Moving From Old to New Accounting System - Case Study Example

However, before a company decides to incur huge expenses in effecting a change to a new accounting system, it is important that a structured analysis and honest evaluation of the company’s needs as far as accounting systems are concerned be done. It is also important to consider industry practices before considering moving to a new accounting system while seeking to separate myths from reality regarding accounting systems. This is aimed at ensuring the anticipated efficiencies and benefits actually materialize so as to justify the change.

This case study provides information obtained through research regarding the various reasons that might necessitate a company to change from an old accounting information system to a new one. The paper will particularly focus on the reasons necessitating the accounting information system’s change at ABC Company which has been used as a case study in the research.ABC company is located in Saudi Arabia and is mainly involved in local manufacturing as well as the export of world-class products including Kleenex tissues, Kotex feminine napkins as well as Huggies diapers.

The company has witnessed rapid growth recently necessitating a change to a new accounting system. However, this change has also witnessed some challenges as will be outlined. This research is done by comparing the features of the old system with the proposed new system as well as the company’s needs. In this regard, a questionnaire sent to the company’s employees has been used as the main research method for the case study while the literature review has been used as a supportive method.

In addition, a brief interview with the company’s employees involved in answering the questionnaire has been helpful in obtaining background information regarding the company. It will be concluded that organizations may need to change from an old accounting information system to a new one when the company has expanded hence necessitating the need for a more robust accounting system able to handle the company’s growing needs in a case where the old accounting information system is unable to fulfill the company’s expansion and growth needs.

The case study will also seek to outline the various challenges a company may face in transiting from an old system to a new system. Finally, the paper provides alternatives to how the above problems could be overcome.