Ownership and Timeliness of Corporate †Free Samples to Students

Question: Discuss about the Ownership and Timeliness of Corporate. Answer: Introduction The main aim of the assignment is to discuss the aspect of accounting information systems as it directly help in keeping track over the financial activities of any business enterprise in the most appropriate way (Worrell, Wasko Johnston, 2013). In this current competitive business environment, it is important for business enterprise to apply accounting information systems as it had become a necessity of its own and provide lot of benefits associated with it. Most of the business enterprise already finds it useful to implement accounting information system in their operating activities that will make them ahead of competition from the nearest competitors in marketplace. In that way, the present study defines the need of effective accounting system for the firm B Bakery. Currently, B Bakery is following manual form of accounting systems for recording of financial transactions that is quite time taking and troublesome sometimes as it involves human effort and all the transactions are h eld manually. In order to remain ahead of competition, the study recommends B Bakery to use automated accounting software in their firm so that they can keep track of all the financial activities in less time and with high level of accuracy that was not possible with manual accounting system (Abduljalil et al, 2015). To explain in details, there are different accounting systems and accounting software that is present and varies in terms of risk, sustainability, complexity and many other factors. All these accounting software are evaluated for B Bakery based in its limitations and advantages and suggested the best suitable accounting software that will help the firm to track its financial transactions without any hassle. At the end, it becomes clear that using automated accounting software will help B Bakery in solving all the issues that they are facing currently as they are using manual accounting system (Williams, 2014). A baker is a person who actually prepares or bakes different forms of breads and confectionary products through use of heated source. To continue, bakery is a place where the baker bakes or prepares and sells the breaks and cakes to the customers (Wijaya et al., 2015). Business Process of B Bakery The firm named as B Bakery actually carries out different range of business that is explained as under: Manual accounting system- Currently, B Bakery is recording the financial transactions by using manual accounting system that poses lot of threats to them and there is urgent need for the firm to implement automated accounting systems. The bakery firm records all the financial transactions and accounting activities by implementing manual accounting system but they should adopt accounting software. The bakery firm faces lot of difficulty as they uses manual accounting systems and it is suggested that this firm to adopt proper ERP system in their business process for smooth functioning of business enterprise (Weil, Schipper Francis, 2013). Bakery products production- The bakery firm prepares bakery products such as breads and cakes and sells it to the customers. B Bakery The bakery firm aims at giving importance to health factors while they manufacture the products and this is the Unique Selling Proposition of B Bakery (Vanhoof et al., 2016). Minimum engagement of human resource management- At B Bakery, there are only 70 employees employed who are working for the bakery firm. This particular firm is still using manual process for recording of monthly B Bakery does not have proper accounting department who can carry out the accounting activities in desired form and this factor negatively affects the employees who are working in that firm for particular time span (Uyar, Gungormus Kuzey, 2017). Product distribution- At B Bakery, the bakery firm engages in distribution process of various kinds of bakery products. The bakery firm sells their breads by making use of different channels of distribution like supermarket chains. Identification of business requirements B Bakery is a firm that has high turnover in their regular business practices. Due to this, B Bakery faces several issues that take place because of manual accounting system for keeping track of financial transactions (Tazik Mohamed, 2014). To this, it is recommended to B Bakery for adopting accounting software so that they can carry out their accounting activities with high level of accuracy. Payroll structure adopted by B Bakery- B Bakery is still computing the salary of their employees through use of manual accounting system that is time consuming and inaccurate most of the times. It is known that B Bakery is a growing firm where the management should think of adopting automated accounting system for recording of salaries for their employees as it saves time and generate accurate results. Evaluation of cash inflows and outflow practices- It is important for B Bakery to categorize their cost based on manufacturing and production attributes that are incurred by this growing business enterprise. It is recommended to B Bakery for minimizing their operating costs so that they have the ability to sustain in the future years. The above-identified issue can be properly solved when they adopt automated accounting systems (Susanto, 2016). Determination of production cost- It becomes necessary for B Bakery to adopt an effective process where they can easily evaluate with the cost of production or cost of goods sold. The process starts from raw materials and end till finished goods are produced by any business enterprise. The process cannot be used by B Bakery if they continue to follow manual accounting system (Simkin, Norman Rose, 2014). Preparation of annual reports and financial statements- It is mandatory for every business enterprise to prepare annual reports and financial statements for a particular year for recording of financial transactions as and when needed. In order to perform that, B Bakery need to adopt automated accounting system otherwise preparation becomes troublesome and time consuming for the accounting department. Determining adequate market value payment of taxes- Evaluating the