Australian Accounting Software Market: Challenges, Gaps & Recommendations

The assignment discusses the evolution of accounting software and its impact on businesses, specifically focusing on the Australian market. The early days of computerized accounting saw the introduction of Univac in the 1950s, followed by the development of report creation languages like COBOL and the launch of SAP RF in the 1970s. In the 1980s, Microsoft introduced its office suite for individuals, while Intuit launched Quicken targeting families and individuals. The market has since become saturated with three main players: Xero, MYOB, and QuickBooks. Each company has its unique competitive advantage, such as Xero's cloud-based accessibility, MYOB's automated processes, and QuickBooks' desktop software option. However, users in the Australian market face challenges such as poor access speed, lack of features, and high costs.

Running head: LITERATURE REVIEW
literature review
[Document subtitle]
[DATE]
[Company name]
[Company address]

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LITERATURE REVIEW
Table of Contents
Introduction......................................................................................................................................2
Current Structure of Organization...................................................................................................2
Operational problem........................................................................................................................3
Identification of Control Problem in System...................................................................................3
Possible Frauds in the System.........................................................................................................3
Literature Review............................................................................................................................4
Adoption and Development of Accounting Software Packages..................................................4
Current Australian Market Share.................................................................................................6
Leaders of the Market of Australia and Competitive Advantage....................................................6
Challenges or Gaps for the Customers of Australia for Accounting Packages/software................8
Recommendations and Suggestions................................................................................................8
REFERENCES................................................................................................................................9

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LITERATURE REVIEW
Introduction
With the passage of time, people are getting involved more and more in automation and
technology which is provided through the computers to perform the tasks of daily routine. In
present era, the computers are handling almost all the things in the lives of individual whether it
is running the industries, offering the entertainment facilities or enabling the global
communications. Computers and computers are connected naturally with each other and also act
like a blood line for businesses either large or small. Tracking transactions and assets have been
the simple agenda for the system of accounting information and are related closely to early
creation of even, arithmetic and number writing. Accounting software at present time who are
operating in large and small business through different solutions and also catering the
requirements of the masses which come through different stages all through the history. This
document will give a brief adoption, development and history, present market challenges, gaps
and size which are faced by the customers of packages or software and may also lay various
recommendations by using the approach of qualitative research.
Current Structure of Organization
BHP Billiton is a leader in the global resources which specializes in the international mining of
petroleum, coal and metals. The head quarter of the company is in Melbourne in Australia. On
the basis of the overall revenue and income, the organization is considered to be the leader in the
world in the mining sector as it creates a long term value for the shareholders by the expansion of
the operations and activities. BHP Billiton is the consortium of dual organizations namely the
Anglo-Dutch Billiton and Australian Broken Hill Proprietary. Both these companies got merged
in 2001 in dual listed organization (Boulianne, et al., 2014).

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LITERATURE REVIEW
Operational problem
The two significant factors which affect divisional coal of BHP Billiton are the cost which are set
by government and secondly global prices for the petroleum. It is significant for the management
of the organization to put a balance for facilitation of the existence in the environment of high
cost.
Identification of Control Problem in System
The most typical and traditional method used in accounting was the general ledger which was a
book designated with the pages for all the accounts individually, for example stockholder equity,
payables, receivables and cash. Almost every day transactions and dealings were manually
registered in to the journal. In the year 1983, the Company Intuit introduced a computer based
computing software for the personal finance Quicken. After that, Turbo Tax for calculating the
income and federal tax as well as Quick Books for medium and small size business purpose of
accounting were available for various customers.
Possible Frauds in the System
At the present moment of the development and growth of accounting technologies, the manual
journal transactions were left eventually in the past. Innovations in computer technologies made
the accountant jobs easier. Applications of accounting software presented the way for
professionals of the accountants for performing the task swiftly as well as more efficient. Present
years have given the excellent progression in the technology as well as the organizations are
present to count over the innovations such as personal computer to aid them to run the business.

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Literature Review
Adoption and Development of Accounting Software Packages
It is a hard point a particular time period when the age of computer initiated but modern
computers which is available has gone through various breakthrough and increased
developments which are spread over the centuries of the occasion based innovations. Going
further back in the history, the initial system for computer based accounting have initiated in
1890 by creating a Holerith device which was designed specifically for the cost calculations and
accounting. Till the middle of 20th Century, often the computer was recognized as a framework
whose main job is to calculate the sums. Computers and accounting have familiar and natural
influence over each other. In the year 1955, the first modern digital system was produced and
was sold to private company who utilized it for the purposes of accounting, i.e. payroll. In that
period of time, the computers were catering to the requirements of scientific and military
applications and systems but often they were not for the commercial purposes because of the
huge space and weight needs. The initial installations of Univac which was started=d in the year
1954 took several months for installation of the system as well as only the trained engineers and
architects were operating and programming the system. The biggest power house for
manufacturing was general Electric at that period and was first one to buy the Univac system
from Remington-Rand for the latest factory of appliances which are located and situated in
Kentucky in the year 1954. At the time of initial Univac was being tested for the purposes of the
payroll as it was starting of modern systems of accounting information. As the time has passed,
the computer systems have allowed and improved people for easing the sing of the systems all
through the high level of tolls of the development, true languages of computer as well as the

