Practical Assignment 2: Accounting Software Analysis. This assignment requires student teams to analyze accounting software applications and recommend a solution for a specified business. Required Submission: Each team will be required to submit a professional write-up AND deliver a professional presentation during class. Write-ups (not to exceed 10-12 pages) must be properly prepared, formatted, and submitted in accordance with instructions in the “Assignment Policies” documents posted on Blackboard. Write-ups must be submitted to Blackboard before 10:00 AM on the submission deadline date indicated on the course syllabus. Presentations must be delivered during class on the scheduled date indicated in the course syllabus. Late, emailed, or hardcopy write-ups will NOT be accepted and late presentations will NOT be permitted.
CASE NARRATIVE: BETTY’ HARE’S HAIRDOO SALON
Business Description
Betty Hare’s Hairdoo Salon is full service hair salon located in a renovated, historic 5,000 square foot building (owned by Betty) in Winter Park, Florida.
Salon Equipment/Facility The salon boasts a luxurious facility consisting of a fashionable waiting area (containing leather couches, two electric massage chairs, and a coffee/tea/water snack bar), a well-organized client service area (containing twelve custom designed stylist workstations, four shampoo sinks, a product back bar for service-related inventory, four large seated hair dryers, and two heat processing lamps), and a roomy back area (containing a large counter area and sink for mixing chemical services and treatments, a washer/dryer for towels and smocks, a storage area for service-related inventory stock, and a small break room complete with table and chairs, refrigerator, microwave, and water cooler).
Salon Services. Betty Hare’s Hairdoo Salon provides a variety of hair services and sells related retail hair products. The salon currently provides the following types of services: cutting, styling, permanents, coloring, highlighting, corrective services, deep conditioning treatments, and scalp therapy treatments. Betty plans to add skin care and massage therapy services to her service offerings in the near future.
Salon Personnel. Ms. Hare currently has ten stylists who are paid on a salary plus commission (based on gross service and retail sales) basis. Ms. Hare also employs a full-time receptionist/salon manager, Ms. Perkins, who is paid on a salary basis and a part-time bookkeeper, Mr. Tibbs, who bills Ms. Hare on an hourly basis for services rendered. Betty plans to hire additional personnel (a licensed aesthetician and two licensed massage therapists) to support new service offerings; the new personnel will be paid on a salary plus commission basis.
Transaction Processes. Ms. Hare, Ms. Perkins, and Mr. Tibbs manually record transactions and maintain the salon’s accounts using hardcopy documents and records, Microsoft Excel, and a very simple account structure.
Client Appointments. Ms. Perkins makes client appointments and keeps track of scheduling for each stylist by hand using a traditional salon-scheduling book that resembles a huge appointment calendar. Ms. Hare and Ms. Perkins keep track of scheduling for larger special services/events in a separate schedule book.
Client Records. Client records consisting of personal information (name, address, phone numbers, birth dates, spouse names, credit card information, etc.), typical services rendered, and retail products typically purchased are kept in simple card files or on individual mobile devices (e.g., smart phones) by individual stylists. Each individual stylist maintains information for his/her own clients only.
Sales Invoices. Sales invoices are written and totaled manually by individual stylists. Payments are submitted to Ms. Perkins and manually entered into a hardcopy sales journal after services have been rendered. Ms Hare then uses the sales journal to update her accounts in Excel. Most service and retail product invoices are paid by cash, check, or credit card when services are rendered and/or products are purchased. However, on occasion, receivables may occur for large scale, special salon services/events such as wedding parties. Ms. Hare and Ms. Perkins prepare billing invoices for special salon services/events by hand on pre-printed salon letterhead.
