A Proposal for Accounting Information System in Business

Operations

UNIVERSITY OF MINDANAO DIGOS COLLEGE

Department of Accounting Education

Roxas Extension, Digos City, Davao del Sur

NINA MARIE B. BOCO

DIANNE PANO

SAMUEL TORCINO

MARCH 2024
A Proposal for Accounting Information System in Business

Operations

A Business Proposal Presented to the Department of Accounting Education

University of Mindanao Digos College

In Partial Fulfillment of the Requirements for the Subject

Accounting Information System – ACC 224

NINA MARIE B. BOCO

DIANNE PANO

SAMUEL TORCINO

MARCH 2024
I. EXECUTIVE SUMMARY

The establishment known as GB Furniture Shop is a retail business that

focuses on the sale of furniture and related accessories, they offer a variety of
products encompassing modern minimalist designs to classic and timeless pieces.
They are located in Super Highway Aplaya Chapter 9, Digos City, Davao del Sur,
this entity commenced its operations on January 29, 2020, and has since maintained
its ongoing business activities to the present date.

In its initial phases, the owner faced obstacles especially when it came to
manually tracking the inventory. The detailed task of monitoring and documenting
each item presented challenges requiring a substantial investment of time and
resources. Mistakes made in counting, data input and record keeping posed risks
potentially resulting in discrepancies, in stock levels and order processing. These
shortcomings can lead to financial inaccuracy. These difficulties prompted the store
to reassess its management methods ultimately leading to the adoption of solutions
aimed at improving accuracy streamlining operations and alleviating the burdens
associated with inventory management.

Zoho Books is designed and suitable for a range of businesses, from small
startups to larger enterprises. It is beneficial for inventory counting because it has
inventory management features which provides real time updates on inventory
levels, helping businesses stay informed about stock. It also offers tools for basic
accounting functions such as invoicing, expense tracking, bank reconciliation,
generate bills, sales orders, and purchase orders. It provides automation features for
recurring tasks, saving time and reduce manual efforts. Additionally, it allows you to
track reports and get the real time data needed for business and store all your
documents in one place and attach them to transactions. Using Zoho Books will
make the business a lot easier to manage than relying on paper for daily operation.

In managing retail business, it is crucial to have accurate inventory records to

have financial accuracy. Therefore, in the interest of having accurate records, using
 a system in modern business will help ease mistakes, errors, and discrepancies. In
business, accounting is significant for effective management.

II. STATEMENT OF NEED

In light of dynamic growth of the business, eliminating the shortcomings of the

existing manual accounting procedures is essential. There are several problems to
manually managing stocks in the business that might hinder accuracy and
operational effectiveness. The procedure frequently results in time-consuming
efforts, heightened human error risk, and an increased probability of inventory level
gaps. It becomes more difficult to keep an accurate and up-to-date record of stock
as the number of transactions and variety of products increase. The accurate
financial reporting, efficiency and integration capabilities required for modern
business operations are absent from the current system. Hence, a system is needed
for GB Furniture Shop to take the place of manual accounting procedures, cut down
on errors, and provide timely financial data for decision making.

Therefore, the proponents propounded an accounting software called Zoho

Books. Zoho Books is a cloud-based accounting software that is easy to use and
intuitive, offering functionalities such as project tracking, inventory management, and
invoicing. Customized to enhance operations and it offers several features meant for
improving efficiency. Particularly well-suited for small and medium-sized business.

Zoho Books has the following important features:

● Invoicing- It allows you to make and manage your invoices easily. This function
enables company owners to generate bills for their clients and print them up or
send them by email to their clientele. You can also monitor the company's
payables and receivables.
● Expenses- This feature allows you to track your business’ expenses.
● Bills-
 In summary, implementing accounting software is a wise investment that
improves operational effectiveness, lowers error rates, guarantees compliance, and
offers insightful data for more informed decision-making. In today's fast-paced and
competitive market, the advantages help a business succeed overall and remain
sustainable.

III. PROJECT DESCRIPTION

Zoho Books is a cloud-based accounting software designed primarily for

small and medium-sized businesses. It offers a range of features to help manage
finances, streamline processes, and make informed decisions. Additionally, Zoho
Books provides a comprehensive accounting solution that caters to the needs of
small and medium-sized businesses. Its user-friendly interface, robust features, and
affordability make it a popular choice among entrepreneurs and business owners.
So, businesses must adopt accounting system software because it makes managing
their business faster and more efficient. Therefore, in order to absorb a unique and
efficient accounting system into the business, a step-by step approach is needed to
be followed.

The following listed below are the steps that sole direct supplier must follow
before adopting an accounting software program.

 Develop a plan

The GB Furniture Shop's management should consider a number of elements

while developing a strategy, including the delivery method, budget, delivery style,
and target demographic. It is best to learn how to utilize accounting software through
real-world, face-to-face training. Following that, funding must be arranged because it
has a significant impact on the sort of training provided, as well as the delivery
manner.
 Design the accounting system

The Zoho software is available in both free and premium versions. The free
edition enables small firms to access basic accounting features without incurring any
upfront charges, making it an appealing option for those on a tight budget. In
contrast, the subscription edition often includes more advanced features and
functionality than the free version, giving users additional flexibility and
customization options to match their individual accounting requirements. The
payment option has three options: standard, professional, and premium. The
management of the GB Furniture Shop could choose whether to use the software's
free version or the premium version, which includes three types of options based on
the characteristics that the management desires for their firm.

 Build a training program

The management of the GB Furniture Shop must consider a variety of

aspects when designing a training plan, as training should be planned and
developed ahead of time. The audience is one of the variables that management
must consider since a better understanding of their target audience allows them to
build a more efficient training delivery technique. Following that, a calendar must be
developed in order to ensure completion of the training while keeping the training
time practical and brief. Finally, management may strengthen the employee's
commitment to learning to use the software by taking the time to convey to the
individual the benefits the new program or by offering incentives.

