Implementing Accounting Software System For B Bakery: Processes, Requirements, And Vendor Selection

Business Processes of B Bakery

What a Baker does? Discuss the business activities/processes of the organisation to show your understanding about the business.

The paper discusses the process of the accounting software system. B bakery is a bakery firm that sells wide range of products and services to the customers across the world. The paper explains the business process and requirements of the bakery business. Here is the discussion about the vendor selection and its significance. A comparison between Xero and MYOB has been discussed in detail in the task.

It has been found that B bakery is a family owned organization which is employed approx 70 employees in the organization. The sales revenue has increased of the bakery by $13.5 million. The company is operating business over 50 years. In the modern world, Bakery is unable to take care of their accounts and transactions and it has failed to focus on the products. Therefore, the company has decided to implement AIA in their organization to store and protect the accounting data at the workplace. The system has the ability to track the data and accounting activities of the Bakery (Crowther, 2016). The following diagram indicates the business processes of B bakery with its business, corporate and support function.

(Source: Crowther, 2016)

 The business process includes the three types of activities that have been detailed below.

Procurement: B Bakery procures their products from the outside market and various hubs. The company focuses on the strengths and weaknesses of the competitors to capture the entire market.

Inbound logistics: Inbound activities include storing of products, handling of the raw material and inventory management.

Manufacturing: It includes packaging of the products and finished goods.

Product development: The product development includes research and development, product management, testing of product, design of the products and integration of the product. All these activities help the firm to beat the competitors in the global market.

The corporate functions include the following activities:

Sales: The organization sales it products in the global market to earn maximum profit and revenue as it also helps in attracting customers in the marketplace.

Marketing: It has been analyzed that marketing department tracks the total sales of the bakery products by advertising and promoting the products and services in the market. The customers are able to know and identify the features and prices of the products with the help of marketing.

Development: The development team develops healthy food products with best and unique quality.

Corporate Functions of B Bakery

Customer service: The firm focuses on the needs, expectations and requirements of the customers.

Operation management: The operation manager is responsible to deal with the customers in the market. The bakery collects its items and products after its manufacturing.

Support services

The support services include the following:

Corporate affairs: The Company has corporate affairs to expand and explore the business activities and operations globally.

Legal: A legal team is appointed by the company to conduct business activities successfully.

HR: The HRM maintains rules, policies and strategies for the welfare of the employees.

Accounting and finance: The Company uses accounting software packages to track the record of the customers.

Indispensable business processes

In B bakers, the management provides healthy and delicious food products to the customers across the world. The company sets unique and effective prices of the products to attract maximum number of customers in the marketplace. It has been analyzed that support is quite difficult process of the firm that could affect the profitability and sustainability of the firm. Thus, it would be complex for the organization to manage other processes. The support processes include recruitment, selection, training and development of human resources that has a great and direct impact on the core business process. Due to lack of support process, the company is unable to recruit and appoint talented and potential applicants within the organization. The support process is essential to ensure the availability and collection of the right and accurate information at correct time for making decisions in the workplace. Accounting processes helps the firm to maintain effective and unique business accounts and data. Through accounting software, B bakery has been able to manage the resources effectively and successfully that ensures decline in cost and improvement in quality. It is critically for the company to perform support processes effectively for operating and expanding the business activities (Hall, 2012).

Outcomes are required from these processes to attain business objectives

B bakery needs various types of outputs form its core business processes to attain desired objectives and goals. For this purpose, right and accurate information are collected by the firm. All the transactions and operational information are essential for the decision making and processing. Accounting may be defined as a process that is interconnected with other activities within the organization. Therefore, for receiving information from the accounting process, information from the various business processes is collected by the firm. All these are significant to set the competitive prices of the products and services. The company uses integration system to obtain ample of information from the business processes. Better and effective integration will improve the business process of the firm (Saleh Shatat and Mohamed Udin, 2012). Along with this, it also helps in maximizing the revenue and outcomes of the firm. ERP system will help the company to collect, store, process and retrieve the information and facts within the organization. Besides this, ERP system integrates the various information and processes at the workplace. The integration of AIS and ERP will bring more valuable and important information from the business information. It also helps in forecasting of the business. Along with this, the company can easily track the records of the customers by implementing the ERP and AIS system within the organization. In addition, this system helps the company to increase and enhance the sales and profitability in the competitive market. Auditing is done by B bakery with the help of ERP and AIS system (Henze, Hermerschmidt, Kerpen, Häußling, Rumpe & Wehrle, 2016).

