History
Discuss about the Evolution of Accounting Software Packages.
In the recent times, when the scenario is changing at a fast pace the role of accounting is being considered even more important. Accounting overall as a concept is very wide. It can be applied to business dealing with different scales be it large scale business or small ones. Accounting has created a revolution in the department of operations and practices. It has provided an opportunity for the business to develop and expand. Although there has also been tremendous growth in the accounting system. From being paper based systems, accounting systems today are software based. It can also be stated that the software accounting is basically an advanced version of the previous method. Features have been improved which has resulted in better efficacy.
The document will summarize the current scenario of accounting packages in Australia, highlighting the features and uses of many packages.
Since the beginning of the accounting system, the paper based accounting system was followed in Australia. Along with accounting, double entry and data table proved to be efficient. Although, an advancement took place in the year 1970 (Ryan, 2016) wherein the technology took over the traditional method. The technology of personal computers guided a revolutionary client-server based accounting packages. The features like management of customer relationship, management of transaction has been made easy by cloud computing and advanced data analytics.
Due to the advancements in every aspect of our life, the demands have seen a rise too. The need for customers to have a fast processing and an integrated accounting system is increasing. The development of accounting solutions hence, must match the expectation. Automation in the nature of solutions was of most importance because the needs of the customers are changing and they look for professional approach to handle a query (James, 2016). All this is to be taken care of by keeping the cost of the package in mind. Automated reporting, alerts, east transfer and transactions are the features incorporated in the software. The main aim of the companies developing these programs should be that they promise to deliver a high technology product along with a reasonable cost.
The main focus of the accounting companies in Australia is that they deliver the customers the three most important operations in accounting packages. Accounting, auditing and bookkeeping happen to be the most widely used operations. When we look at the statistical data, the total number of companies in Australia that deal with providing the accounting package services are 9,968 bankwest.com.au, 2015 of which approximately 133,000 of population is employed with the same operations. This is a great way to compare the Australian market to the global market, and the comparison states that the Australian market of the Accounting industry will experience a major income development of around 5.5%. This growth can be brought about in the year 2016-17 to achieve AUD 20.7 billion.
Development and Adoption
Accounting Software/Packages
The Accounting market has seen many companies and firms trying to fight for their as the best and become leaders of the accounting software/ packaging. The major industries that rule the market have a unique quality about them. They provide the clients with the necessary services at affordable prices.
Intuit QuickBooks
One of the many names that created a place of its own in the Australian market is Intuit QuickBooks. It can be regarded as one of the most widely used providers of accounting software. The accounting software that is offered by them has some important features that the customers like. There are numerous reasons that can be given credit for, for the success of the company. Some of the striking features that have led to the success and popularity of the company and users can be regarded important for its survival (advisoryhq.com, 2015)
They provide their customers with the services at a very affordable price, and this is the reason why the customers stick to them. The expenses and revenues can be managed very well by setting the operations in place by the customers who are business users of this software. One of the most widely accepted feature of the packages is that they offer multiple platforms for the user to access the software. One can manage the software from a desktop, mobile phones as well as latest operating systems that might be available. Large quantities of data can be managed with ease with the help of these software packages. This software also helps in payroll paper generation and that too for free. Customers can also rely on the services provided by them because they provide high security mechanisms to make the software free from any risks. The security is well taken care of and is at par with the security offered by some of the banks.
Reckon has gained its popularity by offering exclusive services to its customers. The accounting software/packages offered by Reckon are of superior quality with amendments from time to time. They have made a leading name for themselves in the business industry by offering services that offer excellence. It has been mainly developed for commercial use and hence it dominates the market for commercial businesses. It is the leading cloud accounting software that manages the point of sales easily. It can also be connected and linked with other desktop software. The services like billing management, credit management planning of the resources and processing of the tax are provided to the customers at prices that are affordable (Carey, 2015).
