Review on Accounting Software Packages

Question: Discuss about the Review on Accounting Software Packages. Answer: In the views of (Daniel Bricklin, 1985), accounting software/packages are more of computerized accounting system. These are basically the computer programs that are designed to assist the enterprise and businesses as for they have their data recorded with such software of the financial transactions occurred in an enterprise There can be different accounting software for different purposes depending upon the functionality of the business. For example: in the bigger firms wherein of different departments information is to be recorded then such accounting software are used which shall assimilate the data from different departments and customize its solutions. Feasibly, accounting software nowadays has proved to be an irreplaceable means. Software permits the consolidated form of detailed list of financial events to be tracked in the easiest possible manner. Advantages of using accounting softwares over the tasks performed by hand, has reduced the costs of accounting and increased the ac curacy for captivating financial decisions in better way with less time consumption. Moreover, this is a way of making through well-timed reporting. As for the reason, before the usage of the accounting software hand written long journal transactions were prepared which involved labor to combine the manual transactions. For example: the Ghanaian banking industry in Australia has adopted various strategies so as to achieve long term profitability as well as organizational growth, one of those is using the accounting software/packages. History of accounting software / packages Earlier accounting was practiced with the method of ledger. A book consisted of different account as for example: cash receivables, payables, debtors, creditors, stock holder equity. The events related to the day-to-day transactions were recorded manually into the books of journal. A computer software application named Intuit was launched in 1983, so as to quicken the procedure of personal finance. Similarly, for the purpose of tax deviousness of federal and income taxes Turbo tax is now used (Novinson). This growth and development in computerized accounting, for concern of the accountant it was made a lot easier for them to perform computerized accounting instead of manual journal entries. Also, the accounting software applications served a professional way for the accountants to accomplish their task in well-organized manner and expeditiously as well with fewer complications. In the contemporary years tremendous growth in the technological advancement can be witnessed and also, innovations like personal computer to help the human resources to route the businesses. Intuit, consequently played a significant part in revolutionizing accounting for computer-generated age. Accounting software/packages applications commonly used in Australia are: Intuit Quick books, MYOB, Reckon, SaaSu, and Xero. The maximum popular accounting software program operated by the business enterprises is Intuits quick books. The enterprise owners all through Australia use quick books to keep an eye on their commercial business costs, prices and proceeds. MYOB is also accounting software which enables to its users the most streamlined functioning. With the MYOB interface, the transactions related to factor of sales are comprised into the business enterprise operations. Reckon, accounting software for Australian organizations is considered to be the excellent one for the purpose of book keeping and accounting as well. Moreover, for the small and medium sized organizations it is considered to be the cheapest cloud accounting software which enables the accountants to perform their task in the most efficient manner. This also raised area for the payments to be received through th e debit/credit cards from ones mobile phones that is Reckon Pay. These accounting software/packages for the business enterprises in Australia has proved to be way helpful for the accountants and book keepers to prepare and maintain their books of accounts in the compact manner. Development and adoption of the accounting software /packages used in Australia: As in the interpretations of Greuning (2006), the developments in the information technology have in due course for the management as well as the external users of the organization have led to the introduction of the computerized accounting systems for preparing the resourceful corporate reports for better analytical decision making. Furthermore, it is determined that the usage of the computerized accounting software/packages are considered to be the instrument of development, being its biggest advantage for corporate reporting (Frenzel, 2006). The adoption of computer software / packages has enabled the business enterprise to maintain the business financial transactions. The inflows and the outflows of a business are managed in simpler form for larger businesses. Additionally, the adoption of this software by various business enterprises in Australia has led to help the companies in accounting of different departments more efficiently which reduces the cost as well as the mistakes committed while book keeping and accounting of such bigger business enterprises. Adoption of these accounting software /packages has led to the following advantages: Accuracy: accounting software has helped not only in increasing the accuracy of the financial records but also the reduction in the human errors while calculations are made. As an incorrect calculation mistakes which were made manually led to the process have a great effect on the end balance. On the other hand, such software/ packages are virtually unable of