Accounting Information System for Enterprise Resource Planning

Question: Discuss about the Accounting Information System for Enterprise Resource Planning. Answer: Introduction The accounting information system is defined as a process of collecting, storing, managing, processes, retrieving, and transmission of the data for the use of different business processes, departments, and people. This report discusses the informational system of B bakery firm for the explanation of the different business processes of the firm. The accounting software includes the accounting information system (AIS) and enterprise resource planning (ERP). This assessment describes the business activities such as accounting information system, financial management and auditing for keeping the online accounts of the business transactions and processes. The suitable accounting information system packages vendors and accounting software will be selected for the bakery firm for improving the accounting informational system and financial process of the firm. Along with this, a suitable accounting software category will be selected matching the organizational size and business profile. The explanation will be provided behind the selection of the accounting software vendors and software packages with appropriateness of the features of accounting software for the business processes of firm. Business Processes A baker is the person who makes and sells breads and other products baked using an oven or other sources. Bakers work is to check the quality of ingredients. Moreover, variety of equipments is used by the bakers which include bakers peel. Bakers trade is making and selling bread and cakes for the customers. They perform some of the duties like hiring and supervising kitchen staff and baking personnel (Brooks et al.,2010). In addition to this, bakers employment or business is to make and sell bread or cakes. As a result, they have higher rate of injuries as they work in the machines like hot ovens. This work is risky for the bakers as it includes cuts, and burns while working. (Source: Bakery and Pasty Products Processing) A business process can be defined as an activity or set of activities that helps in attaining the specific goals for the organizations. However, for improving processes the organizations uses business process management. In organizations, there are many types of business tasks which relate to management of human resources (HR), supplier management, inventory management and accounting. Moreover, in the bakery industry the main focus is on the price, accuracy in the delivery of the product, product quality, safety measures, location, and value added services (Weske, 2010). These processes are the key to success for every industry whether it is bakery, or other kind of organization. In every organization the work is managed by the employees that work there. The main focus is on customers satisfaction in the organization. The baker makes the bakery products for the customers with the focus on the quality and quantity of the product. Business processes of B bakery: B bakery is a company in which products are sold to supermarkets and different pub-chains. In a bakery business, it is necessary to apply production unit, supply chain management, marketing, sales, accounts, finance and HR management process. Supply chain management is the process to take care of buying raw material from other businesses, like fruit shop, poultry farm and they are used by the production so that they can produce bakery products. Then, the products are stored and delivery of the products is done to different shops (Newsome and Scholl, 2012). The activities of accounting are managed by financial accountants i.e. payment to suppliers, payment from customers, payroll management of the staffs. HR management is undertaken to take care of hiring of the candidates and payroll of the staffs. At last, the seller takes orders for products sold in the market and also looks after the promotion of the business. These processes are dependent on each other. If any one of these processes is affected then, it will hamper the whole business. For example- if there is problem in production it will affect the whole process whether it is sales, accounts and inventory of finished goods. In the same way, if in other businesses they suffer loss from the accounts, then it will affect the whole process that is sales, management of human resources (HR) will also suffer (Hall, 2012). For the success of the bakery they have to take care about the business processes i.e. supplier management, sales management, inventory management, financial management, etc. Moreover, every organization needs to develop their business processes whether it is bakery or other companies. For achieving organizational goals the business should manage the business processes. Business Requirements Indispensable Processes of the Bakery Almost all the process carried out by bakery business is essential and indispensable. However, the core processes of this business include supply chain management, production, human resources management and accounting. But most important process in the business is accounting as it is the main part of every business. Recently bakery is facing some difficulties in accounts. So, the business wants to have accounting information system for overcoming the difficulties. They want to invest accounting software for developing their business. This accounting software will help them to bring their business at next level of success (Demski, 2013). Some of the business requirements for B bakery are such as Increment in the accounts, combination of all business processes and to improve decision making process for accounting system, Implementation of ERP and IAS for the business so as to manage the accounts at a great extent. ERP helps in accommodation of the process of businesses and it will help in providing better platform for AIS. The bakery needs many outputs in its business for achieving better performance in their marketing business. The main thing every business needs is information. Moreover, every kind of transformational and transactional information is required for the business (Gorla, Somers and Wong, 2010). It will take into consideration the information like payable to suppliers, inventory stock, sales amount, and cost of using raw materials, charges of labour, and possible margins. These tools are important to set competitive