Impact of Accounting Software on Education

This assignment delves into the effects of accounting software on students' understanding of accounting principles. It examines various research studies that analyze how software utilization impacts knowledge acquisition in accounting education. The assignment also considers the implications of this technology for the future of accounting instruction.

Running head: ADVANCE DIPLOMA OF LEADERSHIP
Advance Diploma of Leadership
Name of the Student:
Name of the University:
Author Note

1
ADVANCE DIPLOMA OF LEADERSHIP
Table of Contents
Task 1.........................................................................................................................................3
Answer to Question 1.............................................................................................................3
Answer to Question 2.............................................................................................................3
Answer to Question 3.............................................................................................................4
Answer to Question 4.............................................................................................................4
Answer to Question 5.............................................................................................................5
Answer to Question 6.............................................................................................................6
Answer to Question 7.............................................................................................................6
Answer to Question 8.............................................................................................................6
Task 2.........................................................................................................................................7
Answer to Question 1.............................................................................................................7
Answer to Question 2.............................................................................................................7
Answer to Question 3.............................................................................................................8
Answer to Question 4...........................................................................................................10
Answer to Question 5...........................................................................................................11
Answer to Question 6...........................................................................................................11
Answer to Question 7...........................................................................................................12
Answer to Question 8...........................................................................................................12
Answer to Question 9...........................................................................................................13

2
ADVANCE DIPLOMA OF LEADERSHIP
References and Bibliography...................................................................................................14

3
ADVANCE DIPLOMA OF LEADERSHIP
Task 1
Answer to Question 1
The organizational and the present statutory requirements that the management of the
firm should consider is a strategic plan for achieving the business plan effectively. This can
be achieved by decreasing the gross profit by 1% so that the firm incurs a stable revenue in
spite of the trading period being tough. $70,000 has also been added to the advertising budget
for the achievement of the larger market sector. Moreover, the wages and salaries
apportioned for the firm have been increased by an amount of $172,500. The statutory
requirements include the superannuation to be of a 9% of wages and salaries. The payroll tax
is 4.75% of wages and salaries. The workers compensation accounts for 2% of wages and
salaries. The company tax is 30%.
Luxury Car tax, Payroll tax, Fringe Benefits tax and GST are the tax related liabilities
of VTI Homecare Pty Ltd.
Answer to Question 2
The compliance requirements for VTI Homecare Pty Ltd under the Corporations Act
2001has been that there should be a defined code for governing the conduct of the employees
and a suitable structure regards to corporate governance. The financial reporting to ASIC
should be processed in such a way that it reflects the true and fair view of the company. The
audit of the financial statements should also be carried out annually in order to adhere to the
requirements of the Corporations Act, 2001. Moreover, the VTI Homecare Pty Ltd should
also arrange for a board of directors1.
1 Hooghiemstra R, Hermes N, Emanuels J. National culture and internal control disclosures:
A cross‐country analysis. Corporate Governance: An International Review. 2015 Jul
1;23(4):357-77.

4
ADVANCE DIPLOMA OF LEADERSHIP
Answer to Question 3
The sustainability and the effectiveness of the accounting software, MYOB can be
obtained from the facilitation of widening of the visibility scope and business performance.
The simplification of the complicated business activities and the acceleration of the speed of
the business operations by the further simplification of the management structure is facilitated
by the accounting software, MYOB2.
Answer to Question 4
The other accounting software that are commercially available are Xero and
FreshBooks. These accounting software have been the primary competitor of MYOB.
FreshBooks has been the mostly used accounting software by the small business
owners. This particular accounting software can be utilized on any device like android,
iPhone, iPad or Mac. The cost of installation of FreshBooks is generally high.
Xero is the accounting software that is primarily designed to suit any business
irrespective of the nature of business conducted by the business firm. The facilities offered by
Xero are a simplified setup process, clarified recording of the transactions, a proper overview
into the current financial health of business and other associated benefits. The only
disadvantage provided by this particular accounting software is that the small business
owners cannot afford it3.
2 Zhou Z. 90. Framework and Development Trend of Management Accounting Information
System—Based on the Empirical Analysis of Guangju Energy Chemical Listed Companies.
Boletín Técnico, ISSN: 0376-723X. 2017 Oct 6;55(9).
3 Islam K, CH AR, Bilal AR, Ilyas MU. Accounting Information Systems: Traditions and
Future Directions (By Using AIS in Traditional Organizations). The Journal of Internet

