Accounting software assists the companies in using the efficient resources in their accounting departments so that they can easily reduce the costly bookkeeping mistakes and allows proper accounting transactions. Through reviewing the case scenario it has been identified that organization has experienced progression in the terms of sale of its healthy products in the market. Therefore, to attain the significant position report has focuses on the different areas that mainly comprises of system requirement, business requirement along with the selection of accounting software so that they may take business to the next level.
In regard with this, low category software has been taken into the consideration that is suitable for the Eureka Limited as the company has small business that would easily incorporate low accounting software in the practices.
Business processes for Eureka Limited
Major control risks
Accounting software features and functionalities
Three accounting software package vendors
Accounting software suitable for the company
Compare and contrast features
Most suitable vendor
In order to gain insights regarding the financial performance of the business accounting software plays vital role. It engages in handling and storing all the financial aspects of the company along with keeping all the data records of the business transactions. Thus in the present environment manual accounting activities have certain errors and issues that is rectified by implementation of the accounting software (Semenova, 2015). Accounting software assists the companies in using the efficient resources in their accounting departments so that they can easily reduce the costly bookkeeping mistakes and allows proper accounting transactions.
For the present report case study of Eureka Limited has been taken into the consideration that mainly engages in offering range of beverages to different businesses, comprising of supermarkets and pub-chains. Through reviewing the case scenario it has been identified that organization has experienced progression in the terms of sale of its healthy products in the market. Therefore, to attain the significant position report will focuses on the different areas that will contain system requirement, business requirement along with the selection of accounting software so that they may take business to the next level.
Business processes for Eureka Limited
For rendering services in the broader basis, Eureka Limited is required to implement different business processes that act as strength of the firm and allows the company to provide high quality and healthier beverages to the supermarkets and clients. The key business process is associated with manufacturing where the cited firm engages in producing the different flavors and healthier drinks accordant with the requirement of customers (Derun, 2016). However, manufacturing is considered as one of the key business requirement that supports in offering a variety of beverages products with targeting mass of the audiences.
On the other hand, another business process for Eureka Limited is a concern with finance-related operations that mainly focuses on generating the invoices as well as billing process for purchasing the inventory so that they can easily manage the funds within the setting. Managing finance is regarded as one of the most crucial aspects that needed to be carried out in the proper manner to avoid the falsification and misrepresentation of the data (Silva et al. 2019). In addition to this, the financial process emphasizes managing the accounts of different businesses to which they offer beverages i.e., the supermarket chain, retailers as well as pub chains. Therefore, it would be difficult for Eureka Limited to focus on attaining the long term growth and development without indulging in the financial processes.
In addition to this, procurement is another process that is significant for the Eureka Limited as it focuses on acquiring raw material from the different areas so that manufacturing or production for beverage can be easily carried out (Jongjaroenkamol and Laux, 2017). The procurement process also includes handling of a range of suppliers that support the firm by providing them material so that they emphasize on production practice. The last element in the business processes is associated with sales practices through which cited beverage firm easily engage in selling a variety of products to the customers accordant with their requirement. Moreover, sales processes within the cited firm will also involve building relationship and trust with the customers by communicating the benefits of their products (Jain, 2017).
Major control risks
With addressing the business processes of Eureka Limited, it has been identified that there are major control risks that affect the overall practices and operation of the firm. The key risk is associated with formal and informal control. For instance, in the situation, if an error arises within the manufacturing or procurement process, in that case, informal control must be imparted by the employers (Eker and Aytaç, 2016). On the other hand, if an error arises within the manufacturing or selling activities in that case management would impart formal control with specifying the guidelines so that it may not impact the overall business process of Eureka Limited.
