Accounting Software and MYOB in Australia

This assignment delves into the landscape of accounting software in Australia, with a particular emphasis on MYOB. It examines key features, pricing models, user reviews, and compares MYOB to other popular options available in the Australian market. Students will gain insights into the factors driving software selection and the evolving needs of businesses seeking effective accounting solutions.

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Contents
Introduction.................................................................................................................................................3
1. Identification of the Business processes..............................................................................................4
2. Developing the Business requirements................................................................................................6
3. Determining Systems requirements.........................................................................................................8
4. Software and vendor selection...............................................................................................................10
5. Determining the ways to utilize the technologies for improving the business efficiency......................12
6. Evaluation the level of efficiency of the technology implementation...................................................14
7. Examining the potential security risks and data breaches.....................................................................15
8. Guidelines on mitigating the risks........................................................................................................17
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20

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Introduction
The purpose of this report is to conduct research on the enterprise resource planning and
accounting information system for providing the high enterprise IT solution to the business
processes, systems, and globalized operations with the support of the information system
management. This report will describe the business processes, organizational requirements,
informational system requirements, technological implementation and improving the operational
efficiency, software and vendor selection, data breach, security risks, and recommendations for
mitigating the system risks and data breaches (CTI Reviews, 2016). This assessment will also
analyze and select suitable and compatible accounting information software for supporting
different business processes, organizational functions, data security and control, information
system management, and operational efficiency of Nowra/Nowchem Chemical Manufacturer
Pty. Ltd.

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1. Identification of the Business processes
Nowchem/Nowra Chemicals Manufacturers Pty. Ltd. is an Australian chemicals and
pharmaceutical manufacturing company located at Nowra, NSW in the Australian Country. It is
known for producing and supplying a range of chemical products across the Australian markets.
Nowra/Nowchem Chemicals Manufacturers Pvt. Ltd. was established by Fay Lamont and John
in 1977 as a family owned business by employing 2 people. It has been successfully operating its
businesses at its South Nowra base since last 40 years. Nowchem produces and distributes more
than 400 specialty chemicals including various detergents, disinfectants, cleaning products,
swimming pool chemicals (Chlorines, balancers, surfactants and flocculants), floor polishes and
sealers, aerosol products, washroom alkaline products and cleaning acids, hospitality chemical
products, deodorizing chemicals, decanting and distribution of bulk chemicals (sodium
hypochlorite, liquid Aluminium Sulphate, ) polymers, cosmetics, wax emulsions, and
pharmaceutical products (Simkin, Norman, and Rose, 2014). It is well known for manufacturing
and supplying the high quality chemicals, cleaning products, and pharmaceuticals to the
industries, homes, hospitality businesses, and specialized applications.

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(Source: Nowra Chemicals Manufacturing Process)
The business processes of Nowra Chemicals Manufacturer includes supply chain operations,
production, manufacturing, storage, distribution and logistics, human resource functions,
operation, accounting, finance, and CRM functions. The HR function is related to the
recruitment and retention of staffs, payrolls, compensation, and training. At present, Nowra
Chemicals Pvt. Ltd. has employed more than 65 people including 5 industrial chemists for
occupying over 5 acres with 2 manufacturing sites, administration building,
warehouse/distribution center, and additional adjoining storage facility (Wong and Ph.D., 2017).
The supply chain operations of Nowra Chemicals include (procurement, production,
manufacturing, logistics, and distribution). The manufacturing facility of Nowra Chemicals is
consisted of 38 mixing vehicles varying in size from 200 liters to 20,000 liters. Along with this,
it has 20 bulk storage tanks for the finished product stock holdings and raw materials. Along

