Accounting Information Systems: Collected Data Information Essay

Question:

Describe about the Accounting Information Systems for Collected Data Information.

Answer:

Introduction

This study deals with discussion on Accounting Information Systems. AIS are the process for collecting stores as well as process in financial and accounting data. Internal users of particular business organization use collected data. In this present study, the tax authorities, investors as well as creditors use information. Accounting Information Systems is one of the computer-based processes that help in tracking all accounting activities with information technology resources (Worrell, Wasko and Johnston 2013). This particular information system unites traditional practices by following the accounting principles such as Generally Accepted Accounting Principles (GAAP). It is mandatory selecting proper AIS or ERP system. This further helps business organization in taking efficient decision in regard with investment in accounting software. This widely depends upon different types of size of business. This current study elucidates the business process of B Bakery in along with given business requirements (Ward and Peppard 2016).

Business Process

Baker is an individual who bake cake as well as bread for selling them in the market. Cake and bread are baked with the help of oven and other concerted heat sources. Bakery is the place where baker bakes and makes products such as breads and cakes. Baker specializes in baking cake and bread known as Pastry Chef (Vanhoof et al. 2014). There are several types of baker such as Commercial Baker, Retail Baker as well as Bread Maker and Baked Goods Producer. Baker mixes as well as bakes the ingredients in accordance with recipes for making various types of pastries, bread and other form of bakery products.

Key Activities of the Business

Several key activities of bakery firm involves production of bakery food products, manufactured products distribution especially to the targeted customers as well as accounting of related operational activities of the business firm on manual basis (Vanhoof and Aerts 2014). Addition to that, bakery firm activities includes baking on accurate basis. It is baked in oven temperatures for fulfilling the personnel responsibilities as well as maintaining the inventory of business firm. Therefore, key activities of bakery business required efficient budgeting as well as cleanliness and safety at the same time.

  • Bakery Food Products Production

B Bakery focuses majorly on bread manufacturing as well as other products of confectionary. This aims at spotlighting on health factors on all the food items (Sutton and Arnold 2013).

  • Manufactured Products Distribution

B Bakery engages in selling manufacturing products with the help of various distribution channels. It majorly involves pub chains as well as supermarkets in the most appropriate way.

  • Manual Accounting of various operational activities

It is important to understand the fact that business firm properly maintains its accounting records on manual basis. It is recommended to business firm in appointing an accountant for business function (Sousa and Oz 2014). It requires to record transactions and its accounts as presented in the financial statement of a particular business organization in given financial year.

  • Staff Employment

From the case study on B Bakery, it is easy to gain understanding that the bakery firm employs more than 70 employees for conducting business operations in an effective way. This particular firm requires maintaining the salary accounts of employees with the help of using manual procedures (Rainer et al. 2013). Therefore, there is high probability that business firm commits some mistakes regarding payment methods as well as salary accounts of its employees.

Development of Business Requirements

Business Process Essentials implementation

There is various business process or activities needed for running particular business in smoother terms by considering operating and regulations of any kind. There are even some of the activities considered as indispensable in nature. In case of B. Bakery, several business activities deal with operational and regulatory activities for a particular business firm. This includes identification of sales cost, cost effective process as well as periodical analysis and other process of production in an overall manner (Newman, Stikeleather and Waddoups 2016). Addition to that, it further takes into consideration proper structure for payroll activities informational analysis as well as preparing financial statement and tax payment on timely basis.

It is important to conduct detailed analysis for B Bakery from last year transactions. This involves viewing at the turnover rates for B Bakery for future analysis purpose. Revenue generated by B Bakery amounts to $13.5 million. B Bakery employs more than 70 staff members (Marshall, Curry and Kawalek 2015). They are appointed for the medium scale business named as B Bakery. This particular bakery firm enjoys continuous growth for given years with its unique products. There was an issue concerning with deficit of proper accounting as well as system for recording of given data

B Bakery should incorporate given business process for making the bakery business more efficient in nature.

  • Cost of sales Identification

It is important to consider the fact that bakery industry aligns completely with the business organization in the manufacturing activities. Addition to that, these particular organization manufacturers various types of products involving in process as well as materials (Ismail and King 2014). Therefore, this particular organization should efficiently incorporate accurate system for accounting purpose. This will help in identifying manufacturing expenses for making use of accurate products.

  • Cost Effective Process for Production

Accounting is requires for system of producing given food items. It enables control over the expenses for developing in the production systems for taking into consideration cost-efficient measures (Hall 2012).

  • Periodical Analysis

B Bakery is a FMCG manufacturer and aims at incorporating business process for analyzing financial condition of the organization for specified period (Guragai et al. 2014).

  • Payroll accurate structure

Proper accounting system and proper payroll structure initiates with salary payment. There are even other contributions for making the payment to staff members for given business organization (Guffey and Harp 2013).

  • Informational analysis

There are various forms of information that further help in smooth business activities in analyzing and preserving usage of appropriate techniques.

