Effectiveness of Accounting Software for Financial Reporting: A Case Study of Ausnet Ltd

The report analyses the effectiveness of accounting software or cloud computing system in terms of reporting for financial information of a business. The report considers the business of Ausnet ltd engaged in energy distribution sector and analyses the best software option which is available to the business. The assessment considers the MYOB and Xero software for analysing which software is best suited to the business of Ausnet ltd. The assessment also highlights the key features which are associated with the software which is considered by the management of Ausnet ltd.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
The main purpose of the report is to comment on the effectiveness of accounting software or
cloud computing system in terms of reporting for financial information of a business. The report
considers the business of Ausnet ltd engaged in energy distribution sector and analysis the best
software option which is available to the business. The assessment considers the MYOB and
Xero software for analysing which software is best suited to the business of Ausnet ltd. The
assessment also highlights the key features which are associated with the software which is
considered by the management of Ausnet ltd.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Background of the Business........................................................................................................3
System Requirements..................................................................................................................4
Software Selection.......................................................................................................................6
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................12

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Introduction
The main purpose of the assessment is to analyse the business of Ausnet Ltd which is
engaged in providing energy and utilities to consumers. The assessment aims to understand the
different cloud computing packages which are available in the market so that it can be deduced
which cloud computing package is most suitable for the business of Ausnet Ltd. The assessment
would also be conducting a comparison between two cloud computing software in order to
assesses the features of both the software and determines which one is better (Al-Roomi et al.
2013). The assessment would also be portraying the advantages of cloud computing system in a
business.
Discussion
Background of the Business
The business which is considered for the assessment is Ausnet Ltd which is engaged in
the business of providing appropriate services to the residents of Australia which is related to
energy. The company supplied electricity and gas in different regions of Australia. The company
is listed in both Australian and Singapore Stock exchanges. The core activities of the business
are related with services which is provided by the company in the field of energy sector.
Ausnet ltd is recognized as one of the developing companies in the energy sector and can
be considered to be a medium scale business which is trying to expand the range of operations of
the business. In today’s world, the focus of businesses must be to improve the reporting
framework which is followed so that full disclosure can be provided to the users of the financial
statement (Ausnetservices.com.au. 2019). For such a purpose of most of the businesses are
switching to cloud computing system for managing the financial records and also for processes

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of information. This step is taken in order to enhance the efficiency in the reporting framework
which is followed by the business. In the case of Ausnet Ltd as well, the business would be
requiring an appropriate software which can handle the reporting and processing of information
for the business so that a level of efficiency can be maintained in the organization.
System Requirements
In the modern era, one of the major development which has taken place is development
of technology as more competent technology and software are available which can help
businesses to enhance their level of efficiency. One such example is the introduction of cloud
computing software which was introduced for improving the reporting process of financial
information and the sane is also used by businesses for processing and generating reports. The
introduction of cloud computing system effectively allows the management to appropriately
manage the reporting for financial information (Gai et al. 2016). The cloud computing system is
much better than the manual system of accounting and the same effectively ensures that proper
records are maintained in the business. Some of the features of cloud computing system are
discussed below in details:
 Easy Maintenance: One of the main features which is associated with cloud computing
system is that the systems can be maintained very easily by the business of the client.
This suggest that the servers which are associated with cloud computing system can be
managed quite easily and there is less or no downtime associated with the same. In
addition to this, the cloud computing system is makes updates on regular basis thereby
improving the system and effectively meeting the requirements of the client businesses
(Cleary and Quinn 2016). The update enhances the reliability of reporting and also makes
the software more compatible with the business.