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advanced programming level. The invention of the accounting software have revolutionized the
processes of accounting. In the year 1960. The big brands like IBM invented the first report
creation language that is known as 9Pack. In 1970, the companies from software domain
succeeded to develop a generalized application for accounting that catered to the needs and
requirements of various companies all through the features that are flexible by introducing SAP
RF in the year 1973. Other module based applications like SAP RF was developed in later period
which aimed for the diverse needs of the business. The basic and common agenda was for
revolutionized the conversation between the data stores and decision makers. The makers of the
decision were asking the financial questions as well as the financial question and also gather the
heaps of information which allowed many people to originate the high value level from the
computers. In the year 1981, the Peachtree had offered the first ever office of integrated suite
which comprised the spreadsheet and word processor and permitted the user for using the
software over various hardware in the company. Also, Microsoft invented the office suite for
individuals after seven years. Intuit was launched in 1983 and Quicken was also launched which
targeted the families and individuals. The application got expanded in the market and permitted
new dimensions in development of accounting application. In the year 1980, one more company
developed the application of accounting software which particularly targeted the small business
as well as it got high popularity in the small business. In the 21st century, the modern accounting
is highly advanced and sophisticated and there are hardly any comparison with the roots. Today
the systems of accounting are limited to keep the track of the store of grains and trade of the
livestock and also include the double entry keeping of book, joint stock companies, sophisticated
investments and encompassing measures which are complex like GST. The future of the
computerized system of accounting is heading for the cloud computing, a connection which

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permits the cost effective business, convenient and secure online storage and capacity with
updated software of accounting.
Current Australian Market Share
The Accounting software in Australian market is saturated mainly with three significant
organizations namely QuickBooks, MYOB and Xero by Intuit. Xero is the leader in market in
the cloud based accounting software in market of Australia with approximately 147000
customers all over the Australia because which is of September, 2014 and is almost twice the
previous year. A unique 90% enhancement was observed in just one single year. After following
the MYOB at second place, all the customers with online accounting software all over the
Australia may account for the 70% of the business. Software of Cloud Accounting like quick
books are designed specifically by the Intuit. The quick books have earned high success level in
software of U.S. cloud computing except in Australia which is struggling even today. They are
poised and optimistic to attain a high level of share in market of Australia in near future (Lovell,
et al., 2007).
Leaders of the Market of Australia and Competitive Advantage
All the three competitors have competitive advantage on each other as discussed below:
 Xero
Accessibility: Xero cloud accounting offer the users of an comfort of the accessibility and it is
required to connect with the Xero based cloud accounting which is the connection of the internet.
They have also the mobile application for the customers of Xero to update the data all through
the mobiles applications which is applied to android, iPad and iPhone Device users.

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 Intuitive and Simple UI
Xero accounting software may not require the users for being professionals of accounting. It is
easy to understand and use the intuitive user interface.
 Great framework for integration
By using the interface of Xero’s Application Programming, the users can export and import data
from the other applications which are beneficial to improve overall process. Under the umbrella
of Xero, 300 additional partners enhance the experience of users.
 MYOB
 Good Input Speed
MYOB may reduce the time which the manual accounting may take for recording the
transactions. The information gets synchronized with the help of MYOB and also it automates
purchase orders, payrolls, and credit notes and aids to reduce the time consuming procedure
(Hunt, et al., 2009).
 Good Amount of Accuracy
MYOB eliminates the error of human by the control systems which allow the framework to
lower the errors of redundancy and removal of duplicate errors also.
 Reduced cost
The users of MYOB are allowed to pay the fees monthly instead of the upfront cost of capital
which eliminates the hardware failure, backups, updates and maintenance cost etc.

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 INTUIT
 Single supplier
Intuit has integrated all the parts of the accounting framework under the umbrella which include
accounting, lending, point of sale, bank feeds, marketing and payroll. Also it has plans for
moving all of them in the QuickBooks online (Ivanova, et al., 2007).
 Desktop Software
Intuit permits the business for using the desktop software particularly for the business which are
not willing to accept the dynamism vigorously for the cloud computing. Therefore, the Intuit s
offering them the comfort by giving same quality of software for the desktops like for the users
of cloud accounting.
Challenges or Gaps for the Customers of Australia for Accounting
Packages/software
The users of Accounting Software in BHP Billiton are facing various challenges which are posed
by the software companies like Poor access speed, Poor management of customer relationship,
No feature for bank reconciliation, Lack of features as well as expensive, Difficult to customize
and lack of efficiency and security (Cleary, et al., 2011).
Recommendations and Suggestions
The competitive challenges which are faced by the BHP Billiton significantly stem from the
lowering of the global prices of the coal. As per the company’s management, there was forceful
termination of the employment of the employment because of the poor productivity of the
business. This condition is attributable to the poor management of the strategy which leads to
competitive challenges. In future, the organizations are required to devise the ways to secure the
future in ever dynamic global market. As per the predictions, the coal industry have bright future

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because of untapped Asian market. It is significant for the government of Australia to know the
matter of gravity which may contribute greatly to the development of the economy. The use of
Accounting Software and Packages can help to fasten the process of business (Dickey, et al.,
2011).
REFERENCES
Boulianne, E., 2014. Impact of accounting software utilization on students' knowledge
acquisition: An important change in accounting education. Journal of Accounting &
Organizational Change, 10(1), pp.22-48.
Cleary, P., 2011. Too Much Luck: The Mining Boom and Australia’s Future. Collingwood:
Black Inc.
Dickie, C., & Dwyer, J., 2011. A 2009 perspective of HR practices in Australian mining. The
Journal of Management Development, 30(4), p 329-343.
Hunt. M. W., 2009. Mining Law in Western Australia. Annandale: Federation Press.
Ivanova, G., Rolfe, J., Lockie, S., & Timmer, V., 2007. Assessing social and economic impacts
associated with changes in the coal mining industry in the Bowen basin, Queensland, Australia.
Management of Environmental Quality, 18(2), p 211-228.
Lovell, C.A., K. & Lovell, J.E., 2013. Productivity decline in Australian coal mining. Journal of
Productivity Analysis, vol. 40, no. 3, pp. 443-455.

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