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with this, it has 3 stainless steels reactors to work under the vacuum as well as 300 degree
temperatures.
The manufacturing plant generally contains 1 rubber lined reactor and 3 glass reactors. The tanks
in plant contain both jacket and coil for cooling and heating. The manufacturing of the esters and
raw material bases generally occurs in 3 specialty vessels (1.2 tonne, 3 tonne, and 10 tonne). The
manufacturing rooms for the cosmetics and TGA products are also situated on the manufacturing
site. The pharmaceutical area has 3x3000L tanks, 250kg cream mixer, and smaller tanks and
filling lines for the bottles from 100 ml. to 1.25L. Nowra Chemicals manufacturer delivers the
chemicals, cosmetics, and pharmaceutical products into Sydney on daily basis through Nowra
Transport, Toll Logistics, and Fastway Corriers (Turner and Weickgenannt, 2013). The company
also runs commercial trucks (12, 10, and 8 tonne trucks), commercial utes and vans to supply the
produced goods both into Sydney and the South Coast. The produced or prepared goods are
delivered to the individual clients, hospitality and other industries, pharmaceutical businesses,
swimming pools industries and specialized application purposes directly or indirectly.
2. Developing the Business requirements
Nowra Chemicals is an Australian manufacturing industry for offering the chemicals,
disinfectants, and pharmaceutical product. The business processes of Nowra Chemicals
manufacturer Pty. Ltd. are not of the global accounting standards because of the ineffective
accounting information system. The business processes of Nowra Chemicals Manufacturer
Limited include supply chain operations (manufacturing, production, distribution, and logistics),
sales, marketing, finance and accounting, HR and operations. But, accounting is the main
function or organizational process that connects the core organizational processes, activities, and

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operations through the accounting information system. At present, the firm has been facing
problems or complexities in managing multiple accounts, consistent information flow, and
management of the financial transactions, customer sales records, billing entries, bank deposits
and withdrawals, budgeting, and operational problems. The businesses of Nowra Chemicals is
needed to purchase and install appropriate accounting information system compatible to the firm
size, organizational processes, accounting and informational system of the organization
(Prakken, 2012).
(Source: Business Requirements and Accounting Software)
The firm might choose effective accounting software having the best accountancy features to
meet the business requirements of Nowra Chemicals Manufacturer. The accounting software will
assist the firm in the enterprise resource planning, day-to-day transactions, automation of the

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information and data accounts, employee payrolls, bank feeds, industry updates, bank
reconciliation settlement, currency transfers, journal and ledger entry, taxation and financial
planning, forecasting, budgeting and investment, stock inventory, and fixed asset management,
management of the product portfolio and branding. The accounting information system through
the AIS software package will be required to analyze the competition level of the industry,
industry statistics, growth factors and barriers, demand analysis, supply activities, and
forecasting of the country economic condition so that further changes in the business plans,
strategies, informational policies, and accounting systems could be made in order to grow the
businesses of Nowra (Advisory HQ, 2015). The AIS will also be required in the analyzing and
estimating the staffing requirements and payrolls, physical resource requirements (raw materials
and acids), and financial resource requirements (fund availability, loans facility, capital
investment and budgeting) to take the business decisions effectively.
3. Determining Systems requirements
Nowra Chemicals Manufacturer Pvt. Ltd. is required to determine the firm system requirements
through installing and updating the best featured and compatible accounting information
software on the computer systems. The AIS might be efficient to integrate the accounting,
financial, and informational system interactively for the best accounting practices, informed
decision-making, auditing standards, and financial reporting through the data availability and
consistent information flow. The compatible AIS software with the extensive features will assist
to get the regular industry and business information (transactional, transformational and
operational information), and managing various accounts and customer transactions (Mancini,
Vaassen, and Dameri, 2013). It will also assist in the regular information flow and data

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availability for preparing the financial statements, auditing records, accounts (payables and
receivables), reporting and inventory, customer data transactions, double-entry bookkeeping, and
invoicing. Along with this, the AIS software is required to prepare the financial reports,
employee payroll structures (salary, wages, bonuses, incentives, allowances, and rewards),
performance monitoring and feedback report, internal data control, data security, and information
system management.
The AIS will meet the technological and informational system requirements by integrating the
business processes, operations, and activities with the EDI, e-commerce, technological system
infrastructure, ICT, internet enables application and software programs. The accounting
information software will be needed in the automation, invoicing, taxation, multi-currency
management, e-CRM, capital budgeting and investment policies, bookkeeping entry, financial
reporting, sales performance records, maintaining record of the raw material received and
amount payable to suppliers and customer purchase transactions, billing, and products delivered,
order tracking and payment management, and investment decisions (Mageto, 2017). The AIS
over the ERP will be effective for the business firm to collect, store, exchange, use, and retrieve
the data and information for the use of the accountants, managers, engineers, taxation
consultants, and auditors to make financial and accounting decisions collectively for the growth
of the businesses.
4. Software and vendor selection
There are several accounting information software, such as MYOB, XERO, Sage, SAP ERP,
Recon, Netsuite, Microsoft Dynamics, Intuit QuickBooks, Freshbooks, and other AIS packages.