price of some product. Furthermore, other information is needed from the payroll staffs of the company. However, it is vital to acquire information from the business processes and the systems used in the business processes to manage the business financially. For the faster business processes better integration will provide better agreement. This will help in earning more sales for the company. The accounting information system implemented over ERP will provide a structure to the business and it will help the business to collect, manage, store and use to retrieve of financial and accounts information by managers, tax consultants, accountants, and auditors. On the other hand, functions and processes are integrated by ERP (Leon, 2013). AIS and ERP integration will bring extra and important information from the business. AIS provide business forecasting information from the process of business by analyzing. Required Outcomes to achieve business objectives In the businesses, the outcome is required from the business processes such as ERP and AIS for developing successful business. They need better output in the business for achieving better performance in their marketing business. Moreover, main thing of the business for achieving objective is to collect information by acquiring every kind of transactional and transformational information which is needed to for achieving the successful business objectives. These processes such as ERP and AIS are implemented in the business and are designed for the innovation of effective work in order to achieve certain objectives. Their role in the business is unique. They enable the business to achieve the business objectives i.e. by increasing sales, cost reduction, and the competitors achieving goals that directly impact the companies performance. ERP helps in providing excellence in customer services with efficiency and effectiveness (Ganesh et al., 2014) in providing goals for the business. The m ain motive of these processes is to develop successful outcomes for the business. Enterprise resource planning (ERP) provides structure to the business. It helps in managing business activities such as manufacturing, marketing, sales, inventory management, finance and payment shipping. It initially focuses on the back office work and public by which the customers are not affected directly. AIS i.e. accounting information system consist of procedures, data, and software information technology. This is also the process which is implemented in the business so as to collect and store data about transactions and activities to provide better outcome in the business to achieve certain objectives. It helps to adequate control on the organizations assets. Moreover, it also helps in decision making of the business. This is important for organizations to achieve objectives. However, some of the factors that are influencing IAS are such as organizational culture, strategy, and technology information. AIS add value by providing better quality and reducing costs of products or services, efficiency improvement, decision making capabilities, knowledge shared (Gelinas, Dull and Wheele,2014). These all things used by the AIS to achieve certain objectives of the business. For achieving certain objectives the organizations has to fulfil the business processes. (Source: Features and functions of Accounting Information System) System Requirements ERP and AIS are implemented in the firm for better performance of the business. These processes are necessary for achieving the business objectives of the company. The enterprise resource planning (ERP) software uses to accommodate all the business processes or objectives of the company. These implementations are necessary to obtain business objective of the company. Enterprise resource planning (ERP) software accommodates all business processes and it will be shared and central database for business processes. The central database is also available for the AIS process (Weygandt, Kieso, and Warfield, 2010). Moreover, AIS software helps to access information from the entire business process and it will help in better processing more accurately. It provides three functions to the business process such as effective and efficient data processing using the data adopted from different transactions by the company. For this function there is need to capture transaction sources and documentation. These transactions are recorded to journals. The journal used to record overall transactions of the company. Then, it will be essential to transfer data from journal to ledger. It also helps the management in taking decisions in providing information from database and analysis. The information is shared with management i.e. managerial reports and financial statements. This software also provides internal control for securing the reliability of information being produced by the software AIS (Zadek, Evans, and Pruzan, 2013). Furthermore, certain features of accounting software: Security: It is the most important feature of every organization. Accounting software stores the confidential data such as account number, financial balances, Social security of the employee, and employer identification number. If these informations are leaked by anyone it could harm the whole business and its finance (Qureshi,et al., 2011). A business owner should take into consideration software from vendors that use to describe security features in detail, protection of password. Reporting: In businesses, accounting software is to track documents and its financial transactions. It includes deposits and withdrawals. Moreover, entrepreneur should have understanding of a program. In addition to the assistance in managing finances, it use to detail the reporting features which supports efforts. Accounts Receivable: Accounting software system enables to handle billing, and tracking of customers information and their payments. Moreover, account receivable features include processing of invoice, automatic invoicing, and processing of payment. These are the processes which are used in the companies for managing the work. Automation: In the businesses, transactions for accounting and financial management task are not enough. The companies need the full automation of expenses of the employees, payrolls, time, and companies budgets of the department. Automatic Update: It is necessary in the companies to update the informations according to any types of changes