Support Services of B Bakery

Some of the possible software features that the firm should consider to attain their IT investment objectives

There are some of the features and functionalities for the system in B bakers have been discussed below.

Update and recording of accounting transactions: It is the main feature of the system. The main feature must be the continuous recording and updating of business activities and operations within the organization. This function ensures the availability and collection of accurate and correct financial data in terms of operations of each and every department of the firm (Nuntamanop, Kauranen and Igel, 2013).

Data reporting as statutory needs: It has been analyzed that IT system must provide facility to generate legal requirements as well as financial requirements. It is noted that different countries have different rules and regulations that are difficult to follow all the employees. The system should permit the bakery to get financial documents and reports of particular period within a fixed time (Svobodova and Cerna, 2016).

Managing of online order: The Company should develop and improve the web portal to manage the online orders in the marketplace. It also maintains the sufficient inventory of the firm and on the other hand, it helps in analyzing and evaluating the sales and revenue of the firm.

Security and confidentiality: The system should able to store information and data confidentially within the organization.

Software

There are plenty of software that can be selected by the company that includes SAP, XERO and MYOB. Xero is unique and effective as compared to others. This will be effective and dynamic to select the right software vendor.

Category of the accounting software

Xero is the best suitable and effective software for the medium size software packages. The main aims of the software are to automate the business functions of B bakery in operations and financial functions (Sahling & Kayser, 2016). Due to Xero, bakery enjoys better productivity among the employees. It helps in improving and enhancing the efficiency and effectiveness of the workers. It believes on data logging stages in order to enter information and creation of reports as well (Mas, Kolb, Paegelow, Olmedo & Houet, 2014). Various accounting functionalities are managed by the software package. Xero is effective in cost savings and it does take lot of time. It has been able to track the data of the company effectively. It helps in increasing and enhancing the satisfaction level of the customers. It provides accurate and correct information to users with improving the management of the billing process. It also decreases accounts receivables and increase outcomes of the firm. Along with this, Xero reduces the prices of the products for the sales order processing (Johnson, Li & Dulebohn, 2016). It is highly and effectively integrated with modules of the company. The accounting software is categorized in three form such as high, low and medium. Low category software permits the company to perform basic and simple accounting functions such as recording of data, preparation of accounts, and the expansion of financial reports. Medium category software is more costly rather than low category software. Such type of software includes advanced attributes to develop and expand more in depth accounting information. High accounting software is known as ERP system. It is suitable for medium size companies. It has been noted that medium sized software is suitable for B Bakery. It will help the company to manage the extra cost of the products (Lim, 2013).

Importance of Support Processes and Accounting

Compare and contrast between the features of two accounting software

The comparison and contrast between two accounting software such as Xero and MYOB are discussed below.

On the above mentioned table, it can be analyzed that Xero and MYOB has some differences and similarities that can affect the choice, needs, requirements of B bakery for accounting software. It has been found that Xero is suitable and effective for the large and medium sized organizations. On the other hand, MYOB is suitable for the small and medium sized companies. Both the accounting software packages provide various benefits to the customers across the world. It is noted that forecasting and budgeting available in both the MYOB and XERO that also provides an effective and unique path to the companies to make unique and dynamic decisions within the organization. From the above mentioned table, it has been concluded that basic accounting functions are common in both the accounting software. Apart from this, ample of differences can be analyzed and measured (Starinsky, 2016). Customization is done in both the accounting software packages. Data backup functionality in MYOB and Xero are more effective and dynamic (Wells, 2018). It is noted that security measures are more effective and detailed in Xero than MYOB that creates differences in the level of data protection. Data collection and storage are provided by the both the accounting software. Additionally, both the vendor provides customer support service to the customers for helping them in effective use of available resources and features (Empower Your Business, 2012).

