Discuss about the Literature Review on Accounting Software/Packages used in Australia for Stock Levels.
In most of the businesses either it is small or medium for managing the finances some type of accounting software is used by the business owners. This is to make sure that the monitoring and the maintenance of the records of the stock levels, income, and the expenses are in an effective manner. But in the accounting history, the financial software is completely a new tool for the grand scheme of things.
Between Europe and the Middle East, there was a rise in the trade by the end of the Crusades, which has led to the growth of the businesses to such as extent that it was not able to be managed by the single owner. In general, if a business is run by more than a single person the system for documenting the transactions should be ensured which says that all the agents are in the correct way of making the decisions that are spent. This is what has happened in Europe (Booth, Matolcsy and Wieder 2000).
The origin of the double entry system was in Italy in the 13th century as it was first used in the Genoa. It has gained popularity, after which it was greatly tuned to the finest in Venice. A very huge publicity was gained by this system when a book named The Summa got published written by Lucia Pacioli which consisted of the section the Method of Venice” in which they mentioned the usage of three books for recording the transactions: a journal, a ledger and a memorandum book. After this got published he has been reputed as the “father of accounting”.
Over the past many years the accounting has evolved so much, but there are no changes in the fundamentals (Ibisworld 2016). The terms debit and credit are the origins of Italian words, namely debita and credo respectively.
The vast development in accounting software has been found to appear coinciding with the migrations of the platform. It has developed in such a way that it has been moved from paper accounting to the system accounting, which is known to be a major change. Another development process is from the shift to PCs from the mainframe computers. Later big development has seen from the interface of the text based user to the graphic user interface. We are coming into the generation were no specific software would be required for the computers rather it will be interfaced between browsers and servers. This is known to be the major change of platform. According to Softline Cohen, in accounting software, a final revolution is being seen where in the business world a new paradigm called mobility has come. Even after the data gets erased from the systems the cloud will be still having the data. At this point of time, accounting packages would grow without any end and will not be outdated. So further development would not take more time (Wieder et. al. 2016). If there is a change in platform, there would be no use of creating a software. Since the software that is web based can be combined with any kind of process and anywhere in the world.
The small businesses of Australia in other countries are ahead of their counterparts slightly in adopting the cloud accounting software. As per the research, the businesses are left with a worry in using this cloud solution in terms of security. From the study, it has been shown that 1622 small businesses all over the world from the accounting software provider Xero that is based on Newzealand revealed that 14 percent of small businesses of Australia are already using the cloud software for managing their accounts when compared to 11 percent worldwide (QnE Accounting Software 2016).
Dinham and Dinham (2016) says that some of the small businesses in Australia, which are presently not using the cloud software for managing their accounts from that 46 percent have said that they are looking for the conversion soon in the period of the next 12 months in comparison to 39 percent worldwide. The small businesses have come to know the importance of cloud software and it has increased its usage in terms of easy to use, mobility and the scalability for managing their business as said by Chris Ridd.
According to Wieder et. al. (2016), for the past five years, it has been noticed a steady increase in the software publishing industry in Australia. It has been driven by the advent of the new technology and the increase in the online connectivity. Since the internet access is found to be increased to high speed it has given a kind of encouragement for the software development for taking the advantage of the cloud computing and also the new hardware which includes the tablets and the smartphones (Booth, Matolcsy and Wieder 2000). The software developer in the smartphones and the tablet has strongly increased with the development of the new products which are smart in carrying out the functions which are before done with the help of PCs and the gaming console. Over the five years, the annual revenue of the industry has been found to rise to a percent of 9.7 in between the year 2016-2017 for reaching the amount of 2.9 billion dollars. In the present year, the growth is found to be of 9.8 percent as most of the participants from the industry are choosing the software as the service distribution model (QnE Accounting Software 2016).
In the accounting software of Australian market, there have been found three big leaders which include the MYOB, Intuit, and Xero. The power of the battle in the market for cloud computing has been taken by the MYOB which can be confirmed by its IPO for this month. The various software companies would try to compete with others for keeping their dominance in the wide range of the market. In doing so, every business has to track their accounts which are made simple by these companies (QnE Accounting Software 2016). They have obsoleted the existence of the bookkeepers for records maintenance and made the business of making the invoice and the decisions through cash flow management, which is possible by as run on the desktop and the mobile apps. For managing the accounts, to be more precise for bookkeeping the industries are using the cloud services such as Intuit and Xero. But in Australia, the MYOB has gained the popularity in the wide range of market in the racing and has built their offerings and are maintaining the share market which has been rising between the AU831.7 million dollars and AU833.8 million dollars on the basis of the price range indicative of 3-4 dollars per share in its IPO (Dinham and Dinham 2016).
The topmost competitive software in the world is the Australia’s accounting software. There was a very huge market for the Xero cloud software provider which was the global strength. Then it was ruled by the intuit more effectively by competing the Xero, where it sold the Quickbooks online. Later in between, this the MYOB has come into the picture which has been the most dominant player out of all software developers in the entire market, which is now ruling and is trying to preserve its position in the accounting software market that is evolving online (Dinham and Dinham 2016).
As per Booth, Matolcsy and Wieder (2000), the problems or the challenges that arise from the accounting are quite common for the users or the customers who are using this accounting software, though it has a belief that accounting can be done easier. The problems that users are facing from the accounting software are usually from the outdated software and which are not user-friendly (Booth, Matolcsy and Wieder 2000). The following are some of the problems that are mostly encountered by the businesses while using the accounting software:
The main reason that why businesses fail in their process of accounting is that there is no availability of the appropriate bookkeeping system so that it would alert with the warnings when required. It solely depends on the businesses to choose the correct accounting system for managing their accounts which can be done in either of the following ways, such as choosing a set of the manual bookkeeping system like accounting books, or the electronic spreadsheets, or the use of the accounting software (QnE Accounting Software 2016). Except if you want to get familiarize with the bookkeeping system the use of accounting software would be the most efficient choice in managing the accounts for the business.
The requirements of every business are different from the accounting software. So while choosing the accounting software one has to make the following considerations:
References
Booth, P., Matolcsy, Z. and Wieder, B., 2000. The impacts of enterprise resource planning systems on accounting practice–the Australian experience. Australian Accounting Review, 10(22), pp.4-18.
Dinham, P. and Dinham, P. 2016. iTWire – Australian SMBs ahead in adoption of cloud accounting software. [online] Itwire.com. Available at: https://www.itwire.com/business-it-news/accounting-software/66402-australian-smbs-ahead-in-adoption-of-cloud-accounting-software [Accessed 30 Nov. 2016].
Ibisworld. 2016. Software Publishing in Australia Market Research | IBISWorld. [online] Available at: https://www.ibisworld.com.au/industry/default.aspx?indid=5275 [Accessed 30 Nov. 2016].
QnE Accounting Software. 2016. Problems faced by companies that are using accounting software for their businesses. [online] Available at: https://qneaccountingsoftware.wordpress.com/2013/09/13/problems-faced-by-companies-that-are-using-accounting-software-for-their-businesses/ [Accessed 30 Nov. 2016].
QuickBooks. 2016. History of Accounting Software | QuickBooks. [online] Available at: https://www.quickbooks.co.za/product/accounting-software/history-of-accounting-software/ [Accessed 30 Nov. 2016].
Wieder, B., Booth, P., Matolcsy, Z.P. and Ossimitz, M.L., 2006. The impact of ERP systems on firm and business process performance. Journal of Enterprise Information Management, 19(1), pp.13-29.
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