5
ADVANCE DIPLOMA OF LEADERSHIP
Answer to Question 5
Answer to part a
The matching principle can be applied by recording the income along with the
relevant expenditure for the purpose of ascertaining the profit.
Answer to part b
The account group indicates the summary of accounts that has been grouped in terms
with the specified criteria and can be referred to while the budgets are prepared.
Answer to part c
It is always recommended to prepare the budgets on the basis of a specific time-
period. This is because the budget prepared for a specified time period results in more
accurate forecasts.
Answer to Question 6
The implication of probity results in the financial probity. The insurance of the
management in regards to the funds is facilitated by the financial probity along with the
agreement with the fact that the legal obligations have been met.
Answer to Question 7
The advertisement expenses have been reduced in the first quarter of the financial
year of 2016-17. The salary and wages have been increased in the first quarter of the financial
year of 2016-17 and the gross profit have been reduced by 1%.
Answer to Question 8
The items that can be included in the budgets for VTI Homeware Pty Ltd are
transportation, staff amenities and office expenses.
Banking and Commerce. 2017 Jul 27;22(2):1-3

6
ADVANCE DIPLOMA OF LEADERSHIP
The internal controls that should be implemented in the organization for functioning
the smooth operation of business is segregation of duties.
Task 2
Answer to Question 1

7
ADVANCE DIPLOMA OF LEADERSHIP
Answer to Question 2
Answer to Question 3
SALES BUDGET
The sales budget has been prepared by gathering the relevant information. The most
important outcome that has come up with the preparation of the sales budget is that the
revenue in regards to the sale of bedroom decorative has increased from $848,562 to
$1,018,274. This reflects the demand for bedroom decorative in the market.
PROFIT BUDGET

8
ADVANCE DIPLOMA OF LEADERSHIP
CASHFLOW ANALYSIS
This budget reveals the total amount of GST to be paid is $406,905
AGED DEBTORS BUDGET

9
ADVANCE DIPLOMA OF LEADERSHIP
Answer to Question 4
The financial probity in regards to the preparation of the budget has been that all the
financial transactions in regards to the debtors have been financially recognized and legally
met.

10
ADVANCE DIPLOMA OF LEADERSHIP
Answer to Question 5
Answer to Question 6
The variances have generally occurred in regards to the expenses. This can be
assumed as a result of the faulty accounting information system that has recorded the
mistaken value of the transactions. However, the other reasons might be the elevation in the
price of the raw materials or price level due to the inflation in the economy4.
4 Hooghiemstra R, Hermes N, Emanuels J. National culture and internal control disclosures:
A cross‐country analysis. Corporate Governance: An International Review. 2015 Jul
1;23(4):357-77.

11
ADVANCE DIPLOMA OF LEADERSHIP
Answer to Question 7
The financial performance of the firm has not been well. The margin in regards to the
gross profit margin has decreased. The management of the firm should take enough initiative
by boosting the sales activities of the firm by rigorous advertising campaigns and other
promotional activities. Internal controls like the segregation of duties should be implemented
while utilizing the accounting software5.
Answer to Question 8
The particular recommendation in regards to the specified case is that the
management should consider restructuring the entire sales process. The marketing strategies
implemented by the organization should be reviewed and improved. Moreover, the internal
controls should be qualitatively improved 6.
Answer to Question 9
The primary issue with the selected firm, VTI Homeware Pty Ltd has been that the
accounting software utilized in the firm is faulty. Thus, it is highly recommended that the
firm considers the installation of a new accounting software. The management should also
consider the innovation of the products in order to derive increased sales revenue. The
5 Aziz MA, Ab Rahman H, Alam MM, Said J. Enhancement of the accountability of public
sectors through integrity system, internal control system and leadership practices: A review
study. Procedia Economics and Finance. 2015 Jan 1;28:163-9.
6 Balsam S, Jiang W, Lu B. Equity incentives and internal control weaknesses. Contemporary
Accounting Research. 2014 Mar 1;31(1):178-201.