On the other hand, risk of financial loss is another threat within the business processes that lead to impact the activities along with the overall performance of the cited firm. At sometimes the internal operations of the Eureka Limited may not be operative that often leads to the financial wastage and loss can obstruct the overall productivity and at the same time it would not lead to accomplishing the desired goal and objective of offering healthier beverages to the customers (Bergmann and Fuchs, 2017). Therefore, the financial loss can be easily evaded through engaging in appropriate planning by the higher authority or top managers of the firm so that they may engage in taking the corrective actions.
Moreover, ineffective planning by the management of Eureka Limited is also regarded as the major control risk that impacts their business processes as it supports in arising certain risk factor that would not allow the firm in accomplishing the desired aim and objectives. As per the view of Ahmadi et al. (2016), ineffective planning also act as the major hurdle for the organization that directly affect their processes and hamper performance level of the cited organization.
Accounting software features and functionalities
Accounting software in the present environment supports the businesses in undertaking effective business practices and often allows the performance of the smooth activities in the field of accounting. There are diverse forms of accounting software featuring distinctive attributes that support the firm in conducting accounting transactions effectively. It has been further assessed that implementation of accounting software will assist the Eureka Limited in analyzing their business position in the market (Daraban, 2017). However, through reviewing the assembled information from the accounting software it support in managing the product’s profitability along with indulges in planning for attaining the growth perspective. In addition to this, general functionality of accounting software focuses on drafting the annual budget; understanding the actual inflow and outflow of the costs with making certain adjustment in the business plan (Rohman, 2017).
The most important feature is associated with performing the accounting activities where it generally focuses on formulating the ledgers, fixed account ledgers along with the accounts payable and receivables to measure the actual inflow and outflow of the cash (Finances Online, 2019). However, it is the most common and basic feature through which Eureka Limited can easily manage the financial resources with overcoming the falsification of budgets.
One of the key features of accounting software is that it will support the Eureka Limited in conducting proper billing and invoicing of the procured or sold material. With this feature it allows the accountant to have proper information regarding transactions of business which they undertake by offering beverages units to different supermarket and pub chains. Thus, it permits Eureka Limited in attaining the business objective of managing the financial and accounting practices so that they may easily achieve an important position in the industry.
Another feature or functionality of accounting software is that it supports the cited firm in budgeting and forecasting (Sagara, 2015). With this feature, it permits the accountant or manager to calculate and interpret the financial performance for the present year and supports in estimating the budget of the approaching years. With the help of using accounting software companies can easily formulate their estimations along with setting the feasible sales targets that would prompt the Eureka in accomplishing the targets. As per the view of Jorge et al. (2019), with the functionality of budgeting and forecasting, it would significantly support the cited firm in accomplishing the business objective of selling healthier beverages to the customers.
Another functionality of accounting software is associated with payroll management that mainly focuses on the array of payroll features. With this function or feature, it will allow the accountant and management to determine and process employee payments, responding to all the legal and tax promises without indulging in raising the situation of errors (Hasibuan, 2016). However, the payroll management function of the software would allow the cited firm in minimizing the control risk of ineffective planning as the payroll management feature allows proper planning and then indulge in implementing the practices that overall benefit the cited firm.
Inventory management is another significant feature of accounting software that is crucial for the business as it supports in controlling the level of stock in the production process so that they may easily develop the new product line for the Eureka Limited. However, to sustain in the competitive environment Eureka Limited is required to emphasis on manufacturing healthier beverages. Inventory management will support the cited firm in managing and organizing the stock through which new product can be easily processed (Cattaneo and Bassani, 2019). In addition to this, implementation of the software in the cited firm will also allow tackling of delivery related issues such as understocking or overstocking of the beverages units.
As per the view of Zirkler (2015), to achieve the business objective of Eureka Limited i.e. conducting smooth operation of the business they will be required to make investment in the accounting software so that cited firm may easily engage in acquiring relevant information regarding the finance and projected cash flows. Therefore, implemented accounting software must feature the functionality of time & expense management that will assist the cited firm in accelerate the billing cycle so that expenditure must be adjusted by the management in the practice. With the functionality of expense management it will assist the Eureka Limited in collecting the payment at the faster rate so that is may lead to attain the situation of debt (Collatto et al. 2016).
