Concept of Accounting Software/ Packages
Discuss about the Accounting Software used in Australia.
The accounting software concept is considered under “Accounting Information System” and is defined as computer software that is employed in order to record and process all the accounting transactions in the attainable modules such as accounts receivables modules, trial balance modules, payroll modules, accounts payable modules and general-purpose module for preparing financial report. Boulianne (2014) stated that accounting software can be generated in-house by the companies or can be purchased by the third-party software developer. These researchers also revealed that accounting packages or software is different relied on cost and difficulty. In the recent business world, packaged accounting software is not just restricted to processing and developing important financial data but also offers functional models those can be employed for the process of managerial decision that can result in the company gaining a competitive advantage.
Contractor et al. (2015) indicated that the accounting software in Australia has accepted a considerable transformation over several years because of significant technological advancement. The current literature review intends to review the current accounting software literature along with packages in Australia that is relied on their historical advancement, challenges, use along with adaptability by means of using the examples of several business accounting conducts from reviewing reliable scholarly journals, books, articles and conferences (Šim?nek et al. 2016). Moreover, literature review intends to investigate the recent market size, leaders along with competitive advantages because of implementation of efficient accounting software or packages within Australia. The recent challenges and gaps revealed within the present search might be employed for developing significant recommendations for future advancements in the accenting packages and software.
According to Kaefer et al. (2015) origin of accounting, software facilitated all its users for storing and access certain structured information from certain identical databases from computers. The organizations initiated to invest more in the advancement of proprietary accounting systems developed for particular requirements for the jobs were accomplished in batches. As computers developed its capability, ideas to advance common generalized accounting systems along with flexible functionalities turned out to be feasible with the emergence of SAP RF. This dealt with a huge range of business operations for prompt financial decision-making processes with fewer intermediaries (Boulianne 2014).
Kyng et al. (2013) revealed that Peachtree accounting system was introduced to simplify data stores with the objective of facilitating users to gain excessive value. For instance, it was gathered that Peachtree introduced its initial and highly integrated office suite with the word processor and spreadsheet. Moreover, Olasolo et al. (2016) revealed that Intuit presented Quicken product in the year 1983 that presented a fresh dimension of accounting applications along with suitable user interface. In addition, Teleware introduced an efficient accounting package that attained attention of the most efficient software. In the next few years, an Australian publisher of Teleware product acquired by the organization, Teleware transformed its name to MYOB Limited (Šim?nek et al. 2016).
Evidence of Research
According to Palmer (2013) implementation of accounting, software in Australia is taking place at a rapid rate. These researchers also stated that Xero, a New Zealand Accounting software organization, carried out a research that encompassed 1,622 small businesses that revealed that Australian small companies always remains ahead in implementation of accounting software systems in comparison to other nations. Šim?nek et al. (2016) indicated that many Australian businesses are considering implementation of accounting software systems for decreasing hectic paperwork that is generally characterized by errors of commission and omission, expensive and time consuming. In contrast, Tickle et al. (2014) stated that accounting processes initiates with numerous ledgers, purchase ledger, sales ledger, petty cash ledger and cashbook along with the trail balance and adjusting entries and finally the financial reports. Manual accounting encompasses huge paperwork and bookkeepers. The accounting software system is deemed as quick and easy to use as it needs just inputs in order to specific reports and accounts those are automatically generated. The efficiency and effectiveness of the Australian accounting software serves as important factors those results in their implementation by increasing number of Australian businesses.
Yelland et al. (2015) revealed that competition is becoming fierce in Australian accounting software market. Huge number of consumers for accounting software in Australia is medium as well as small Australian businesses. The largest players in the market of Australian accounting software encompass Xero, MYOB and Intuit. Such companies have considered the accounting software within cloud computing. Xero has attained largest share of accounting software market within Australia that totally focuses on employing cloud accounting software. Australian companies offer superior accounting software for medium and small size businesses. Šim?nek et al. (2016) identified that the software companies in Australia has discovered gaps in users of computer accounting software. Australian small and medium companies were facing challenges, as their departments are not some autonomous units. Accounting departments are known for gathering, maintaining and processing accounting books from several departments because of duplication and incompatible formats. According to Palmer (2013), for such reasons several companies in Australia considers utilization of cloud accounting software for its integrative capabilities.
In contrast, Contractor et al. (2015) stated that Xero accounting software employs software as service model (SaaS) that offers free API for the third party vendors along with consumers for integrating several applications on a particular unified ledger within the cloud. SaaS is known to have the capacity to offer users with applications that operates on a cloud structure and operated by means of thin user interface namely simple web browser. Olasolo et al. (2016) identified that cloud computing has changed the structure of IT through revealing highly effective cost effectiveness, innovation, efficient time-to-market along with scale to demand. Moreover, lack of the security serves as a major concern for its users within cloud computing software. Along with several security measures like the firewalls, users do not tend to feel secured of the un-authorized access by the foreign parties.
