Challenges of Accounting in Global Organizations: HI6008 Assignment 2

This report, prepared by Roshan Bajracharya for HI6008 Business Research, analyzes the challenges of accounting in global organizations. The report begins with an introduction to the importance of accounting systems and their role in organizational development. It then outlines the project objectives, scope, and a literature review summarizing the key aspects of accounting systems, including their advantages and challenges. The research questions and hypotheses are presented, followed by a detailed discussion of the research design and methodology, including both qualitative and quantitative approaches. The report also covers research limitations, a time schedule (research plan), and a conclusion summarizing the key findings. The report follows the assignment brief's requirements including word count, and specific sections on introduction, project objective, scope, literature review, research questions/hypothesis, research design and methodology, limitations, time schedule, conclusion and references.

HI6008
Business Research
Assignment 2
Challenges of Accounting in Global Organizations
Name: RoshanBajracharya
Student ID: TIA 8158

Table of Contents
1. Introduction............................................................................................................................3
2. Project Objective....................................................................................................................3
3. Project Scope..........................................................................................................................3
4. Literature Review...................................................................................................................3
5. Research Questions/Hypothesis.............................................................................................6
RESEARCH QUESTIONS....................................................................................................6
Research Hypothesis..............................................................................................................6
6. Research Design and Methodology.......................................................................................6
Qualitative research................................................................................................................7
7. Research Limitations..............................................................................................................8
8. Time Schedule (Research plan).............................................................................................8
9. Conclusion..............................................................................................................................8
10. Reference List......................................................................................................................9
Appendix: gantt chart...............................................................................................................10

1. INTRODUCTION
Accounting is one of the most influencing aspects related to the development of an
origination and in order to facilitate this, availability of effective accounting system is largely
important (Weygandt, Kimmel, KIESO & Elias, 2010; Anandarajan, Anandarajan &
Srinivasan, 2012; Schaltegger & Burritt, 2010). It helps an organization to classify different
aspects that are related to making its accounts perspective efficient in overall management
and operational context. These accounting systems are perfectly designed for organizational
functions and thus provide a safe and effective approach to its assessment (Hall, 2012; Hall,
2010; Maskell, Baggaley & Grasso, 2016). Areas like decision making, competitive analysis
and progressive developments related to an organization is largely associated with a
consecutive enhancement in accounting system and its relative operations. An efficient
accounting system also boosts the economic possibilities related to an organization by
mitigating key challenges and developing relevant approaches for further development. This
proposal is largely related to the development of a major concept that reflects the importance
of accounting system in the present day organizational management. It reflects the role as
well as limitations that are related to the application of accounting system in the
organizational structure.
2. PROJECT OBJECTIVE
Some of the major objectives related to this project are:
 To research and analyse the concepts and use of accounting in the business by the
global organizations,
 To research the key challenges faced by the global organizations by the use of
accounting systems
3. PROJECT SCOPE
This project will be dealing with some of the major possibilities that are related to application
of accounting systems in an organizational context. It will be assessing the implementation of
accounting systems in business scenarios of an organization and identification of relative
issues that are related to its development. It will also provide major perspectives that are
related to the future of organizations in terms of applicable accounting systems.

