Traditional accounting systems
Discuss about the System for Implementing World Class Manufacturing.
The traditional accounting system is basically the manual or paper-based recording of the daily transactions such as prices, sales, the stock of a business or an organization (Bruno & Lapsley, 2018). Efficient accounting process are essential to the successful growth and development of any business and organization, however, traditional accounting systems have their advantages and disadvantages in the long run they include (Schreiner, 2016)
Easier to set up-traditional accounting system are easy to set up since it requires limited resources such as paper for recording transactions and other business activities
Applicable to all business-this accounting system is universal in the sense that any business can use to perform crucial business activities
Cheap-the traditional accounting system is cheaper in comparison with the computerized system, it requires far more resources which are easier to access and maintain
The human error-traditional accounting system is prone to human error recordings that may be futile to the business growth and development
Time-consuming- it takes a lot of time in recording and performing business transactions such as generation of reports and crucial documents (Guinea, 2017)
susceptible to perils-records may be damaged easily by perils such as fire and water, losing crucial information
inefficient recovery plans-its hard and expensive to implement recovery strategies since it involves duplication of the same record manually and maybe causing more errors
The Smith brothers have an efficient option of switching from traditional accounting system to the computerized system, which means the use of accounting software. Accounting software allows businesses to balance the books, reconcile their accounts, and actually understand where their money is going. Not only is this important for making informed business decisions, but it’s also key for filing taxes correctly at the end of each year. Accounting software allows businesses to balance the books, reconcile their accounts, and actually understand where their money is going. In addition to the fact that this is critical for settling on informed business choices, but on the other hand, it’s key for recording charges effectively towards the end of a fiscal year. The business requires a good accounting software will provide a chart of accounts, double-entry accounting, bank reconciliation, and reporting so you can balance the books and manage your finances correctly. Most software packages offer business administration instruments like invoicing, time following, and undertaking administration. Furthermore, the most elite toss in great client assets that show you how to comprehend bookkeeping and effectively manage the finances at the business (Nias Ahmad, et al, 2016)
Advantages of traditional accounting system
this software was initially among the few accounting software’s to be cloud-based accounting; however, its local functionalities are still available Xero is also huge on integrations, with more than 600 integrations to help business owners manage invoicing, multicurrency support, inventory, payroll and much more. Smith brothers require access to PC ($300) printers ($150) and scanners and printers ($250) according to Amazon office products (2018). It offers a monthly subscription of $180. The Smith brothers will be in a position to record their transactions to a database both locally and cloud-based and even send documents to their clients and employees online.
Xero software allows businesses to balance the books, reconcile their accounts, and actually understand where their money is going. In addition to the fact that this is critical for settling on informed business choices, but on the other hand, it’s key for recording charges effectively towards the end of a fiscal year. The Smith brothers will benefit from this since they will be in a position of performing their business transactions more efficiently and faster than ever before moreover they will manage their finances and be in a position to respond effectively (Krause,2018)
This accounting software comes with an easy to use interface, plenty of features and a compelling price, Wave is a free accounting software that doesn’t sacrifice quality for affordability. Wave also boasts great customer service. Phone and chat support are only available for payroll and credit card processing, but Eave’s customer service team responds to email messages very quickly. Wave accounting software allows businesses to balance the books, reconcile their accounts, and actually understand where their money is going. In addition to the fact that this is critical for settling on informed business choices, but on the other hand, it’s key for recording charges effectively towards the end of a fiscal year (Guinea, 2017).
Its cost and implementation as discussed early free, however the Smith brothers require access to PC ($300) printers ($150) and scanners and printers ($250) according to Amazon office products (2018), therefore its cost and implementations is fairly low but it is lacking in integrations platforms which are fewer compared to Xero accounting software.The Smith brothers will benefit from this since they will be in a position of performing their business transactions more efficiently and faster than ever before moreover they will manage their finances and be in a position to respond effectively (Krause,2018)
Disadvantages of traditional accounting system
No other database or excel based solutions cannot be implemented since the two-accounting software’s discussed above have efficient and suitable resources that will handle all activities in the Smith Brothers business, they are independent accountings solution firms. Moreover, it would bring inefficiency while trying to implement other solutions into the business prompting confusion and errors in the long run (Averinà, Kolesnik, & Makarova, 2016).
