who are dealing in the same sector (Khairi and Baridwan 2015).
Annual reports and financial statements documentation- From the case study of B Bakery, it is noted that the bakery firm should prepare financial statement and annual reports of their firm by using automated accounting system rather than manual accounting system (Kearns 2014). It is recommended to B Bakery in paying off their liabilities on timely basis (Kanellou and Spathis 2013).
Outcomes that is required from these processes to achieve business objectives
There are different outcomes that need to be carried out after implementing accounting software. In addition, the new accounting software provides detailed information that helps at the time of decision-making process (Worrell, Wasko and Johnston 2013). Furthermore, using new accounting software will help B Bakery for expansion and revenue generation in the near future.
The business process adopted by B Bakery is mentioned above with proper justification as to what they use currently to keep a track of financial data in their business. In order to mitigate the issues that are currently faced by B Bakery, it is necessary for them to adopt automated accounting software for carrying out the business in the most appropriate way (Ismail and King 2014).
It is important for B Bakery to have proper information about highest as well as lowest production unit where variable units can be properly controlled. It is important for the bakery firm to get access to appropriate manufacturing systems as well as minimize the production units as it incur higher amount of operating costs (Guragai et al. 2015).
Appropriate preparation of financial statements- B Bakery should adopt automated accounting software as it will help them to publish accurate as well as error-free financial systems (Worrell, Wasko and Johnston 2013). In order to publish financial statements, B Bakery should get access to analyze the performance of their firm within a specific time frame and planning for business operations.
Increase in sales- It is important for B Bakery to get information about best pricing strategy that will help the firm in the short-term and long-term (Guffey and Harp 2013).
There are different requirements that business enterprise should take into account at the time of installing accounting software.
- “Windows XP (SP 3) as well as Windows (SP 2) and Windows 7”
- “35 MB disk space in the company file”
- “2000 to 2007 version in Microsoft Office”
- “1GHZ Pentium Intel Processor with 1 GB RAM or can be higher”
- “Minimum v7 in Apple QuickTime”
- “200 MB for program installation for free hard disk”
Before selecting any of the accounting software, business enterprise should maintain above requirement. B Bakery is one of the growing firms that engage in evaluating among different types of accounting software in their business operational activities (Worrell, Wasko and Johnston 2013).
The bakery firm should get access to the internal system of business enterprise in the most appropriate way (Worrell, Wasko and Johnston 2013).
SAP accounting software help business enterprise in providing solutions in case of any damaged effects to solve complex issue. This accounting software enables growth opportunities and innovation to compete with other company. SAP accounting software help in achieving excellence for any company in the field of financial management and accounting. Therefore, SAP accounting software easily manages stock to attain future goals and objectives (Worrell, Wasko and Johnston 2013).
- Financial planning and analysis- By using SAP accounting software, business enterprise can easily engage in efficient financial planning and analysis. This accounting software will guide ways that can easily reduce control costs at sustainable margins and help at the time of undertaking strategic decisions (Dillard, Yuthas and Baudot 2016).
- To that, the concept enables treasury management and enhancement of compliance programs.
- Treasury and financial risk management- This concept of treasury and financial risk management help in controlling ways to manage cash and decision related financial activities (Worrell, Wasko and Johnston 2013).
- Collaborative finance operations- This concept of collaborative finance operations help in improving automation process that lead to deliver proper adequate services.
- Enterprise risk and compliance management- This concept of enterprise risk and compliance management help in measuring fraudulent practices and processing the audit practices in definite way (Dillard, Yuthas and Baudot 2016).
Benefits of SAP
- SAP accounting software provides instant work within specified time that helps in undertaking personalized decision-making activities (Diatmika, Irianto. and Baridwan 2016).
- By using SAP accounting software, customers and suppliers will get benefited from efficient operations for smooth functioning of business enterprise
- By using SAP accounting software, financial risks can be well-managed and help in decision-making process to reduce further risk faced by any business enterprise (Worrell, Wasko and Johnston 2013).
MYOB accounting software help in managing finances for boosting profitability as well as taking better decisions with real time view of the finances (MYOB Accounting System. 2017). This accounting software saves time to increase level of productivity. Using this accounting software, companies can get access to updated information with the compliance obligations and working together with online bookkeeping activities. MYOB accounting software was awarded as the Most Innovative Large Company for creation of smart bills. The powerful feature of this accounting software allows SME customers to save time for bookkeeping activities (Worrell, Wasko and Johnston 2013).
Core features of MYOB accounting software:
- Works online
- Managing quotes, invoices and statements
- Calculating and tracking GST
- Tracking and paying expenses
- SuperStream Compliance
- Selling items or services
- Managing customers as well as suppliers
- Paying employees and tracking leave
- Electronically report
It is not important for a person to be an accountant for using MYOB online accounting software. Using this accounting software, fast and easy tax updates are possible by paying super and staying on top of ATO SuperStream requirements. MYOB Essentials help in managing cash flow as well as ATO conformity requirements that include time saving features for taking care of day-to-day bookwork (Worrell, Wasko and Johnston 2013).
This accounting software is useful for small business enterprise for tracking their financial transaction in systematic way (Xero. 2017).. XERO is an accounting software that will save time and help in business growth. They will have unlimited users as well as 24 by 7 support. XERO accounting software has the best security and reliability of activities that should be adopted by small business enterprise (Bodnar and Hopwood 2013).
Benefits of XERO accounting software
- XERO accounting software enhances work efficiency at the time of carrying out financial transactions in the most accurate way (Xero. 2017)
- XERO accounting software keep a proper check on revenue generation and smooth flow of data as a way of high-intensive devices (Xero. 2017)
- XERO accounting software increases the level of capacity and taking business to further level for achieving maximum profits in the upcoming financial year (Xero. 2017)
The selection of accounting software can be proved to be a challenging decision for any small and medium enterprise (as in case of B Bakery) company.