valuation of market is essential to keep into account by B Bakery where the bakery firm should decide on using suitable accounting methods. Furthermore, B Bakery should pay off liabilities like tax on time. Suitable outcomes of the business process The above-identified business process is mentioned in detail that needs to be adopted by B Bakery so that they can easily get the access to implement suitable automated accounting system. After adopting automated accounting system, it will be easy for B Bakery to carry out business process in smoother terms (Prasad Green, 2015). Control over variables and identification of different types of operating costs- By implementing automated accounting systems; it will be easy for B Bakery in getting access to control over the operating costs. The bakery firm will get to understand about highest and lowest production unit when variable costs can be controlled in some form or other. After implementation of automated accounting software, B Bakery will be able to get access to effective manufacturing systems. By adopting the automated accounting system, the bakery firm can easily minimize their production units that incur higher amount of operating costs (Pearlson, Saunders Galletta, 2016). Accurate preparation of financial statements- Adoption of automated accounting system will help B Bakery to publish accurate and error-free financial systems. The bakery firm can easily get proper access to analyze the performance of their business for a particular time frame and plan for the business activities for future years. Increase in sales- After adopting automated accounting system, it will be easier for B Bakery to have proper understanding regarding cost of sales or cost of production per unit cost. Automated accounting system will guide B Bakery to get access to best pricing strategy from the perspective of both long-term and short-term. After adopting automated accounting system, the bakery firm can easily increase their revenue in sales and that will have positive impact at the time of deciding the pricing policies. Understanding the demand of customers- For any business enterprise, it becomes important to understand the demand of supply of its products and services. After using automated accounting system process, it will be easier for B Bakery to evaluate demand and supply of bakery and confectionary products. The automated accounting system will guide B Bakery in their process of production and reducing total amount of unused stock. It is therefore important for B Bakery to use the above strategies for attainment of smooth functioning of business enterprise. Determination of system requirements B Bakery is a growing firm that needs to evaluate from various types of accounting systems in their business operational activities. Some of the requirements are present at the time of evaluating financial statement in appropriate way and prepare documents, records to present in front of vendors, creditors and debtors. Easy online accounting- It is noted that companies are showing interest to implement online accounting system where they can record financial transactions. In addition, the bakery firm should be implementing an accounting system so that they can receive or make the payment to their respective debtors and creditors. Appropriate accounting system software will help management of B Bakery to keep proper track of financial transaction and that will lead to undertake prompt decisions in the business. Inventory can be managed properly at the time of adopting automated accounting systems and that will have positive impact over the overall growth of any business organization. Furthermore, internal control system at any company should be secured enough so that confidential data are protected and should not be leaked to any of the third-party or external parties. Financial statement analysis- The management of B Bakery can easily evaluate from various types of accounting software for keeping a track of financial transactions. The bakery firm need to evaluate whether they will use MYOB or DacEasy accounting software based on several other factors. This is much needed for B Bakery as they do not have proper accounting software and use manual accounting system in their present accounting system. This accounting software will assist B Bakery to attain future goals and objectives. The automated accounting software keeps a track of all financial transactions on daily basis. The bakery firm needs to select suitable or appropriate accounting software that is secured and helpful for the company. By implementing automated accounting system, B Bakery will get access to the internal system of business organization. Documenting different kinds of records and comparing it with other financial statement- It is noted that business enterprise need to keep track of all financial transactions. In addition, these accounting transactions carry equal significance. To this, B Bakery needs to implement automated accounting software for recording daily financial transactions. It is important for any business enterprise to compare performance for period of years and then note the difference for keeping a track of information on which are the areas that need improvement. Companies also need to compare the level of performance with their competitors. In order to attain success rate in the near future, B Bakery should record of their creditors, debtors, vendors and distributors. It is recommended to B Bakery for adopting automated accounting systems so that they can keep proper track of their vendors. Evaluating different types of costs- After implementation of automated accounting system, B Bakery can easily track various types of costs on daily basis. With use of automated accounting systems, the bakery firm will be able to produce cost sheet reports on timely manner. Preparation of these financial reports is of great help for the management as that can be presented in front of vendors. Salaries can be computed by using automated accounting software that will generate accurate results and there can be no discrepancy in the reports that is prepared for the employees. There are different types of requirements that need to be taken to consideration by B Bakery at the time of selecting suitable