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 Resources Pooling: The cloud computing system is effectively designed for making the
system more compatible with every businesses which utilizes the same. The system can
provide wide range of services to multiple client businesses with the help of a multi-
tenant model thereby meeting the needs of every businesses. There are various physical
and virtual resources which can be used with the help of cloud computing system and the
same can help in meeting the demands of the client based on the nature of the industry in
which the client’s businesses operates (Brender and Markov 2013). Therefore, it can be
said that with the help of cloud computing system a business is able to look at the bigger
picture due to all the resources which is accumulated by the system.
 On Demand Self Service: The users of cloud computing system can effectively provide
self-services in terms of managing information and reporting the same to the users of the
financial statements. The cloud computing system effectively allows the users to
continuously monitor the server uptime, capabilities, and allotted network storage. This is
regarded as one of the best features which is available to different businesses as they can
handle their own resources appropriately (Gupta, Seetharaman and Raj 2013). In terms of
accounting, the reporting framework becomes more easy and efficient and the
information can be updated with a single entry.
 Automatic and Economical: The cloud computing software is automatic in nature and
can effectively update all information which has been reported with a single entry. In
addition to this, the system can process all the information which is recorded effectively
with a single function and also generated reports for the same. The cloud computing
software effectively monitor, control, and report the usage of resources of the business. In
addition to this, it requires a one-time investment after which the costs of running such a

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system is minimal (Bhimani and Willcocks 2014). The cloud computing system is also
known to promote transparency in the operations of the business.
 Security: The cloud computing system is mostly preferred by different businesses due to
the security features which is provided by the same. The management of the company
wants the data of the business to be secured and effectively allows the businesses to
backup the data which is available to the business. The security feature of the system also
protects the data of the client from hacking and cybercrime.
In the case of Ausnet ltd, the management of the company follows a low-cost model which
aims to promote the efficiency of the business. The management of the company also requires an
appropriate software for managing the operations of the business and also the reporting
framework which is followed by the business.
Software Selection
Details of the Vendor and its products
One of the most popular software which is used by a majority of the businesses is MYOB
(Mind Your Own Business) software. The software is provided by MYOB corporation which
operates in Australia and provides tax, accounting and payroll software solution to the clients of
the business (Myob.com. 2019). The business provides business management solutions and it is
considered to be very effective for new businesses which are just beginning their operations.
Some of the departments which are covered by MYOB are accounting, payroll, payments, retail
point of sale, CRM and professional tax solutions. This shows that the software and the products
which is offered has a wide range of applications.

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Another accounting software which is quite popular in the market is Xero which is
provided by Xero Ltd which is an Australian listed company providing software solutions to
different clients ranging from medium businesses to small scale businesses. The product which is
offered by the business is based on software as a service (SaaS) and requires online subscription
for accessing the software solutions which is offered by the business (Xero Accounting Software
2019). As per recent estimation, around 1.8 million entrepreneur loves the application of Xero
software in a business environment.
Features of Software
The above discussed software which is shown in the above paragraph are both applicable
to the business of Ausnet ltd and can also effectively support the operational process of the
business. The key features which is offered by MYOB software are effectively provided below:
 MYOB software can operate as per the requirements of the client that is it can work in
both online and offline basis.
 MYOB software effectively manages records, quotes, invoices and statements which is
associated with inventory management system.
 MYOB software provides businesses to effectively track the taxes which is incurred by
the business on regular basis such as the software keeps track of GST of the business.
 MYOB software effectively manages the employee payroll system, employee leave
balances and also helps the management of the company to keep track of individual jobs.
 MYOB software effectively manages job orders and purchase orders of the business and
also record every transaction of the business (Barron, Yu and Zhan 2013). In addition to
this, the software also effectively applies job and processes costing system in order to
effectively analyze the costs of the business.

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Figure 1: MYOB Software
Source: (Johnston 2018)
The features of Xero software which makes the software unique and effective are provided
below in details:
 Xero software effectively helps businesses in reconciliation of the bank statements and
also transactions which is related to bank.
 The software effectively keeps tracks of the suppliers and customers of the business and
also the expenses which is incurred by the business during the period.
 Xero software is known to have a better response time and also has access to payroll
system of the business (Johnston 2018). In addition to this, the software also manages

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different projects of the business and also has a dashboard where key information is
displayed regarding the business.
 Xero software comes with a lot of automated features which are devised for providing
appropriate support to organizations and effectively helps the management of the
company to report regarding the financial information of the business.
Figure 1: Dashboard Display of Xero Accounting Software
Source: (Johnston 2018)

