Essay: Literature Review For Accounting And Financial Systems.

Literature Review

Discuss about the Literature Review for Current Accounting and Financial Systems.

In the Australia, business firms including large, small and medium are heavily depends on accounting packages not only to reduce the cost & gain competitive scope, but also perform different types of bookkeeping and financial functions effectively. These packages allowed the companies to bring essential improvements within their current accounting and financial systems, strategies and procedures & attain long term financial goals.. Basically, this research paper would provide a detailed analysis or literature review on the most widely used and available software packages within the Australian software industry.  Moreover, the history, development, adoption, present market size/market share, source of competitive advantages in the context of software packages would be discussed.  

In the views of Binu, and Meenakumari, (2012), accounting packages are assuming most fundamental role in minimizing the costs, gaining market share, improving financial reporting systems and offering competitive scope. It means such packages are adopted by the Australian firms or companies not only to improve reporting systems but also get the real time information so that strategic decisions can be made effectively. These accounting packages are time and cost effective that helps the user to perform their accounting and financial functions more accurately, smoothly and effectively. For example, through the use of such software, Australian companies are bringing innovation within their different financial functions including payrolls systems, financial reporting systems, supply chain management etc. On the other hand, in the support of Goeland et al., (2011) stated that, these software provided significant opportunities to the user companies about how they should manage, control and improve financial or bookkeeping data/information in a more dynamic and meaningful manner. For example, the business firms take and make strategic and core financial decisions based on the output produced by such packages. Moreover, user of this software are able make decisions and develop more specific budgets (cash, operational, sales, financial budget, master budget, flexible budget) and other tactics. Simply, this software played key role in adding theexactness&soundness within the entire financial and bookkeeping processes.

Kumar and Lu, (2010) analyzed that, in the Australian software industry, Intuit is most common and widely used software by the small business firms that was came into the market in 1983. Tom Proulx and Scott Cook was the originator of this accounting software.  Initially, this was introduced in the market as a dos version not double entry accounting system. Moreover, this accounting package is developed by the company for the small business owners so that they can perform their basic accounting and financial functions speedily, accurately and effectively. On the other hand,Intuit is adopted by the small sized businesses to conduct functions related to invoices, budget, and payroll systems, make payroll payments, manage/pay bills etc. For instance, small firms are able to track their business income, expenses, and profits effectively. The company has no greater market share in the Australian software industry due to limited functions and features. For case, it is specially designed for the small scale companies not for all kinds of firms. Furthermore, it is a low cost/price accounting software as compare to others in the business sector that provides competitive advantage to Intuit over others. Additionally, thecomprehensive level of features provided byIntuit is also the major source of competitive advantages to the company. But, limited features/functions, less speed and accuracy, lack of availability of cloud based applications etc are the major limitations of this software package(Shim, and Siegel, 2005).  

Intuit QuickBooks

According to Monks and Minow, (2008), MYOB is top Rated Australian Accounting Software in the industry that was introduced in the market in 1980 and the founder of this software is Christopher Lee. Lee developed this with the help of his team of experts atTeleware Inc. Data-Tech Software Company is the major company that played a major role in publishing of MYOB as accounting software  in 1997.  Moreover, MYOB is also known as the best accounting software programs in the whole software industry that is developed to assists the users to stay up-to-date with compliance obligations. With the help of MYOB, bookkeeping and financial functions can be performed online effectively. It also helps the user to perform wide range of functions associated with the finance and accounting. In the current time within the Australia, this software is used by almost all the sized of business firms. So, it can be said that, this software is adopted by the user to make enhanced financial/bookkeeping decision with real time view ofbusiness’s monetary process for the purpose to increase organizational productivity, profitability, and market share(MYOB. 2016).

Morley, and Parker, (2009) interpreted that,it had covered more than 72% market share of the total industry that indicates it is most widely used software in the Australia. So, in term of market size, MYOB is the biggest and largest as compare to other software in the industry. Additionally, it also has maximum revenues, profit, and market share, maximum satisfied customers, so it is the market leader in the industry. At the same time, this software’s main functionalities or features are very different, dynamic and innovative than others that offer competitive advantages to the company. For example, in term of accuracy, efficiency, speed, reliability, flexibility, cost, time, motivation, up to mark information, MYOB is best that are the major source of competitive scope. But, the execution process is more complicates because the implementation process require more time, and skilled staff or technical experts to run and install the software that increase the cost of the user(Needles, Powers, and Crosson, 2010).