For the B bakery business, it is important and effective for the company to select unique and attractive accounting software from Xero and MYOB. B bakery serves wide range of goods and products to the customers and seeks to distribute the cost to each order more effective and unique for improving and enhancing pricing. Xero software takes less time and resources for the up-gradation. With the help of Xero software, the company has been able to integrate the cost information of different departments and it identifies the profit margin on each sales. Activity based costing system is effective and unique for bakery business as it also helps to manage and control the cost of the business in the international market. Inventory is the major and serious concern for bakery business due to perishable nature of the products and services. Ineffective and poor inventory management could affect the profitability and revenue of the firm. Xero is useful and unique to control the stock and inventory of the bakery (Helo, Suorsa, Hao & Anussornnitisarn, 2014). On the other hand, MYOB is less effective regarding the inventory management. Xero accounting software allows the company to include more attributes and to respond the changing the business requirements and needs. MYOB is less effective to provide accounting information to the customers and bakery. On the other hand, multi browsing features of XERO makes it quite different from the MYOB. Xero provides 24 hours customer support services whereas it is limited in the MYOB. MYOB provides support services only 12 hours. Xero is more suitable and effective to fulfill the needs, expectations and requirements of the customers in the competitive market. It is analyzed that B bakery is a medium size firm that employs around 70 workers and renders healthy and effective food products to the customers across the world. Pay roll attributes will permit the company to measure and identify the performance of the workers in the modern world. For exploring the business, the online platform can be used by the company at the workplace. The cost accounting software should provide e-commerce facilities to the customers (Recker, 2015).

Features and Functionalities of the Accounting Software System

Conclusion

It has been concluded that B bakery can invest huge amount in Xero to acquire more systematic and accurate accounting information about the business requirements and processes. This will help the company to increase and enhance the outcomes and revenue of B bakery.

References

Crowther, D. (2016), A Social Critique of Corporate Reporting: Semiotics and Web-based Integrated Reporting. UK: Routledge.

Duan, J., Faker, P., Fesak, A., & Stuart, T. (2013). Benefits and drawbacks of cloud-based versus traditional ERP systems. Proceedings of the 2012-13 course on Advanced Resource Planning.

Empower Your Business., (2012), Cloud Accounting – MYOB v Xero. [Online]. Available at: https://empoweryourbusiness.co.nz/2013/11/19/cloud-accounting-myob-v-xero/, [Accessed as on 4^th June 2018]

Hall, J. A. (2012)., Accounting information systems. USA: Cengage Learning.

Helo, P., Suorsa, M., Hao, Y., & Anussornnitisarn, P. (2014). Toward a cloud-based manufacturing execution system for distributed manufacturing. Computers in Industry, 65(4), 646-656.

Henze, M., Hermerschmidt, L., Kerpen, D., Häußling, R., Rumpe, B., & Wehrle, K. (2016). A comprehensive approach to privacy in the cloud-based Internet of Things. Future Generation Computer Systems, 56, 701-718.

Johnson, R. D., Li, Y., & Dulebohn, J. H. (2016). Unsuccessful performance and future computer self-efficacy estimations: attributions and generalization to other software applications. Journal of Organizational and End User Computing (JOEUC), 28(1), 1-14.

Lim, F. P. C. (2013). Impact of information technology on accounting systems. Asia-Pasific Jornal of Multimedia Services Convergent with Art, Humanities and Socialgy, 3(2), 93-106.

Mas, J. F., Kolb, M., Paegelow, M., Olmedo, M. T. C., & Houet, T. (2014). Inductive pattern-based land use/cover change models: A comparison of four software packages. Environmental Modelling & Software, 51, 94-111.

Nuntamanop, P., Kauranen, I. and Igel, B., 2013. A new model of strategic thinking competency. Journal of Strategy and Management, 6(3), pp.242-264.

Recker, J. (2015). Evidence-based business process management: Using digital opportunities to drive organizational innovation. In BPM-Driving Innovation in a Digital World (pp. 129-143). Springer, Cham.

Sahling, F., & Kayser, A. (2016). Strategic supply network planning with vendor selection under consideration of risk and demand uncertainty. Omega, 59, 201-214.

Saleh Shatat, A. and Mohamed Udin, Z., (2012). The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies. Journal of Enterprise Information Management,25(6), pp.576-604.

Starinsky, R. W. (2016). Maximizing business performance through software packages: Best practices for justification, selection, and implementation. CRC Press.

Svobodova, L. and Cerna, M., (2016). Accounting, Economic and ERP Systems on the Czech Scene. Advanced Science Letters, 22(5-6), pp.1170-1174.

Wells, P. K. (2018). How well do our introductory accounting text books reflect current accounting practice?. Journal of Accounting Education.

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