12
ADVANCE DIPLOMA OF LEADERSHIP
internal controls existing in the organization should also be reviewed and modified and new
controls should be implemented in order to make the implemented strategy, a success7.
7 Quinn M, Kristandl G. Business information systems for accounting students. Pearson
Education Ltd.; 2014 Apr 3

13
ADVANCE DIPLOMA OF LEADERSHIP
References and Bibliography
Amirul SM, Mail R, Bakar MA, Ripain N. Information Technology Knowledge and Skills for
Accounting Graduates: An Insight from Public Accounting Firms. Indian Journal of Science
and Technology. 2017 Mar 20;10(12).
Aziz MA, Ab Rahman H, Alam MM, Said J. Enhancement of the accountability of public
sectors through integrity system, internal control system and leadership practices: A review
study. Procedia Economics and Finance. 2015 Jan 1;28:163-9.
Balsam S, Jiang W, Lu B. Equity incentives and internal control weaknesses. Contemporary
Accounting Research. 2014 Mar 1;31(1):178-201.
Boulianne E. Impact of accounting software utilization on students' knowledge acquisition:
An important change in accounting education. Journal of Accounting & Organizational
Change. 2014 Feb 25;10(1):22-48.
DeFond ML, Lennox CS. Do PCAOB inspections improve the quality of internal control
audits?. Journal of Accounting Research. 2017 Jun 1;55(3):591-627.
Dimitriu O, Matei M. Cloud accounting: a new business model in a challenging context.
Procedia Economics and Finance. 2015 Jan 1;32:665-71.
Drew J. Accounting firms moving slowly toward cloud. Journal of Accountancy. 2015 Mar
1;219(3):44.
Ge W, Li Z, Liu Q, McVay S. The effect of internal control on corporate corruption:
Evidence from China. National Natural Science Foundation of China Project. 2014 Nov
4(71332008).

14
ADVANCE DIPLOMA OF LEADERSHIP
Hooghiemstra R, Hermes N, Emanuels J. National culture and internal control disclosures: A
cross‐country analysis. Corporate Governance: An International Review. 2015 Jul
1;23(4):357-77.
Islam K, CH AR, Bilal AR, Ilyas MU. Accounting Information Systems: Traditions and
Future Directions (By Using AIS in Traditional Organizations). The Journal of Internet
Banking and Commerce. 2017 Jul 27;22(2):1-3.
Kelly M. Best Business Accounting: Quickbooks–51 Reasons Why.
Kowalewski M, Niedzielska J. A Study of the Financial Accounting Software Used by Small
Enterprises in Olsztyn. Olsztyn Economic Journal. 2015(10 (3)):233-45.
Machado M. Management accounting software and accounting practices: empirical study on
SME enterprises. WSEAS Transactions on Business and Economics. 2016(1):94-103.
Newton NJ, Persellin JS, Wang D, Wilkins MS. Internal control opinion shopping and audit
market competition. The Accounting Review. 2015 May;91(2):603-23.
Quinn M, Kristandl G. Business information systems for accounting students. Pearson
Education Ltd.; 2014 Apr 3.
Rahman MM, Elahi T, Gupta S, Rahman I. Assessment of Accounting Software Practices in
Small Medium Enterprises (SMEs) of Bangladesh: A Survey of Barrier and Adoption (Dhaka
City).
Sampaio D, Bernardino J. Open source accounting software for SMEs. International Journal
of Business Information Systems. 2016;23(3):287-306.

15
ADVANCE DIPLOMA OF LEADERSHIP
Tuzarová S, Mejzlík L. The IFRS Assessment by Publicly Traded Companies. InThe Impact
of Globalization on International Finance and Accounting 2018 (pp. 341-346). Springer,
Cham.
Zhou Z. 90. Framework and Development Trend of Management Accounting Information
System—Based on the Empirical Analysis of Guangju Energy Chemical Listed Companies.
Boletín Técnico, ISSN: 0376-723X. 2017 Oct 6;55(9).
Zimmerman J, Libby DV. BASIC BOOKKEEPING AND ACCOUNTING FOR THE
PRIVATE PRACTITIONER. Handbook of Private Practice: Keys to Success for Mental
Health Practitioners. 2017 Mar 13.