 Train your employees on the use of the system

Before the GB Furniture Shop's management can teach their employees, they
must first become familiar with the Zoho program and understand how to use it. The
success of the training must subsequently be evaluated by GB Furniture Shop
management. To ensure that the training is more effective in the future, it is critical to
review the learning objectives and material. Management may modify the training for
the next session to focus on areas where participants need to improve.

 Make changes and accept the accounting system

After the Zoho software system has been configured, the GB Furniture Shop
management may begin planning their final implementation schedule. It is required
to move data from the prior accounting system to Zoho software. Create ways for
dealing with failures during historical data migration. The firm that delivers your
accounting system should be present to ensure that everything is operating as it
should at this critical stage of implementation.

IV. BUDGET ANALYSIS

Zoho Standard Professional Premium

Cost P555.58 annually P1,111.15 annually P1,666.73 annually
Inclusions  Manage  Track Project  Multi-
Invoices Expenses Transaction
(Up to 5,000) and Invoice Number
 Recurring  Project Tasks Series
Expenses  Timesheet  Budgeting
 Connect and and Billing  Custom
fetch bank &  Sales Buttons
credit card Approval  Validation
feeds via bank  Retainer Rules
feeds provider Invoices  Related Lists
 Predefined  Bills  WebTabs
User Roles  Cashflow
 Bulk Updates - Forecasting
Accounts Report

Inventory  It shows  It shows  It shows

inventory in inventory in inventory in
items list items list items list
 Can view  Can view  Can view
products and products and products and
details
  Can check details details
availability of  Can check  Can check
products, availability of availability of
vendor details, products, products,
and stocks vendor vendor
 It records real- details, and details, and
time inventory stocks stocks
changes and  It records  It records
set up reorder real-time real-time
alerts and out inventory inventory
of stock alerts changes and changes and
 Inventory set up reorder set up
report can alerts and out reorder alerts
generate of stock alerts and out of
automatically  Inventory stock alerts
report can  Inventory
generate report can
automatically generate
automatically

Reports  You can see  You can see  You can see
and generate and generate and generate
all the reports all the reports all the
you needed you needed reports you
automatically automatically needed
automatically

Expenses  Allows you to  Allows you to  Allows you to

track all your track all your track all your
expenses expenses expenses

GB Furniture Shop
Monthly Sales P300,000.00
Monthly Miscellaneous Expense P10,000.00
Monthly Salaries Expense for 3 P31,000.00
employees for (300 per day)
Monthly Rent Expense P8,500.00
Monthly Utilities Expense P4,000.00
Monthly Income Before Tax P40,500.00
COGS P206,000.00
 Estimated Monthly Income
Free Standard Professiona Premium
l
Sales 300,000.00
Less: COGS 206,000.00
GROSS 94,000.00
SALES
Less:
Expenses
Miscellaneou 10,000.0
s 0
Salaries 31,000.0
Rent 0
Utilities 8,500.00 53,500.0
4,000.00 0
Income before deducting 40,500.0
taxes and software 0
payments
Software Payment P0.0 P555.58 P1,111.15 P1,666.73
0
Profit before tax after P0.0 P39,944.4 P39,388.85 P38,833.2
deducting software 0 2 7
payment

V. ORGANIZATION DETAILS

Zoho is an accounting software that allows mainly small to medium

businesses to manage their finances and inventory without worry. The purpose or
aim of Zoho is to give businesses an easier time managing their business sales,
invoices, and bills to stay on budget. With that said Zoho is a good choice for
furniture selling business.

Started in the 1990s as an idea, Zoho is a powerful accounting solution

designed for businesses as it simplifies complex accounting tasks while providing a
complete view of the business financial data in real-time through the use of cloud
online service which can be accessed anytime and anywhere. The
software's combination of functionality and user-friendliness, made the accounting
software gain popularity among businesses seeking efficient accounting tools with
accurate financial management.

While Zoho is a good accounting solution for businesses with a wide

reputation, it is without doubt that they suffered challenges due to the passing times
and heavy competition. The reason why it remains relevant is because it continues
to evolve, adapt, and serve businesses worldwide. Its longevity and commitment to
customer needs contribute to its competitive resilience in the market.

VI. CONCLUSION

Within today's society and economy relying on technology, businesses must

adapt to the changes and take advantage of the benefits it may offer and utilizing
suitable accounting software is one of them. The accounting software keeps tracks
of the business's whole financial data relevant to its operations such as recording
transactions, journals, reports, etc. These software applications reduce human
errors, making them more accurate and efficient while saving on the cost of staying
in budget.

The goal of this proposal is to introduce and at the same time define how vital
its impact to a business and what they may expect from the accounting software.
The proposal presented that Zoho is a competitive software in the market not only in
their prices but also in terms of combined features that simplify financial processes,
enhance accuracy and empower businesses to make informed decisions. In general,
accounting software systems save a lot of time since documents like invoices,
purchase orders, and pay slips can be collected and produced promptly and
properly. One of the reasons Zoho is known in the market is because they
strategically innovated and continued to improve their software tailoring to each
possible preference and need of a customer, their commitment to their users made
their growing reputation.

With the use of suitable accounting software, it helps in adapting to the ever-
changing needs of businesses in the current digital world. Systems such as Zoho
can help businesses attain financial stability and control as they deal with external
forces or competitive hurdles. Therefore, it is highly recommended that GBF
Furniture Shop consider deciding on acquiring Zoho as its accounting software and
utilize its features for the foreseeable future.