Caltex Australia Limited (Caltex) is listed on the Australian Securities Exchange (ASX). Its corporate governance arrangements are set by the Caltex Board having regard to the particular circumstances of business and operations and the best interests of the firm’s shareholders and other stakeholders. Corporate governance alludes to the arrangement of standards and systems by which an organization is represented. These principles give rules and guidelines by which the organization is run with the ends goal of growth and development of the firms while catering the need and interest of the shareholders and stakeholders , according to Caltex annual report (2017). However, the board members at Caltex develop and drive their corporates government policies so as to ensure the firms meets the legal obligations and international standards of their industry moreover their structre and roles in the firms are guided here too. The corporate governance of Caltex addresses key universal element as stipulated by international standards that keeps the firm on the right track (Tricker,2015).
Diversity-Caltex is bolstered in embracing diversity in its external and internal work environment despite the different individual’s backgrounds related to education, religion, sexual orientation, gender and so on. It ensures and equal opportunity for each individual to contribute their potential which meets that international standards and regulations
Code of conduct- Caltex code of conduct applies to the association’s chiefs, senior official, and all staff individuals and gives a system to basic leadership and business conduct which construct and manages the association’s corporate respectability, notoriety, and achievement. The set of principles recognizes duties regarding examining breaks for the set of principles and related detailing of ruptures to the board or senior administration as suitable. The board gets yearly reports from the general supervisor and the HR in relations to organization fo, and compliance with the code of conduct
Integrity in financial reporting- Preceding the endorsement of Caltex’s entire year monetary articulations, the Board gets a signed declaration from the Managing Director and CEO and the Chief Financial Officer, compliant with segment 295A of the Corporations Act 2001 (Cth) (Corporations Act) which is done annual at the end of every fiscal year according to Caltex annual report (2017).
Options for Smith Brothers
Communicating with Shareholders- Caltex is focused on Issuing their stakeholders and investors opportune, adjusted and justifiable data about on the firm’s progress including the use of their websites. The Caltex site contains, among other things an overview of the business, history, and values and a financial specialist focus which. contains ASX declarations, a corporate administration page, yearly reports and introductions, investor data and our registry and key contact details (Caltex,2017).
Information technology is an integral part of the success and growth of business and organizations. As the component supporting payment frameworks, communication, bookkeeping, business forms, data storage, correspondence and that’s just the beginning, it presents critical opportunities for, and dangers to, the accomplishment of objectives and strategies. The Caltex board perceives that keeping up great IT governance policies and practices is a progressing and consistent process. The Board embraced IT governance guidelines which mirror its responsibility regarding checking the adequacy of approach and basic leadership at the board and administration level guaranteeing strict adherence to IT governance standards, with the objective of improving the value to the shareholders (Caltex ,2017). Therefore, shareholders are not merely interested in IT governance policies at Caltex since they depend and trust the board of directors who they elected to represent their interest in increasing the value of the share through interest and dividends. Moreover, shareholders are not involved in the day to day operational activities of the firm such as the employees who also represent their interests as well. Therefore, IT governance policies are made and modified to increase the value of the firm which is the core importance of the shareholders (Ayuso,,et al 2014).
It isn’t sufficient for Caltex to have IT frameworks and anticipate that them will convey key an incentive to them. Rather, there should be a component set up to control, screen, and administer the esteem creation endeavors of the IT frameworks. This administration instrument of IT frameworks manages the execution and hazard administration of those IT frameworks in a way that would make an incentive for the associations and guarantee that the proposed arrangement of the IT and business goals is on track. Subsequently, IT administration manages identification, foundation, and connecting of the instruments of the IT frameworks to both oversee dangers and in the meantime guarantee that their execution is tuned in to the expressed destinations (Du Plessis, Hargovan, & Harris, 2018).
The plan and administration of the IT governance framework are assigned to the Divisional Chief Information Officers at Caltex. Caltex follows a clear guideline on its IT governance policy is presently accessible in another worldwide standard – ISO 38500, this standard depends on and supersedes AS8015 – the Australian Standard for Corporate Governance of Information and Communications Technology (Caltex ,2017).Moreover it requires the participations of the Stakeholders who represent a larger demographic than shareholders since consumers employees and top executives at Caltex are all stakeholders, they are the reason that the firm continues to exist and the development and implementation of suitable IT government policies will lead to the growth and development of the firm which will benefit the stakeholder(i.e. staff members, senior executives. Therefore, there will be much interest in the formulating and modification of IT policies at Caltex as it will have a great impact on their future. Some stakeholders even participate in the formulations of these policies and ensure that they are suitable for achieving their goals and objectives and the wellbeing of the firm in general (Tricker, 2015).
Accounting software packages
Caltex is a large multinational oil merchandise firm that has branched out in over 60 nations, basically it’s a large cooperation that requires rules and guidelines to keep it on the right track in achieving its goals and objectives without undermining any regulations or international standards set in the international market. This requires the development and incorporation of IT and corporate governance statements that will guide Caltex in performing its daily business activities in different its business environmental markets that are volatile. However, these two governance statements may seem to vary in their functionalities but they all have similar goals that all end up in benefiting the company by contributing to its growth and advancements (Du Plessis, Hargovan, & Harris, 2018).
