KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY KNUST SCHOOL OF BUSINESS
ACCOUNTING INFORMATION SYSTEMS
Topic: Changing An Accounting Software Package
AGGREY AFUA NKUMAH ALLOTEY LILIAN ADORKOR AMOAKO JULIET DOGBEY FELIX MAKAFUI NKRUMAH FLORENCE QUARSHIE GEORGE
Possible ways of replacing the existing accounting package Accounting software is designed in such a way that you can easily take care of your business expenditures, profit, employee and pay rolls along with a range of other book keeping tasks that you might find useful in the office or at home. Since the mid 1990’s, the market has been undergoing a substantial amount consolidation, which made a number of traders suffer a huge amount of loss in their business. As a result Accounting software has been commenced. It is a class of computer programs that acts as an accounting information system. Accounting software will definitely save your time and money. Other benefits of accounting software include: good accounting software will take advantage of your efficient programming systems. Again, it reduces your cost and helps you to track inventory. Accuracy cannot be over emphasized when dealing with benefits of accounting software. In replacing the existing accounting software the options available to the company include: in-house development, commercial off the shelf and outsourcing.
In-house development This involves engaging the services of a professional or the software development team in the organization to develop accounting software taking into consideration the company’s line of business and tailoring the new system towards the needs of the users. Here the features of the ‘’slowbook’’ can be incorporated along with other vital features, neglecting the deficiencies. Having an in-house application developed for the company can potentially provide the company with major business and commercial benefits and allow the company to gain significant competitive advantage. In-house applications are generally easier to use and can work around the way you do business, rather than the other way round. However, the company have to expect to pay more for it than for a packaged solution (both in time and money) and it is also essential that the company uses a professional developer who works to industry standards and who is happy to provide you with the source code to your application and on-going support for the package.
The merits of In-house built Software
It has been specifically designed for your particular requirements and can be tailored to fit in exactly with the way that your business or organization wishes to operate.
It can be customized to interface with other software that you operate with the potential to provide you with a fully integrated IT infrastructure across the whole organization
Users will usually find it easier and more intuitive to use as it should not contain unnecessary or superfluous facilities and should operate in the way that they are used to working.
It is much more flexible than packaged software and can be modified and changed over time as your requirements and business practices change.
The demerits of In-house built Software
The investment required will usually be much higher than with packaged software. This is usually the biggest reason for not going down the custom route - you need to undertake a business justification exercise and compare the costs against the expected benefits and commercial advantages.
A large investment in your time is required during the development process and an inhouse application will take longer to implement.
It can be difficult to get support for in-house software, unless the developers themselves offer support services.
Commercial off-the-shelf purchase (COTS) COTS are ready-made software or hardware available for sale, lease, or license to organizations and the general public at large. Management or the software...
References: Goldy P. S (2001), Accounting information system 4th ed, McGraw Hill ACCA study text, Information System Paper 2.1, Foulks Lynch publishers Rasmussen N. H et al, (2002) Business intelligence www.wikipedia.com
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