Accounting software is important to user centric software to manage the organizational accounting system effectively. Every business uses the accounting system to organize the financial performance in a better way so this software has become necessary to adopt and record every transaction. Accounting software has taken the place of pen and paper to reduce the time and cost as well. Software also enables the organization to assess the accurate history of business and take fruitful decision. Without a computerized system it would be difficult to arrange the inventory and sales and buying flow of organization (Pretty, 2017). To focus on this given strategic information system, literature review is conducted to proceed with accounting software used by the Australian company Oscar Natural.
1. Oscar natural is an Australia based organization which deals in shaving preparation items that are used for the easy shaving. It is known that shaving tools and products may harms the skin by mixing of chemical so this company come forward to launch the skin sever products for customers (Oscarnatural, 2014). Organization structure is form which differentiates between the centralization and decentralization of organizational design (Grandori, 2013). Further, organizational structure is an effective system in an organization which is functionalizes to meet the goals of business through adaptable organizational structure, job detail, compensation and hierarchical authority.
There are different types of organizational structure such as functional, matrix, divisional and geographical. In concern to this organization is following the functional structure. In this structure every activity of an organization is divided into small group to easily get the work done from various department of organization. Along with this, this structure helps the management to control the employees and leads to the competitive advantages (Wilson, 2014). Accounting software assists the business to manage the salary of employee in organization and prepare the transaction process to record the information. It is important to track the financial performance of business as compared to last year by implementing successful and efficient feature in accounting software in a structured organization.
2. Implementation of organization depends on the size, process and system through which a business proceeds. Jex and Britt, 2014 argued that functional structure in organization faces many problems related to the efficiency and mistakes in authorization of responsibility. At the same time, author explained that functional structure is beneficial for business to divide the work according to the particular skills and capability to handle the authority. Moreover, authors discussed that when the size of an organization increases then it creates challenges for business to manage in effective manner. Along with this, co-ordination issue is also arises for controlling the various functional areas of business. Denker, 2015 also stated that performance related issue also occurred when complexities taken place between the equal rank of managerial staff. It is also known that the functional managers focus on their objective only so the organizational objectives are also impacted and it becomes harder to achieve the organizational aims and objectives. Functional structure can also face the problem of mutual adjustment due to the common goal of each functional area of business.
3. Accounting system follows a procedure to adopt and implement the system for best practices in managing the accounting operation of an organization. Grant, et. al, 2012 discussed that an organization follows a process to identify, planning and implementing the system by an IT acquisition process. Further, authors explained that accounting software is essential but it is required to assess the need of the system in business to procure the application. The major methods of system acquisition are commercial software, custom software, or ERP, description of as follows
Custom software is the software which developed for specific purpose and particular accounting system for specific organization. It is reviewed that the information system accounting are used as per the criteria of business size to meet the expected requirement. It is assessed that Custom software can be used by large and medium size as well as but these applications are very expensive to adopt.
Along with this, commercial software is another method to adopt the software and it is the possessive software. Further, this software is build to sale to end user or other individual. For instance, Microsoft and windows XP are the examples of commercial software which sale the software to next party (Acton, 2013). At the same time, commercial software is also has licensing process for selling to users.
Enterprises resource planning is the multipurpose software which is mostly adopted method for software by the Australian business. Hall, 2015 expressed that ERP software is the best module through which an organization control and manage the system. It is easy to implement the system on premises and cloud based. ERP is the most adoptable system software to easily arrange the data and create a decision making situation for business.
4. Sales flowchart is a linear system of an organization which depicts the process of selling a goods and services. Whittington, 2015 explained that it is a visual flow of sales which is built by the various steps to reach at final point as sales. Oscar natural possesses a flow of sales to sell the skin care product. In order to analyze the sales flow chart, Oscar business follows a value chain to understand the effective process of sales and take corrective action to boost the sales by removing addition steps that creates obstacle for business.
Sales flow chart of Oscar natural is includes the various phases from ordering to the final goods and service reaching.
Figure: Sales Flow Chart of Oscar Natural
(Source: Edrawsoft, 2017)
Oscar natural follows an easy flow to sale the product as per the demand of the consumers. It starts with the ordering of consumer and ends with the delivery of goods to the user on time. It also includes many steps to get the sale close to satisfy the customers. It is stated that the entire task required taking the decisions so it becomes difficult for management to tackle the each phase effectively.
5. Information technology has reached at the top of its success so it became necessary for business to control the problems and sustain for long term in competitive market. Control problem is important to manage the whole process of information technology in order to achieve the determined goals of organization. Fujita and Revetria, 2012 analyzed that control is necessary to secure the information about the personal use. Control problems exist in each system to keep record and communicating in well manner. Security is common problem for system to protect the data in specific information tool for each transaction. It is a good system to manage the latest technology to record the information and secure for internal use.
Along with this, ERP system may faces fraud practices in business due to the innovation in information technology (Seo, 2013). ERP system is now web enabled so that chances of fraud practices have increased. There are many fraud are possible with this system like mail fraud, theft and bribery. Further, this system also encounters the fraud of taxation and money laundering in an organization (Hutchison, 2014).
1. Accounting software has historical development in the financial market to adopt the new ways to record the data in lucrative manner. Australian business market is adopting the accounting software very fast due to the fierce competition in the market to use the software and present the information efficiently. Authors explained that the rate of using cloud accounting software has increased with the 87% of users have implemented the accounting software. The first accounting software was implemented by the IBM Company namely 9PAC which supports the users to store and access the data from the computer and generates productive decisions. At this organizations got familiar with the accounting system and started to adopt for easily functioning of transaction for business. There are many companies introduces the accounting software which are suitable for companies to report the history such as Myob, Xero, Quickbooks online, Zoho and the sage group.