Inventory Purchases. The salon maintains service-related inventory (i.e. styling products, shampoos and conditioners, chemicals for coloring, highlighting, and permanents) and retail inventory (various hair care and styling products for retail sale). Ms. Perkins base inventory purchases on periodic shelf counts and requests from individual stylists. Ms. Perkins reviews retail inventory levels, service-related inventory levels, and stylist requests twice a month as a basis for determining necessary inventory purchases. Purchase orders are placed by Ms. Perkins over the phone directly to product reps or during regular visits to the beauty-supply stores and then manually recorded in a purchases journal. Ms Hare then uses the purchases journal to update her accounts in Excel.
Business Expenses. Ms. Hare processes business expenditures (e.g., cleaning, maintenance, utilities, telephone, etc.) on an as needed basis. Ms. Hare manually pays business expenditures using a business check book and then updates relevant accounts in Excel.
Payroll. Payroll is processed by Mr. Tibbs using a very simple payroll program on Ms. Hare’s laptop; payroll checks are then cut and distributed manually. Mr. Tibbs has recommended that Ms. Hare upgrade the payroll process (possibly to a cloud-based service) so the salon can distribute employee pay more efficiently via direct deposit.
Current Information Technology (IT). Although Ms. Hare and Mr. Tibbs currently maintain the books and salon records manually, the salon has a point of sale card machine purchased through her bank for credit/debit card sales; credit/debit card payments are electronically deposited directly into the salon’s bank account each day. Ms. Hare also has a laptop computer , new iPhone, and a laser jet printer . She uses Microsoft Excel to maintain accounts, prepare billing invoices, and prepare basic accounting reports and Microsoft Word for basic word processing. She also uses Microsoft Outlook to manage her contacts and email. The salon has high-speed Internet access with wireless access throughout the salon.
Ms. Hare’s Dilemma
Recent Problems. Over the last year, the number of stylists, retail products sold, and clients serviced have more than doubled. As a consequence, Ms. Hare and Mr. Tibbs have found it increasingly more difficult to manage business activity and maintain the salon’s books manually. Client appointments are sometimes double booked (or not booked at all) and client records are often misplaced or out of date. Sales invoices are often totaled incorrectly by stylists and, in a few instances, have omitted services provided or retail items sold. On occasion, service and retail sales have not been recorded or have been recorded inaccurately, billing for special event services has been delayed, business expenses/payables have been inadvertently ignored, and payroll checks (and related taxes) have been prepared incorrectly and/or late.
As inventory records are not maintained on a perpetual basis, on hand inventory is often inadequate; retail inventory products (e.g. shampoo, conditioner, and styling products) are often removed from the shelves by stylists to compensate for lacking service inventory products on the back bar resulting in difficulty tracking service versus retail inventory needs. Retail inventory stock outs have occurred resulting in lost sales and, on a couple of occasions, clients have arrived for appointments and had to reschedule because the salon did not have necessary service-related products to perform the scheduled services. In addition, salon equipment has not been properly tracked leading to poor maintenance (resulting in malfunction) and inaccurate fixed asset records (resulting in inaccurate depreciation). Moreover, preparation of tax returns has become difficult resulting in delayed filing and preparation of accounting reports has become increasingly problematic.
Mr. Tibbs recommended Ms. Hare computerize the salon’s transaction records with an accounting software application. Ms. Hare is reticent to computerize the salon’s records, as she believes she lacks the practical accounting and technical competency to implement and maintain a system. The following is an excerpt of a recent conversation between Ms. Hare and Mr. Tibbs.
Mr. Tibbs sighed. “The business has grown so rapidly over the last year that Word and Excel are simply not enough anymore. You need to consider implementing an accounting software solution to effectively and efficiently organize and manage the salon’s critical information.”
Ms. Hare made a face at Mr. Tibbs and said, “Bleah! I hate accounting … I can barely use the computer and software I already have.”
The accountant took off his glasses and placed them on the table in front of him. “I understand your reticence … I really do, but it is essential that you computerize your accounting and customer records so that they are easier to manage. You can’t afford to put this off any longer, especially given the planned addition of new services and the potential addition of a second salon location.”
Ms. Hare. Stood up and exclaimed, “I know. I know. I know!”
