Reference no: EM133028790

Task 1 - Financial System Implementation

This assessment task requires the development of a full financial system for an existing business. Where access to an existing business is not possible, a simulated business may be utilised and the Assessor will play the role of the organisation's Chief Executive Officer.

In order to do so, you are required to:
determine organisational requirements and design parameters for a financial system undertake risk assessment, evaluation and management of financial reporting comply with relevant statutory, regulatory, professional and practice requirements

Apply costing and budgeting techniques and tools.
Specifically, the steps must include:
Properly installing and implementing the financial system such that it contributes benefits to the organisation, including:
Better decision-making capabilities
Sound accounting software can provide both a snapshot-in-time look at your organisation, as well as the detailed reports and other data necessary for long-term strategic planning.
Improved cash flow
Cash management is essential for all businesses. Integrated billing, inventory, accounts receivable and accounts payable allow you to manage that valuable cash more easily and efficiently. Better cash management provides your organisation with more options for revenue-generating campaigns and long-term growth.
More accurate information
With fully integrated accounting software, you'll not only have more information at your fingertips, you'll have more accurate information.
More control
Integrated accounting software provides real-time access to your organisation's critical financial information. This provides you with greater control and the ability to more efficiently manage the components of your business.
Productivity Improvements
A good system will stop the need to enter transactions or information more than once. Many companies have to enter some of the results for reports manually into their spreadsheets. They also need to do manual calculations to get all the data from different sources together for say budgeting. A good system will not need that to happen.
A foundation for growth
The right accounting software can help you as your organisation grows: expanding as your business expands, allowing for additional users and offering the kinds of reports and other business intelligence data required.
Outline how you will review the current situation within the organisation with regard to each of the current benefits and how each benefit will be provided by the new system.

2. Define the challenge

Understanding the business's financial information capabilities and weaknesses is critical to selecting the appropriate system solution. The more you know about the challenges you expect the software to solve, the more informed decision you'll make.

Questions to ask
What are some of the challenges your organisation currently is experiencing with its accounting system? Questions you might consider include (Record the responses for each):

Describe how each stakeholder will be consulted.

How are system problems negatively impacting your organisation?

What information/reports are being requested that currently cannot be created/delivered?

How could your accounting solution integrate with your e-business initiatives?

Make a list of the challenges you are currently experiencing. Then create a second list of what you'd like to do but are unable to do now. This information should become your core list of requirements when evaluating new financial system.

What information do I need to make strategic decisions?

This could include results from budgeting and modelling your business. It might include current gross profit by product, customer or salesperson. You probably want to predict which customers and products are growing and which are declining. You may want to use financial ratios to measure your company's performance against competitors. Your general ledger can show key profit and cost centre performance against budget to help you evaluate each group's effectiveness.

What do I need to accurately forecast and control my cash flow?

What information do I need to manage my assets?

What do I need to change in order to grow?

How flexible can we be?

3. Choose a consultant

It's possible that the organisation has the internal staff to successfully implement your new accounting system. It's more likely, however, that you don't have the people or time resources-or expertise-to devote to analysing, purchasing, installing and maintaining a system. A software consultant can help considerably. Consultants have special expertise-they've been through the purchasing and implementing process many times. And while they charge fees, they can help your organisation in three significant ways:
1. Evaluate and select the best accounting system for your organisation.
2. Save time and money during system installing and subsequent training.
3. Get the most out of your new system based on the system's capabilities and your organisation's requirements.

Make a recommendation for a suitable financial system implementation consultant.

4. Evaluate application performance
Selection of the system to be implemented. Record your research below.

The company
Are you familiar with the company that makes the software? Are they a respected name in the accounting software industry? How long have they been in business? What is their vision for the future, both of their own products and the accounting software industry as a whole? Obviously, you don't want a "here today, gone tomorrow" organisation as their software will be unsupported.

Scalability as a product

Scalability is a fancy word for a simple concept: can your software expand as your business grows?

There are two elements to a product's scalability. The first is scaling up-does the software manufacturer have a family of products that your organisation can upgrade to over time in a logical, easy and cost-effective manner? When considering future upgrades, ask these questions:

How easily/quickly will existing data convert to the new version?

Will the interface of the different software products remain the same? (The same interface significantly reduces the amount of training needed.)

What price incentives, if any, are offered to current customers who want to upgrade?

Will customised reports and other customised features run when the new software is installed, or will these be lost?

The other element to consider is whether the family of software allows for scalability out-can you add elements to enhance the existing software? The best software solutions allow scaling out by offering:
Numerous optional modules in addition to core modules.

