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The processes of selecting an AIS/ERP to make informed decision for investment in an accounting software

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  • "The processes of selecting an AIS/ERP to make informed decision for investment in anaccounting software1 Contents1.Introduction ...........................................................................................................................

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  • "The processes of selecting an AIS/ERP to make informed decision for investment in anaccounting software1 Contents1.Introduction ............................................................................................................................................... 32. Define business processes ........................................................................................................................ 43. Develop business requirements................................................................................................................ 53.1 indispensable business processes ....................................................................................................... 53.2 required business process................................................................................................................... 54.Systems requirements ............................................................................................................................... 6Classification ............................................................................................................................................. 75. Software selection .................................................................................................................................... 85.1 Entry level solutions ............................................................................................................................ 85.2 Small to Medium level Business Solutions .......................................................................................... 85.3 Enterprise Accounting Software ......................................................................................................... 96. Selection of Vendor ................................................................................................................................... 96.1 SAGE 100 ERP ...................................................................................................................................... 96.2 Microsoft Dynamics .......................................................................................................................... 106.3 SAP Business ByDesign ...................................................................................................................... 107. Recommendation .................................................................................................................................... 118. Conclusion ............................................................................................................................................... 129. References .............................................................................................................................................. 122 Executive SummaryPresent report is case of B bakery. It is small bakery firm, which have strength of more than 75employees.B bakery is doing well in business. However, the firm is required to reduce price to maintain itsclientele. Therefore, company is analysing its business processed and realized the need ofaccounting software to make informed decisionPresent report is analysis of suitable accounting information system for B bakery.1.IntroductionB Bakery is a firm owned by family. There are 70 employees in the firm. sales revenue has beenenhanced$ 13.5 million. Firm is performing really well. But, has lost some key client due toinability to sell at low price. To analyse the accounts of company thoroughly, company isplanning to install accounting software.3 2. Define business processesProducts of bakery company B Bakery are sold to different supermarket and pub chains. Theircustomer base includes some prominent businesses also (Fritz & Schiefer, 2009). They work aswholesalers and supply their products to another confectionary shops and businesses. Getting supplies is their priority. Their need of raw materials includes agricultural products,imported goods and other commodities. Every raw material undergoes through a qualityinspection procedure. Only after the quality approval, the material is stored in raw materialwarehouses. Breads, buns etc. are the finished goods produced with this material (Mondal &Datta, 2008).SKUs (finished goods) are first packaged properly and then transported to the regional depotsafter loading into the vehicles. Products are further distributed to the retail outlets, hotels,independent stores, restaurants, supermarkets and shops from the regional centres (Paton, et.al., 2013).The products are then sold to the end consumers by these retail outlets.All this process depends upon the use of technology, freshness of end products andobservance of the directions of Trade and Food Regulatory (Dietz, 2006).There are several needs of a bakery business such as marketing, accounting, finance and HRmanagement, production unit, sales and supply chain management. The process of purchasingraw material is supervised and managed by the supply chain management. The managementbuys the raw material from poultry farm, fruit shop, flour supplier etc. Production is done byproduction unit and the inventory and logistics management store the products and deliverthem according to the orders (Cauvain, 2012). Accounts management does all accountingactivities such as payment to suppliers, payroll management and collecting payment fromcustomers. The HR management does hiring of the staff and decides their payroll. Salesmanagement then takes orders from customers and sells and delivers products to differentmarkets (Humphreys, et. Al., 1993). It also explores the potential markets to increase the sales.Business is promoted by Marketing. All of these business processes depends on each other andthe whole business processes shakes if one unit is affected. For instance, if supply is not donewell the consequent reduced production will hamper sales and then accounts. If some accounts4 are lost then the sales and HR management will be affected. Therefore, every individual unitmust be taken care of in Bakery be it, chefs, bakers or baking equipments. The aim of B Bakeryis the same.3. Develop business requirements3.1 indispensable business processesAlthough now we know from the previous section that every production and business unit isvital we have to accept that SCM, Production, HRM and accounts are the core of any businessout of which accounts is of most importance (Dietz, 2006). In spite of having significant growthin last few years B Bakery is doing with some difficulties in accounts at present. The accountsteam of B Bakery has accounting experts for bookkeeping etc. which is not sufficient in takingcompetitive decisions. Company has not been able to offer its products at reasonablecompetitive prices resulting loss of some accounts. It is realized that the company needs marketresearch for more information to prepare strategies that can help the business develop further(Haag, Cummings, & Dawkins, 1998).3.2 required business processThe organization is looking forward to have an accounting information system and so, they areready to invest in accounting software. Therefore, B Bakery has some requirements:? B Bakery needs to enhance its accounts.? Integration of all processes of business and accounts leads to sooner and betterdecisions.? Available accounting software need to be investigated to customize it accordingly.? ERP and AIS must be implemented as ERP helps in integration of business processes.ERP provides a good platform for AIS.? Different types of outputs are required from the core business processes to performmuch better in the market. One of them is all kinds of information transactional andoperational. Its helps in processing and decision making. As accounts in connected to allother business processes the information from all these are required to get more5 "

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