Role Of Accounting Software In Enhancing Organizational Performance

Macquarie’s Organizational Structure

Discuss about the Role Of Accounting Software.

The aim of this report is to explain the role of Accounting Software Packages used by the Australian companies nowadays, which can be helpful in enhancing the operational activities and performance of the organization. There are almost sixty tools or more that are being used in Australia, Choosing one among them can be difficult for an organization and to determine which product or tool will be beneficial for the organization (Jebreen 2014). The objectives that need to be considered in this implication is that whether the organization is doing an outgrowing business, or merging new system into the pre-existing Information Technology (IT) system. Another considerable aspect is that whether there is need of new accounting software in order to seek the workload. This system could be complex for new consumers so recommendation from expert and experienced IT team or individual is necessary for this implication. Macquarie has been chosen organization for this report which is explained below.

The organizational structure of Macquarie has been divided into five groups in its non-hierarchical organizational structure, which are a central group of managing director, global chief operation officers, The Executive Committee, Heads of important operating groups of Macquarie including the Head of Risk Management who are contributing in managing the “organization as a whole” (Macquarie 2017). These groups make their contribution on improving the relationship between the client and Macquarie. Organizational structure of Macquarie can be expressed by the following chart:

Sessa and London (2015) have argued on this topic that “groups strive to place individuals in charge who are competent and committed to the goals of the group”. There are possibilities of different operational problems that might occur in an organization which can moderate the efficiency and increase human errors in an organization. This can be listed as: motivation by group member, type of the task that members have to accomplish, proper selection of the leader, corrupting effect of the power, intra-group coordination, technology problems, and proper training to the employees. All tasks need to be completed in routine within the organization but it should be well predictable and simple for the leaders, motivating the other employees. This led to the possibility of selection of improper leader, which can lead to human errors and diminish the efficiency of the organization performance (Clegg 2015). The matters that need more concern for an organization are commitment of the group towards the goal, style of the leadership, and decision making both by the management and the individuals involved in the organizational operation. Bies et al. (2016) Proposed that corrupting effect of the power can be a demerit in order to achieve the goal of the organization in which they argues that “power tips the balance of activation between the inhibition systems and behavior approach and the behavioral systems associated with respect to the awards and threats”. “Whether providing individual with high rank uniformly makes them more selfless”, means how a leader can misuse the power given to him and manipulate other employees (Allison and Goethals 2013).

Operational Problems

ERP (Enterprise Resource Planning) has become a trend for the modern and developing organization (with respect to the technology) due to its beneficial aspect in supporting the operational activities in the management of the organization (Heizer 2016). Lee, Kao and Yang (2014) focuses on the data acquisition method for the production systems in globalized and competitive economy of the organizations in which Data acquisition methods had been classified to explain the benefits that can be achieved by the implication of ERP into the organizational pre-existed system. Data acquisition implication in the production system (not automated) of an organization is more difficult than the automated production systems. (Wamba et al. 2015) also emphasis on this topic and explained that automated identification system are the data source (parallel to primary source of data) or the control systems of the respective organization. Various types of automatic identification systems which playing a vital role in an organization can help in gaining access to the data acquisition that is not collected within the elements of Control System and Industrial Automation (Sardroud 2015).

Although, ERP is innovative, efficient and effective management system, but it could lead to certain frauds which can hamper the reputation and performance of the organization for personal use. According to Islam et al. (2012) following are the scenarios which are the frauds that may occur in the organization by the implication of ERP into the system:

Firstly, False Invoice Payment: Any user performing two activities among invoices creation, approval and payment may lead to fraud in the organization. Secondly, Misappropriation: If a user do both purchase approval and purchase order can also fraud the organization by manipulating the data. Thirdly, Non-purchase Payment If a same user do both or any one of the activities among purchase good or good received can also make fraudulent activities in the organization. Another scenario is that Anonymous Vendor Payment: A user taking care of both creating (modifying vendor master card), and creating invoices to that vendor can also make fraudulent activities (Islam et al. 2012). Last scenario stated by the authors is Anonymous Customer Payment: create or modifying records of the customers and granting credit to that customer by a single user can also lead to fraud cases in Macquarie.

There are various factors and beneficial aspects of Accounting Software Packages for the organization, which led to the increase in demand for the adoption of these packages for the operational activities of the organization. The factors that can be responsible for the adoption of Accounting Software Packages cab be subdivided in four groups, which are: the characteristic of the business environment, characteristics of the organization, characteristic of the management, and characteristics of the technological innovation (Kanellu and Spathis 2013). Information Technology is the most popular sector nowadays, which are attracting the attention of various researchers to research on IT and IT related innovations. Many of the researches exposed various motivational factors for the adoption of Accounting Software Packages system into the organizational system. These packages can promote an organization to do several calculations in milliseconds with complete accuracy and also provide Cloud storage services, which every organization needs nowadays for its daily operation.