Third-party products.

Availability to customise functions, reports, etc.
Web store and/or e-business capabilities and integration.

Speed of implementation

How simple and easy-to-use is the software interface, the primary screens where data is entered or otherwise managed?

How easily does navigation take place between modules of the software?

What type of software documentation and training will be provided?

How strong are the software company's technical support and customer satisfaction departments?

Can staff login & work from home?

Are multicurrency options supported?

Does the company sell and support products in the countries in which you do business?

Is the software available in languages other than English?

Can the software deal with the various taxation and reporting requirements of these countries?

Does the software already have the capability to produce the reports that your organisation requires? If not, can customised reports be created with a minimum of time and added effort?

You want a system in which information can be entered quickly and efficiently: full-screen editing, embedded help systems, clear prompts, etc. You also want a system that does not require excessive mouse use, slowing down entry of information by continually forcing the user to switch between keyboard and mouse.

How good is the software at preventing mistakes from being entered into the system? The program should test for errors (such as duplicate customers and vendors, incorrect item numbers and unreasonable amounts or dates). A good system also notifies the operator of unusually high quantities or unit prices for certain types of items and offers valid choices along with the notification message.

Error handling
Find out how well each program prevents unbalanced transactions, and how users are stopped from deleting or otherwise losing important data previously in the system. Some systems provide detailed audit trails for errors to track who is making each change.

Security
The degree to which sensitive functions and reports can be protected through passwords will affect how the program rates in security. Ideally, you should be able to specify which operations each user can perform at any given time. For example, a system with strong security would allow you to specify that your accounts payable clerk could only print checks on Thursday afternoons beginning June 1 and ending August 30. Some systems will even provide a report to verify when the check run was performed and by whom. For EFT functions, can you audit who changed vendors bank details with a before and after listing? Can you prevent operators in one cost centre from accessing & entering transactions in other cost centres? Are accounting system passwords integrated to network passwords?

5. Choose a software vendor

Now that you've reviewed the various accounting software possibilities, it's time to make a choice.
It's important to realise that you're not only selecting an accounting system-you're choosing a company as well. Previously we'd touched on what to look for in a software company. Here is a more in-depth look at the factors to consider when choosing a software vendor to use.
A large installed base

How many organisations in your area are currently using the company's software? How many organisations around the world are using their software? How many resellers do they have?

If the company you're considering has a large installed base of current users, it's an obvious sign that they're probably doing something right. A popular product is a good sign that a company is stable and customer-friendly.
A large installed base also has a second benefit:
Third-party software manufacturers will be more likely to offer add-on software, worthwhile utilities, product training and other benefits that you can utilise once you install the software.
Frequent updates

Good software suppliers update their software frequently. They also make bug fixes available quickly and easily to resellers and customers via the Internet. Before you make a purchase, find out if the software publisher has a maintenance program in place that gives you access to updates as they become available.

An upgrade path
This is similar to scalability mentioned earlier. A good software company invests heavily in engineering and develops new product features and enhancements regularly. They stay abreast of new technologies and make sure their customers do too, particularly those customers with a quickly growing business.

A software upgrade-where you move to a similar but more powerful product-can give your company flexibility as it grows. Software upgrades also are desirable as they often cost far less than the retail price of the full program. A good software manufacturer, however, will provide product upgrades at reasonable prices or as part of a yearly service agreement.

A good technical support team
Your consultant will be a good resource regarding technical questions or other issues that arise. But you will still, almost certainly, rely on the vendor's technical support team as well. Questions to ask regarding the vendor's support team include the following:

How many people are in technical support?

How quickly do they take calls from customers?

What are their hours of operation?

What options are available for after-hours questions or concerns?

What charges or service plans are involved?

6. Implement the system

Once you have chosen the vendor and product, and purchased the software, it's time to install the solution. If you've done your homework, this is an exciting part of the process. Please note, however, it can also be a frustrating time as well! It will take time to adequately and safely install the new software without damaging or otherwise invalidating your existing system. Inevitably, there will also be a few kinks to work out.

What is the best way to make the implementation process a smooth and successful one?

What training will be provided to the organisation?

Describe how to review and update the terms of trade and/or schedules of fees in the newly implemented system.

Review the generated financial report and determine any adjustments to the organisation's financial plans.

What were the noted discrepencies between the organisation's performance and key performance measure expectations?

What financial plans will be put into place to make the necessary performance adjustments?

Attachment:- Financial System Implementation.rar