Information system and technology are considered as a significant source of the organization as it plays a noteworthy role in every department or operation of the company. Further accounting information refers to a structure which is used by a company to assemble, store, process, supervise, regain back and preparation of its financial reports (Truong, 2016). The information directly affects financial statements which are utilized by consultants, accountants, executives and other regulations as well as tax organizations. In addition to this, companies hire skilled accountants so that they work according to the AIS and same leads to enhancement of accurateness and the effectiveness of the system. Present report revolves around discussion relating to the significance of Accounting Information System for Kogan .Com. Apart from this, the functionalities which are important for the company are considered and also discussed in order to analyze the business process of the restaurant. Eventually, the most suitable accounting software has been suggested which satisfies the needs of the restaurant.
Konga.com is a group of retail and services business comprising Kogan Retail, Kogan Market, Kogan Mobile, Kogan Internet, Kogan Insurance along with Kogan Travel (Overview of Kogan, 2017). Further, the Kogan brand is popular for price leadership through digital competence. Kogan concentrates on making goods and services which are in-demand more reasonable and available. It is situated in Melbourne, Australia.
Moreover, Kogan retail provides products from leading brands across a broad variety comprising customer electronics, appliances, homewares, hardware, playthings and so on. It owns and functions a collection of limited private label brands. In addition to this, Kogan Mobile which is a part of Kogan.com offers the services of mobile offerings. Kogan Internet, it is another part of Kogan.com which provides value-based NBN™ internet strategies. Apart from this, Kogan Insurance provides simple and reasonable house, contents, car as well as travel indemnity. Kogan Travel offers services of incredible travel that deal with the very famous destination.
With accordance to Chang (2016), the business process is a collection of the linked task that once completed will attain the objective of the company. Moreover, it can be stated as a set of interconnected or interacting actions through which inputs can be converted into outputs (Hammer, 2015). This utilizes resources such as individuals and stuff. In order to have an effectual administration of restaurant, it is essential to have the appropriate approach to the business process.
Figure 1 Business Process of E-business
(Source: Uyar, Gungormus and Kuzey, 2017)
Inputs: These can be referred to as the core for attaining efficiency in the operations of an e-business. Since if there are no inputs operations cannot be carried out. These comprise the initial requirement of an e-business such as people, software, process, equipment as well as surroundings. Efficient technology and the appropriate staff are available at Kogan .com. As due to the availability of appropriate resources company is expecting to move further to enlarge its operations. It is stated by Nanda, (2016), that, in order to increase the efficiency of business it is very important that the employees satisfied with the decisions of management. The main emphasis should be made on required staff along with software and technology and equipment to run the online business in a smooth manner.
Interrelated activities: There are some activities which are interrelated with each other. Some of them are business processing of organization, procuring, storing, marketing, accounts etc. Accounting activity relates to invoices relating to online sales of product concerning the products and services which are vented to them. Subsequently, the order of sales is taken by investigating future markets. This includes assessing the trend of product so that stock could be maintained in the same accordance. Secondly, the HR manager will undertake the issues relating to management in the organization. Thirdly, the marketing and sales department which relates to the promotion of services offered through business. This will include the ascertainment of the platform on which the services of the organization require to be promoted. Apart from this, they also have to decide appropriate process approach after assessing that it will be useful for the business or not.
Output refers to the results which are desired. They are the result of inputs which are employed in order to obtain the desired outcome. Further, outputs are the goods and services which are provided to consumers. Thus, Kogan.com is expected to provide all the products required by the customer in order to accomplish their needs. The company is expected to focus on the quality of the product, and it should be according to the specification provided on the product so that customer could have trust in the company. Further, the latest trend is expected to be part of an organization so that the service provided by the company could also be as per them. As per assertions of Soni, Saluja, and Vardia (2018), trust in the responding ability of the service and addressing issues is imperative, for complementing the new business innovation culture and cloud computing the manager’s needs to conduct skills adjustments. Thus, in order to achieve objectives, it is necessary that company required to provide effective training so that the needs of customers can be assessed in an appropriate manner.
The main operation of Kogan.com is to provide products and services to its customers through an online portal. Thus, it is necessary to provide information to the customer in an appropriate and interactive manner so that they could be encouraged to purchase the products or services. The technology available to the system should indulge the latest trend in itself so that the company is able to provide the same through its services. E-business comprises new risk which is required to be addressed by the program of the system applied in the organization in order to mitigate the risk. The fundamental changes in the system will lead to change the manner of execution of operations in business. As the company provides products as well as services online, thus IT risk is the most significant variant to be assessed in the system requirement. The system requires to the adequate main backup procedure so that in case of loss of data company is able to recover its books of accounts. The other feature on which the main emphasis is required is Bugs and error in IT application. The integrated collection of tactics of accounting information system supports in effective decision making as well as for providing feedback relating to daily operations. It can be referred to as a necessary requirement of a system. The elements which are applied to evaluate a system are timeliness, accuracy, consistency, completeness and relevance. The system should be able to generate effective reports so that the data which has been extracted in reports could be applied for effective decision making. Accounting information system comprises details of economic events of an organization and then processes them in accordance with the demand of different organization. Further, the same is provided to the specific department who are responsible for taking a decision.
