Strategic Information Systems : Assignment
Added on 2020-02-24
9 Pages2965 Words67 Views
Running head: Strategic Information Systems0Strategic InformationSystemsAccounting Software Packages
Strategic Information Systems1Literature reviewIn general sense, accounting means giving an explanation or reporting about something. In the context of business financial accounting can be defines as process of identifying, classifying, measuring, recording and communicating the economic transactions (Collis, Holtand Hussey, 2017). Accounting is not only important for businesses it is required in every sphere of life. Accounting provides the critical numbers that helps in decision making and proceeding in right direction to achieve financial objectives (Barrow and Tracy, 2010). In recent times, accounting software packages have begun to be used in various business organisations. These computerised systems not only ease the accounting task, it links various other information with the accounting information which provides better insights for decisionmaking. The most likely system acquisition method depends on the size and needs of the enterprises. In Australia small and medium size companies generally use software packages like MYOP, whereas large companies usually invest on ERPs (Horngren and Harrison, 2015). Using accounting software packages can have various advantages. It simplifies the data entry procedure. The major advantage of using software package is speed. Using accounting software increases the speed of accounting processes. It is so because machine has the capacity to perform faster than humans. Another major advantage of the using accounting software it minimises risk of error. If the entered data in the software is correct there are negligible chances that results will include errors. Machines have more accuracy then humans and therefore accounting software promises the error free results. Better organisation of data. There is a possibility that data prepared manually can be misplaced but when data is stored in electronic form there are very less chances of misplacing the data. Accounting software can easily store the data and also it provides easy access to it when required. Other benefit of using accounting software is reporting. The software also generatesvarious reports automatically based on the results. These reports help in decision making and communicating the financial results to different interesting parties. Along with these basic accounting functions the software also provides various additional functions such as online banking and e- filling. It reduces overall cost as it reduces the need to employ accountants. Although it is required to pay certain price for the software but its benefits reduce the overall cost.These softwares can be basically classified into three different categories. These categories are commercial software, custom software and ERP. Commercial softwares are those softwares which are available for general use. This software performs some general functionsand can be used by any firm. Customised softwares are special software that is designed to cater the needs of a specific organisation. This type of software is not available for general use they are designed only on demand of specific firms. An ERP is much more than accounting software. It contains features of accounting software as well as some other features. Enterprise resource planning is software that is designed for integration and optimisation of various transactions of business. It allows business to automate various functions related to back office (Moon, 2007).To gain maximum from the accounting
Strategic Information Systems2industry it is very essential for the business organisation to choose its accounting software very carefully.Accounting software packages are required in almost the business settings but they are most important for banks and other organisation which deal in providing financial products or services. This literature review is in context of business organisation National Australia Bank that uses Xero accounting software package. The firm has 200,000 customers in Australia and 400,000 around the globe. It has opted to use this package to provide better and efficient services to the organisations. The company entered in partnership with Xero in 2015 (nab, 2015). Organisation structure can be defined as an organisation setting that determines how people and their jobs are classified and coordinated. It is concerned with assigning responsibilities, allocating the task and defining authority relationships in an organisation (Maduenyi, Oke, Fadeyi and Ajagbe, 2015). The organisation structure adopted by bank is formal in nature. Although in the recent years it has done some changes to the executive teamad organisation structure to make the organisation more customers oriented (corporate governance at NAB , 2016) .Formal organisational structure is characterised by hierarchal relationships among various jobs and organisational units. The structure relies on formal rulesand policies. This structure establishes effective reporting relationships that controls, coordinates and motivates employees to achieve organisational goals (Tran, and Tian, 2013). A poor organisational structure may give rise to various operational problems. Some of the operational problems that may arise in formal structure are slow decision making, lack of innovation, lack of team work and low productivity. Slow decision making can sometimes lead to loss of an attractive opportunity or delay in some operation. It is because the process of decision making has to pass through various layers before arriving at a solution. Lack of innovation can be a result of less freedom to employees. The employees are not encouraged and paid attention when they come up with a new idea. In formal organisation setting politics increases, this can hamper the coordination and cooperation among the employees. This leadsto creating a culture where workers do not like to assist each other they are just focus on theirown work. This hampers the team work in the organisation. The next major operational problem that may result because of formal structure is low productivity. Low productivity canresult because of the inefficiency in operations. Employee empowerment constraints and rigidrules can lead to creation of an environment where employees are not able to accomplish their task effectively (Elsaid, Okasha and Abdelghaly, 2013). The type of organisation chosen for study is a Bank. Banks do not have any fixed sales procedure. Actually they are not involved in selling any physical product they are engaged in providing financial services. The most important process at bank is the process of bank teller.That is the main point of customer contact. The flowchart of bank teller process is given below:
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