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Accounting Information Systems in Global Competitive Business Scenario: A Literature Review

   

Added on  2020-02-24

9 Pages2229 Words441 Views
Master of professional accounting

IntroductionThe present undertakes a literature review in relation to the significance and importanceof accounting information system in global competitive business scenario. In this context, theliterature review emphasizes on the use of accounting software packages by an Australiancompany. The literature review focuses on the current organizational structure, operationalproblems, type of system acquisition method used and the control problems faced by thecompany for integrating the use of accounting software packages. Also, the report depicts anddescribes a system flowchart of the sales procedures for the selected company. The companyselected for the purpose is Woolworths, an Australian retail giant that has adopted the use ofaccounting software packages for maintaining its accounting information appropriately(Chanthadavong 2016). In addition to this, the report presents a literature review on thedevelopment, current market size, leaders in the market and the current challenges with the useof accounting software packages.Current Organizational StructureThe Woolworths conducts diverse business operations having major retail interestthroughout Australia and New Zealand. The company main operations include supermarkets,liquor retailing and operating gaming machines in hotels and pubs. The company has extensiveretail stores and operates in various business areas and therefore has a complex organizationalstructure. The company in order to maintain the flexibility in its organizational structure islargely incorporating the use of accounting software packages. The retail giant has integrated theuse of cloud software system for incorporating flexibility in its organizational structure. It is alsoemphasizing on the use of Google Apps for proper monitoring and controlling its diversebusiness operations. The Woolworths is largely focusing on implementing latest informationtechnological devices such as SAP-based merchandising system for enhancing the performanceof its accounting system. The introduction of the SAP system has gradually transformed itsorganizational structure into more flexible and organized manner. The implementation andadoption of an adequate accounting software system is essential for the company to manage itsaccounting information appropriately. The use of SAP enabled the company to manage itsaccounting information properly (Chanthadavong 2016). The company had to maintain its

accounting data properly as it has various business units and therefore has complex data to bemanaged properly. Operational problems due to Accounting Software PackagesThe Woolworths Limited is also facing various problems due to use of accountingsoftware packages. The Woolworths has revealed its plans of implementing SAP all of itsbusiness areas such as petrol retailing. However, the company is also facing large number of ITissues in successfully implementing the use of accounting software packages. The companyencounters operational problems such as system inefficiency and errors with the use ofaccounting software packages (Coyne, 2016). The cloud based accounting software used by thecompany such as point of sales system and XERO are not user-friendly. The employees of thecompany do not possess adequate knowledge about the operational functions of the softwareimpacting its operational efficiency. Also, the current organizational structure of the companymaintained through the use of IT devices is subjected to cause operational error in its accountingsystem that can occur through wrong input of financial data into the system. This can causeincorrect flow of accounting information from one department to another resulting inmisrepresentation of accounting data. The company must take proper measures for preventingthe occurrence of such operational problems use to use of accounting software system (Curtis,2015).System Acquisition MethodThe accounting software system used by Woolworths such as point of sales and XEROare developed through ERP (Enterprise Resource Planning) system. The company is presentlylarge focus on stabilizing its SAP platform for integrating larger use of IT devices andtechnologies in its operational activities. The software used by the company are based on SAPsoftware and therefore the accounting software system acquisition method is ERP planning. TheERP is regarded to be business management software that enables business organizations tomanage the operational activities of their various departments effectively. The businesscorporations have to develop a long-term plan for acquiring the information systems and servicesfor supporting their business initiatives. This involves determining the top priorities of the topmanagement and therefore designing the essential applications as per the projected priorities.

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