4. LITERATURE REVIEW
Accounting is one of the most important aspect constituent of the present day organizational
structure. The American Accounting Association describes accounting as a major fragment
that is related to the development of decision making process under an organisation by
identifying, measuring and communicating financial data related to an organisation(Daske,
2008). All of the major organizations depend on some or other accounting systems in order to
facilitate the overall development of its business actions. The accounting systems that are
related to provide a stable and internationally accepted standard are agreed by various bodies.
After this, a change in policies and legislation are also made that contribute to proper
application of the recommended changes. These involve legal as well as financial bodies
which play a major role and are impacted by the development of these modifications. In spite
of the various advantages aspects, there are several challenges like affectivity, technicality,
and safety, lack of speed and requirement of enhanced skills related to the development of
accounting system in an organisation. The literature reflects inclusion of internationally
accepted accounting systems that play a major role in developing sustainable perspective in
accordance with the widely accepted aspects. In addition to this, a review will also be
provided that can relate with the various issue which are faced in order to implement these
accounting systems.
Systematic recording of financial statements and helping the organisations to analyse their
respective market positions are some of the major roles of the accounting systems (Horngren
et al., 2012; Chen, Tang, Jiang & Lin, 2010). Accounting has played a major role in context
of Australian business structure as it has helped organisations to achieve financial stability
and development for a major part of times (Jeanjean, 2008). Human resource management,
customer relationship management and business operations are some of the most influential
aspects that are related to application of accounting system (Tollington & El-Tawy, 2010).
The implementation aspects related to a communication system are largely related to factors
such as availability of suppliers and security concerns related to the new systems. In addition
to this, the accounting systems also require a significantly enhanced workforce in order to
operate it effectively(Horton, 2013). In addition to this, some of the accounting systems
require ability to share information with a third party that makes its usage much more
complex and less secure. These aspects reflect some of the major challenges that are related

to development of an accounting system. In addition to these factors, there are several
challenges that relate with accounting.
Some of the major challenges related to the development of accounting in an organisational
context are:
 High implementation cost: This is a major concern related to development of an
effective communication system. Along with a huge initial implementation cost the
timely updates related to these accounting systems are also very high and this is a
major barrier in efficient development of any organisation ((Ismail, 2014)).
 Involvement of different departments: Due to its wide area of acceptance and
operation in order to maintain a high level of accuracy a combination of different
departments like legal and finance is required which increases the issues related to its
implication. This significantly reduces the overall implemental possibilities that are
related to the accounting policies and standards thus restrict efficient business (Chen,
2010).
 Implementation Complexity: Accounting software uses a complex process of
implementation and in order to facilitate that a considerably equivalent skill set is
required. Employees often face difficulty in order to facilitate the overall
implementation of these systems with the existing skills(Guerreiro, 2015).
 Unavailability of expertise: Similarly to its implementation, the operations of these
facilities also require a significant amount of talent. This expertise is often lacked in
majority of the organizational workforces and thus its operation becomes a major
issue in some cases.
 Action gaps: In order to justifying the lacking of organizational workforce a
supportive workforce is required which is related to application of further economic
burdens in terms of high salaries and payment structures. This also accounts for the
development of major gap between organizational objectives and applied
actions(Bititci, 2016).
The Australian organizations largely relay over accounting systems in terms of their business
operations and management. Sage 50, Xero and Intuit are some of the major accounting
system based organizations which provide relevant solutions like cloud-based accounting
system and effective integration system in order to achieve competitive advantages. Xero has
largest market share in this industry accounting for around 65%; Intuit the second largest with

market share of 20% and Sage 50 the least with 10% market share. These are the main
organisations which provide a cost effective accounting systems to their respective
clients(Bennett, 2017).
In addition to this, the recent developments are also related to the overall development of
these perspectives as it helps in coping with major possibilities like information loss or theft.
This is the major reason that all of the organisations attain a resemblance with the respective
association of accounting systems in their core operational structure (Vasarhelyi, Kogan &
Tuttle, 2015). The application and association of accounting theories facilitate organisational
requirements such as budget analysis, payroll analysis, sales analysis and stock analysis.
Apart from these traditional advantages, the recent developments related to accounting
systems have also integrated abilities like self-refreshing and factor customizations(Ismail,
2014). In addition to this some of the major applications that are related to the inclusion of
accounting systems in organisational structures account for increased accuracy, developed
efficiency and information management up to a larger extent (Sam, Fazli, Hoshino & Tahir,
2012). This justifies the large scale use of accounting systems in Australian organizations.
Association of Australian organisations with the application of accounting system reflects the
majority of its advantageous factors and thus it can be considered as most suitable with the
growing business needs.
5. RESEARCH QUESTIONS/HYPOTHESIS
Primary Question
What is the role of accounting systems in context of an organization?
Secondary Questions
What are the major issues related to application of accounting system in an organization?
How can be the effectiveness of an accounting system is improved?
What are the advantages of applying accounting systems in an organization?
6. RESEARCH DESIGN AND METHODOLOGY
Research methodology is the process of research evaluation that is based on structure and
effectiveness (Mackey & Gass, 2015; Panneerselvam, 2014). The aim of the present study is