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Nowra Chemicals Manufacturer can select the best suitable, compatible, technical-feasible
accounting software suiting the internal operations, business processes, firm size, and accounting
and information system of the firm. The firm can select the suitable accounting information
software and vendor after analyzing the security features, data and information availability,
accountancy standards, and performance functions to support the bookkeeping, accounting and
financial functions.
(Source: MYOB Features Comparison)
MYOB is selected as suitable AIS software that is offered by the vendor MYOB accountancy
supplying firm for ensuring the informed and collective decision-making electronically, the best
accounting practices and financial reporting, and investment functions (User Basic Software,

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2017). MYOB will be given priority over other accounting software packages because of its
extensive features, data security, and accountancy support functions. Nowra/Nowche, Chemicals
Manufacturer Pty. Ltd. is a SME (small-medium sized enterprise) having less than the team of
100 employees (65 employees in current) to handle different business operations of the firm as
MYOB will suit the firm size, company profile and accounting information standards of Nowra.
MYOB is based on the cloud computing technology and SaaS computerized model and business
system. MYOB will provide the firm a platform to achieve better performance reports, high
production outcomes, and boost sales revenues and profitability by managing the multiple
accounts, customer transactions data, and better decisions with real time view of the finances.
MYOB has wide accounting information functional features, such as automation of billing and
invoicing, data security, bank reconciliation statement, double-entry bookkeeping (both in
journals and ledgers), multi-currencies, taxation, fixed asset management, stock inventory and
investment management, budgetary planning, payrolls, staffing, resource management, real-time
information and data availability, 24x7 technical support, standard business reporting,
forecasting and risk management, calculations and quotations, superannuation, frequent updates,
and online collaboration (MYOB, 2016).
MYOB is an accounting software solution designed to the small and medium size business
organizations in supporting the business processes of all levels within and outside of the
organization. It is one of the leading accounting software in Australia that is trusted by 1.2
million business clients across Australia and New Zealand. It provides the best enterprise
solution by managing multiple accounts and daily transactions in the businesses. The use of
MYOB will be effective for the firm because of the cost advantage, operational efficiency,

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reduction of the operational costs and runtime, user-friendly interface, ease of use, flexibility and
scalability, transparency of the financial transactions, control of the finances, tax compliance,
and on-going support and maintenance (MYOB, 2017).
(Source: MYOB, Leading Accounting Software in Australia)
5. Determining the ways to utilize the technologies for improving the business efficiency
Most of the organizations or companies use the AIS packages, enterprise resource planning, e-
commerce, EDI (Electronic data interchange), ICT (information and communication
technologies), IoT, Big Data, Point-of-sale system, and knowledge management and information
technologies for improving the business efficiency. The SMEs or accountant firms utilize the
AIS software, like XERO, MYOB, SAP, Sage ERP, Netsuite, Microsoft Dynamics, Intuit

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QuickBooks, FreshBooks, Recon, or other accounting information software suiting their firm
size, employees’ working, and business operations to improve the operational efficiency. For
example, MYOB is accounting information software based on the cloud computing technology
and Saas business model (Software as a service) that provides the high enterprise solution to the
business enterprise by integrating different business processes, activities, and operations through
the maintenance and management of the information. The AIS is installed by most of the
businesses to assist in the operational efficiency, business decision-making, and information
system management by managing multiple accounts, supply chain functions, financial reports
and transactions, large data, and inventory management (Gelinas, Dull, and Wheeler, 2014). The
AIS software could be utilized in the following in the way:-
Management of Internal operations of the department: The accounting information software is
designed to manage the internal operations, financial transactions, data security, and information
exchange among different department, accountants, managers, and financial experts. These are
installed and configured on the computer system of the enterprises to intent the transactions of
the firm as well as collect the activities and transaction in a single database for improving the
operational efficiency.
Banking: The accounting information software is used in automation of the bank feeds,
managing multiple accounts and transactions, reconciliation accounts, handling of checks, fund
availability, and preparation of the bank deposits. The AIS software enables the business firms to
make the direct payments through the net banking, and import the important data from the banks
into the accounting system of the firms (Hunter, 2009).

