Question

Essay Objective: Analyze the components of the entrepreneurial consumer decision-making process.

  

Introduction: Accounting software allows small business owners the capability to manage all of their business's financial transactions. There are many different types of accounting software packages for a small business to consider and invest in with various advantages and disadvantages. Selecting the most appropriate accounting software can be one of the most important decisions a small business must make. Almost all accounting software packages will deliver simple bookkeeping while other accounting systems may have the capability to manage much more with the scalability to expand. Understanding accounting software and the full functionality thereof can contribute to the overall success of a small business over and above minimization of costly bookkeeping mistakes.

Deliverable: Written Assignment: a minimum of 4 full pages (exclusive of title and reference pages), applying APA formatting.

Activity Details

Perform the following steps:

Step 1: Introduction

Begin with an introductory paragraph that describes how accounting software can be used to track business finances and contribute to the quality of record keeping management.

Explain what must be taken into consideration when selecting such software.

Step 2: Research and Content

Research the Internet and identify three accounting software packages that you would consider for a small business.

Explain what must be taken into consideration when selecting small business accounting software

Follow-up with multi-paragraph responses for each accounting software package (advantages and disadvantages)

Document if the accounting software packages selected can or cannot be used as a strategic business management tool (historical data, reporting, forecasting, etc.)

Compare and contrast the three software accounting software you have selected with a focus on record management.

Step 3: Conclusion Summary

For the conclusion paragraph state why the quality of record keeping is so important and can be used to track business finances for accurate record keeping. Highlight the key discovery of your accounting software research. Conclude with a statement how accounting software can be leveraged as an effective strategic business management tool.

Answer 1

Components of the Entrepreneurial Consumer Decision Making process.

There are Five steps in a consumer decision making process a need or a want is recognized, search process, comparison, product or service selection, and evaluation of decision. Most decision making starts with some sort of problem. The consumer develops a need or a want that they want to be satisfied

This explains the consumer buying decision process.

A consumer goes through several stages before purchasing a product or service.

NEED
↓
INFORMATION GATHERING ANDSEARCH
↓
EVALUATION OF ALTERNATIVES
↓
PURCHASE OF PRODUCT AND SERVICE
↓
POST PURCHASE EVALUATION

1)Need is the most important factor which leads to buying of products and services. Need infact is the catalyst which triggers the buying decision of individuals.

An individual who buys cold drink or a bottle of mineral water identifies his/her need as thirst. However in such cases steps such as information search and evaluation of alternatives are generally missing. These two steps are important when an individual purchases expensive products/services such as laptop, cars, mobile phones and so on.

2) When an individual recognizes his need for a particular product/service he tries to gather as much information as he can.

An individual can acquire information through any of the following sources:

Personal Sources - He might discuss his need with his friends, family members, co workers and other acquaintances.

Commercial sources - Advertisements, sales people (in Tim’s case it was the store manager), Packaging of a particular product in many cases prompt individuals to buy the same, Displays (Props, Mannequins etc)

Public sources - Newspaper, Radio, Magazine

Experiential sources - Individual’s own experience, prior handling of a particular product.

Step 3 - The next step is to evaluate the various alternatives available in the market. An individual after gathering relevant information tries to choose the best option available as per his need, taste and pocket.

Step 4 - After going through all the above stages, customer finally purchases the product.

Step 5 - The purchase of the product is followed by post purchase evaluation. Post purchase evaluation refers to a customer’s analysis whether the product was useful to him or not, whether the product fulfilled his need or not.

How Accounting Software can be used to track business finances and contribute to the quality of record keeping management.

Step 1: Introduction

The most appropriate accounting software can be one of the most important decisions a small business are follows

The best accounting software for small business is FreshBooks, a straightforward, intuitive and powerful accounting solution that should handle any numbers you throw at it and at a compelling price that works with your small business setup. And now recently redesigned, the new FreshBooks sports a more modern, cleaner and user friendly interface. From expenses to invoicing and payment handling, our experts top choice for small business accounting software works with you in growing your business and revenueby this way we can select such software.

They are.

1. Sage Business Cloud Accounting
2. Tipalti
3. Zoho Books
4. Zoho Expense
5. Zoho Invoice
6. Online Invoices
7. Invoice Meister
8. Freshbooks
9. Sage 50cloud
10. NetSuite ERP

Step 2: Research and Content

Automation: Since all the calculations are handled by the software, computerized accounting eliminates many of the mundane and time-consuming processes associated with manual accounting. For example, once issued, invoices are processed automatically making accounting less time-consuming.

Advantages are.

Accuracy:

This accounting system is designed to be accurate to the minutest detail. Once the data is entered into the system, all the calculations, including additions and subtractions, are done automatically by software.

Data Access:

Using accounting software it becomes much easier for different individuals to access accounting data outside of the office, securely. This is particularly true if an online accounting solution is being used.

Reliability:

Because the calculations are so accurate, the financial statements prepared by computers are highly reliable.