It has been further analyzed that accounting software also features security perspective regarding the organization’s financial information. Accounting software in the Eureka Limited often collects abundant of private data related to bank account numbers, financial balances while in some cases the software also permits towards taking the employer identification numbers. Thus, accounting software directly overcome all the security relate issues and error and allow preservation of the data. With the security aspect, it also protects password, anti-spyware, and malware technology to overcome the activities associated with theft and data loss (Macuda, 2016). Therefore, all the above features and functionalities of accounting software would assist the cited firm in accomplishing their business objective along with minimizing the control risk factors.
Three accounting software package vendors
In the present advanced environment, there are different accounting software packages that are used by the businesses for managing the financial statement as well as accounting practices. The accounting software mainly emphasis on undertaking the activities associated with the deposits and withdrawals, with managing the employee payroll along with addressing the returns, investments or credits that are acquired by the organization (Dražić Lutilsky et al. 2016). The different accounting software package vendors are as follows-
From the above assessment of different accounting software vendors it has been identified that FreshBooks is the leading software that is easy-to-use by the organization as it ensure performing effective activities that manages all the business processes as well as accounting practices of the firm. The software provide navigational platform to the business so that they may easily streamline the activities related with tracking and invoicing. The software vendor also provide dashboard for emphasising and prioritizing the tasks and payments so that they may easily manage the transactional activity. In addition to this, FreshBooks continues to offer the facilities associated with payment, overdue payment, recurring bill process etc. to properly manage the cash inflow and outflow (Grigoroi and Muntean, 2018). Selection of this accounting software for the Eureka Limited would be significant as it provide widespread range of services and add-ons comprising of payment processing, management of cash inflow and outflow, HR/payroll, POS, e-commerce as well as data management so that it manages the overall business activities. Apart from this, FreshBooks software also features high level of accessibility that ensure letting company to access the accounting and financial data in the cloud server (FreshBooks, 2019).
In addition to this, MYOB is software that provides solutions regarding the management of processes and accounting activities to the business. The key structure of the MYOB accounting software mainly comprises of managing and accessing the tax and GST, billing, payment of staff, bills and expenses, bank reconciliation, online accounting, multi-currency etc. so that it benefit the company in managing their business processes (MYOB, 2019). In addition to this, addressing the attributes of MYOB it has been stated that it is highly effective and positively contributes towards conducting the book-keeping related operations.
Another accounting software vendor is Xero that support the business owners to provide effective software through which management can easily handle and manage the financial data from any of the devices. The software is mainly design to impart services associated with managing the wages, revenue, expenditure as well as payables so that they business can easily manage the inventory and resources. One of the most effective features of Xero is that it automatically reunites all the transactions associated with the bank that will make easy for the management to handle and control the finances. In addition to this, some other features of Xero include providing real-time currency exchange updates along with the multiple currencies so that business may easily generate the custom invoices.
Hence, from the above assessment it has been identified that for managing the financial and accounting transaction it is required by the business to implement effective accounting software that support in managing the computerized activities for addressing the financial plan and recording the necessary data.
Accounting software suitable for the company
With the help of addressing the provided case scenario, it has been stated that due to operating business on the smaller scale Eureka Limited would engage in using the low level category of accounting software. It has been further identified that cited company has small business process with the capacity of around 73 employees hence, it will not feasible for them to choose the high-end category of accounting software. The low category of accounting software does not have advanced feature associated with managing the budgets and drafting the computerized transaction of accounting (Seetharaman et al. 2016). But however to attain the business objective company has easily utilizes the software that will support Eureka Limited in carrying out its accounting practice properly.
Through addressing low category software it has been analyzed that it will be suitable for the Eureka Limited as the company has small business that would easily incorporate low accounting software in the practices. It has been further identified that the software features all the basic attributes that are easily being utilized by the firm that mainly include management of the cash flow; tax payment along with billing the invoices for suppliers and indulge in proper payment (Grigoroi and Muntean, 2018). Therefore, selection of the lower accounting software should be feasible for the company.