Current Market Size
MYOB Accounting Software is considered as one of the leaders in accounting software/package because they are widely used and the services offered by them are top notch. The excellent features offered by them is the primary most reason as to why they have been on top. They offer basic accounting services along with the software package. The premium packages take it to another level by integration of Point of Sales transactions with the business units (myob.com, 2016). They offer a vision to their clients that helps the business developers and the executives to have a real experience of all the finance related problems so that they can come up with a solution for the same. One of the salient features of this accounting software is that it enables its users to use it online as well as offline. So one need not worry in case of slow internet because offline services can be availed without causing hindrance in the further work. The utility of the software is enhanced from time to time also the software remains updated all the time, restricting any confusions.
Saasu has made a name for itself in the market by offering its clients the software packages that have latest and many new features. They represent the next generation software packages to their customers, which is far simpler in terms of usage and provides the user with better features and amalgamation with the latest of technologies. They have connections with e-mails that the customers find extremely handy. Automatic alerts are generated for the customers it also gives its customer the liberty of transaction management to be carried out in 50 different foreign currencies.
By targeting a huge audience the company called Xero has established a name for itself in the Australian market. Services offered by them offers a superior quality of processing, and management of the software is advanced and takes place at a fast speed. The user interface is of high quality and gives an overwhelming experience to the user. Provides simple, clean and non-complicated services that give the customers an overall good user experience. They also offer a feature of multiple integration along with their software that is helpful for the customers and provides them with ease.
Even after the development of the technologies and advancements in the methods of accounting software, a customer faces multiple challenges in their day to day use of these softwares. Security issues seem to be on top of the list of the threats that a customer faces. Accounting is an arena where the security breach can cause a severe amount of losses to the user as well as the provider. Even after leaps of advancements the attacks or frauds and security breaches pose a major threat to the customers. Also a customer wants to keep their system up to date, however, along with the additional services and feature the overall cost of the accounting software increases. And the cost increases wherein it surpasses the affordable range of pricing. Hence, costing is one of the challenges faces by the industry. Many times it happens that the customers find the software too complicated and are unable to use the software at ease. The reason for this problem to occur is that the users are not provided with a suitable guide along with the accounting software. It leaves the users baffled as they are unable to figure out a way for themselves. Proper training documents or a user manual can be provided along with the accounting software (Crowder, 2016).
References
Carey, M. (2015) Cloud Accounting Overview 2015: MYOB Essentials vs Xero vs Intuit QuickBooks Online vs Reckon One – Digital First. [online] Digital First. Available at: https://www.digitalfirst.com/2015-overview-cloud-accounting-software/ [Accessed 27 Aug. 2016].
Crowder, C. (2016) [online] Techin.oureverydaylife.com. Available at: https://techin.oureverydaylife.com/disadvantages-accounting-software-1965.html [Accessed 27 Aug. 2016].
James, D. (2016) 7 accounting packages for Australian small businesses compared: including MYOB, QuickBooks Online, Reckon, Xero. [online] BIT. Available at: https://www.bit.com.au/Review/344651,7-accounting-packages-for-australian-small-businesses-compared-including-myob-quickbooks-online-reckon-xero.aspx [Accessed 27 Aug. 2016].
Ryan, E. (2016) The EVOLUTION of Accountion Software: PAST, PRESENT and future |. [online] Gaaaccounting.com. Available at: https://www.gaaaccounting.com/the-evolution-of-accounting-software-past-present-and-future/ [Accessed 27 Aug. 2016].
advisoryhq.com, (2015) 5 Best Small Business Accounting Software in Australia. [online] AdvisoryHQ. Available at: https://www.advisoryhq.com/articles/5-best-small-business-accounting-software-in-australia/ [Accessed 24 Aug. 2016].
bankwest.com.au, (2015) Accounting Services Industry Report. 1st ed. [ebook] Bankwest. Available at: https://www.bankwest.com.au/cs/ContentServer%3Fpagename%3DFoundation/CS/Blob/Document%26id%3D1292539844555%26ext%3D.pdf+&cd=3&hl=en&ct=clnk&gl=in [Accessed 27 Aug. 2016].
myob.com, (2016) Online Accounting Software for Businesses | MYOB. [online] Myob.com. Available at: https://www.myob.com/au/accounting-software/compare [Accessed 27 Aug. 2016].
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