A system is having a close connection with the management information system, the accounting department as well as the administration system. The reason behind the same is that the system is responsible for acquiring, coding, recording as well as processing the data in order to provide the same to the responsible system. It is believed that the human factor plays a vital role in order to implement a system in an appropriate manner (Ha, Manh and Van Anh, 2017). As the specified human factor is the one, who interprets the reports provided by the system as well as takes decision in accordance with it. Even the reports which are provided by the system are developed in accordance with the instruction provided by a human. The software of a system is chosen in accordance with the nature of activities of business as well as a business process applied in a system. In the present case of Kagon.com which is an E-business, the variants which are required to be an assessed selection of software are understandability, accessibility, security from mal-functioning, security from virus and other internet issues etc. The basic accounting system of an organization is supported by software modules of the system which can be connected as well as capable of cooperating in an efficient manner.
An e-business usually has a complex system, and in that case, it is necessary for the software to support the fundamental activities, the various procedures in detail although in an incorporated manner. In order to understand this, it is important to have a universal database replicating the entire operations of the organization, modified information and trustworthy data. It is stated by Lochrie et al. (2016), that, the main objective of complex information is to prop up the planning and strategic decisions of the administration under which management information system plays an important role. Moreover, the system also supports the inner system of the company as well as its process. At the commencement of creation of the system fulfilling the demands for accounting, financial rules and administration’s anticipations were crucial. But later this incorporated leads to boosting up the efficiency, making the best of capacity, optimizing the supply processes, lowering the expenditures as well as the capability of planning. As at that time, the business and logistic areas were the main areas of interest. In the present time, the main factors are mitigating risks, building and keeping steadiness as well as acquiring reliable data for the decision of the administration can be specified as a necessary requirement of the system. Thus, in order to survive in the market, Kogan has to be up to date with the system software.
Figure 2: Phases of E-business in which system plays a significant role
(Source: Abdelaziz, 2016)
Figure 3: Accounting Information System of E-Business
(Simkin, Norman and Rose, 2014)
According to Simkin, Norman and Rose (2014), the accounting information system refer to a system that utilizes economic data obtained from the interior and exterior transactions of the business. Further, accounting information does not have one definition. It has been shown by Hall in his study, accounting information system as a secondary-branch of administration information systems. In addition to this, the main role of this system is to exercise financial as well as non-financial transactions. In other words, the accounting information system can be defined as a system of recording, categorizing, summarizing and exposure of economic actions influencing businesses (Teittinen and Granlund, 2017). Therefore, executives must authenticate the accurateness of information to make a decision in a more appropriate manner. The three categories of accounting software have been specified below:
According to Chowdhury, Bari, Ahmed and Boutaba, (2014), low-end accounting software enables the most fundamental accounting operations to be exercised at the low end of business markets. It is usually created for small business and generally could be purchased as off the shelf software from main retailers. Further, it is generally not specific to any particular diligence or vertical market; it can be utilised across a wide spectrum of business types. If the business is small and only requires something simple to create billing invoices, enter AP invoices and cut checks this software might be appropriate for them.
With accordance to Nori, Kassim, Ahmad and Nasir, (2016), mid-market accounting software enables accounting in multiple currencies in the mid-market encompassing a wide variety of business which is able of satisfying the needs of multinational organizations. The mid-market encloses a wide variety which might be able of serving up the requirements of multiple national accountancy standards and enables accounting in various currencies. Further, the software might comprises incorporated or add-on management information systems and might be oriented to one or more markets, for instance with incorporated or add-on project accounting sections. Moreover, software applications in this market usually comprise some features which are given below:
High-end accounting software has the feature related to execution for long-term usually more than months. According to the Seethamraju, R., (2015), the most difficult and costly business accounting software is often part of an extensive set of software frequently known as ERP that is enterprise resource planning software. As per the study of Wolfe, Fitzgerald and Newton (2017), these applications usually have a long period of execution, frequently more than six months. There are many cases in which applications are merely the set of operations, entails critical incorporation, configuration along with customization to even instigate to resemble an accounting system. Nowadays there is numerous freeware high-end open-source accounting software which is accessible at online sites, intends to modify the market dynamics. Many of these software solutions are web-based.
High-end accounting software has been selected for Kogan .com. The benefit of the high-end solution is, these systems are created to prop up individual company-specific procedure since they are extremely customizable and can be modified to accurate business requirements (Hoyle, Schaefer and Doupnik, 2015). Further, this generally comes at a critical cost in terms of resources and execution time. The company has selected the high-end accounting software because it will boost up the productivity of the company. Since it provides digital accounting solutions which will speed up the process of business and it also provides extra time to manage the tasks which are significant. Further, with the help of this software, the books of accounts will remain up to date with minimum hassle as well as de-clutter the company liberty through eradicating the requirements for reams of paperwork.
