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 softwares 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 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
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 ERPs 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 ERPs 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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use of the information contained herein.

Chapter
15-36
Chapter 15

Chapter
15-37