Research Gap
The reason for such concern is that cloud comparing remains devoid of security standards along with cloud providers those employ their own proprietary security standards along with technologies. Contractor et al. (2015) stated that there are increased risks of cyber crimes for the information assets linked with cloud computing. In dealing with such challenges of cloud accounting software, an “Identify Management Measures (IDM) for conducting services, and users authentication relied on credentials and characteristics. Information-based security serves as an extended approach for controlling security and data within cloud computing. Such data requires being describing in the computing surrounding. By means of trusted computing structure, information-based security is attainable. In contrast, Olasolo et al. (2016) explained that along with such security measures, future software of cloud accounting might serve as most versatile system for attaining competitive edge, information security, and efficiency along with cost effectiveness.
Previous research has failed to explain that accounting software has attained a remarkable development history after the computer language invention that ranges from simple programs to difficult computing systems (Šim?nek et al. 2016). The recent research will bridge a gap through explaining that Australia has three largest accounting software providers that competes within the market supported by highly growing small and medium size organizations. The research will also explain that Xero, Intuit and MYOB have attained a strong hold over Australian accounting software market through integrating account software within cloud as a manner to solve issues associated with accounting software in the desktop. Moreover, there are several security threat issues associated with cloud computing (Hyvönen 2013). Certain strategies to deal with security threat facing cloud computing encompass information-based security, predicate cryptography and authentication measures.
Conclusion
The recent paper offered a literature review on the use of the accounting software and packages in Australian companies. In the recent business world, packaged accounting software is not just restricted to processing and developing important financial data but also offers functional models. These can be employed for the process of managerial decision that can result in the company gaining a competitive advantage. As computers developed its capability, ideas to advance common generalized accounting systems along with flexible functionalities turned out to be feasible with the emergence of SAP RF. This dealt with a huge range of business operations for prompt financial decision-making processes with fewer intermediaries. Software companies in Australia have discovered gaps in users of computer accounting software. Australian small and medium companies were facing challenges, as their departments are not some autonomous units. Accounting departments are known for gathering, maintaining and processing accounting books from several departments because of duplication and incompatible formats. The current literature review intends to review the current accounting software literature along with packages in Australia that is relied on their historical advancement, challenges, use along with adaptability by means of using the examples of several business accounting conducts from reviewing reliable scholarly journals, books, articles and conferences.
References
Boulianne, E., 2014. Impact of accounting software utilization on students’ knowledge acquisition: An important change in accounting education. Journal of Accounting & Organizational Change, 10(1), pp.22-48.
Contractor, S., Alexander, L.V., Donat, M.G. and Herold, N., 2015. How Well Do Gridded Datasets of Observed Daily Precipitation Compare over Australia?. Advances in Meteorology, 2015.
Hyvönen, T., 2013. ICT systems and cost management. The Routledge Companion to Cost Management, p.56.
Kaefer, F., Roper, J. and Sinha, P., 2015, May. A software-assisted qualitative content analysis of news articles: Example and reflections. In Forum Qualitative Sozialforschung/Forum: Qualitative Social Research (Vol. 16, No. 2).
Kyng, T., Tickle, L. and Wood, L., 2013. Academics’ perceptions of the use and relevance of software in quantitative and financial disciplines. International Journal of Mathematical Education in Science and Technology, 44(2), pp.214-231.
Olasolo, P., Juárez, M.C., Olasolo, J., Morales, M.P. and Valdani, D., 2016. Economic analysis of Enhanced Geothermal Systems (EGS). A review of software packages for estimating and simulating costs. Applied Thermal Engineering, 104, pp.647-658.
Palmer, P.D., 2013. Exploring attitudes to financial reporting in the Australian not?for?profit sector. Accounting & Finance, 53(1), pp.217-241.
Šim?nek, J., van Genuchten, M.T. and Šejna, M., 2016. Recent developments and applications of the HYDRUS computer software packages. Vadose Zone Journal, 15(7).
Tickle, L., Kyng, T. and Wood, L.N., 2014. The role of universities in preparing graduates to use software in the financial services workplace. International Journal of Mathematical Education in Science and Technology, 45(2), pp.200-213.
Yelland, L.N., Sullivan, T.R. and Makrides, M., 2015. Accounting for multiple births in randomised trials: a systematic review. Archives of Disease in Childhood-Fetal and Neonatal Edition, 100(2), pp.F116-F120.
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