MYOB: The specified accounting software is feature-rich as well as reasonable cloud accounting solution. Further, it is the online software which is effectual and very simple to use, it provides organization complete control over resource, time and administration. It ensures a maximum profit at minimum cost so that small as well medium size organizations could record and handle expenditures, continue tax complaint, resolve transactions and can exercise regular operations (Trigo, Belfo and Estébanez, (2014). The software provides solution relating to accounting, processing of payroll, retail point of sale. CRM, live reporting, bookkeeping, job administration, tax acquiescence and report filing.
SAP: SAP Enterprise Resource Planning (ERP) is designed in accordance with the requirement of companies. The solution could be implemented as SAAS, i.e. Software as a Service on principle or as a cross model which provides the advantage of both. It depends on the company that which way it chooses since whichever the way will be they will obtain full-enabled support for the units and services offered, guaranteeing complete access to system operations at the job, at home or on the go. The system allows the company to acquire control of the full contract lifecycle consisting of finding a term which will offer advantages to both the company and its supplier. Moreover, it should be kept in mind that the following practices have to continue now and when the company develops as well as reaches new markets. Apart from this, SAP REP could automate the purchasing process, making sure that the process is followed in an appropriate as well as the reliable manner and is implemented effectively.
XERO: As per assertions of Jenkins, (2016), this accounting software is easy, smart and safe having the clear objective of assisting small companies and their consultants to make the best of their accessible infrastructure and resources. Moreover, as it is developing hastily, modern accounting as well as bookkeeping software, Xero is particularly designed for cloud computing. Therefore, the company can do just about everything they need from the device. As per the study of Apostolou, et al. (2014) it is believed as leading software across the world for cloud accounting. It facilitates companies to function more effectively and increase access to a range of tools as well as operates to control bank transactions, send and obtain invoices, extract and accumulate statements whenever the company needs it from anywhere in the globe. Further, it is an all-in-one solution which unites the following characteristics:
XERO software is most appropriate for the present organization as it takes less time and resources. It offers flawless connectivity deliver by a receptive and easy to use dashboard which offers high-value instruments and operations for every payroll and financial process. Benefit from whole control and instinctive readings to exercise an effective practice online will be available to the company through its implementation. Moreover, this software comprises everything which the client requires such as invoicing, bank reconciliation, reporting and so on. The specifications are given below related to why Xero is appropriate for Kogan.com.
Reason due to which XERO is more appropriate in comparison to other accounting software:
Simple Invoicing: Personalize customary templates with company logo and information regarding business, build up own consumer invoice then control the complete procedure from one place. Moreover, consumers who prefer to make payments through credit cards or PayPal, the company can schedule a routine payment reminder to be issued on the chosen date after the invoice gets late. The software could imitate invoices, send volume invoices and even stores general invoicing information in order to fasten speed of procedure and they could do it by using their cell phones if they are far away from the office.
A glimpse of business performance: Set objectives, track performance and collect information from the platform in order to convey tailored statements, graphs and charts so that it can see any time when it is required, in real time, accurately where they stand. This immediate access to critical business metrics provides invaluable imminent to assist in making knowledgeable and appropriate business decisions.
Quick Quotes: It set up information related to stock and pricing which facilitates the creation of appropriate quotes hastily (Collier, 2015). This feature provides more detail than that though-once delivered, the system would revise actions of clients so that it can be seen when the quote has been approved, refused or even commented by a view so that it can understand that when and how it has to follow. Once the project is finished, the original quote can be turned into invoice to send directly which requires less management and provides payments quickly.
Conclusion:
It can be concluded from the above discussion that the selection and execution of accounting software rely on the requirement and activities of the business. Further, it is important for a business to define its operations clearly in order to adopt appropriate accounting software for the company. The organization could develop the software in-house, could purchase from the seller or customize the software as per the requirements related to the procedure of company. At the same time, it is a very difficult task to select and implement the software. However, through contrasting the characteristics of software the company can select the software which is best for the company. Thus, the accounting software which is selected, that is high-end accounting software by Kongo. The reason for selecting this software is that the company would be able to take more effective decision with the application of same as well as will be able to explore in an enhanced manner.
It is recommended to Konga that investment should be made in information technology since it provides enhancement in the administration of the company. With the help of software, Konga.com will be able to offer various services to consumers in a more effective manner so that they remain loyal to the company by being satisfied with the quality of services. It is recommended that Konga high-end software will be appropriate for the company. Since it is considered as the leading company and attempting to explore towards extending its business in the other countries also. Hence, it will be better to utilize the high-end accounting software in the company by modifying the software according to the specifications of the company. It could incorporate all the functions for example planning, procurement of material, and administration of inventory, finance and marketing in one software through which company could determine its own recital and with the help of the same the company can make the policies for future. Moreover, the software which is adapted by the Konga is simple to utilize. Thus, the same will lead to increase in productivity and efficiency of the company.
References:
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