Role of Innovative Accounting System on Australian Banking Industry

ROLE OF INNOVATIVE (TECHNOLOGY BASED) ACCOUNTING SYSTEM ON
AUSTRALIAN BANKING INDUSTRY

Literature review
With the changes in the technologies and advancement in the technologies, many
accountants are using the advance technologies to strengthen the accounting work system.
Australian banking industry has been inclined towards using the advanced technologies and
accounting software to reduce the complexities in the accounting process and strengthen the
transparency and effective accounting system in business. There are several articles have
been analyzed which is used to evaluate the innovative (technology based) accounting system
and how it has been used by banking companies in the Australia.
As per the perception of Bodnar, George, and William (2011), it is divulged that
before the advancement of technology, all the work has been carried out manually.
Accountants of banking industry were indulged in using the normal accounting books and
make the entries in registers and keep the records for years and years to come. However,
many accountants and banking companies used to face several complexities. There used to
be lot more of paper work, less communication. But due to the advancement of technology
and introduction of IT, the accounting system in the banks has gone through revolution. As of
now, there are many kind of accounting software available in market which cater to their
client’s specific needs. These software accounting process can also be customized according
to client’s need which makes them user friendly. The change in accounting system has
affected the Australian banking system and allowed them to strengthen the banking work
program more effective. The data recording, system process and documentation has been
more strengthen by the banking industry by aligning the accounting system software to make
the work more effective.
Innovative (Technology Based) Accounting System in Banking Industry
As stated by Bagranoff, Nancy, 2017), It is depicted that to understand the role of
technology based accounting system, the implication of the accounting system needs to be
evaluated in context with the book keeping and recording of the data of the financial
transactions. It is considered that the counting system is a system by which financial and
accounting data is collected, processed and stored in the books of account of company. Many
international banks such as common wealth bank, ANZ bank and National Australian bank
are using the SISA, MYOB and XERO accounting software to record the financial
transactions in the books of account of company. It is analyze that before the 21st century or

the introduction of information technology or computers banking industry was mainly a paper
based industry. The new technologies have brought the computing, communications,
information and knowledge on same platform. The high speed networks, lower computing
power cost and the explosion of technology are changing the the banking sector towards its
digitized form (Gardner, Mona, and Lucille, 2018). Banks with the advance technologies
have become more competitive and result oriented. It has impact on all the level in the bank
whether its officers, employees or customers. It is analyzed that banks by using or making the
advancement in technology banking products and services can be delivered more
conveniently and effectively without delay. This has set the bars very high and expectation all
around has been increased to exponential level. The banks now have access to critical
information and thus they can act quickly and effectively, make informative decisions, can
provide customized services to the customer, can do direct marketing and give accountable
customer services. With the use of accounting software, banks are aligning their domestic
accounting frameworks with the international accounting frameworks. It helps company to
meet its legal compliance and helps in formulating and recording of the financial data as per
the accounting standards.
As per the views of Ali, Ashiq, and Lee-Seok, (2010), it is divulged that all the parties
in banking sector has been benefited from these changes, be it bank, employees or customers.
It is considered that the innovative technologies have brought many facilities like online
banking, Remote Banking, ATM’s, anytime- Anywhere Banking, telebanking for the clients
and helps banks to strengthen its financial services more effective. For bank this system has
helped in prompt responses to customer queries, business development and follow up,
generation of various MIS reports and their analysis, information transfer from one branch to
other and interconnecting all the branches and banks. For employees it has reduced the
menial and time consuming job like paper entry and then searching through them for
information, automatic printing of various documents, signature retrieval facility and
avoidance of duplicate work. As suggested by Trubik, Ellie, and Malcolm, (2010), it is stated
that Australian banking Industry is mostly described as competitive, sophisticated, and
profitable industry and has a very strong regulatory system. Its major banks rank amongst top
25 safest bank globally. There are 4 major banks: Commonwealth Bank of Australia,
Westpac Banking Corporation, Australia and New Zealand Banking Group and National
Australia Bank which has been using the accounting software to record the financial
transaction in effective manner. Besides these are many smaller banks, foreign banks and