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Explain The Place Of An Accounting InformationSystem Organizations

123articleonline.com/articles/1224706/explain-the-place-of-an-accounting-information-system-organizations

Executive summary

For speeding up business functions and processes the organizations needed

advance clouding computerized software’s that support in speeding up

accounting and other business operations in the company and through

finishing up and solving the unresolved and complex accounting tasks. From

the analysis of the differences in the features and the functionality of the SAP and Oracle

cloud-based accounting system it is revealed that Oracle is a better option for the Ahalife

Holdings Limited because through the Oracle system the company attains better supply

chain, CRM, budgeting and accounting operations that support them to attain high future

growth.

By implementing Oracle the company also not need to incur high cost for making it

customized for the company and for hiring special staff to operate it. The operations of the

accounting are also done in a better manner with less time. Therefore, Oracle is the best

choice for Ahalife Holdings Limited Company to implement.

Introduction

In today business world the accounting and the reporting practices are measured as an

essential function of the central finance that plays an essential role in the corporation.

This is moreover subdivided into the functions like payables and receivable management.

For speeding up these functions and processes the organizations needed advance clouding

computerized software’s that support in speeding up accounting and other business

operations in the company and through finishing up and solving the unresolved and

complex accounting tasks. They also support in order to attain the goals of the vigorous

workflow along with comprehensive control over company financial final cycle

(D.M.J.Wickramsainghe, et al., 2017). The use of the clouding accounting software’s in

the businesses not merely saves the time because most of the work done automatically but

also saves the company cost because by this less error occur and the company does not

require a high amount of staff that perform different operations. As by automation, one

employee becomes able to handle many accounting and business operations effectively

that support the sustainable growth of the business. This show how companies benefit

from the cloud accounting software’s, but it’s essential for the companies to select the best

software that matches their business operations and objectives (Olatunji, 2013). So, in

this report as the consultant in the management consultancy firm, we evaluate the best

accounting system for our client that is Ahalife Holdings Limited whose CEO thinks about

investing in the cloud-based accounting system that supports their future business

growth. So, in this assignment, we select two cloud-based accounting software packaged

vendors and explain their functions and features and make comprise between them for

selecting the best accounting system option for the company.

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Background of Ahalife Holdings Limited

The company from the list of the Australia that is selected for this Assignment is Ahalife

Holdings Limited that online retail company exist in Australia. The company through

their online based platform offered the premium lifestyle and designed goods to the

consumers. Through the company, the customers become able to purchase products

directly from the community of above 4300 globally top-quality designers and artisans

products. The business model of the company is the direct drop-ship approach between

the customers and the designers of the products, avoiding the requirement for the

distribution and the storage of the inventory of the products and the other related

inventory risk (AHAlife Holdings, 2019).

The company allow the users to shop the global most innovative and unique artisans and

designers products through just one click on the website. The company is the curated

place for discovering almost 4000 plus artisans and the designer’s products in 45 plus

countries. The company major business process is to scour the world to find the quality,

exceptional objects for each of the single aspect of the user’s life. The company aim is to

promote the creativity as the company recognized this fact all over the world the

generation of the artisan’s skills and the creative solutions are rapidly losing that might

affect the future of the world. So, based on this the company develop their online platform

that supporting the independent designers and the artisans of the world to compete

effectively with the large companies, expand their business scale, gain high exposure and

connect with the individuals easily through only registering in the company website. The

company offered the registered independent designers and the artisan’s products to the

customers that promote their businesses. The company is empowering the innovators,

designers and the artisans to flourish online by treasuring and purchasing their exclusive

creations. The company understand that the lives of the people become busy and they

don’t have time to discover the innovative designer products that improve their living

style. The company also believed in the low buying power and better buying. So, with the

help of this online platform of the company the customers become able to purchase the

unique products of the artisans and the designers at the reasonable prices. The company

supply chain process is effective as they do not store the products at their warehouse

when the company attains the orders from the customers they contact with the designers

and the artisans and they deliver the products directly from their place this support the

company to attain high efficiency at low-cost operations (Corporation, 2019)