Scalable:

When your company grows, the amount of accounting necessary not only increases but becomes more complex. With computerized accounting, everything is kept straightforward because sifting through data using software is easier than sifting through a bunch of papers.

Speed:

Using accounting software, the entire process of preparing accounts becomes faster. Furthermore, statements and reports can be generated instantly at the click of a button. Managers do not have to wait for hours, even days, to lay their hands on an important report.

Security

The latest data can be saved and stored in offsite locations so it is safe from natural and man-made disasters like earthquakes, fires, floods, arson and terrorist attacks. In case of a disasters, the system can be quickly restored on other computers. This level of precaution is taken by Clever Accounting.

Disadvantages are.

Cost-effective: Since using computerized accounting is more efficient than paper-based accounting, than naturally, work will be done faster and time will be saved. When one considers that Clever Accounting, one of the latest online accounting solutions, starts at a low monthly subscription (check out pricing here), then computerized accounting really becomes a no-brainer.

Visuals:

Viewing your accounts using a computer allows you to take advantage of the option to view your data in different formats. You can view data in tables and using different types of charts.

Quality of Information

The quality of the information that a computerized accounting system provides depends on the quality of information that you input. You may enter every single check, receipt and invoice into QuickBooks, but if you haven’t set up your QuickBooks chart of accounts to accurately reflect the intricacies of your business, your efforts will yield only partial or irrelevant information. For example, if your business works with multiple types of accounts such as online retailers, brick and mortar storefronts and direct sales to customers, your accounting data won’t be especially meaningful unless you track these categories separately.

The Human Element are.

Although computerized accounting systems use technology to calculate sums and store information, this data must be entered by humans, and these humans must be trained. Training staff on software programs can be expensive, and knowledge needs to be updated regularly because computerized accounting systems change, sometimes every year. Mistakes happen at many stages in the learning curve, and a computerized system with formulas that build on one another is likely to compound seemingly simple errors, making the source of a problem even more difficult to find.

Technology Costs

Virtually every aspect of a computerized accounting system is costly. Computers are exponentially more expensive than paper ledgers, and the software required for your accounting data adds a further expense which often has to be renewed or updated yearly. You may also have to shell out funds for repairs, or hire professionals for training, custom software or to untangle especially complex mishaps.

Security and Permanence

Computerized accounting systems are vulnerable to cyber security issues. Cloud-based systems store your company’s information remotely, where it can be hacked. Your system may be infected with a virus that destroys or corrupts information. Computers also crash periodically, so unless you’re especially diligent about backing up files you may lose many hours’ worth of work. So, while computerized accounting systems organize information and make calculations quickly and efficiently, they may create a false sense of security. The bottom line is they can never fully stand in for direct knowledge of systems or first-hand familiarity with the details of your operation.

The Software are follows.

1. Infor ERP Distribution
2. Sage Intacct
3. QuickBooks Online
4. Keka HR
5. ChargeOver
6. Invoicely
7. SutiSoft Spend Management
8. Xero
9. Free Agent
10. FG Receivables Manager

Step 3: Conclusion Summary

Everyone in business must keep records. Good business records will help you do the following:

• Monitor the progress of your business
• Project your tax liability
• Prepare your financial statements
• Identify source of receipts
• Keep track of deductible expenses
• Prepare your tax returns
• Support items reported on tax returns

Monitor the progress of your business
You need good records to monitor the progress of your business. Records can show whether your business is improving, which items are selling, or what changes you need to make. Good records can increase the likelihood of business success.

Project your estimated tax payments
During that first year of business you will need to project your tax liability so that you can make estimated tax payments. Estimated tax is the method used to pay tax on income that is not subject to withholding. Estimated tax is used to pay income tax and self-employment tax, as well as other taxes and amounts reported on your tax return.

Prepare your financial statements
You need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can help you in dealing with your bank or creditors and help you manage your business.

Identify source of receipts
You may receive money or property from many sources. Your records can identify the source of your receipts. You need this information to separate business from your personal receipts and taxable from nontaxable income.

Keep track of deductible expenses
It is very important to have a system to keep track of your deductible expenses. If you don't keep your receipts you may forget expenses when you prepare your tax return, unless you record them when they occur.

Prepare your tax return
ou need business good records to prepare your tax returns. These records must support the income, expenses, and credits you report. Generally, these are the same records you use to monitor your business and prepare your financial statement.

Support items reported on tax returns
You must keep your business records available at all times for inspection by the govt. If the govt examines any of your tax returns, you may be asked to explain the items reported. A complete set of records will speed up the examination. Normally, tax records should be kept for three years, but some documents such as records relating to a home purchase or sale, stock transactions, and business or rental property should be kept longer.

Software can be leveraged as an effective strategic business management tool. They are

1)Accurate Forecasting.

2)Effective Inventory Management.

3)Provides Useful Notes on Previous Customer Interactions.

40Analysis and Reports.