Mr. Tibbs smiled at her and patiently continued. I also suggest you consider purchasing additional computers for use in the reception and back room areas. You also need to computerize appointment scheduling, inventory records, and client records so that they can maintained centrally and easily accessed.
A panicked look on her face, Ms. Hare stared at Mr. Tibbs. “Bu…but. Where do I start? I have absolutely no idea what accounting software application to acquire … and even if I did, I would have no idea how set it up or use it. Help me, please.
The accountant rubbed his forehead. “I can certainly help maintain the system once it is implemented but I am no expert on selecting and implementing accounting software. There are literally hundreds of available software applications and picking the wrong one could be disastrous. I really think we should retain some professional help finding an appropriate software solution.”
Ms. Hare plopped down in her chair and placed her head in her hands. “What am I going to do?” She sighed heavily, “And this day started out so well.”
Your Role. You are professional consultants retained to recommend an accounting software solution for the salon. Conduct yourselves accordingly when you conduct your analysis, prepare your write-up, and present your assessments.
REQUIREMENTS
- Structured System Analysis. Specify current inadequacies/problems, user requirements, and logical specifications for the new system. List each inadequacy/problem separately along with the associated user requirements(s) and software specification(s). Note: You must adequately specify inadequacies/problems, user requirements, and system specifications; simple “yes/no”, “N/A”, or one-word responses are NOT adequate and will receive zero credit.
a) Inadequacies/Problems. Define detailed inadequacies and/or problems relating to the current system (i.e., What specific deficiencies exist within the current system? What specific accounting/business problems is the salon currently experiencing? What accounting/business goals are not adequately supported by the current system?). Note: You must identify specific accounting/business inadequacies/problems and list each inadequacy/problem separately; simply stating that the problem is a manual system and/or lumping multiple inadequacies/problems into a single category is NOT adequate and will receive zero credit.
b) User Requirements. Define user requirements for the new system (i.e., What specific accounting, business, or owner requirements are needed to address identified inadequacies and/or problems?). Note: You must identify specific user requirements for each inadequacy/problem listed above.
c) System Specifications. Define logical specifications for the new system (i.e., What core and/or non-core accounting software modules are needed to satisfy identified user requirements? What key capabilities/features are needed within these modules to satisfy identified user requirements? What additional system characteristics are necessary to satisfy identified user requirements?). Note: You must identify specific modules and features for each user requirement listed above.
d) Critical Concerns. Define the 3 most critical concerns (listed in order of priority) re selecting an accounting software solution for the salon. Carefully explain/justify each identified concern based on your structured systems analysis above.
Use the table template below to present responses to part 1 (add rows/expand cell space as needed). Note: Tables are preformatted. Do NOT alter table format (alignment, fonts, headers, margins).
- STRUCTURED SYSTEM ANALYSIS TABLE
(a) Inadequacies/Problems
(Specify/explain key issues) (b) User Requirements
(Specify Acctg/Business Needs) (c) Accounting System Specifications
(Specify Software Modules & Features)
Modules Needed
(Identify & Indicate Core/Non-core) Features Needed
(Define Capabilities/Options) - (d) Critical Concerns 1.
Structured Systems Analysis Table
- Software Solutions Research. Research current versions of the following accounting software solutions: Sage 50c Accounting (Desktop), QuickBooks Pro (Desktop), and a cloud-based, vertical accounting software solution of your team’s choosing (see footnotes).
Familiarize yourself with each software solution by carefully researching and testing the software application. Explain how you researched and analyzed each software application. Note: Do NOT include assessments/recommendations here, as you will be required to do so in the next section.
a. Process of selecting the accounting software solutions to consider for the salon (i.e., step-by-step process used to identify selected solution). Note: Sage 50c and QuickBooks Pro are required for this assignment (and indicated as such in the table below), so this requirement applies to the selection of your cloud-based, vertical solution only.
b. Software research conducted (e.g., conducted web searches, contacted customer support, explored vendor websites, perused software reviews, read software blogs/forums, reviewed help/support/training resources, viewed demos/tutorials, visited social media, etc.).
c. Software tests performed (i.e., software functions tested, tasks performed to assess functions).
d. Print/media/online resources utilized (e.g., articles, blogs, software reviews, support resources, user manuals, websites, etc.). Note: Cite sources using in-text citations here, then properly reference in an end-of-text reference section.