IT governance systems are based on improving and maintaining suitable IT frameworks and policies to govern them ensuring productivity and delivery of services effectively to all parties linked to Caltex both indirectly and directly (Pathak,Pathak, & Sidharth, 2016). However, corporate governance statements allude to the arrangement of standards and systems by which Caltex is represented. These standards are crucial to the success of the firms and its essential for the firms and its linked parties to adhere to these guideline and policies. However, the IT governance policy of a firm should be in the cooperate governance statement, moreover is a subset discipline of Corporate Governance. It is severally mistaken to be a field of its own which may have brought confusion in some instances, especially in annual reports, in general, IT Governance is actually a part of the overall Corporate Governance Strategy of an organization (Caltex ,2017)
During the 1990s, Compaq was a major pc brand, it actually created the first effective and successful IBM clone setting records as a mere startup and beating IBM in the pc market share and acting as the standards for pcs and its appliances at the time today the glory of the firm had is gone, it’s only a trademark that HP possesses and doesn’t utilize, but why did Compaq fail? (Shukla, 2014).
Premium pricing strategy-Compaq was now an established pc brand after acquiring the market from IBM which dominated the markets then, however increasing competition from upcoming startups saw the change of course by increased innovation and targeting the premium market. This saw the price increase due to the availability if middlemen who were given high targets. consumers went for other firms that offered similar products at way lower prices (Farquhar, 2015)
XERO accounting software
poor acquisition strategy and mergers- Compaq acquired Digital Equipment Corp (DEC) which was a thriving company the time, however, the company offered many services that Compaq did not require. It made chips that were not even compatible with its PC, the ultimate goal was to deprive it of buying chips from Intel which was not achieved until DEC additionally made minicomputers. Compaq made its name by motivating individuals to purchase Intel-based servers rather than minicomputers. DEC likewise made refrigerator-sized Unix frameworks. Compaq pushed individuals to purchase Intel-based frameworks running Windows NT rather than Unix (Shukla, 2014).
poor management. – A progression of scandals constrained different top officials out in 1999. CFO Earl Mason unveiled financial results to a few investigators however not others, and he was forced to resign. Chief Eckhard Pfeiffer soon took after. This further destabilized Compaq with consumers turning to other brands (Farquhar, 2015).
dot-com burst-this was the sudden demise of internet startups hurt Compaq in two ways. These startups were purchasing a lot of hardware and equipment as they spent their funding and IPO cash. Their end implied Compaq lost an expansive number of enormous clients. Their liquidations additionally overflowed the market with a great deal of surplus hardware and equipment, some of which had never been utilized. Compaq needed to contend with its own particular item until the point when the market assimilated the excess. This had a huge impact in its loses that led the business to be close to operational, however, it was later purchased by HP which strategically boosted HP in the pc market (Smith, 2017).
Efficient acquisition strategy-Compaq would have initially conducted strong analysis and research of the DEC company before acquiring it. This would have assisted the company in prioritizing its market and strengthen it, however, DEC had many products and services that Compaq did not want, the firm was later sold cheaply to its main competitor that prioritized on its products and services (Nikoli? et, al.2016)
Effective management. The firm had also poor management with the constant increase in scandals from mismanagement by the top executives who were supposed to lead by example. Compaq would have avoided failure here through proper screening of potential leaders who have a good track record and strong leadership skills (Gibbs, & Humphries, 2015)
Efficient utilization of resources-Compaq acquired Digital Equipment Corp (DEC) which was a thriving company the time, however, the company offered many services that Compaq did not require. It made chips that were not even compatible with its PC, the ultimate goal was to deprive it of buying chips from Intel which was not achieved until DEC additionally made minicomputers. Compaq would have strategized a way that the apparent company acquired would tailor it chips to be compatible with Compaq’s products and services, this would have accumulated more revenue for the firm (Gibbs, and Humphries,2015).
Wave accounting software
Effective market strategy-Compaq history shows that its strategy was mainly focused on mergers and acquisitions and giving little interest on other strategies such as consumer target, preference and taste which would have played a major role in acquiring and retaining consumers as most of its rivals such as Microsoft and Apple did (Barney,2014).
Elimination of middle men-middle men played a major role in the demise of the company. They regulated their prices s as to gain profit which in the long run saw consumers looking for other alternatives. The firm would have probably setup their own retails store strategically and in cases where middle men were required they would have set standard prices of their product, this would have eradicated that problem easily (Barney,2014).
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