  • Financial Statement Preparation

Every business firm prepares financial statement for given year. It is recommended in using accurate potential information from the financial statement and analyze based upon that Business firm prepares financial statement by taking consideration crucial configuration for specified time (Galliers and Leidner 2014).

  • Tax Payment

Tax is one of the important debts considered by any business organization. Therefore, business organization should utilize such methods for making the process of tax return in easier terms (Dull, Gelinas and Wheeler 2012).

Required Outcomes for Achieving Business Objectives

It is necessary to find out business process requirements with proper outcomes and results. Gaining this type of information helps in achieving the required objectives in relation with business organization (Du, Huddart and Xue 2015). It requires analyzing the given procedures as it will help business organization in running profitable enterprise in the upcoming financial year.

  • Improvement in Pricing Strategy

Cost of sales is one of the basic structures for construction of selling price for given products and services. Management Department of business need incorporation of accurate system for costing as it will identify proper sales cost. Addition to that, implementing effective strategies leads to proper as well as accurate pricing method. This will help in guiding identification of selling prices for food products in an effective way. It is important to determine the selling price for given food products as it will generate ways for change as well as modifying the pricing strategy wherever necessary (Daoud and Triki 2013).

  • Cost Effective System for Production

B bakery is a medium-sized business firm dealing in bakery industry. Activities performed by B Bakery come under manufacturing activities. As far as manufacturing unit is concerned, it deals with observing activities of business enterprise on matters relating to indirect costs (Considine et al. 2012). This leads to ineffective consumption of labor as well as materials at the same time. This particular control cost system has the ability for identifying the factors responsible for ineffective utilization of financial resources.

  • Superior Control over the Financial Performances

B Bakery has the ability in analyzing the financial condition with the help of periodical analysis in given financial matters (Bishop et al. 2016). This will help management department in gaining proper understanding of firm performances for specified period. It is recommended to the management team in taking given defensive measures for proper course of action. Therefore, resulted outcome analyzes given positive traits for viewing at the firm achievement for short duration of time as well as given factors under consideration.

  • Increases the Profitability of the Firm

Business aims at gaining profitability with the help of eliminating factors arising from excessive expenses as well as bringing improvement in the level of production. B Bakery has the ability in analyzing the given data as well as information in association with current market condition (Baskerville and Wood-Harper 2016). It involves analyze after studying market as well as its nearest competitors setting the strategies of marketing in proper ways.

Determination of the Requirements of Systems

B Bakery requires implementing proper accounting software for processing with given unique characteristics as discussed below with proper justification:

  • Cost Analysis

Accounting software selection should enables specified characteristics for recording of production cost in an efficient way. Addition to that, accounting software has the ability in financial reports production based upon required demand (Azad and Faraj 2013). Accounting software specifies with contrasting between various types of item cost for given time.

  • Recording of Documentation

In case of medium-sized business, it gets holds of many accounting transactions for given accounting year. Accounting expert requires dealing with accounting transactions that should be relevant in nature. It relates directly with the financial statements for a given business organization (Anandarajan, Anandarajan and Srinivasan 2012). Addition to that, financial statement need prior adjustment for specified time for evaluating the performance-based business activities

This particular accounting software requires recording of financial transactions gaining information on regular basis. The recording process enables bringing adequate financial information as extracted from accounting software at the same time.

  • Basic Financial Structure

It is important to consider the fact that accounting elucidate in explaining the financial structuring. This deals with accurate systems taking into account creditors as well as debtors and inventory management system. Payroll accounting system brings out the recording of salary payment as well as other staff benefits. Addition to that, this accounting software has all types of unique features helpful in tracing the cash transactions on regular basis. This particular accounting software aims at regulating the usage of internal network for business as well as implementation of securities for gaining information from generated accounting data.

Software Selection

Accounting Software Package Vendors

There are different types of vendors involving in providing accounting packages. It requires making the section depending upon individual accounting software pancakes from authentic websites. Some of key vendors named as MYOB, DacEasy and SAP accounting software.

Selection of various types of Accounting Software

In the recent market, various types of accounting software area available that needs to be recognized by medium sized business organization. In this case, B Bakery need to select one accounting software option for bringing change in their accounting systems

These accounting software are divided into three broad segments such as low-end software as well as medium-end software and high-end software.

Low-end accounting software- Low-end accounting software should be used by small-scale business for accounting purpose as individual professionals regulate it efficiently. This mainly involves doctors and advocates (Marshall, Curry and Kawalek 2015). Low-end accounting software had been developed with the help of usage of accounting system in the most appropriate way.

Medium-end accounting software- Medium-end accounting software has been structured based upon double entry system. Basic features of accounting have been covered in this particular accounting software in case of business venture (Ismail and King 2014). Addition to that, medium-end accounting software has the ability in fulfilling the key requirements of business firms and this leads to revenue generation in the upcoming financial year.