software. It is important for B Bakery to make best use of the selected accounting software so that they can meet short-term and long-term goals in the most appropriate way. Determination of adequate software It is essential for the bakery firm to decide or evaluate from different types of accounting software that are available and select the best one that suit their business requirements. There are different software packages that are presently available and these are as under: MYOB DacEasy SAP XERO The above accounting software packages differs largely in terms of price and unique features. To that, B Bakery management has to decide from the above listed software program on which one to use that best suit their business requirements. Adequate accounting software selected for the firm Low-end accounting software- Low-end accounting software is preferred by companies who only have to deal with very less business or financial transactions. For instance, lawyers and doctors make use of low-end accounting software as these people do not have to perform complex financial transactions. Small-scale firms mostly do not have proper organization structure and this is the reason why these firms make use of low-end accounting software in their business practices. By using low-end accounting software, it is not possible to record complex transactions at any point of time. Medium-end accounting software- Medium-end accounting software is preferred by companies who are willing to meet basic financial requirements and record accounting transactions. By using medium-end accounting software, primary requirement can be met efficiently by business enterprise (Amran et al., 2014). This accounting software is mostly used by small and medium sized firms who need accounting software to record daily business activities. This software will help for recording double entry accounting and this is the reason why small and medium sized business uses medium-end accounting software. High-end accounting software- High-end accounting software is preferred by companies to record complex accounting transactions. The accounting software is used by large multinationals who has to deal with complex transactions. With the advancement of technology, this accounting software has the capacity to record complex accounting transactions. To that, the output that is generated from high-end accounting software is very important for any business enterprise. Implementing high-end accounting software is costly affair that only large multinationals can afford as compared to other small and medium sized enterprise (Baridwan Khairi, 2015). There are different forms of accounting software that are discussed above with proper justification on which method is preferred by business enterprise based on complexity, cost, and nature of size of business practices. To that, it is now important to decide what will be the accounting software adopted by B Bakery based on above discussion. It is suggested to B Bakery for adopting medium-size accounting software as they need to bring improvement in their business activities. By using medium-sized accounting software, B Bakery can easily meet the basic requirements of financial and business transactions (Bodnar Hopwood, 2013). Comparison among various accounting software packages It is now important for B Bakery to decide which accounting software to use in their business operations so that they can attain future goals and objectives. The options that are available for B Bakery are DacEasy, XERO and MYOB. In addition, it becomes necessary to compare among different software packages in order to select the best that suit the business requirements. The comparison is made among different accounting software and judged on different parameters like time scheduling, capacity to record adequate number of documentation, payment related structure of the staff members, operating expenses risk and level of sustainable activities. The above-listed elements need proper in-depth analysis so that the comparison becomes easier for B Bakery (Collier, 2015). Capacity to record financial document, reports and financial statements- To compare with different accounting software, it is important to judge the unique features of the accounting software on how these accounting software record financial document, reports and financial statement for specific period of time. To start with, MYOB is one of the accounting software that has adequate capacity to record different data within the system (MYOB Accounting System. 2017). This particular accounting software actually aims at generating the output at faster pace when a user enters an input data. When a user inputs data, accounting software has a button that is present on every page. The other accounting software named as DacEasy uses an index for searching relevant information on the screen. To conclude, it can be stated that both MYOB and DacEasy has the capacity to record relevant information and prepare the documentation that is easy and user friendly for the business or individual who are accessing the accounting software. Payment related structure of staff members- Payment structure differs from accounting software to other based on several factors. To that, every accounting package like MYOB, XERO and DacEasy, there is different aspect altogether when payment structure is concerned. DacEasy is accounting software that is beneficial at the time of depositing the salary of employees through use of direct method. XERO is accounting software that is beneficial at the time of automatic bank reconciliation. MYOB is one of the accounting software that can be used at the time of creating various alternatives and managing with the salaries and tax status of the employees who are working for the business enterprise (Mancini, Dameri Bonollo, 2015). Level of risk and sustainability- The three accounting software packages (XERO, MYOB and DacEasy) that are compared in the present section are error-free and sustainable by nature that completely depends upon the capability of the users on how they make best use of these accounting software. In order to attain future growth and maximize profit level, B Bakery need to recruit specialized and experienced Accountant in their Accounting Department