Compare and contrast features
From the above assessment of comparison it has been stated that FreshBooks is much more effective than the MYOB as it provide cloud based accounting application for the small and medium businesses so that they may easily engage in the billing activities. On the other hand, MYOB is defined as the online accounting suite for the business through which they can manage the financial record along with undertaking the activities of cash inflow and outflow. From the above comparison it has been also identified that FreshBooks and MYOB both the accounting software have affordable pricing scheme that tailored to the distinctive requirement of the business and impart services to them. The functionality of pricing strategy for both the accounting software include that it feature credit card payment while it automatic creates invoices per month.
Most suitable vendor
The entire analysis has supported in knowing that the most suitable vendor and accouting software package is Freshbooks cloud accounting and in turn all the features of the accounting system are highly effective that can contribute a lot in the business success. Eureka Limited can utilize the feature such as customizable invoice, payment reminder, recurring invoices, acceptance of the credit cards etc. In short the software that contains advanced feature and its pricing is appropriate can be easily utilized by the firm for its future use. One of the key reasons of selecting FreshBooks over MYOB is that it provide numerous of features and accounting services for the business that would support in undertaking effective decision (FreshBooks, 2019). In addition to this, some of the features are highly attractive such as customization of invoices that allows the businesses to manage their invoices on the monthly basis and allow payment through using different payment sites such as PayPal etc. This will provide effective platform for Eureka Limited so that they may easily indulge in making payment along with managing the financial resources. Customizable invoice is the main feature that can provide best possible support to the firm. It is possible for the organization to pick any particular template and at the same time colour and fonts can be easily adjusted with the motive to meet with the client requirement also. Eureka limited conducts all the business operations on a smaller basis and in this case if the company selects software of any small firm then in such case it can provide long term benefits to the company.
The feature of multi language invoice is present that is usually not at all provided by the other vendors in the market. In case if the clients of the company are from different nations such as France, Germany etc then in such case different languages has to be used. So, the main feature is that preferred language can be easily selected and at the same time it will be highly convenient for the firm (FreshBooks, 2019). Duplicate invoice can also be generated easily with the assistance of this software. This type of feature is also not available in case of the other firms also. This is the main reason due to which it will be preferable for Eureka Limited to focus on adoption of FreshBooks software for conducting its accounting related practices.
The company provides software for self employed individuals and the firm and other form of consultancies also. At the same time integration of the software into the business practice is also feasible for the firm and this is the key benefit of this accounting software provided by FreshBooks.
As per the view of Klemetti (2017), implementation of FreshBooks accounting software will be suitable for the cited firm as it will support in tracking the time by indulging in the breakdown of activities and business processes. Therefore, accounting software will engage in generating the bill for tracked hours in which the process activities has been completed. With the time tracking feature it will be suitable for Eureka Limited because it indulge in producing the volume of healthier beverages products and units.
Further, it consider as well-known fact that small companies desires to capitalize in the accounting software that features low cost because it support in saving their financial resource. Thus, it is stated that due to above reasons management of the selected firm can effortlessly employ using FreshBooks cloud accounting software in their business processes.
From the above report, it has been summarized that for managing the financial resources along with the cash inflow and outflow businesses are required to implement accounting software in their practices. With the implementation of software, it will positively affect the selected firm in managing the accounting activities and investment activities so that they may attain financial benefit. It has been further assessed that to achieve business objectives and minimize the control risks it is required by the firm to engage in implementing the accounting software. In regard to this, different accounting software has been assessed with addressing their features and functionalities. From all the identified software most effective software has been selected for the chosen beverage firm i.e. FreshBooks one of the leading cloud based accounting software that feasibly assist the firm in managing and recording the transaction so that effective accounting activities would be taken into the consideration.
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