According to Dinham, 2014 every type of business adopted the accounting software, it is small, medium and large to improve the effectiveness of whole system. On the other hand, it is difficult to converge the accounting software because it requires running the both new and old software until the expected results matched. Oscar natural has converged the computerized accounting software for speed and accuracy of operation.
2. Australian market has emerged as one of the most accounting software generators country which is growing very fast. Australian market is pool of accounting software companies which are introducing the innovative features in the existing software. Software like Xero, Myob quick book and Intuit are major accounting software which possesses 90% market of Australia (Yakal, 2016). Xero is come out as one of the most advantageous software in the market. Xero accounting software is built for the small and medium size business firm to record the information. From the market review it is contempt that Xero captured the 15% market of Australia and deliver the best service to the users. It is found out that Xero provided the service to more than 250000 customers in the current market. Along with this, it has globally accepted software by the medium size firm. The managing director of Xero, Trent Innes shared that operating profit of Xero has increased by 71% as compared to the leading accounting software (Financial Review, 2016).
3. Australian accounting software market is very competitive because of leading computerized software features. In Australian market there are many software service providers such as MYOB, Xero, Quick books and Intuit. Redrup, 2016 reviewed that the requirement of accounting software has increased because of its invoicing and cash flow management features. MYOB and Xero are the major competitors in the Australian market. Where, MYOB projected to issuing the share of company to raise the capital. Along with this, MYOB has emerged as the largest accounting software in Australian market with 116000 customers (Heber, 2015). On the other hand, Xero is reviewed as the largest cloud computing accounting software, delivering the software service to 320000 customers from Australia and New- Zealand. Cloud technology enables them to gain the competitive advantages over the rivalries (Myobaccountingsystem, 2017). Apart from this, Intuit and Quick book are the newly emerged market competitors in Australia. Cost is another factor that leads to the competitive advantages because user can update the software cheaply. Offshoring and Outsourcing feature of the software make them able to defeat the current market competitors.
4. It is evident that technology brought more opportunities but it has come up with many risks. There are many risks attached with the accounting software that are companies are using for easy process to record the accounting transactions. Authors discussed that security is major concern of the accounting software to use. Further, authors assessed that accounting software are not user friendly and it’s cannot be customized as per the user base. Authors reviewed that these accounting software are very expensive to purchase and install in organization. Along with this, software takes too much time for generating the invoice. It is also stated that companies are also facing the skill challenges for implementing the accounting software in organization. Authors reported that it is a risk for the company to adequate inventory management when the size of business increases.
On the basis of review of authors, it can be recommended that companies should adopt the cloud based accounting software that would help the business in minimizing the challenges. It can also be suggested that business should manage the cash flow in effective manner (Moneris, 2015).
References:
Acton, Q. (2013) Issues in Software Research, Design, and Application: 2012 Edition: Scholarly Brief. USA: Scholarly Editions.
Denker, C. (2015) Mastering Complexity: Adding Coherence Throughout Your Business with Dependency Structure Spreadsheets. USA: CRC Press.
Dinham, P. (2014) Australian SMBs ahead in adoption of cloud accounting software. Available at: https://www.itwire.com/business-it-news/accounting-software/66402-australian-smbs-ahead-in-adoption-of-cloud-accounting-software (Accessed: April, 2017).
Edrawsoft, (2017) Sales Process Flowchart. Available at: https://www.edrawsoft.com/salesprocessflowchart.php (Accessed: April 24, 2017).
Financial Review, (2016) Xero primed to keep gaining market share in Australia, new managing director Trent Innes says. Available at: www.afr.com/technology/xero-primed-to-keep-gaining-market-share-in-australia-new-managing-director-trent-innes-says-20160106-gm0b08#ixzz4fB6jZMEZ (Accessed: April 24 2017).
Fujita, H. and Revetria, R. (2012) New Trends in Software Methodologies, Tools and Techniques: Proceedings of the Eleventh SoMeT_12. USA: IOS Press.
Grandori, A. (2013) Handbook of Economic Organization: Integrating Economic and Organization Theory.USA: Edward Elgar Publishing.
Grant, R., Butler, B., Hung, H. and Orr, S. (2012) Contemporary Strategic Management, Google eBook: An Australasian Perspective. USA: John Wiley and Sons.
Hall, J. (2015) Accounting Information Systems. USA: Cengage Learning.
Heber, A, (2015) The cloud accounting supremacy war in Australia. Available at: www.businessinsider.com.au/charts-the-battle-for-supremacy-in-australias-cloud-accounting-market-2015-4#2kdj3HKw1JG5RDUo.99 (Accessed: April 24, 2017).
Hutchison, C. (2014) ERP Accounting Software: Preventing Fraud .Available at: https://clientsfirst-tx.com/erp-accounting-software-preventing-fraud/ (Accessed: April 24, 2017).
Jex, S., Britt, T. (2014) Organizational Psychology: A Scientist-Practitioner Approach. USA: John Wiley and Sons.
Moneris, (2015) How to Overcome the Top 5 Accounting Challenges. Available at: https://insights.moneris.com/h/i/129339746-infographic-how-to-overcome-the-top-5-accounting-challenges (Accessed: April 24, 2017).
Myobaccountingsystem, (2017) MYOB ACCOUNTING SYSTEM. Available at: https://www.myobaccountingsystem.com/products/myob-accounting/ (Accessed: April 24, 2017)
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