and train them how to use the automated accounting software so that there is no manual transactions in future. This will help the bakery firm to get accurate results instantly (Liu, Xia Zhou, 2017). Time scheduling and level of complexity- At the time of evaluating with the comparison part among different accounting software packages, it is noted that XERO was successful in providing easy online transactions but the initial process was little bit complex (Grabski, Leech Schmidt, 2013). On the other hand, DacEasy helped users with simple operations especially at the time when billing is done within the stipulated time frame. On analysis, it was found that MYOB was the simplest of all the other two accounting software discussed earlier as people understood the software very quickly. The only criteria that were needed to understand the accounting software was a person who has basic knowledge of accounting and bookkeeping. The accounting software is of great help to the users and companies at the time of creating billing on credit terms (Lipi, Rama Agaraj, 2015). Business organization that deal in credit transactions more, MYOB is the best accounting software package that should b e preferred by the business to carry out the transactions in smoother terms. Flexibility- On comparing all the accounting software, XERO was quite flexible as it can operate advanced third party payrolls. In addition, the accounting software package even provides free trail training for the small business companies. On the other hand, DacEasy is not flexible as it can generate only 50 reports. The best flexible accounting software package is MYOB as it has the capacity to generate 175 reports. These reports are helpful in keeping track of information or data about customers, suppliers, vendors and other parties as well (Khalil Zainuddin, 2015). Sundry creditors and debtors- On comparing, it is noted that MYOB is an accounting software that support e-payments as well as e-receipts when it comes to billing for its creditors and suppliers. On the contrary, DacEasy only operates in printing cheques and calculating the purchase order quotes. The other accounting software package named as XERO operates on creating of purchase orders as well as claiming those expenses when it comes to creditors (Kearns, 2014). Operating expenses- On comparison, it can be stated that both operating and implementation costs incurred for installing the accounting software can be categorized from medium to high. To that, single version software cost less as compared to multiple version software. Therefore, the cost is incurred and borne by the specific business that depends majorly on its nature or size of firm that they desire to carry while using any of the accounting software (Ismail King, 2014). Selection of most suitable vendor After comparing accounting software packages, it is now important for B Bakery to select suitable vendor so that they can keep a track of all the financial information (Hall, 2012). B Bakery is a family owned business enterprise that are still using manual accounting system and is in urgent need to adopt automated accounting software to solve the issues that was present otherwise. B Bakery is a medium sized enterprise and lack more money to invest in installing the accounting software. It is for this reason B Bakery should use medium-end accounting software as it will best suit their needs in the business operations. XERO is one of the accounting software that helps in calculating automated bank reconciliation statements (Xero. 2017). This particular accounting software package mainly manages transactions related to accounts receivable. On analysis, it was noted that DacEasy was not suitable for B Bakery as the features that are needed by the bakery firm are not present in the given accounting software (Iskandar, 2015). Both XERO and MYOB are suitable for B Bakery. But the best one is MYOB that should be adopted by B Bakery to record the financial transactions in an effective way. On implementing MYOB accounting software, B Bakery can easily generate wide range of reports and track the financial transactions. The selected accounting software package actually takes into account credit transactions where the bakery firm gets involved in the distribution activities and continues with the credit function that best suit their needs and expectations (Hoskin, Fizzell Cherry, 2014). There are several reasons that make MYOB accounting software package the best choice for B Bakery. There is two way transfer facility available at MYOB accounting software package as compared to any of the other accounting software packages. MYOB is one of the accounting software package that help at the time of calculating inventory costs through use of LIFO and FIFO method. The accounting software help in dealing with both account payable and accounts receivable transactions. The selected accounting software package generates accurate reports that are not feasible for any of the other accounting software packages. After adopting MYOB accounting software packages, there will be huge improvement at B Bakery in terms of accuracy, growth and profits. It is important to get access of systematic information and this is possible by implementing MYOB software by B Bakery for proper data transmission (Hopwood, Leiner Young, 2012). Conclusion From the above analysis, it is noted that B Bakery was still using manual way to record financial transaction that are time consuming and generate inaccurate results most of the time. To reduce or minimize the level of discrepancy, it is important for B Bakery to implement suitable automated accounting systems that best suit its business need and requirements. After implementation of MYOB accounting software, B Bakery will face no issues that were noted earlier. Installing accounting software cost huge and this can be a problem by the company. As the company has low budget and minimum employees working for the bakery firm, it is recommended medium-end accounting software that can be easily affordable by the management of B Bakery. MYOB software will help B Bakery firm to improve the security issues in accounting and get access to the invoices to the customers. 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