Systems requirement

As the company deals in the e-commerce business where the quality of the service,

process speed and the management is much important for retaining and appealing the

customers that are important for their sustainable growth. The company need the

effective operational management that supports them to offer high quality of the service

that they promised and without any issue of delivery. As the company does not send the

products directly to customers, so they do not have chance to inspect the quality of the

products for this they need systems that ensure that the designers and suppliers send the

product at the high quality and on time so that no issue occur that affect the business

growth. The company also need the software for different operations like effective supply

chain management, accounting operations, communication and engagement with

customers and designers/artisans, customer’s relationship management, inventory

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management and the handling of the budgeting policy and approaches of the company for

their efficient future operation movement (AHAlife Holding Limited, 2019).

Outline the software’s features and the functionalities that Ahalife Holdings Limited

should consider to support its business activities and both vendor description

For the company for efficient operations, they have to use the cloud accounting software.

As the consultant for Ahalife Holdings Limited the two accounting software that we

compare for suggesting the best one option for the company are SAP and the Oracle

software. Both of these are the market leaders and the best providers of the cloud

accounting system in the world that most of the leading companies in the world also uses

for their high growth and operational efficiency in the market. SAP is the essential tool

that allows for the real-time management and tracking of the finance, accounting, sales

and the human resource. SAP software handled the processes like accounting, sales and

production independently. SAP software ensures that the application will not interrelate

with their own network as was done traditionally but must interrelate with the other

processes for the occurrence of the tangible business proceedings. On the other side,

Oracle is the object-relational database management system which comes from an

enormous Oracle Corporation. The Oracle focus highly on how the financial data of the

company moves internally in the organization (Oracle, 2014). Oracle and the SAP systems

differ in that way that the SAP is established of the complex software for allowing the

multiple business assimilation whereas Oracle system comes as the ORDBMS whose

implementation in the enterprise environmental setting is possible. The data

management operation is possible with the use of the oracle whereas the real time process

management of the business is possible with the help of SAP (David, 2018).

Software comparison and contrast their Features/functionalities

There exist many differences between these two systems in term of their features and the

functionalities that are evaluated for selecting the best one software that the company will

implement for their operational efficiency.

General Differences

It is seen that the SAP system provides the set of tools in order to facilitate the flow of the

information in the business. Whereas the Oracle is the multi-model management system.

SAP is the database along with the applications whereas Oracle is just the database and

has no applications. The functional areas of the SAP system include sales, accounting,

distribution etc. When we see the functional areas of the oracle, it is seen that its

functional areas include the database workloads, transaction processing, and the data

warehousing. The implementation cost of the SAP system is also considerably higher as

compared to the oracle and also required specialized staff to be hired to operate it that

raise the operating cost of the company (EDUCBA, 2019)

Affordable customization

Numerous of the businesses in the world complain that the SAP system is highly hard to

tailor or customize without the external assistance and consulting. For this business

required to an involved large amount of the IT specialist and pay the support personnel of

SAP to make a system work according to the specific need of the business that enhances

operating cost and also disturb business operations somehow. On the opposite of it Oracle

system has developed the pluggable structural design that uses the open standards of the

industry. It’s the greater advantage of the Oracle system that makes this system relatively

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easy and efficient for the companies to customize and integrate according to their

business needs. Even the small corporations can tailor and deploy the Oracle system at

the affordable prices (VIP Quality Software, Ltd, 2019).

Time to implement

According to the analysts, Oracle cloud accounting software takes less time to implement

as compared to SAP. Approximately 51 man-hours are required for implementing the

Oracle where SAP required 93 hours for implementation. This show that implementation

life cycle of Oracle system is almost half of the SAP. Because of this feature, Oracle is

better for the company because by this their operations less disturbed because of less

implementation time (VIP Quality Software, Ltd, 2019).

