Challenges Faced by Business Firms due to Accounting and Finance Related Issues

In the current time, business firms or companies are facing a lot of accounting, finance related issues and challenges due to poor business practices and lack of suitable information systems, technologies and accounting software.  These are the major challenges and issues that have a direct and indirect impact on the success, profitability, efficiency, accountability, creditability and growth of business firms. This research report is developed in order to propose new information systems and AIS systems that could be used by the business firms in order to overcome such issues related to accounting and finance. Moreover, this research paper would develop understanding about the business process, business requirements and systems need with regards to bakery business. Additionally, the information about the various software and their vendors would be provided in order to fulfill the goals and objectives of this study.    

Generally, a Baker is an individual business owner that produces, sell and promote various types of bakery products to their end customers. For example, the main products of a bakery are the crackers, cookies, biscuit, rills, muffins, pastries etc. In addition to this, it should also be noted down that all these types of products are made and sold by a baker to the end customers, pub chin, business shops and supermarket and retail outlets. Moreover, a baker is focus on targeting all the types of customers by using different marketing and business strategies. Along with this, a baker is also responsible to work under the taut production schedule in order to make money and attain key goals and objectives (Treem, Jand Leonardi, 2012).  

On the other hand, the following picture clearly indicating the business procedures, process, functions and activities of a bakery business firm. Based on the given below process, it is found that, a baker use different heat sources and ovens in order to produce, make and sell the bakery products. Simply, it can be said that, different raw material related to the bakery products are collected by the baker from the market in order to make them in the finished goods for their customers. Furthermore, a baker is also takes the help of meal or flour in order to make raw materials in the completed goods.  Along with this, the business activities of a bakery business are directly or indirectly linked with the different functions and systems. This indicates that, the core business functions of a bakery business are related to the human resource management, supply chain management, sales, inventory management, marketing, accounting and finance. All these functions have to perform by a baker to fulfill key goals and objectives of the business. Hence, all these are the key points and aspects that develop a clear understanding about the business process, activities and functions of a bakery business (O’Donnell, Jackson, Shelly, and Ligertwood, 2007). 

Understanding the Business Process and Requirements of Bakery Business

As it is already discussed that, there are several process of the bakery business are indispensable to be performed. Based on the analysis of bakery business, it can be said that, all the process related to HRM, SCM, Sales Marketing, Finance & Accounting, and Production etc are the major indispensable process. But, the process related to the SCM and Accounting are most significant process that determine overall growth and success of a bakery business and works as fuel to the whole business. In addition to this, it is also important to know that, currently the bakery business firm is facing a lot of issues related to accounting & production and as results of this it had failed to produce more bakery products at the lower costs. This impacted the performance, the level of sales, customer satisfaction level, and productivity of the firm directly or indirectly. In addition to this, the case indicates that, the bakery business having immediate needs for the accounting experts and professional so that they could perform several functions of the bakery business related to bookkeeping (Bodnar, and Hopwood, 2001).

But, the major problem is that, in hiring of accounting experts, the bakery owner has to invest huge money that would be costly and expensive for the company. The company is already facing several issues related to profitability and sales. On the other hand, it is also accessed that, the bakery business is also required to take competitive decisions in order to compete in the market by offering low cost products. At the same time, the bakery owner would also require real time information and data for the smoothly functioning of business. In the same way, in order to fulfill all these goals and objectives, the company would need to adopt and execute AIS (Accounting Information System) (Kizza, 2013).                        

Additionally, with a specific end goal to perform different sorts of key capacities and parts into satisfy the long haul destinations and objectives, the pastry kitchen business would need to concentrate on receiving AIS. Likewise, to lead bookkeeping, back and store network related capacities; the bread shop would require AIS/ERP Systems. For instance, by utilizing AIS/ERP Systems, the bread shop business would have the capacity to lead these capacities in an inventive, dynamic, and precise way. In this way, there is strict and quick business need to receive and execute undertaking asset arranging frameworks or AIS. Also, this would enable the association to take the advantages of money related usefulness highlight to lead monetary reports. Along these lines, to direct the monetary and bookkeeping capacities, it would require AIS/ERP Systems (Gelinas, Dull, and Wheeler, 2011).

Importance of SCM and Accounting Processes in Bakery Business

Furthermore, the association would likewise require to behaviors anticipate the stock control so it would help in enhancing the inventory network procedure of the firm specifically. To upgrade authoritative profitability, oversee everyday capacities, lessen costs, enhance basic leadership, and accomplish upper hands from the focused market, the pastry shop firm would need to embrace AIS/ERP. In the meantime, the beginning would likewise require following the execution of firm on the general premise, this framework would help the association in following, measuring and checking of authoritative execution in a successful and appropriate way. Generally, the bread shop association ought to concentrate on utilizing new frameworks to bring advancement, enhancements, dependability, adaptability, responsibility and respectability inside the essential capacities (Kaushik, 2013).