in the organizations. Hence, the tax laws, and financial practices changes over time (Monk and Wagner, 2012). So, its important to use softwares that are used in the automatic updates. These are important in achieving IT objectives for the company. Connectivity of internet: This feature is important as in todays world no work is successful without internet. Thats why they should consider the accounting software in which there is a ability to send and receive the documents and handle transfer of funds. Expandability of the business: The businesses may grow in scope as well as in the size. They should offer extra capabilities to the business so as to expand the business and achieve the organizational goals. Moreover, with the help of ERP environment the expandability of business is important. Internal operations of the department: Although, accounting softwares are designed to manage the financial transactions of the company. Many packages are integrated to intent the transactions of the firm. It depends on the size and nature of the business and the ability to collect the activities in a single database and it helps in increasing the companieseffeciency. Standard Integration: In todays world new technologies are used in the organizations like web services. Accounting software in todays world enable to integrate with other operational and administrative systems and these softwares allow automating the basic processes and delivering the information with the security in the organization, wherever, across the supply chain in the world. Banking: Accounting software should be linked with the bank account; it enables to make the direct payments and allows them to import the data from bank into the accounting system. In banking some softwares are used such as-Reconcile accounts, preparing of bank deposits, handling of checks. Software Selection After analyzing the business firms scenario, medium size accounting software would be suitable for the B Bakery firm because the firm is also a medium scale business. B Bakery firm is taken as medium sized business because of the number of employee is more than 50 and less than 250 and the revenue of the business is greater than the $5.6 million and less than the $22.6 million (Gelinas et al. 2014). Medium category software is useful for the efficient process and accounting standards of the business firm. Additionally, it also added value to the financial statement of the firm with accuracy that can enable the firm to present the true picture of the business. Medium size software helps the business to process the account with more speed comparison to the manual handling procedures. In addition to this, accounting software also increases the efficiency of the financial transaction by automation of accounting information system. Accounting information software allowed the business firm to done the accounting task with less cost. At the same time, medium size software enables the manager of the firm to take the right decision through automation system. On the other hand, softwares help in managing the complexity of growing business that can directly impact on the performance of the firm. Medium size accounting information system enable the business firm to better management of the inventory in comparison to the small size accounting software, it benefitted to the business through getting the competitive advantages. Moreover, ERP software assists in better relationship with customer to retain them with the business (Monk and Wagner, 2012). Additionally, AIS provides the standard financial tools and also helps in presenting the financial reports of the business. Accounting information software helps in improving the functionality of the manager or accountant of the bakery business that directly impact on the overall performance of the business. Vendor Selection Compare and Contrast There are many accounting software that provide the account automation service and solve the entity problems. Netsuite and Microsoft Dynamics are two major accounting softwares for midsize business (Amzur, 2014). Microsoft Dynamics GP mainly focuses on the target market industries of the medium size business to develop the business. Additionally, it is easy to use and maintain the financial process of the business. Microsoft Dynamics GP software system includes the accounting, revenue management and financial reporting of the data that can integrate the final outcomes of the business. On the other hand, Netsuite software is also used to manage the operations of business and relationship with the customers. It is also a medium size business accounting software to handle the accounting system and enterprise resource planning. At the same time, Netsuite provides real-time business intelligence and automate the whole businesses accounting process. (Source: Netsuite vs. Microsoft Dynamics) Both the accounting software manages the account receivables, account payables, general ledger and time or expense report of the business (Netsuite, 2016). Netsuite software is an open system so it integrates CRM and e-commerce for the business that add value in the functionality of the system. Netsuites products are ERP, CRM, Ecommerce and Professional Service Automation. Netsuite ERP assists back office operation, HR management and inventory management. Customer relationship management software helps in sales management, marketing management and customer relationship through solving the accounting problem. On the other hand, Microsoft Dynamics GP saves the operation and IT expense for the business firm. Microsoft Dynamics GP also helps in better management of the inventory. Both the software assists the business manager or accountant to take the quick and valuable decision for the firm to drive the business forward in competitive market. (Source: Netsuite Features) The difference between Microsoft Dynamics and Netsuite is identified from the following table:- Point of Difference Microsoft Dynamics Netsuite Suitability Small and mid-sized small organizations, mid markets Mid-sized large enterprises Technology Deployed on premise, mobile Cloud based computerized technology User adoption rates Lower in comparison to Netsuite High user adoption rates License properietary Software as a service Operating system OS Absent Yes, present Linux Not present Yes, present Structure Web assess, remote access, terminal server, mobile access Web-based Type Project management, project