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Standard Integration: The accounting software is used by most of the organizations to connect
the business processes, operations, and internal functions by integrating the enterprise
technologies, like web services. The accounting information software enables the business firms
to integrate with other operational data and administrative systems. The accounting software
allow the business firms in enabling the automation of the basic processes and delivering the
information and data with security for the operational efficiency, effective decision-making, and
shared business practices.
6. Evaluation the level of efficiency of the technology implementation
The enterprise resource planning (ERP) and accounting information system (AIS) in the form of
the accounting information software assisted in achieving the level of the effectiveness of the
technological implementation within the firm of Nowra. The AIS software, such as MYOB will
provide a platform to the firm to achieve the operational efficiency, integrated business
processes, better accounting practices, better and authorized informational access and data
management. This accounting software is based on the cloud computing technology that
connects the technologies, like e-commerce, electronic data interchange (EDI), Information and
communication technologies, and data encryption with different internal and external operations,
business processes, and information system management for ensuring better information access,
data control, informed decision-making, integrated business processes, and combined accounting
informational practices (Dull, Gelinas, and Wheeler, 2014).
The AIS software, MYOB provides a framework to manage the multiple accounts (payable and
receivables), customer transactions and data management, organizing resources electronically,

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and capital budgeting and data management. Because of the multi-tasking, accounting and IT
features and data control system, it might be effective in the data security, enterprise resource
planning, e-CRM, automation invoicing and bank feeds, financial reporting, bills handling, stock
inventory, and automatic regular updates of the devices and internet applications. The
implementation of the AIS software might assist in improving the financial performance,
productivity outcomes, and revenue growth by aligning the functions, like procurement,
production, distribution, sales, storage, and delivery (Curtis, 2017).
The implementation of the cloud computing technology in AIS software assisted in the bank
reconciliation statement, automation, electronic customer relationship management, data security
and authorized information access, taxation, bill invoicing, and multi-currency management. It
also provided a framework to the firm to forecast the customers’ buying behaviors and
identification of their needs, market demands, competitiveness and attractiveness of the industry,
economic variations, and industry related trends and statistics to ensure the operational efficiency
within the organization of Nowchem.
7. Examining the potential security risks and data breaches
The business enterprise of Nowra Chemicals may involve different types of data breaches and
security related risks in its business processes, such as data loss, stolen/theft or copied frauds in
the accounting system, data errors, data copyright or disclosure of the files or documents,
plagiarism issues, identity theft, or data breaches (unauthorized disclosure of the company
private information) and sharing of company’s important files and documents with the outsiders
that may affect the functioning of the business processes, financial and accounting system,
information system management, and internal control system of the firm. The inexperienced and

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uninformed employees particularly the team members of the operational staff working in the
accounting, financial, IT, auditing, and customer service center might cause for the data breach
risks and insecurity issues while working on the computers at the time of interacting with the
customers or preparing the financial statements (Galliers and Leidner, 2014). The careless and
disgruntled employees are causing for the data theft at the high vulnerability because of sharing
of data, company private information about the products, business plans, pricing and distribution
strategies, or neglect to change mobile passwords.
There are some risks caused due to data errors, sharing of the important files or documents,
disclosure of private information, open e-mail links and passwords to the acknowledgement of
others may create the insecurity issues. Along with this, the organization of Nowchem lacks an
effective and standardize accounting information system that cause for the operational problems,
difficulty in managing accounts of payables and receivables, ineffective information system and
data insecurity, and automation of the invoicing, billing and supply chain operations (Dull,
Gelinas, and Wheeler, 2014).
The data breach is the potential enterprise risks that may be at the high vulnerability causing for
risk exposure, such as data redundancy, loss of data integrity and confidentiality, sharing of the
files, opening of e-mail links while communicating others, copyright or plagiarism of the
company information and secrets, malware and Trojans, and system update problems that are
caused due to an ineffective computerized information system.