The new framework, for example, AIS would help the bakery association in offering of a considerable measure of substantial and elusive advantages. For instance, AIS framework would help the association in enhancing the consumer loyalty rate, asset portion, data exactness, basic leadership capacity. Interestingly, it would likewise help in lessening the quality expenses and different mistakes or issues. AIS would likewise help in upgrading the hierarchical proficiency, detailing and arranging, encouraged administrative consistence, streamlined business handle, enhancing information/data quality. Similarly, it would likewise more important for the organization in institutionalized their present business handle, and enhancing joint effort. In the meantime, the ERP would likewise enable the association to gather continuous data and information from the diverse divisions. Besides, AIS would likewise assume a key part in fulfilling the requirements and needs of key partners in a successful and appropriate way (Hall, 2012).

In addition to this, the bakery business must also focus on considering the possible functions, services, features and functionalities of the AIS software in order to fulfill and attain Information Technology related objectives and goals. For example, the firm would be able to integrate its core functions with the business objectives with the effective use of AIS. The owner of the bakery would be able to access the information and data about the entire business process in an innovative and accurate manner. AIS would also assist the organization to conduct various transactions in a single entry and this allow to access entire performance of the company effectively. It would also allow the accountants of the bakery to conduct their functions accurately and properly. For case, they could be able to share important information within the company (Kennerley, and Neely, 2002). This would also provide the opportunities to improve internal control environment of the firm by maintaining accountability, creditability, flexibility. Apart from this, the following are the key features of the AIS systems that should be considered by the Bakery business:

• Defeat excess information section and procedures
• Streamlining procedures and work processes
• Sharing of data
• Improve proficiency and work process
• Basic leadership
• Integrating business processes
• Limiting stock expenses (Jansen, and Grance, 2011)
• Attaining IT investment objectives  
• Track real expenses of exercises
• Better perceivability into records and less charging

Benefits of Adopting AIS/ERP Systems in Bakery Business

In the present time, due to the up-degree and upgrades in the innovation, number of programming or software applications is accessible in the commercial center that could be utilized by the business firms to satisfy their IT related needs and needs. Furthermore, the significant sorts of software or applications are ERP SAP, Accounting software (MYOB, Xero), enterprises application, DSS, TPS, MIS, and so on. Be that as it may, the principle programming applications utilized by the organizations or business firms are SAP ERP, Xero, Recon and MYOB. Aside from these, Entry level software, enterprise accounting, are other accounting programming applications that could be utilized by the organization keeping in mind the end goal to bring advancement inside the present business handle (Lyytinen, and Rose, 2003).

SAP, Microsoft, IBM, Oracle Corporation, MYOB, Recon, Xero and so on are the significant merchants or venders of various types of programming applications. These merchants are putting forth extraordinary interesting sorts of programming or application or answers for their individual and corporate customers with a specific end goal to satisfy their necessities and needs. These are distinctive in term of their offering of items and administrations. It implies these merchants are giving comparable sorts of programming items yet they are not comparative in term of clients, value, cost, capacities, administrations, functionalities and so on. These are the main considerations that are making the distinction among the product application (Jain, and Shanbhag, 2012).

The following discussion indicating a clear overview about the major vendors, their software, along with the key services, feature and functionalities:

SAP: It is one of the biggest, greatest and driving enterprise programming applications giving organization of Germany. It is putting forth cloud based programming’s to the business firms that are anything but difficult to utilize and get to and not required any additional cost for the usage. Essentially, this product application is intended for the multinational and huge organizations so it is a top of the line ERP application or classification of arrangement. This product is enables the organizations to lead and play out their mind boggling errands identified with center fund, human asset, store network, item plan and pay. Then again, by utilizing this application, the clients could bring advancement inside their present business process and frameworks (SAP. 2017).

MYOB:  It is a bookkeeping programming organization of the Australia that enable the clients to maintain a strategic distance from blunder made by the human inside the bookkeeping, examining and money related capacities. The principle highlight of this item is it is a program based bookkeeping item that could be gotten to effectively by any organization. Yet, this product is appropriate for the little and medium estimated organizations that need bookkeeping arrangement of their issues. In addition, it is programming of medium class. Then again, the client could direct the capacities related with the charging, money, tax assessment, arranging, and store network and stock administration however for the time being. Subsequently, this could be utilized to energize the bookkeeping staff and allot the assets adequately (MYOB. 2017).

Key Features of AIS Systems that should be Considered by Bakery Business

Xero: It is other programming application organization that is managing in bookkeeping/money related programming. This item is successful for the little organizations and medium measured could use for the restricted capacities. It goes under the low to medium classification programming. This depends on the product as an administration innovation and enables the clients to play out the capacities identified with the bookkeeping and fund adequately (Xero. 2017).   

