The Posh Hairdo Salon (PHS) case is a practical research exercise for use in an upper‐level undergraduate accounting information systems (AIS) course. In this case, students critically evaluate the appropriateness of popular accounting software applications and application service provider (ASP) solutions for a rapidly growing small business. To complete the case requirements, students must possess a basic understanding of business processes, transaction cycles, and accounting reporting systems. Students must also use the Internet to research and familiarize themselves with the functionality and features of the accounting software options, study readings from the professional literature, construct a written system requirements analysis and a comparative software options evaluation, and justify a final recommendation. Teaching Notes and case extensions appear in the latter sections of the paper; one possible grading key and an alternative case scenario appear as appendices.

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