Use the table template below to present responses to part 2 (add rows/expand cell space as needed). Note: Tables are preformatted. Do NOT alter table format (alignment, fonts, headers, margins).
- SOFTWARE SOLUTIONS RESEARCH TABLE
Sage 50c Accounting
(a) How Identified Assigned by instructor
(b) Research Conducted
(c) Tests Performed
(d) Resources Utilized Insert in-text citations here, then properly reference in end-of-text reference section.
QuickBooks Pro
(a) How Identified Assigned by instructor
(b) Research Conducted
(c) Tests Performed
(d) Resources Utilized Insert in-text citations here, then properly reference in end-of-text reference section.
Online/Vertical Solution (Insert Name of Vertical Solution Here)
(a) How Identified
(b) Research Conducted
(c) Tests Performed
(d) Resources Utilized Insert in-text citations here, then properly reference in end-of-text reference section.
SW Solns Research Table
- Accounting Software Analysis. Analyze each accounting software solution with respect to its ability to satisfy user requirements and system specifications identified in your system analysis above. Assessments MUST be directly relevant the salon’s needs. Note: You must provide an assessment for each criteria/dimension below for each software application to receive credit; simple “yes/no”, “N/A”, or one-word responses are NOT adequate and will receive zero credit. Moreover, responses must represent YOUR assessments; responses copied verbatim from outside sources (even if properly cited) will receive zero credit.
Include a brief assessment of each of the following criteria/dimensions for each accounting software solution analyzed: (a) cost, (b) system requirements, (c) compatibility, (d) data export/portability, (e) ease of use, (f) core modules, (g) non-core modules, (h) key features/capabilities, (i) control/security, (j) multi-user capability (include cost implications of additional users), (k) Internet/network connectivity, (l) configurability, (m) scalability, (n) product training/support, (o) software reliability, (p) vendor reliability, (q) significant pros, (r) significant cons, (s) overall assessment of appropriateness of each software application for the salon. In addition, you must include: (t) your recommendation for an accounting software solution or solutions ,( u) justification explaining the rationale behind your recommendation(s) (justify based on your analysis above).
Plagiarism Warning: You must provide YOUR assessments in YOUR words; do NOT reproduce others’ opinions in response to assessment criteria/dimensions. Do NOT reproduce ANY material verbatim from ANY website (or any other source) and submit it as your work; this constitutes plagiarism and is unacceptable even if you cite your source. If you rely on outside sources to help formulate your assessments, you MUST cite sources in your table using in-text citations and provide full references in your end-of-text reference section.
Use the table template below to present responses to part 3 (add rows/expand cell space as needed). Note: Tables are preformatted. Do NOT alter table format (alignment, fonts, headers, margins).
- ACCOUNTING SOFTWARE ANALYSIS TABLE
Considerations QuickBooks Pro Sage 50c Accounting Cloud/Vertical Solution
(Insert Name of Solution)
(a) Cost
(b) System Requirements
(c) Compatibility
(d) Data Export/Portability
(e) Ease of Use
(f) Core Modules
(g) Non-Core Modules
(h) Key Features
(i) Control/Security
(j) Multiuser Capability
(k) Internet/NW Connectivity
(l) Configurability
(m) Scalability
(n) Training/Support
(o) Software Reliability
(p) Vendor Reliability
(q) Significant Pros
(r) Significant Cons
(s) Application Assessment
(t) Recommendation
(u) Justification
ASW Analysis Table
- System Evaluation/Recommendations. Prepare a professional memo (1-2 pages) directed to Ms Hare (Cc to me) summarizing your analysis and recommendations. Your memo must be prepared in professional memo format and consist of a well-written synopsis of required content. Your memo must be presented as your response to this requirement and include the following content:
a) Opening Statement (1-2 sentences). Provide a succinct introductory statement stating the purpose of the memo (i.e., what the memo is about).