Most Suitable Software: On the basis of above analysis of functions, services, functionalities of all the software application, it is suggested to the bakery company that it should adopt MYOB as compare to Xero and SAP. For example, SAP is suitable, effective and appropriate for the companies those have big organizational structure and have to perform various complicated functions. It is not effective for the small or medium sized company as results of this, bakery is a medium sized company and it wants only solution for the accounting and finance. In addition to this, it is also important to know that, the software application would also require high implementation costs that may affect the profitability, sales, and profit level of the bakery. On the other hand, SAP would also require more time and efforts to the implementation process, so it would be time consuming and costly for the bakery. In contrast, Xero would also be not effective, appropriate and suitable for the bakery because it would not provide significant business opportunities to the bakery to conduct a number of functions. This software could be used and accessed only for the limited time and functions. In the same way, the company would not able to attain its IT investment objectives and key goals in an effective and proper manner. At the same time, it is also found that, Xero could not provide competitive scope and improve supply chain related activities of the bakery business. So, it should not adopt this software (Williams, Haka, Bettner, and Carcello, J2005).

But, the company could adopt MYOB as AIS within the company to support its core functions, process, mission and vision. Hence, it would be more suitable as per the current business situation, requirements, costs, time and efforts of the bakery company. This software would help the company to collect and generate significant and meaningful information in the real time. On the other hand, it would also optimize the resources, save costs and overcome various challenges and issues associated with the data breaches and security issues. In addition to this, the company would be able to bring innovation within the current process and method and improve organizational effective in an effective and more significant manner. It is also more cheaper, cost effective, and innovative software as compare to others. Overall, it is recommended to the bakery that it should use, adopt and implement MYOB as accounting application to solve complex accounting issues and challenges at the reduced costs (Duggan, Johnson, and Grawemeyer, 2012).     

Overview of Major Vendors and their Software for Bakery Business

Compare and Contrast Features/ Functionalities of Accounting Software Package

The following given table is showing the major differences among the two software packages

MYOB	XERO
· Used for unlimited functions and transactions · Suitable for Medium sized firms · It is cloud based software approach · No Security related issues · Less time to update · Users could get multiple “snapshots · Requires the installation of an application · Takes less time for transactions · In term of cost, it is not costly · Good Performance · Offers First Mover Advantage	· Limited transactions can be performed · Mostly Suitable for Small companies · Based on Browser-based approach · Security issues due to Browser-based · Higher time to update · The bookkeeper could not take such benefits · No need of installation · Take much time to proceed outcomes · It is costly (Xero. 2017). · Average performance · Not provide such services

In addition to this, there are various similarities exit between two softwares. For case, both the software helps the user to attain their key objectives related to finance and accounting. Moreover, both allow users to analyze financial performance of the company. For case, a company could take competitive scope by using these. Because these applications play a key role in reducing the errors, overcoming the future business challenges, improving the organizational efficiency and dealing with a lot of issues. In addition to this, both allows users companies to effectively prepare and send invoice to their customers. Along with this, both the application plays key role in the overall success and performance of the company. Moreover, both MYOB and Xeroa are web based, support android applications, window phone applications. On the other hand, in term of online support, and phone support, both are similar (Chorafas, 2008).           

Most Suitable Vendor for Bakery Business: On the basis of above fact and analysis, it can be said that, MYOB would be most suitable, effective, appropriate vendor for the bakery business. It is because the key features, services and functionalities of MYOB is allow to create significant business opportunities, reducing costs and improving accounting process. For example, MYOB is a highly scalable software application that would allow the bakery to conduct a number of transactions in a single entry effectively. Moreover, this would also support both financial and accounting transactions and functions of the company through multi functional support. At the same time, MYOB would also play a key role in reducing the ownership cost and the owner of the bakery would be able to manage and control all the resources of the firm in an effective and accurate manner. Along with this, it is a cloud based software application, so it would not take much time, efforts and cost for the implementation. It would also build strong relations with the key customers and stakeholders. In the same way, it would allow the bakery to earn more profit, revenue, and market share from the competitive market. It would also help the company in attaining its IT investment goals and improving the ROI through the effective utilization of resources (Bidgoli, 2006).          

Conclusion

In light of the above examination, it can be closed and compressed that, with a specific end goal to bring development and enhance business prepare, every one of the sorts of organizations or associations must utilize data frameworks and advancements. Then again, a product or merchant must be chosen on the elements capacities and different viewpoints. General it can be inferred that, to contend in the market, enhance authoritative effectiveness, decrease mistake and increase critical market openings, business firms or different organizations ought to utilize data frameworks and innovations.

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