Accounting

Both the system the SAP and the Oracle has the efficient financial and accounting

management capabilities. The features like the account receivable, the account payable

and the management of the fixed asset all link with the perfect score. But Oracle system

copes with succeeding in this classification because of the few aspects. Oracle attains a

slightly better score in the risk management process. The Oracle offers the reliability

reporting and the improved management of finance and ties in with the GRC

requirement. Oracle tools support to prevent from the issues like cask leakage and reduce

risk. The SAP tools of the risk management are also good but not better than Oracle

(O'Shaughnessy, 2019)

Budgeting

Oracle system score in term of budgeting is also higher than SAP system because of SAP

use relatively basic budgeting while Oracle with the tool of asset life cycle management

ensures better budgeting (O'Shaughnessy, 2019)

Pricing

The advance pricing techniques of Oracle make it better than SAP. The Oracle change the

company base prices for matching with the market segment, exchange rate and the

currency etc. Oracle also manages the rebates, discounts profit margins through utilizing

the set guidelines (O'Shaughnessy, 2019).

Customer relationship management

Both systems are good in CRM but have some weaknesses and strengths in diverse areas.

The Oracle does well crossways the board; however, it is not excellent at it. Oracle is good

in the market support that offers the company the ability for managing its campaign on

the single network. SAP is also good in it but not as much as Oracle is.

Supply chain and inventory management

Oracle is better in supply chain and inventory management as it allows the businesses to

track the costs and allocate the resources more proficiently. The Oracle also provides a

more updated stock level record that supports better inventory management

(O'Shaughnessy, 2019)

Human resource

In HR management SAP is far better than Oracle because it allows the users to access the

critical information quickly and easily that support the management decisions efficiency

(O'Shaughnessy, 2019).

Identification of the most suitable vendor and accounting software package for the

company

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From the analysis of the differences in the features and the functionality of the SAP and

Oracle cloud-based accounting system it is revealed that Oracle is a better option for the

Ahalife Holdings Limited because through the Oracle system the company attains better

supply chain, CRM, budgeting and accounting operations that support them to attain high

future growth. By Oracle, the marketing of the company also improves along with

accounting data recording and analysis so that the company attains high benefit from it.

By implementing Oracle the company also not need to incur high cost for make it

customized for the company and for hiring special staff to operate it. The company time

also saves that they need to incur for implementing the system and also their productivity

boosted by the use of Oracle. The operations of the accounting are also done in a better

manner with less time. So, Oracle is the best choice for Ahalife Holdings Limited

Company to implement.

Conclusion

It is concluded that The use of the clouding accounting software’s in the businesses not

merely saves the time because most of the work done automatically but also saves the

company cost because by this less error occur and the company does not require a high

amount of staff that perform different operations. From the comparison of the two

software’s SAP and Oracle, it is better for the Ahalife Holdings Limited Company to use

Oracle because by this along with operational efficiency their operating cost reduction and

time also saves that incurred in working and implementing of the system.

References

AHAlife Holding Limited, 2019. Company Manifesto. [Online]

Available at: https://www.ahalife.com/about

AHAlife Holdings, 2019. About Us. [Online]

Available at: http://www.ahalifeholdings.com.au

Corporation, A., 2019. Company opearions. [Online]

Available at: https://www.ahalife.com/about

D.M.J.Wickramsainghe, Pemarathna, R., Cooray, N. & Dissanayake, T., 2017. Impact of

accounting software for Business Performance. Imperial Journal of Interdisciplinary

Research, 3(5).

David, 2018. Difference between Sap and Oracle. [Online]

Available at: http://www.differencebetween.net/technology/software-

technology/difference-between-sap-and-oracle/

EDUCBA, 2019. SAP vs Oracle. [Online]

Available at: https://www.educba.com/sap-vs-oracle/

Olatunji, T., 2013. The Impact Of Accounting System On The Performance Of SmallAnd

Medium Scale Enterprises In Nigeria – A Survey Of SME’s In Oyo State-Nigeria.

International Journal of Business and Management Invention, 2(9), pp. 13-17.

Oracle, 2014. Oracle Database In-Memory. [Online]

Available at: https://www.oracle.com/assets/dbim-vs-sap-hana-2215625.pdf

O'Shaughnessy, K., 2019. SAP vs Oracle. [Online]

Available at: https://selecthub.com/enterprise-resource-planning/oracle-erp-vs-sap-erp/

VIP Quality Software, Ltd, 2019. Enterprise Resource Planning Software: SAP vs Oracle

Comparison. [Online]

Available at: http://www.centriqs.com/smallbusiness/sap-vs-oracle.php

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