Low-end accounting software- Low-end accounting software is mostly used by doctors and lawyers who only have to perform less business transactions. In case of organization, small scale firms use low-end accounting software as they do not have adequate money to purchase medium-end or high-end accounting software. Small-scale business enterprise lacks proper organization structure and they do not have to record any complex financial transactions and that explain the fact that these enterprise should use low-end accounting software (Belfo and Trigo 2013). Low-end accounting software packages mostly offer more features as it was ever before but the options that are available are confusing almost of the first time customer. Decision process can be easier if there is appropriate setting of timeline, budget preparation as well as soliciting employee input in an effective way. To that, technical support becomes easier especially in case when the software is first installed or configured at the same time. The right selection will depend upon the program that best serves the current needs of company while they are capable of expansion activities (Trigo, Belfo and Estébanez 2016). SME companies such as B Bakery faces lot of issues at the time of selecting effective accounting software that can best serve their needs as well as expectations. This business should have proper information regarding right accounting packages that best serves the current needs of the business and that can easily be adapted depending upon the future needs. Above all, customer support is extremely important in case of outset when the right solution moves around or beyond just software (Worrell, Wasko and Johnston 2013).
Medium-end accounting software- Companies who use medium-end accounting software can easily meet primary requirements. This accounting software mainly aims at covering wide range of business software that is actually capable of serving the needs of multiple accounting standards as well as allowing accounting in multiple currencies. As far as general accounting functions is concerned, the software takes into account integrated or add-on management information systems that needs to be oriented towards one or more markets such as integrated or add-on project accounting activities. Some of the popular software packages that are used in the market have the following features that include industry standard robust databases, tools used for configuring or extending the application for accessing single program code as well as industry-standard reporting tools (Trigo, Belfo and Estébanez 2016).
High-end accounting software- High-end accounting software is used by companies who deal with complex transactions and it include most complex and expensive business accounting software that becomes an extensive part of suite of software known as Enterprise Resource Planning Software. Some of the applications used by companies have primarily long implementation period that can be more than 6 months of time span. Software coming under this category simply is the set of functions that need significant integration as well as configuration and customization for beginning activities to reassemble an accounting system as a whole. One of the benefits of high-end solution is that the systems are mainly designed for supporting any of the individual company that need high customization and tailored according to exact business requirements. Therefore, the accounting software comes at a significant cost as far as money is concerned as well as implementation time (Trigo, Belfo and Estébanez 2016).
Point of Difference
Powerful updates for current accounting software
Help in fast decision-making process
System flawless attributes
Efficient cash management
Competent cash flow management
Time period examination for reduced sales cycle
Proficient payroll administration
Integrated functional departments
Efficient inventory management
Significant cost savings
Greater cost cutting
Makes GST filing easier
Quick access to management information
From the above discussion regarding all the accounting software, it is suggested to B Bakery for using MYOB accounting software. B Bakery needs accounting software that can replace manual accounting system to computerized accounting software that will help in recording financial transactions. This firm still uses manual accounting software for tracking financial transaction that is time consuming and lack accuracy as well. This is a medium-sized firm and need to use medium-end accounting software for tracking automated bank reconciliation statements. To explain in detail, XERO accounting software help in managing transactions in relation to accounts receivable. The other accounting software named as DacEasy cannot be used by B Bakery.
Explanation had been given for all the accounting software such as SAP, MYOB and XERO. After evaluating all the three accounting software, MYOB proved to be the best among three that should be adopted by B Bakery. MYOB accounting software help in generating accurate reports that is not possible in any of the above mentioned accounting software such as SAP and XERO. There will be vast improvement at B bakery after they implement MYOB accounting software as they will get access to accurate data, growth, and expansion and profit generation in the upcoming financial years. MYOB accounting software is now released their own cloud-based offerings especially for business owners named as MYOB Essentials as well as MYOB AccountRight so that they give tough competition to XERO. Both MYOB Essentials as well as MYOB AccountRight are cloud-based accounting platforms that feature web-based platforms so that it can be accessed from anywhere and everywhere (MYOB Accounting System. 2017). By the name, it is understood that MYOB Essentials aims at offering basic accounting software that would be suitable especially for small and medium scale business like B Bakery.
The above analysis on different accounting software packages had been explained to recommend B Bakery as to which is the best suited accounting software that meet basic expectations and needs for tracking all financial information. B Bakery is a family-owned business enterprise where the bakery firm uses manual accounting system for recording financial transactions. The bakery firm should use medium-end accounting software as they need software that best meet the interests of the shareholders. On comparing among three accounting software, MYOB, XERO and SAP. MYOB remains the dominant leader especially in the Australian market for getting access to cloud computing software whereas XERO takes the second position. Still, for this study, it was found out that MYOB suits or meets the needs and expectations of B bakery than any of the other accounting software packages. It is because of the reason that all the mentioned accounting platforms should have the capacity to provide most of the small and medium business with the essential accounting tools that are needed to run a business. In this case, the question needs to ask by the business at the time of selecting an option on what does accountant of B Bakery actually use or recommend. Hence, it was found out that B Bakery was still using manual accounting system to record financial transactions. This means the accountant at B bakery are not proficient enough to handle this accounting software. MYOB will be the best accounting software as it is easy to use and operate. It is thereby required to understand simple fact that business remains stressful always with certain paperwork and data, so it will be recommend making an effort for streamlining collaboration as and when needed.
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