committing such errors. Considering the fact that data entry done on the computer systems is entered correctly. Speed: with the usage of the accounting software it allows greater speed than the ones which are done manually. Moreover, by the automated software has increased the efficiency in the business enterprises. For example: if in the business enterprise the sales tax is to be recorded on all the dealings. Then, such software could arrange to do this for each of its transactions inevitably rather than having a specific staff member to perform this. These tasks eventually reduce the costs mechanisms also. All the speed along with efficiency with the reduction in the costs goes hand-in -hand. This will result in more saving for the organization. Current market size: At the present time in Australia there are three big competitors in the market: Intuit Quick Books Online, MYOB and Xero. Such software/packages in Australia are of utmost important in a business as by this book keepers can make their management decisions more easily on their mobile phones or through the desktop. The leader MYOB-has raised its market share between $AU831.7 - $AU833.8 million. Whereas, Xero being evolved from New Zealand to spend about $250 million on such developing software/packages in Australia. (Source: business insider Australia, 2015). Moreover, in the Australian markets the US market leader Intuit has rolled over. As in the views of MD Nicolette Maury, she says Intuit as amazing. She has also mentioned that despite the accounting software being of such importance to the business enterprises but there can still be developments made for more growth and betterment. In comparison to MYOB, Intuit gains the leadership in markets of over $ 27 billion (Source: business Insider Australia, 2015). Who are the current market leaders in Australia? Quick books are the market leaders of accounting software in Australia with over 80% as mentioned by Brad Paterson, Vice president of Intuit Quick Books. Also the shift has been seen by the Australian clients who were earlier using Microsoft excel. Intuit Quick Books has now targeted the Australian accounting practices as well as its customers for Reckon Accounts by Quick Books(Forbes,2015). Competitive advantages of Intuits Quick books: Recognized markets: basically, intuit have no direct competitors into cloud marketing online. With respect of the long run it has already acquired a large number of customers which helps it make a recognized market. Intuit being single supplier: Intuit Quick book is the software which has its products as payroll, marketing, tax, point of sale, lending and accounting. So there is an advantage in owning these many parts of the products solely. Moreover, intuit does not use complex tools as it reduces the risk by using the easier one. Most of the products are already moved while some are in process of moving them into a cloud which has its first phase as moving them into cloud format. Second is the integration of these products into Quick Books Online. App online provider: Intuit also has a big market share in the US. It is also the most successful product of Intuit Quick Books. The current gaps and challenges faced by the users: According to maduqne (September 13, 2013), those who are using the computer application software face challenges. Some of those challenges encountered by the business enterprises are: Lack of security: the users are usually worried about the data and its security by third parties. Even though the security Norton software is believed to solve this issue, but when this happens there is nothing one can do about this issue (Brian Kerbs,2015). Lack of accuracy when software is outdated: Some of the accounting software is outdated and hence the outcomes tend to be usually inaccurate. By this system becomes inefficient and error occurs. Corrupted data is a serious concern in the accounting software which will derive false conclusions. Challenges of customization: some of the software has complex system and is difficult to understand by the users of such computerized accounting. Moreover, the customization cannot be done on some of the designed software according to preferences of the users. This way it comes out to be a challenge for them. Lack of structures according to the cost: some of the accounting software is more expensive with respect to its price. In order to be the have new features users always want to have the upgraded version or will have to switch to software for further usage. Inefficient speed of accessing software/packages: With the lack of speed of the network servers which are used for running the accounting software the delay can happen. Reasons can be the distance to location of processors and poor connections. Subsequently this leads to challenges which are faced by the users in using accounting software/packages. Despite of being so helpful, these are the current gaps and challenges of accounting software faced by its users. References: Kepes, B., (2014), Xero and Intuit provide enough fireworks 4 July show, Available at URL: https://www.forbes.com/sites/benkepes/2014/12/01/david-versus-goliath-xero-and-intuit-provide-enough-fireworks-for-a-4th-of-july-show/#4d0c674b43ff [retrieved on: 6 January, 2017]. Heber, A., (2015), The cloud accounting supremacy in Australia, Available at URL: https://www.businessinsider.com.au/charts-the-battle-for-supremacy-in-australias-cloud-accounting-market-2015-4 [retrieved on: 6 January, 2017]. Kerbs, B., (2015), Turbo Taxs anti fraud efforts under scrutiny, Available at URL: https://krebsonsecurity.com/2015/02/turbotaxs-anti-fraud-efforts-under-scrutiny/ [retrieved on: 7 January, 2017]. 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