to analyze the association perspectives of accounting systems with relevant organizations
with respect to their positive impacts as well as limitations. This study will be based over
exploratory research basis in order to facilitate the resolution of research issues. In order to
facilitate the accumulation of accurate and reliable research results, both approaches that are
qualitative and quantitative are to be used in this research. The method of data collection is
one of the major factors that are largely responsible for the development of successful results
associated with a research. In this research the researcher will be using both primary as well
as secondary methods of data collectionas it will be helpful in assessment of each and every
perspective that is related to overall development of this subject(Daske, 2008). Collection of
fresh and latest data will be carried out by the application of primary data collection which
will be including personal interviews and questionnaire development. In addition to this,
secondary data collection sources will be used to collect old information that is previously
available in books, journals and websites. This method of data collection will be of major
help as it will help in developing an all-round development related to the informational
perspectives of the organizations and application of accounting systems in their basic
operational frameworks.
QUALITATIVE RESEARCH
In order to conduct the qualitative research, the researcher will be using theoretical tools and
techniques (Silverman, 2016). The quantitative data analysis process will be done by
facilitating the overall development of relevant conceptual as well as theoretical implications
relevant to the respective study. The researcher will be using 3 books, 5 journals and 1
websites in order to facilitate this method of sampling and data collection process. All of
these sources of data collection will be from reliable sources in order to facilitate the data
validity and correctness in terms of its association with the respective issue. The data
collected from these sources will be of major use in order to facilitate the development of
proper understanding of the subject. The selection of these data collection sources will be
done on the basis of their relevance with the specified subject and thus completion of data
collection will largely do in an efficient manner(Ismail, 2014). This section of research will
be using pre-existing information sources that can be assessed in order to facilitate the overall
development of this concept and that to in a pre-checked and justified format. This enhances
the association of relevant possibilities of success full completion of this data collection
process.

Quantitative research
The quantitative mode of research involves the use of various quantitative tools for collection
of reliable and correct data. The research findings will be presented in a numeric or graphical
value in order to facilitate the overall development of a major subject understanding and
concept development. Primary sources of data such as interviews and questionnaire are two
major possible methods that can be used in order to facilitate the overall understanding
related to the data collection process. It will also ensure the reliability and correctness of data
that is collected as these two methods of data collection are largely considered as some of the
majorly important methods of primary data collection. Questions related to the interview and
questionnaire will be largely related to the groups that are associated with accounting
perspectives of any organizational influence, this will help in accessing proper data collection
and its relevance with the presented issue. The use of quantitative research will be very
important in order to access relevant information from respective sources in order to enhance
the understanding perspectives of this subject(Jeanjean, 2008). Initially, there are mixed
feelings related to the application of accounting systems in organizations but with
development of questionnaire a huge bunch of relevant questions will be raised and then it
would lead to an overall development of the proposal.
7. RESEARCH LIMITATIONS
A major limitation that is related to this research is the time constraint that is provided. In
comparison to the vast area that this research covers availability of time and resources were
some of the most influential aspects that can be termed as a major limitation. The in-depth
researching possibility is also a major challenge as it will be requiring a much larger
consideration of time and resource availability and that is not available with this research.
This initiates a limitation in research area. Apart from the mentioned limitation, the research
will be helpful in attaining reliable results.
8. TIME SCHEDULE (RESEARCH PLAN)
9. CONCLUSION
A major conclusion that can be drawn from this proposal reflects the wide area utilization of
accounting systems in order to facilitate the overall development of an organization. It helps

in developing the relatable approaches in the field of information management that can be
utilized for an overall quality development of the organization. This proposal reflects
accounting systems as major factors that are accountable for the development of financial
recording possibilities related to an organization of its application. The availability of major
challenges like effectiveness, requirement of extra time and expertise but the advantageous
factors related to it are of major importance. It helps in providing the organizations a reliable
medium for operating their business. Use of in-house application and policies are some of the
most influential aspects that are related to the development of major possibilities associated
with the application of accounting system in organizations. Reliance of a large number of
Australian organizations over the accounting system provides its feasibility and associated
advantages.