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8. Guidelines on mitigating the risks
There are several guidelines that may be effective for Nowra Chemicals manufacturing Company
to reduce the data errors, frauds, insecurity risks, and unauthorized information disclosure or data
breach. It could be effective for the businesses of Nowra Chemicals Manufacturer to employ the
high skilled, technical, and experienced employees having the adequate job competences to
perform their tasks and activities responsibly and carefully, not causing to the disclosure of the
information or data breach issues. The HR administration is required to recruit the
knowledgeable, informed, and competent employees having capability to work on the accounting
information software for the job posts in accounting, operational, and financial departments
(Considine, Parkes, Olesen, and Blount, 2012).
The firm is required to have an effective accounting information system by purchasing and
installing the accounting information system on the computer systems in order to support the
business operations, financial statements and reporting, budgeting, investment decisions,
forecasting analysis, automation of the invoicing and accounts, and recording of the bookkeeping
entries. It is required to connect the AIS software with the internal business operations,
organizational processes, supply chain activities, and control system by using the technologies,
like e-commerce, EDI, ICT ERP, e-CRM and IT for reducing the high vulnerability of the data
risks or breaches. The Internet of Thing (IoT), Big Data, and cloud computing technologies
might be effective for the best accounting practices for managing the multiple accounts and
information system by reducing the data errors, unauthorized information access or disclosure of
the private files and financial reports (Lyamu and Tiko, 2015). The firm can also install the best
featured, multi-tasking, and advanced anti-virus program with the total protection or complete

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security from the spam links, hackers, tronjans, malware, viruses, and internet open attacks for
eliminating the possibility of the data breaches and insecurity risks.
The patch management programs will be effective to keep the system patched and updated for
the regular update of the web contents, digital devices, drivers, internet enabled software
programs and applications, and mobile apps. The organization is required to manage the data
security plans, strategies, and policies for reducing the data breaches/unauthorized information
disclosure, copyright violation issues, data loss or theft, information sharing, open e-mail links,
and plagiarism issues. Along with this, the traffic monitoring (log management), provisioning
(identity management), authentication and credentialing (information or data access
management), information security and data monitoring will be effective to minimize the risks
related to the data security and breaches (Lewis, 2014). The organization should allow the staff
members to use the authentic identification and secure passwords for maintaining the data
security, visibility and control.

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Conclusion
From the above research studies, it is summarised that Nowchem/Nowra Chemical
Manufacturers is an Australian chemical manufacturer industry that offers the wide range of the
hospitality chemical products, washroom chemical products, pool chemical products, cleaning,
and deodorising aerosols to the customers from the hospitality industries, swimming pools,
superstores, theatres, and shopping malls across the Australian markets. Different business
process and activities of Nowra Chemicals are performed including the supply chain,
manufacturing, distribution, logistics, sales, marketing, and inventory management for ensuring
the outstanding business performance of the firm. Along with this, the informational and
operational requirements of the business firm were identified. The SMEs accounting information
software, MYOB is selected as the best accounting software for the firm for improving the
accounting information system by supporting the financial reporting, business processing, data
security, capital management and budgeting, bank reconciliation, and automation of the
invoicing, bank feeds, billing, and customer transactions. Additionally, the effective strategies
were recommended to mitigate the data breaches and insecurity risks.

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References
Advisory HQ (2015). 5 Best Small Accounting Software in Australia. [Online]. Available at:
http://www.advisoryhq.com/articles/5-best-small-business-accounting-software-in-australia/.
(Accessed: 17 September 2017).
Considine, B., Parkes, A., Olesen, K., and Blount, Y. (2012). Accounting Information Systems:
Understanding Business Processes. Australia: John Wiley& Sons.
CTI Reviews (2016). Accounting Information Systems, Controls and Processes. Australia:
Cram101 Textbook Reviews.
Curtis, V. (2017). Getting Started In Small Business For Dummies, Third Australian and New
Zealand Edition. USA: John Wiley& Sons.
Dull, B. R., Gelinas, J. C., and Wheeler, P. (2014). Melbourne: Cengage Learning Australia.
Galliers, D. R., and Leidner, E. D. (2014). Strategic Information Management: Challenges and
Strategies in Managing Information Systems. Australia: Routledge.
Gelinas, J. U., Dull, B. R., and Wheeler, P. (2014). Accounting Information Systems. Australia:
Cengage Learning.
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