As time passes, we are becoming more and more involved in technology and automation provided through computers in performing our daily routine tasks. Today computers handle almost everything in our lives whether running industries, providing entertainment or enabling our global communications soon they will also drive our cars. Accounting and computers are naturally connected to each other and act as a blood line for the businesses whether small or large (Pakko, 2009)
Tracking assets and transactions has always been the basic agenda of accounting information systems and are closely related to the early development of numbers, arithmetic and even writing. Accounting software’s today operating small and large businesses through various solutions and catering the needs of masses came through various stages throughout the history. This document will provide brief history, development and adoption, Current market size, gaps and challenges facing customers of software/packages and will lay out certain recommendations using qualitative research approach.
The current organization structure of the company is shown below.
The principle of accounting independence has not been followed when designing the structure of the organization. Due to this, the functional team handling a particular physical activity is also taking care of the accounting aspect of that activity. This can lead to unreliable information. Due to unreliable information, the organization may take faulty decisions. Inefficiency may also be experienced since the team will be forced to perform all the tasks of the physical activity together with accounting (Schaffer, 2008).
The organization has very unique information needs that can be satisfied with the use of commercial software that is already finished and completely tested for implementation. Generally, commercial applications are usually customized to suit specific industries (Bragg, 2009).
The sales process flow chart is an important instrument for business. It gives the company an opportunity to imagine and understand the sales procedures, disclose and also visually highlight issues or holdups, and forecast on sales.
Though there exist security risks and challenges which are related to cloud computing systems. Approaches to deal with the security threats that face cloud computing systems include information-centric security, predicate cryptography, and authentication measures (Joshi, 2013).
An accounting software/package is a system that is used on a computer and it perfoms all accounting tasks, such as recording, storing, sorting, retrieving, analyzing, presenting and conveying accounting information to different shareholder groups (Spathis, 2013). Applications enhance the quality of accounting data and promotes moving efficiency between organizations’ sectors and among organizations’ branches and their numerous users or investor groups.
All the necessary information to the organization of any company requires the valuation of numerous cost objects to do a proper evaluation; correct data is required regarding all resources that are consumed directly or indirectly (Drury, 2008).
The introduction to using accounting software is precious to organizations. However, the software applications should have a general guideline on what application standards the software need to have. There are four general features that accounting packages must have (Rushinek and Rushinek, 2013). They include; ease of installation, ease of use, should have seller support and the capability to be updated. Training should also be done on how to use the applications so that the future needs of the organization or business can be met. This can only be achieved through training.
An appropriate accounting application should have a compatibility feature. A compatibility feature is smooth functional system constant with operations, workforce and administrative structure (Byrd & Turner’s, 2010)
Flexibility is of great importance in accounting applications. Flexibility can be defined as an n application capacity alongside a variation of course or a deviation from the programmed path of activity (Genus & Dickson, 2009).
The commonly used accounting system also known as “general ledger” is a book with distributed pages for every account i.e. payables, receivable, cash, equity. Each day transactions are entered by use of hand into the journal. Intuit came up with a computerized application named Quicken. The company later introduced Quickbooks for small business accounting in 1983. Turbo Tax, an application for calculating income taxes and federal, were presented to Nivinson. That saw the end of using manual entries and computers was embraced because it made the work of accountants much easier. They gave accountants an opportunity to be more productive (Hodge, 2008).
In the recent past, there has been a significant improvement in the innovation in technology and organizations now depend on machines to help in the running of businesses. Since the formation of Intuit in the year 1983, It has played a significant role in developing applications for the current age. Intuit products are vast, but QuickBooks is the most commonly used.
Australia has two accounting software companies competing for the market share; Xero which is from Zealand and QuickBooks Online (QBO) from is US-based Intuit. They are not the only companies in the market but because of the recent developments, they are outshining the others throughout other continents (Leung, 2011)
Quickbooks has been on the market for quite some time, but its entry to Australia is relatively recent. Whereas Xero has been in the Australian market for a couple of years and has seen its widespread use by accountants and small businesses due to its capability to communicate with customers.
Despite Xero being wide known in Australia, Quickbooks has launched a new user interface for Quickbooks Online (Harmony), customized with Australian localizations to the product, employed staff and opened an office in Australia and is trying to capture the Australian market share.
MYOB: – Australia’s best accounting software. It targets to be more than a functional accounting application. It has an additional feature that helps owners of businesses to increase productivity and make enhanced choices with a simultaneous view of a company’s fiscal operations. It integrates the point of sale transactions into the entire business operations. It has an interface known as Kounta which works both online and offline, and the clientele hardly notices if the Internet connection slows down. They have a compliant capability known as ATO which is a huge attraction.