It is an Australian based private accounting software company that was established in 2000. The founder of the company wasGrant Young andMarc Lehmann. This software was developed on the basis of automation in business. It was developed for the user organization to perform functions related to cash flows with the organization. Moreover, it is adopted by the users to effectively create customized invoiceswith or without accompanying payments. Hence, it allows users to improve their payroll systems and functions effectively. Day by day, there is a rapid improvement in the market share of the company but still now it does not have more market share and size as compare to MYOB, Recon, Xero(Saasu.2016). Additionally, the features of Saasu are more dynamic. For case, through effective use of this, business organizations are able to run, control, manage, and operate foreign currency accounts and transactions can be converted automatically. Moreover, it also allows companies tomechanically timetable recurring sales and expenses. But, hacking of valuable data, lack of data security, higher chances of fraud&misrepresentation are the major issues associated with this software(Carol, 2009).

MYOB

Parsons and Oja, (2012) explained that,it is a company of New Zealand that specially design and provides accounting software in the Australia for the small businesses. The company was founded in 2006 by the founder Rod Drury. It is offering cloud based software as per themodern accounting. Moreover, this is developed and adopted by most of users in order to get the advantages of real-time data monitoring capabilities. For case, this allows users to conduct vast variety of accounting functions and transactions with more speed and accuracy. For case, by using this software, the business firms can conduct online invoicing and save time and cost (Xero. 2016). So, it is helping to overcome certain bookkeeping issues effectively. Moreover, Xero allows users to import as well as categorize their business banking transaction effectively. On the other hand, through this, organizations can properly manage their payroll taxes, calculate payroll and pay their staff. These specialties of Xero are helping the company in providing the competitive advantages. The company had more than 13% market share in the industry of Australia. But, the main limitation of using this software is that, it is not provide long term advantages because it is unable to generate long run profit(Griffin, 2009).

Conclusion

After analyzing the facts of the above conducted literature review, it is concluded that, accounting software played a fundamental role in the overall success of the user organization by enhancing their market share, and profitability. Moreover, MYOB is the market leader that had gained maximum market share than Xero, Recon, Quickbooks, Saasu. Hence, all these are the key players and provider of accounting software in the Australia.

References

Binu, S. and Meenakumari, J. (2012).A Security Framework for an Enterprise System on Cloud.

Indian Journal of Computer Science and Engineering (IJCSE), 3(4), 548-525.

Carol, A.G. (2009). Recovery Act: As Initial Implementation Unfolds in States and Localities,

Continued Attention to Accountability Issues Is Essential. USA: DIANE Publishing.

Goel and et al., (2011). “Impact of cloud Computing on ERP implementations in Higher Education.”(IJACSA) International Journal of Advanced Computer Science and Applications, 2(6), 1-10.

Griffin, M.P. (2009). MBA Fundamentals Accounting and Finance. USA: Kaplan Publishing.

Grossman, T. and Livingstone, J. L. (2009).The Portable MBA in Finance and Accounting (4^th

ed.). USA: John Wiley & Sons.

Intuit QuickBooks(2016). About Us. Available At:https://www.quickbooks.in/qbhome/[Accessed on 08Oct, 2016]

Kumar, K. and Lu, Y. (2010). Cloud computing for mobile users: Can offloading computationsave energy? COMPUTER, 43(4), pp. 51-56.

Monks, R.A.G. and Minow, N. (2008).Corporate Governance (4^thed.). USA: John Wiley & Sons.

Morley, D. and Parker, C.S. (2009).Understanding Computers: Today & Tomorrow, 2009

Upate: Today and Tomorrow. USA: Cengage Learning.

MYOB.(2016). About Us. Available At: https://myob.com.au/[Accessed on 08Oct, 2016]

Needles, B.E., Powers, M. and Crosson, S.V. (2010).Financial & Managerial Accounting. USA: Cengage Learning.

Parsons, J.J. and Oja, D. (2012).Computer Concepts: Illustrated Introductory (9^thed.). USA: Cengage Learning.

Saasu.(2016). About Saasu. Available At: https://www.saasu.com/ [Accessed on 08Oct, 2016]

Shim, J.K. and Siegel, J.G. (2005).The Vest Pocket Guide to Information Technology (2^nded.). USA: John Wiley & Sons.

Xero.(2016). About Us. Available At: https://www.xero.com/ [Accessed on 08Oct, 2016]