Chapter

9-1

Chapter 9:
Accounting and Enterprise
Software
Introduction
Integrated Accounting Software Programs
Enterprise-Wide Information Systems
Selecting a Software Package

Chapter
9-2

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
9-3

Integrated Accounting
Software Programs
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
9-4

Features of Integrated
Accounting Software
Programs

Chapter
9-5

Small Business
Accounting Software
Information Needs of Small Business Owners

Cash Flows
Evaluating Profitability

Popular Software Packages

Microsoft Small Business Accounting

Quickbooks by Intuit
Peachtree Accounting
Chapter
9-6

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
9-7

Mid-Range and Large

System Accounting
Software
Utilization

Transaction processing needs grow

Volume and complexity

Popular Software Packages

Microsoft Dynamics GP
SAP Business One
Epicor
Sage softwares MAS 90, MAS 200, Everest, and Accpac
Chapter
9-8

Mid-Range and Large

System 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
9-9

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
9-10

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
9-11

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
9-12

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
9-13

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
9-14

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
9-15

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
9-16

Extended ERP Systems

Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Business Intelligence Tools (BI)
Partnership Relationship Management (PRM)
Chapter
9-17

Supply Chain Example

Chapter
9-18

The Architecture of
Enterprise Systems

Chapter
9-19

The Architecture of
Enterprise Systems
Systems Configurations

Often run on companys system

Hosted solutions help alleviate risks

Centralized Database

Each data item stored once

Prevents data redundancy
Data immediately available to all business functions
Chapter
9-20

The Architecture of
Enterprise Systems
Application Interfaces

Best-of-breed approach
Extended application integration(EAI)

Internet Portals

Gateways to other web sites

enhance communication and productivity among
employees, customers, partners, and suppliers
Chapter
9-21

Study Break #3
Which of the following is NOT a distinguishing characteristic
of an enterprise-wide (ERP) system?
A.Hosted solution
B.A central database
C.Integration
D.Best practices for business processes included in the software

Chapter
9-22

Study Break #3 - Answer

Which of the following is NOT a distinguishing characteristic
of an enterprise-wide (ERP) system?
A.Hosted solution
B.A central database
C.Integration
D.Best practices for business processes included in the software

Chapter
9-23

Study Break #4
Which of the following is correct regarding ERP systems?
A.Early ERP systems focused on back-office functions
B.ERP systems evolved largely from a manufacturing
environment
C.ERP systems do not include CRM or SCM functionality
D.Both a and b are true

Chapter
9-24

Study Break #4 - Answer

Which of the following is correct regarding ERP systems?
A.Early ERP systems focused on back-office functions
B.ERP systems evolved largely from a manufacturing
environment
C.ERP systems do not include CRM or SCM functionality
D.Both a and b are true

Chapter
9-25

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
9-26

Key Aspects of BPR Success

Chapter
9-27

Costs and Benefits

of Enterprise Systems

Chapter
9-28

Sales Dashboard Example

Chapter
9-29

Anatomy of a Digital
Dashboard

Chapter
9-30

Measuring the Value

of an ERP

Chapter
9-31

Summary of
Software Packages

Chapter
9-32

When is a New AIS

Needed?

Chapter
9-33

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
9-34

Copyright
Copyright 2010 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make backup copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility for errors,
omissions, or damages, caused by the use of these programs or from the
use of the information contained herein.

Chapter
9-35

Chapter 9

Chapter
9-36