Organizational Structure, Development and Adoption of the Accounting Systems used in Australia- Report
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Added on 2019-11-29
Organizational Structure, Development and Adoption of the Accounting Systems used in Australia- Report
Added on 2019-11-29
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Running head: SIS ASSIGNMENT1SIS AssignmentNameInstitution affiliation
Running head: SIS ASSIGNMENT2ABSTRACTThere are several accounting packages in Australia. This study is about the organizationalstructure, development and adoption of the accounting systems used in Australia. The literaturereview investigates some most commonly used accounting soft wares. It also tries to explorechallenges faced by users while interacting with such systems.IntroductionAccounting software packages systems are used to collate data about a business and report on itsfinancial viability. It allows you to structure expense accounts andincome, for instance,advertising expenses, rental or sales income, material costs and salaries. They also can be used towield pay bills, bank accounts and prepare budgets. Some accounting software also permit you tohandle payroll, prepare tax documents and manage project costing depending upon the system. Current Organizational StructureThe hierarchy in the accounting department helps to make sure that finances are managedresponsibly and effectively. The following shows the organizational structure of companies thatuses accounting software.Chief Financial Officer- Also called the vice president of finance is the top most senior executiveof an accounting organizational hierarchy. This office directly reports to the business owner orCEO. His/her role is to ensure that all areas of accounting are carried out in accordance withpolicies of the company. Financial Controller- Many firms have a financial controller that reports to the Chief FinancialOfficer but has more detailed accounting responsibilities. The controller manages daily expensesand ledgers, assigns duties to other accounting employees and communicates with the ChiefFinancial Officer to ensure companywide financial decisions are made. His/her input isconsidered advisory since s/he is not a member of the executive team.Division Managers- The financial controller will generally have three major reports in biggercompanies, that is, the payroll manager, accounts receivable manager and the accounts payablemanager. According to Aquinas, (2010), in smaller firms, one division manager can perform allthese duties, or they may be carried out by the controller or Chief Financial Officer. Under anycircumstances, these divisions represent the main elements of the accounting structure. Theirroles are to manage salaries, expenses and incomes.Accountants and Clerks- Accountants and clerks work for the division managers. These arespecialized professionals with knowledge in, managing expenses, tracking income, HumanResource policy and administering payroll. Interns- organizations of all sizes employ intern, students or young professionals to assist them indoing the daily activities of the accounting division. These young professionals can be paid orunpaid, but typically their roles will be at the lowest rank of the hierarchy. They may help infiling, research, data entry, and among other administrative duties allocated to them by theirmanagers, who are usually either the controller or the division managers.
Running head: SIS ASSIGNMENT3Organizational Structure DiagramOperational ProblemsA firm with a good organizational structure enjoys the advantages of enhanced communicationwith the ability to develop a common company message and a well-designed hierarchy. As muchas the organizational structure can be efficient, it can also bring about problems that can causeinternal conflict and loss of productivity. Johnson, (2012).Some of the problems encountered are;Departmental Loyalty- There can be mentality of us versus them among different groups. Forinstance, sales may feel frustrated with accounting because credit terms for new clients are notgetting approved. New Management- The company tend to settle into a way of carrying their roles that they feel iscomfortable and efficient for the existing management team, if there have been no changes for along time. Changes in management, can put pressure on the organizational structure of acompany. The new management, may lack knowledge with the way things were done and maycome up with new ways on how things should be run in an organizational structure. AP clerkAccounts Receivable managerBoard of Directorsoperational problemsInternsInternsInternsAR clerkPayroll ClerkPayroll ManagerAccounts PayablemanagerFinancial ControllerChief Financial OfficerChief Executive Officer
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