b) Analysis (1-2 paragraphs). Provide a brief synopsis of your structured systems analysis (i.e. problems, user requirements, specifications identified). Next, provide a brief synopsis of your analysis; include a concise explanation of analysis conducted, pros/cons, and assessment of appropriateness for use in the salon for each application.
c) Recommendations (1 paragraph). Provide a synopsis of your recommendation for the salon. Recommendations must derive from your analyses above and include specification of an apt accounting software application and any supporting applications and/or associated IT components required to support your recommendation. Recommendations must also address the implications of future salon change/growth. Recommendations must be well-justified and practically feasible for the salon.
d) Closing Statement (1-2 sentences). Provide a succinct closing statement summarizing your conclusions and/or the actions suggested/requested.
- Class Presentation. Prepare a professional presentation (not to exceed 10-12 minutes) to deliver the results of your analysis to the class. Important Note: The presentation is a required part of this assignment; if you are not present on the date scheduled for discussion (or if you are late), you forfeit credit for the presentation portion of this assignment. Presentations must
a) Include significant aspects or your analysis/evaluations.
b) Be well prepared and well delivered. Practice speaking parts individually and as a team to coordinate and ensure a coherent, nonredundant, logical flow. Note: If you are presenting virtually via Zoom, you must carefully plan, practice, and coordinate.
c) Include all team members. Strive for balance across speaking roles, coordination of speaking parts, and fluid transitions between speakers. This is a professional presentation so conduct yourselves accordingly; appropriate professional business attire is required. Note: If you are presenting virtually via Zoom, you must use verbal cues to transition from speaker to speaker (e.g., “Now [next speaker’s name] will discuss…”). This reduces confusion and ensures smooth transitions and flow.
d) Include a PowerPoint (PPT) slide presentation (not to exceed 10-12 slides). Note: If you are presenting virtually via Zoom, you must designate one team member to share/manage presentation slides while presenting; this simplifies screen sharing and transitions from speaker to speaker. PPT slide presentations must
i. Include a title slide (as cover page) which includes the course designation, assignment designation, each participating team member’s name, the current term, and the times/days the class section meets.
ii. Include well designed (i.e. clear, relevant, professional, visually engaging) slides summarizing required content. Note: Make sure all included content (text, diagrams, tables, etc.) is clear and large enough to be legible when projected on the screen.
iii. Include a properly formatted reference slide listing sources utilized.
iv. Be submitted as a separate file with the write-up. Note: Save the PowerPoint file to the team file exchange on Blackboard for easy access in class.
EVALUATION OF PRACTICAL ASSIGNMENTS
Team write-ups will be evaluated based on content, concept application, presentation, and timeliness . Team presentations will be evaluated based on content, delivery, and timeliness. Scores and comments (as appropriate) will be posted to Blackboard in a timely fashion; students may also visit office hours to discuss their work or receive additional feedback.
REMINDER NOTE RE PLAGIARISM
Plagiarism is a serious academic integrity violation at UT. All work you submit must be YOUR work in YOUR words. Do NOT reproduce any material verbatim from the course notes, course textbook, online sources, or any other source and submit it as a response to assignment requirements; this constitutes plagiarism (even if you cite/reference your source). Moreover, you MUST properly cite (in the body of the text) AND reference (in an end-of-text reference section) ALL sources you rely on to construct and/or support responses to assignments; failure to provide proper citation/reference information constitutes plagiarism (even if you paraphrase). See the McDonald-Kelce Library’s “Avoid Plagiarism” page online (http://utopia.ut.edu/plagiarism.htm) for further guidance.
Sample Solution