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CMU BIS 647 - final 647

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CONTENTS1. Executive Summary 2 2. Finance and Accounting: An Introduction 33. Roles of Accounting and Finance in Retail Mid-Size/Small Industries 4 3.1 Small Scale and Mid-Size Industry 4 3.2 Finance and Accounting Process in a Small-Mid-Size Retail Organization 5 4. Solutions 6 4.1 Accounting Software’s 6 4.2 Solution Market for Finance and Accounting Software 7 4.3 ERP Finance and Accounting Software for Small Scale Business 9 5. Evaluation and selection of ERP Finance and Accounting Management software 10 5.1 Software selection model 116. Conclusion 157. Recommendations 15647 PROJECT Page 11. EXECUTIVE SUMMARY:In a competitive world that exists today which is overwhelmed with globalization, eachand every organization has thirst to stand first in the race and to achieve competitive advantageover others by any means. To survive in such a competing environment organizations should becautious enough to know every tiny change that happens each second around the world regardinglatest technologies and software. They need to upgrade and update themselves to meet theexpectations of the customers. In this context, the ERP (Enterprise Resource Planning) is oneamong the various methodologies that has changed the activities of an organization drastically byreengineering and integrating each and every business process of organizations.ERP can be expressed in simple terms as one that integrates the applications andprocesses of a business by offering an integrated set of business applications. The first andforemost step to be followed by an organization which attempts to implement ERP in business isto evaluate and select a correct vendor. There are numerous vendors available in market todayand organizations should carefully select a correct vendor who can better support theirorganizational goals by offering them accurate software tool that matches their requirements andshould be able to implement the ERP within the limits of their budget and time. This selection ofvendor is a crucial step than the ERP implementation itself, as the ERP implementation is a costdriven process and any flaw in the vendor selection could ruin the entire process. Organizationsneed to review various factors in selection of vendor and they need to check out the vendor’ssuccess rate in his previous implementations. Also it is the responsibility of organizations tomake sure that the vendors clearly understood the requirements needed by the organizations sothat they can be provided with the accurate software.Organizations should take long run considerations when implementing ERP and the topmanagement should be involved with the entire process. The process may seem to be costly inthe short run but if successful, it provides fruitful results in the long run. The finance departmentis responsible for resource allocation to all other departments in the organization. Also it isresponsible in minimizing a company’s risk by increasing shareholder’s value and by decreasingorganization’s liabilities.In this paper, we discuss the important modules Finance and Accounting (FICO) andvarious subsystems of Finance and also present a means to integrate Finance department withother departments. This integration enables the Finance department to explore different means to647 PROJECT Page 2profitably invest its resources to attain sustainability and growth. Also we presented differentfactors to be considered in vendor selection and discussed about seven vendors offering ERPFinance software by comparative analysis and finally came up with some recommendations inERP implementation in a business. 2. FINANCE AND ACCOUNTING: AN INTRODUCTIONFinancial management is a branch of finance that helps organizations to attain growth andsustainability by proper management of their resources. It maximizes the profits of a businessand deals with managing and controlling the costs, incomes and expenses. It deals with all thefinancial activities and impacts in an organization. It ensures effective and efficient usage offinancial resources and manages the business budgets. Thereby it ensures augmentedperformance in the short term as well as in the long term business. Putting everything togetherwe can say that the financial management manages, controls, guides, organizes, projects andsupervises the financial activities of a business. In our research we came across differentdefinitions for financial management. Some of those which interested us are presented below.Ramagopal defined financial management as- “Financial management is nothing butmanagement of the limited financial resources the organization has, to its utmost advantage”.[ CITATION Ram08 \l 1033 ].The other widely used definition is “Financial management deals with procurement offunds and their effective utilization in the business” as given by S.C.Kuchal[ CITATION Par09 \l1033 ].In view of Richard A.Brealey, “Financial management is the process of putting theavailable funds to the best advantage from the long term point of view of businessobjectives”[ CITATION Ric11 \l 1033 ].Coming to Accounting, we can know that it is being followed since ancient periods whereit was used long back around seven thousand years ago in order to keep track of fields and cropsand even cattle. This is evident by the ancient records found which were found to be belonging toperiods 70 centuries ago. 647 PROJECT Page 3Accounting which includes generating, recording, auditing, bookkeeping, taxation, etc.can be viewed as a process of generating financial records of an organization. An organizationcan keep track of its cash inflows and outflows from these records and thus can take decisionsregarding budgets and how to manage those cash flows in maximizing their profits and achievinggrowth and sustainability. This also helps organizations in effective usage of their availablelimited resources in most efficient manner.3. ROLES OF ACCOUNTING AND FINANCE IN RETAIL MID-SIZED/SMALL INDUSTRIES: 3.1 Small Scale and Mid-Size Industry:Based on some prominent factors Medium and small scale industries can be defined. Thedefinition of these industries also varies based on those prominent


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