Reference no: EM132161505

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:

Describe how each stakeholder will be consulted.

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.

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):

What areas are causing the most pain now?

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.

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.

Some of the best consultants are accounting software resellers. Most accounting software products are purchased through resellers. Therefore, they can focus their complete attention on helping you automate business systems. Software resellers have a valid stake in your organisation's success, as they want to continue servicing your company in the future.

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.

How easily/quickly will existing data convert to the new version?
How easily/quickly will existing data convert to the new version?
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:
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?
What's underneath the iceberg?

Most accounting software solutions include basic components. Review carefully what a program doesn't have as part of its core modules; available options, while nice to have, can also quickly become expensive.

Attempt to discover what each program has "below the water." Are options such as multicurrency conversions, reporting capabilities, or invoicing features, to name a few, included in the core

program, or only available as costly add-ons? Ask your reseller for help here; develop a complete understanding of what each program contains and how much each optional function will cost.

E-business capabilities

Within the next ten years almost every business will do business over the Web in one form or another. With this in mind, it's important that your accounting software be robust and versatile enough to:

- Offer e-business capabilities
- Integrate tightly with Web-store software

Building and running a Web store in particular is a huge challenge. So too is maintaining a site that operates 24 hours a day, seven days a week, 365 days a year. The best accounting software solutions are those that link closely with Web-store and other Internet software. These solutions allow your organisation to operate more efficiently and realise greater economies of scale. Again, ask your consultant for guidance. This long-term thinking is critical to choosing the best accounting software solution.

Globalization
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?

Capacity

This refers to the software's limiting characteristics.

What is the maximum number of customers, vendors or inventory items it can handle? How many line items can be included in a single invoice, sales order or purchase order?

Reporting capabilities

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?

Data validation

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.

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?

Follow these guidelines:

Postpone modifications

One of the most common mistakes companies make is requesting extensive changes to packaged programs before installing and using them. Instead of trying to make a new system work the old way, wait until you understand how the new system works before attempting to change or customise it.

Complete the installation.

Following installation, convert any existing organizational data and produce a financial report for the last completed financial year. Attach the completed financial report to this Assessment Task.

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?

Develop and Manage Financial Systems

Task 1 - Financial System Implementation Structure of Assessment

Introduction
- Business Overview
- Software Overview

1/ Organizational Requirement

2/ Risk Assessment
- Financial Risk
- Operational Risk
- Employee Error

3/ Legislation Compliance
- ASIC - Financial and Audit Reporting
- ATO - Taxation Requirements

4/ Costing and Budgeting

5/ Benefits of Software -Answer Questions

6/Involve the Right People - Answer Questions

7/ Challenges - Answer Questions

8/ Choose a Consultant - Make recommendations for suitable system implementation consultant

9/ Evaluate Application Performance - Answer Questions
10/ Choose a software vendor - Answer Questions

11/ Implement the System - Answer Questions

12/ Review - Answer Questions

Conclusion

Attachment:- Develop_and_manage_financial_systems.rar