accounting, cost accounting, financial reporting and data analysis services CRM, e-commerce, ERP Netsuite is available in many languages and it can be implemented according to the needs of the business. Microsoft Dynamics GP transacts in multiple currencies and real time visibility, and dashboard also helps in tracking the business records easily. Netsuite software not only provides the accounting solution but it also manages the marketing and CRM functions. At the same time, it also integrates with the cloud ERP solutions for the business that enable the firm work efficiently in company accounts and operations management. On the other hand, Microsoft Dynamics GP provides the complete solution for business intelligence reporting, human resource management and supply chain management features (Microsoft Dynamics GP, 2016). In this system, supply chain management create invoicing, inventory management, bill of material, and also assists in order management. Additionally, it also supports the manufacturing process of the business that can easily manage the material requirement plan ning, quality assurance and sales forecasting. Therefore, this software is designed as per the needs of the organization. Financial module of Microsoft Dynamics GP support the management as to provide analytical accounting, bank reconciliation, e-banking and fixed asset management that goes to broadening the market capture. It is also designed for the management of multi currency operations that easily exchanges the rates. In contrast to this, Netsuite improve the sales process through powerful tools for the fast growth of the business. Through this, it can improve the performance of the organization. Netsuite CRM includes the commission management and e-commerce characteristics to drive the process of management efficiently and Netsuite is also available in many languages in different countries. Furthermore, Netsuite solution provides the full features web based accounting and Netsuite open air system helps in visibility and control over the project based businesses. Netsuite accou nting software is totally cloud based system while the Microsoft Dynamics GP does not equated with this cloud computing system, this may lead to the loss of data. Suitable Vendor B Bakery wants to implement the IT enabled system for the better processing of accounting system for the business firm. After comparing the accounting software, Netsuite and Microsoft Dynamics GP, it is recommended that the firm should choose Netsuite accounting software for its business. Netsuite is suitable for the B Bakery business because it enable the business to efficiently work on different platform such as android, windows and web-based. Netsuite is also beneficial for the business because it is hosted in the cloud through which all the available data and information can be accessed from anywhere as per the need of the Bakery. Netsuite is suitable for the B Bakery to organize the business process with whole business firm that enable all the employee of firm to use the updated information, it increases the productivity. It also increases the visibility through customized dashboard which is helpful in taking a right decision for the expansion of the Bakery business. Moreover, it also offers affordable price, easy implementation, B2B and B2C collaboration that enhance the compatibility of the Bakery business. Netsuite is available in many usable languages and it can be tailored as the organization expands in different country that improves the flexibility in working of the Bakery business. Netsuites web-based accounting and financial system helps in real time business intelligence in each department of the organization (Netsuite Inc., 2016). It is important to automate the business process that directly reduces the cost and complexity for the Bakery business. Netsuite AIS Integrated with the CRM and e-commerce would be beneficial for the B Bakery business to increase the productivity of the firm. Netsuite is a scalable and expandable as the business grows therefore it can integrate with the system easily. It also provides the standard accounting practices to manage the account. It is reliable software that assists in security of the data. (Source: Features of Netsuite Accounting Software) Netsuite ERP simplifies the back office business process for the medium sized business for the improvement of the performance of Bakery business. Inventory management module of the Netsuite software will help in controlling the cost through inventory control and order fulfilling according to the requirement of the Bakery business. It will enable to run the organization smoothly and efficiently through sales forecasting and email marketing. If the Bakery business uses the software in efficient manner, it will result into higher profits. Manufacturing feature of the software manage the product costing manufacturing routing and bill of material. It is useful for the mid size business to enable them for real time order status, account receivables and promotions of the employees that improve the customer centric approach. With the real time visibility it will strengthen the relationship with the vendor and supplier to the business firm. Netsuites e-commerce product helps in increasing the sales through online mode and it will be helpful in generating more revenue. Furthermore, bar code system of the Netsuite software enables to print the code number on the transaction. Overall Netsuite software will be suitable the B Bakery business. Conclusion Fromthe above discussion, it can be concluded that many differentbusiness process and activities are performed by B Bakery firm including the supply chain, logistics, marketing, distribution, manufacturing, sales, and inventory management for the efficient business performance of the firm. For B Bakery firm, the medium category of accounting sotware category is selected for the business firm. The accounting information software packages vendor, Netsuite would be suitable for for B Bakery because this software meets the complete requirement of the Business firm. This software will improve the accounting information system and financial processes of the company. Along with this, it will assist the firm to manage the inventory, CRM, HR and sales activities more efficiently thereby allowing the firm to reduce its costs and offer its products at competitive prices. 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