Chapter 15:

Accounting and Enterprise Software

Introduction

Integrated Accounting Software

Enterprise-Wide Information Systems

Selecting a Software Package

Chapter
15-1
 Introduction

Advances in Accounting Software

 Initially processed bookkeeping transactions
 Developed into powerful and complex data
collection programs

Enterprise Resource Planning Systems (ERP)

 Provide all accounting functions
 Interfaced with multiple functional areas of
business
 Manufacturing, Sales and Distribution, HR
Applications Chapter
15-2
Integrated Accounting
Software

Function
 Process all types of accounting transactions
 Transactions affecting general and special journals

Modules
 Organizes transaction processing in modules
 Provides links between modules
 Include Accounts Receivable, Accounts Payable,
Inventory, and Payroll

Chapter
15-3
 Features of Integrated
Accounting Software Programs

Chapter
15-4
 Small Business Accounting
Software

Information Needs of Small Business Owners

 Cash Flows
 Evaluating Profitability

Popular Software Packages

 Quickbooks by Intuit
 Peachtree Accounting

Chapter
15-5
 Small Business Accounting
Software

Features of Software
 Vary by provider
 Numerous reports including financial statements and
budget reports
 Scalability
 Internet Connectivity

Adoption
 Owners must still learn the various features of the
programs
Chapter
15-6
 Midrange and Large-Scale
Accounting Software

Utilization
 Transaction processing needs grow
 Volume and complexity

Popular Software Packages

 Microsoft Dynamics GP
 SAP Business One
 Epicor
 Sage software’s MAS 90, MAS 200
 Everest
Chapter
15-7
 Midrange and Large-Scale
Accounting Software

Cost Considerations
 Range from $2,000 to over $300,000

Features
 Multi-currency transactions
 Currency conversions
 Various modules and interfaces (CRM, HR)
 Deployment options (desktop, web-browser)
 Hosted solutions
Chapter
15-8
Midrange Accounting
Software Integration

Chapter
15-9
 Specialized Accounting
Information Systems

Specially designed software for specific industries

 Schools, Dental Offices, Pet Retailers

Can be designed as add-on modules for integrated

software packages

Independent developers create programs to

interface with integrated packages

Chapter
15-10
 Study Break #1

Which of the following accounting software programs would

be appropriate for a small business (e.g., a sole proprietorship
with 20 employees)?

A.SAP
B.QuickBooks
C.NetSuite
D.Oracle

Chapter
15-11
 Study Break #1 - Answer

Which of the following accounting software programs would

be appropriate for a small business (e.g., a sole proprietorship
with 20 employees)?

A.SAP
B.QuickBooks
C.NetSuite
D.Oracle

Chapter
15-12
 Study Break #2

Mid-level accounting software:

A.Can only be deployed through a server networked with

desktop computers
B.May be purchased in modules that match various business
processes
C.Will not be appropriate for a multinational company
because these programs cannot handle foreign currencies
D.Is generally inappropriate for a company operating in a
specialized industry, such as retail or not-for-profit
Chapter
15-13
 Study Break #2 - Answer

Mid-level accounting software:

A.Can only be deployed through a server networked with

desktop computers
B.May be purchased in modules that match various business
processes
C.Will not be appropriate for a multinational company
because these programs cannot handle foreign currencies
D.Is generally inappropriate for a company operating in a
specialized industry, such as retail or not-for-profit
Chapter
15-14
 Enterprise-Wide Accounting
Software Solutions

Enterprise Resource Planning Systems (ERP)

 Enterprise software and Business application suites
 Integrated program with central database

Popular Products
 Microsoft Dynamics AX
 SAP All-in-One
 Oracle
 Sage MAS 500
Chapter
15-15
 Enterprise System
Functionality
Basic ERP Functions
 Integration among major business processes
 Order processing and Fulfillment, Manufacturing,
Purchasing, and Human Resources

Extended ERP Systems

 Back-office functions
 Front-office functions

Chapter
15-16
 Extended ERP Systems

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Business Intelligence Tools (BI)

Partnership Relationship Management (PRM)

Chapter
15-17
ERP System Integration

Chapter
15-18
Supply Chain Example

Chapter
15-19
The Architecture of
Enterprise Systems

Chapter
15-20
 The Architecture of
Enterprise Systems

Systems Configurations
 Often run on company’s system
 Hosted solutions help alleviate risks

Centralized Database
 Each data item stored once
 Prevents data redundancy
 Data immediately available to all business functions

Chapter
15-21
 The Architecture of
Enterprise Systems

Application Interfaces
 Best-of-breed approach
 Enterprise application integration(EAI)

Internet Portals
 Gateways to other web sites
 Enhances communication and productivity among
employees, customers, partners, and suppliers

Chapter
15-22
 Study Break #3

Which of the following is distinguishing characteristic of an

enterprise-wide (ERP) system?

A.Must be a hosted solution

B.Multiple databases
C.Integration of business functions
D.Low cost

Chapter
15-23
 Study Break #3 - Answer

Which of the following is distinguishing characteristic of an

enterprise-wide (ERP) system?

A.Must be a hosted solution

B.Multiple databases
C.Integration of business functions
D.Low cost

Chapter
15-24
 Study Break #4

Components of an ERP’s architecture typically include:

A.A centralized database and application interfaces

B.Internet portals and multiple databases
C.A centralized database running on a mainframe computer
D.Business intelligence and multiple databases

Chapter
15-25
 Study Break #4 - Answer

Components of an ERP’s architecture typically include:

A.A centralized database and application interfaces

B.Internet portals and multiple databases
C.A centralized database running on a mainframe computer
D.Business intelligence and multiple databases

Chapter
15-26
 Business Process
Reengineering and ERPs

ERP Integration
 Entails reengineering an organization
 Encourage conformity with best practices

BPR Success
 Planning
 High-level review of process
 Support from top management
Chapter
15-27
Key Aspects of BPR Success

Chapter
15-28
 Costs and Benefits
of Enterprise Systems

Chapter
15-29
Sales Dashboard Example

Chapter
15-30
Anatomy of a Digital
Dashboard

Chapter
15-31
Measuring the Value
of an ERP

Chapter
15-32
 Summary of
Software Packages

Chapter
15-33
When is a New AIS Needed?

Chapter
15-34
 Selecting the Right Software

Approach will vary

 Complexity of the business and software
 Packaged software or custom system

Acquiring Software
 Utilization of value-added reseller (VAR)
 Vendor consultants

Chapter
15-35
 Copyright

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Chapter
15-36
Chapter 15

Chapter
15-37