Most Likely System Acquisition Method: ERP

Accountants are exceptionally placed in the organization to provide accounting software application in manner to support the transactional process between the clients and organization. Accounting Software Packages application in the organization helps an accountant in managing all the transactional activities more efficiently and effectively by making no efforts. Considering this fact (Kordecki, Gregoy and Bullen 2014) proposed their recommendation of using CAS adoption for the development of accounting system in SMEs business activities. They also stated that CAS adoption can influence the accounting firms to be more precise in their operational activities; besides this the organizations can also contribute in achieving latest and innovative computerized accounting implementation. Accounting Software Packages can help the managers in knowing the extra-ordinary capabilities of the accountants that could be achieved by this innovative implementation. Adding more to the topic (Kordecki, Gregoy and Bullen 2014) stated that “until a problem does not arise, owner-manager will not discuss with accountants”.  Targeting the market MYOB accounting software is the trending software that is being spreading among all business including SMEs and big industries in Australia covering all the sectors that could use its application. These sectors include banking, small business, factories, real estate and many more. Commonwealth Bank is also using the services offered by the Accounting Software Packages.  

There are many competitive advantages of the application of Accounting Software Packages in an organization. This could help in achieving the goals towards the competitive market by increasing the production and providing accurate calculation in minimum time.

Greater input speed: Feeding data into the database is much easier and fast then doing on paper, which saves much time and the individuals can concentrate on achieving their goals by another means (Ruivo, Oliveira and Neto 2014).

Anytime, anywhere access: Accounting software packages provide users access to the operational data that are being conducted on the applications that are provided by this service package. This could help an employee to work at any place, even while travelling or on back office operations.

Greater efficiency: This provides accurate estimation and calculation of all the transactional processes between the contractors, clients, and partners.

Cost reduction: It is highly cost effective and no extra payment is made on the maintenance as the service is provided and operated online. It can be said that it is a one-time investment for the maintenance (Das and Dayal 2016).

Security is one of the major concerns of Accounting Software Package implementation into the system. Based on the survey made by Stavseth (2015) 46% of the software advisors stated about security concern on this implication of Accounting Software Packages in the new or pre-existing system of the organization. Emphasizing on this topic recent data breaches could be the best example for this situation. Accounting Software Packages are not novice-friendly, which means proper training is needed for the employees in order to achieve advantage of all the services that are being offered by the service provider (Taylor 2017). Many organizations are addictive to the traditional methods of accounting.

Possible Frauds

Conclusion

The above report concludes that an organization can enhanced its performance by the implication of these new technologies into the system of the organization whether it is a small or SME or big enterprises. These services and technologies can help an organization an option to work with complete efficiency and accurate, which can also be helpful in decision making for the organization about future steps. MYOB is giving great competition to the organization providing same services and escalating the competition by providing new and innovative services. Cloud computing will be the all time best service for the organization in order o tackle the competitive market by enhancing the performance.

MYOB can be recommended as the perfect Accounting Software Packages for the organization in order to do all the operational activities more efficiently and enhance the performance by achieving the goals and objectives. SaaS provides MYOB service.

References:

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Bies, R.J., Barclay, L.J., Tripp, T.M. and Aquino, K., 2016. A systems perspective on forgiveness in organizations. Academy of Management Annals, 10(1), pp.245-318.

Clegg, S.R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction to theory and practice. Sage.

Das, S. and Dayal, M., 2016. Exploring determinants of cloud-based enterprise resource planning (ERP) selection and adoption: A qualitative study in the Indian education sector. Journal of Information Technology Case and Application Research, 18(1), pp.11-36.

Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.

Islam, A., Corney, M., Mohay, G., Clark, A., Bracher, S., Raub, T. and Flegel, U., 2012. Fraud detection in ERP systems using scenario matching. Security and Privacy–Silver Linings in the Cloud, pp.112-123.

Jebreen, I., 2014. Packaged software implementation requirements engineering by small software enterprises: an ethnographic study (Doctoral dissertation, Auckland University of Technology).

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Kordecki, G.S. and Bullen, M.L., 2014. Evolutionary developments in accounting standard setting for private entities and SMEs. Journal of International Business and Cultural Studies, 8, p.1.

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Ruivo, P., Oliveira, T. and Neto, M., 2014. Examine ERP post-implementation stages of use and value: Empirical evidence from Portuguese SMEs. International Journal of Accounting Information Systems, 15(2), pp.166-184.

Sardroud, J.M., 2015. Perceptions of automated data collection technology use in the construction industry. Journal of Civil Engineering and Management, 21(1), pp.54-66.

Sessa, V.I. and London, M., 2015. Continuous learning in organizations: Individual, group, and organizational perspectives. Psychology Press.

Stavseth, D., 2015. Effects of cyber attacks on the United States financial sector (Doctoral dissertation, Utica College).

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Wamba, S.F., Akter, S., Edwards, A., Chopin, G. and Gnanzou, D., 2015. How ‘big data’can make big impact: Findings from a systematic review and a longitudinal case study. International Journal of Production Economics, 165, pp.234-246.