High-end accounting software- High-end accounting software means highly progressive technology that deals with efficient factors in case of advanced accounting system. This particular accounting system needs further improvement by implementing using of particular software in an effective way (Marshall, Curry and Kawalek 2015).

It is recommended to B Bakery in selecting medium-end accounting software for carrying out the business activities in smoother terms. This particular accounting software will meet the purpose in aligning with specified objectives for given period. It is an expensive affair in using high-end accounting software in comparison with medium-end accounting software for incorporating given software (Daoud and Triki 2013).

Vendor Selection

Comparison between features of accounting software packages

Two main software packages prove appropriate especially for small as well as medium-sized business. This involves MYOB and DacEasy (Ismail and King 2014). This above-mentioned accounting software are divided into four major sections namely creditors, stock as well as debtors and pay structure. Preparation of financial reports can be done in several ways. Therefore, software analysis based upon given grounds like ease in utilization of software, scalability as well as documentation and reporting alternatives.

  • Supporting Documentation

It is important to understand the fact that preparation of printed and online documents should be utilized with the help of mentioned accounting software. As far as DacEasy software is concerned, it renders finding out correct location in aligning with given index. It requires understanding various alternatives that enables management department in searching help button located on the screen. MYOB is other accounting software whereby button is present on each screen as well as generation of information is much easier as expected (Worrell, Wasko and Johnston 2013).

  • Payment Structure

DacEasy is accounting software that helps in setting up direct deposits. Addition to that, this software helps in generating characterized into tax deposits as well as employees for given specified time (Daoud and Triki 2013). This help in proper construction of payment structure for future analysis purpose. As far as MYOB is concerned, payment structure should be managed in way of utilizing alternatives by viewing at the staff status in the most appropriate way.

  • Expenses and Scalability

There are various differences noticed from strategy regarding the pricing structure of both the accounting software named as MYOB and DacEasy. These versions revolve around single usage of both the systems by networking of multiple users.

  • Simplicity in using particular accounting software system

MYOB structure is considered as simpler as well as convenient in nature. This particular software helps beginners for the financial management for mapping down the given accounting tasks. Addition to that, installation process of MYOB is easy as well as accessible with usage of navigation bar. On the other hand, DacEasy Accounting software operates very easy as well as usage of consumer alternatives with navigating on screen from one section to other. This particular tool bar aims at designing unsuitable actions for consumers.

  • Time Scheduling

DacEasy accounting software aims at providing options for timely bill payments. This particular section deals with payroll accounting system with time billing of data (Worrell, Wasko and Johnston 2013). Billing report should be presented on timely manner. In case of MYOB accounting software, billing time deals with bringing references in terms of credit activities

  • Alternatives of Reporting

In case of DacEasy Accounting software, it designs ways for report generation as well as creation of various types of reports. On the other hand, MYOB has the ability in producing more than 190 report types. This also can captures as well as present the given data keeping in mind employees as well as vendors and customers in the most appropriate way.

  • Creditors

Vendor Selection in case of DacEasy based upon various accounts payable such as vendor management, purchase orders as well as printing cheques and quotes. In case of MYOB, it aims at supporting e-payments as well as purchase orders and tax form assessment for printing purpose. Addition to that, it is requires using of software as well as credit memos for developing purpose by the vendors.

  • Debtors

In case of DacEasy, this accounting software gives proper details of customers such as banking as well as sales invoices. Transportation of products fails in anticipation as well as sales invoices by implementing given accounting system. MYOB accounting software helps in managing with accounts receivable. Therefore, it was difficult to estimate shipping costs as well as shipping activities in offering shipping instrument. Addition to that, income calculations as well as customer charges and other charges in association with finance for performing in smoother terms.

Selection of most suitable vendor

It is recommended to B Bakery for using MYOB accounting software for carrying out its business activities. It helps in producing given financial reports in an effective way and user-friendly at the same time. There is no particular difference noticed in cost from both the packages and quite similar to one other. Accounting structure and installation process considers as simple in comparison with MYOB. MYOB is accounting software that renders two-way facility in transfer and in case of DacEasy. MYOB can be noticed more flexible in nature in comparison with DacEasy. It helps in providing facilities regarding billing time, as it is not included by DacEasy. Addition to that, in using MYOB accounting software, inventory calculation will be done using FIFO and LIFO method (Worrell, Wasko and Johnston 2013). It can also use other method such as standard as well as average costs. Financial statement users should use MYOB accounting software because of its simplicity as well as easy installation process in the most appropriate way. B Bakery is a medium sized bakery firm that should use and implement MYOB accounting software. This will help the bakery firm in gaining opportunity to print in associated potential customers at various stages of financial analysis.

Conclusion

At the end of the study, it is concluded that medium sized B Bakery should use MYOB accounting software. This is because it helps in serving facility to print with financial charges such as purchase order, tax forms as well as invoices in relation with customers. MYOB is one of the accounting software that supports multiples users for various level of security in transmitting of data using internet connection. MYOB is accounting software that is easy to use and low installing charges.

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