10. REFERENCE LIST
BIBLIOGRAPHY
Weygandt, J. J., Kimmel, P. D., KIESO, D., & Elias, R. Z. (2010). Accounting
principles. Issues in Accounting Education, 25(1), 179-180.
Anandarajan, M., Anandarajan, A., & Srinivasan, C. A. (Eds.). (2012). Business intelligence
techniques: a perspective from accounting and finance. Springer Science & Business
Media.
Schaltegger, S., & Burritt, R. L. (2010). Sustainability accounting for companies:
Catchphrase or decision support for business leaders?. Journal of World
Business, 45(4), 375-384.
Hall, J. A. (2012). Accounting information systems. Cengage Learning.
Hall, M. (2010). Accounting information and managerial work. Accounting, Organizations
and Society, 35(3), 301-315.
Maskell, B. H., Baggaley, B., & Grasso, L. (2016). Practical lean accounting: a proven
system for measuring and managing the lean enterprise. Productivity Press.
Chen, H., Tang, Q., Jiang, Y., & Lin, Z. (2010). The role of international financial reporting
standards in accounting quality: Evidence from the European Union. Journal of
international financial management & accounting, 21(3), 220-278.
Horngren, C., Harrison, W., Oliver, S., Best, P., Fraser, D., & Tan, R. (2012). Financial
accounting. Pearson Higher Education AU.
Tollington, T., & El-Tawy, N. (2010). Exploring the HRM/accounting interface on human
assets: the case for artefact-based asset recognition criteria. Journal of Human
Resource Costing & Accounting, 14(1), 28-47.
Vasarhelyi, M. A., Kogan, A., & Tuttle, B. M. (2015). Big Data in accounting: An
overview. Accounting Horizons, 29(2), 381-396.
Sam, M., Fazli, M., Hoshino, Y., & Tahir, M. N. H. (2012). The adoption of computerized
accounting system in small medium enterprises in Melaka, Malaysia.
Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design.
Routledge.
Panneerselvam, R. (2014). Research methodology. PHI Learning Pvt. Ltd..
Silverman, D. (Ed.). (2016). Qualitative research. Sage.

Bennett, M. a. (2017). The Green bottom line: environmental accounting for management. In M. a.
Bennett, current practice and future trends. london: Routledge.
Bititci, U. C. (2016). Impact of visual performance management systems on the performance
management practices of organisations. . International Journal of Production Research,
pp.1571-1593.
Chen, H. T. (2010). The role of international financial reporting standards in accounting quality:
Evidence from the European Union. Journal of international financial management &
accounting, pp.220-278.
Daske, H. H. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic
consequences. Journal of accounting research, pp.1085-1142.
Guerreiro, M. R. (2015). Institutional change of accounting systems: the adoption of a regime of
adapted International Financial Reporting Standards. European accounting review, pp.379-
409.
Horton, J. S. (2013). Does mandatory IFRS adoption improve the information environment?
Contemporary accounting research, pp.388-423.
Ismail, N. a. (2014). Factors influencing the alignment of accounting information systems in small and
medium sized Malaysian manufacturing firms. Journal of Information Systems and Small
Business, pp.1-20.
Jeanjean, T. a. (2008). Do accounting standards matter? An exploratory analysis of earnings
management before and after IFRS adoption. Journal of accounting and public policy,
pp.480-494.

APPENDIX: GANTT CHART
Task We
ek 1
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Topic
identificat
ion
Design
literature
review
Data
collection
(qualitati
ve and
quantitati
ve)
Analysis
Accessibil
ity of
sources
Data
analysis
submissio
n