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The above discussion shows the key features which are associated with the MYOB and Xero
Software and how the same can be effectively used in a business organization for the purpose of
enhancing the reporting framework of the business. The features which are stated above
effectively shows that Xero and MYOB accounting systems are both efficient enough to meeting
the reporting requirements of a business and thereby bring about more efficiency in their
reporting framework.
Recommendation
On the basis of the above discussion, it can be ascertained that Xero accounting software
would be most appropriate for the business of Ausnet ltd. The features and benefits which are
associated with the application of Xero accounting software is in perfect balance and it can
effectively serve the management of Ausnet ltd to bring about more efficiency in the operations
of the business (Zeder 2019). The business of Ausnet can be regarded as still a medium scale
business and as per research Xero accounting software is best for small and medium scale
businesses. Even the nature of operations of the business is compatible with the software. It is
therefore recommended that the management of Ausnet ltd should implement Xero accounting
software in the business.
Conclusion
The above discussion effectively shows that there are a wide range of accounting
software which is available in the market. The assessment considers the operations of Ausnet ltd
which is engages in energy sector and also short lists MYOB and Xero as the suitable accounting
software which is available as an option to the management of Ausnet ltd. The discussion above

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further shows the key features of both Xero and MYOB and comparison between the same in
terms of benefits which are associated with the same. The assessment further recognises Xero as
the most appropriate software option available to the management of the company.
Reference

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Al-Roomi, M., Al-Ebrahim, S., Buqrais, S. and Ahmad, I., 2013. Cloud computing pricing
models: a survey. International Journal of Grid and Distributed Computing, 6(5), pp.93-106.
Ausnetservices.com.au. (2019). Home. [online] Available at: https://www.ausnetservices.com.au/
[Accessed 28 May 2019].
Barron, C., Yu, H. and Zhan, J., 2013, July. Cloud computing security case studies and research.
In Proceedings of the World Congress on Engineering (Vol. 2, No. 2, pp. 1-6).
Bhimani, A. and Willcocks, L., 2014. Digitisation,‘Big Data’and the transformation of
accounting information. Accounting and Business Research, 44(4), pp.469-490.
Brender, N. and Markov, I., 2013. Risk perception and risk management in cloud computing:
Results from a case study of Swiss companies. International journal of information
management, 33(5), pp.726-733.
Cleary, P. and Quinn, M., 2016. Intellectual capital and business performance: An exploratory
study of the impact of cloud-based accounting and finance infrastructure. Journal of Intellectual
Capital, 17(2), pp.255-278.
Gai, K., Qiu, M., Zhao, H., Tao, L. and Zong, Z., 2016. Dynamic energy-aware cloudlet-based
mobile cloud computing model for green computing. Journal of Network and Computer
Applications, 59, pp.46-54.
Gupta, P., Seetharaman, A. and Raj, J.R., 2013. The usage and adoption of cloud computing by
small and medium businesses. International Journal of Information Management, 33(5), pp.861-
874.

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Johnston, M. (2018). Comparing Small Business Accounting Tools (Xero, QuickBooks,
Freshbook, and MYOB). [online] Bean Ninjas. Available at: https://beanninjas.com/blog/best-
small-business-accounting-tools-xero-vs-quickbooks-vs-freshbooks-vs-myob/ [Accessed 28 May
2019].
Myob.com. (2019). Small Business Accounting Software Features | MYOB Australia. [online]
Available at: https://www.myob.com/au/accounting-software/features [Accessed 28 May 2019].
Xero Accounting Software. (2019). Online Accounting Software – Free Trial, Free Support |
Xero. [online] Available at: https://www.xero.com/ [Accessed 28 May 2019].
Zeder, L. (2019). MYOB or Xero – Which is Best for Small to Medium Businesses? . [online]
Accountant Jobs. Available at: https://www.accountantjobs.com.au/article/myob-or-xero-which-
is-best-for-small-to-medium-businesses/689 [Accessed 28 May 2019].