Intuit QuickBooks – A highly ranked accounting software in Australia. QB is among the most widespread accounting application used by small businesses in Australia. The factors that contribute to this include:-
Reckon: – Purposes to be the best accounting application for accountants, bookkeepers, and companies in Australia. It’s one of the affordable cloud accounting software for small businesses in Australia’s and is well recognized. It uses a platform’s known as Reckon Pay. This platform accepts debit/credit card payments using cell phones.
Saasu: – It claims to be the future of accounting. By using the application, business people in Australia can immediately execute cash flow cashing with just a click without additional setups. It offers smart bank payments that efficiently execute bank settlements thus, helps on saving time. It manages transactions in different foreign currencies. It’s considered the best accounting applications for businesses in Australia. It has all that is needed to run a business from anyplace, by use of any podium.
Xero is a highly popular online accounting software in Australia. It offers real-time data monitoring abilities. It has over half a million subscribers who use the application. It has a wide range of business accounting functionalities since it offers speedy internet billing. It has a cutting-edge reconciliation process that allows the user to import and group bank transactions. Xero has two subscription categories.
Leading accounting software packages are cloud based, or they intend to do so. Security of any data is essential to any business. Online content is prone to hacker attacks, fraud, and other threats. It needs a high level of security which might be very expensive.
A software/package is an of application that records and processes accounting transactions by use of well-designed components i.e. accounts receivable, accounts payable, payroll, and trial balance. There are different types of accounting application in the market which depend on business requirements. Small business/individual accounting applications are mostly intended for home users. The applications are straightforward and low-priced through the simple functionality e.g. managing one’s budget (Godfrey & Chalmers 2007).
Low-budget accounting applications are meant for small business markets that are capable of serving a single market. These applications are characterized by ‘single entry’ products. Mid-market accounting applications is meant for establishments with large businesses. These applications serve the requirements of multiple nationwide accountancy principles due the the multi-currency facility.
Accounting users have demands for enhancing the quality of software. They software is expected to have general application features i.e. ease of installation, ease of use, should have seller support and the capability to be updated.
Accountants and bookkeepers to undergo training on how to use the applications so that the future needs of the organization or business can be met, this can only be accomplished through training.
An appropriate accounting application should have a compatibility feature. A compatibility feature is smooth functional system constant with operations, workforce and organizational structure.
Flexibility is of a key important factor in accounting applications. Flexibility can be defined as the system’s capacity alongside a change of course or deviation from the programmed direction of course.
Although the top three companies are doing whatever they can to enhance the users experience of cloud accounting software but still there is much to be done that includes affordable prices, Increased security, Abundant features, ease of use and enhanced customer relationship management.
Conclusion
In conclusion, accounting software has seen a remarkable history of development since the invention of computer language; from simple programs to complex computing systems. Australia has three biggest accounting software providers that compete in a market characterized by ever-growing small and medium sized businesses. Xero, Intuit and MYOB have dominated Australian accounting software market by integrating account software into cloud, as way of solving challenges associated with desktop accounting software. However, there are security threat challenges related to cloud computing. The strategies to deal with security threat facing cloud computing include authentication measures, information-centric security, and predicate cryptography.
Reference
Bragg, S. M., 2009. Accounting reference desktop. New York: John Wiley & Sons.
Byrd, T. A., & Turner, D. E., 2010. Measuring the flexibility of information technology infrastructure: Exploratory analysis of a construct. Journal of Management Information Systems, 17(1), 167-208.
Frishammar, J., 2011. Characteristics in information processing approaches. International Journal of Information Management, 22(2), 143-156.
Genus, A. and K. Dickson., 2009. Technological Analysis and Strategic Management 7(3), 283–285.
Godfrey, J. M., & Chalmers, K., 2007. Globalisation of accounting standards. Cheltenham, UK: Edward Elgar.
Hodge, B., 2008. Accounting. London: Thomson Learning.
Joshi, G., 2013. Management information systems.
Leung, D. 2011. Inside Accounting: The Sociology of Financial Reporting and Auditing. Farnham, Surrey, England: Gower.
Pakko, M.R., 2009. Accounting for computers. National Economic Trends, (May).
Ramazani, M., Zanjani, M., &Vali, F., 2012. Accounting Software Expectation Gap Based on Features of Accounting Information Systems (AISs). Journal of Emerging Trends in Computing and Information Sciences, 3(11).
Rushinek, A., & Rushinek, S. F., 2013. Accounting software evaluation: hardware, audit trails, backup, error recovery and security. Managerial Auditing Journal, 10(9), 29-37.
Scha?ffer, U., 2008. Management accounting & control scales handbook. Wiesbaden: Deutscher Universita?ts-Verlag.
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Tabachnick, B. & Fidell, L. 2007. Using multivariate statistics, Boston, Allyn & Bacon.
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