Accounting Software Packages in a Global Competitive Business Scenario

This report provides a comprehensive literature review on the significance of accounting information systems (AIS) in a globally competitive business environment. The review focuses on the use of accounting software packages, with a specific emphasis on an Australian company, Woolworths. The report analyzes Woolworths' current organizational structure, operational challenges related to software integration, system acquisition methods (including ERP planning), and control issues. It also includes a system flowchart of Woolworths' sales procedures. Furthermore, the report explores the development, market size, market leaders, and current challenges associated with accounting software packages. Key aspects covered include the adoption of cloud-based systems, the impact of SAP, and the competitive landscape of software providers like MYOB and Xero. The report concludes with recommendations for businesses selecting and implementing accounting software, emphasizing the need for careful consideration of operational scale and requirements.

Master of professional accounting

Introduction
The present undertakes a literature review in relation to the significance and importance
of accounting information system in global competitive business scenario. In this context, the
literature review emphasizes on the use of accounting software packages by an Australian
company. The literature review focuses on the current organizational structure, operational
problems, type of system acquisition method used and the control problems faced by the
company for integrating the use of accounting software packages. Also, the report depicts and
describes a system flowchart of the sales procedures for the selected company. The company
selected for the purpose is Woolworths, an Australian retail giant that has adopted the use of
accounting software packages for maintaining its accounting information appropriately
(Chanthadavong 2016). In addition to this, the report presents a literature review on the
development, current market size, leaders in the market and the current challenges with the use
of accounting software packages.
Current Organizational Structure
The Woolworths conducts diverse business operations having major retail interest
throughout Australia and New Zealand. The company main operations include supermarkets,
liquor retailing and operating gaming machines in hotels and pubs. The company has extensive
retail stores and operates in various business areas and therefore has a complex organizational
structure. The company in order to maintain the flexibility in its organizational structure is
largely incorporating the use of accounting software packages. The retail giant has integrated the
use of cloud software system for incorporating flexibility in its organizational structure. It is also
emphasizing on the use of Google Apps for proper monitoring and controlling its diverse
business operations. The Woolworths is largely focusing on implementing latest information
technological devices such as SAP-based merchandising system for enhancing the performance
of its accounting system. The introduction of the SAP system has gradually transformed its
organizational structure into more flexible and organized manner. The implementation and
adoption of an adequate accounting software system is essential for the company to manage its
accounting information appropriately. The use of SAP enabled the company to manage its
accounting information properly (Chanthadavong 2016). The company had to maintain its

accounting data properly as it has various business units and therefore has complex data to be
managed properly.
Operational problems due to Accounting Software Packages
The Woolworths Limited is also facing various problems due to use of accounting
software packages. The Woolworths has revealed its plans of implementing SAP all of its
business areas such as petrol retailing. However, the company is also facing large number of IT
issues in successfully implementing the use of accounting software packages. The company
encounters operational problems such as system inefficiency and errors with the use of
accounting software packages (Coyne, 2016). The cloud based accounting software used by the
company such as point of sales system and XERO are not user-friendly. The employees of the
company do not possess adequate knowledge about the operational functions of the software
impacting its operational efficiency. Also, the current organizational structure of the company
maintained through the use of IT devices is subjected to cause operational error in its accounting
system that can occur through wrong input of financial data into the system. This can cause
incorrect flow of accounting information from one department to another resulting in
misrepresentation of accounting data. The company must take proper measures for preventing
the occurrence of such operational problems use to use of accounting software system (Curtis,
2015).
System Acquisition Method
The accounting software system used by Woolworths such as point of sales and XERO
are developed through ERP (Enterprise Resource Planning) system. The company is presently
large focus on stabilizing its SAP platform for integrating larger use of IT devices and
technologies in its operational activities. The software used by the company are based on SAP
software and therefore the accounting software system acquisition method is ERP planning. The
ERP is regarded to be business management software that enables business organizations to
manage the operational activities of their various departments effectively. The business
corporations have to develop a long-term plan for acquiring the information systems and services
for supporting their business initiatives. This involves determining the top priorities of the top
management and therefore designing the essential applications as per the projected priorities.

The Woolworths, as such, is presently planning to incorporate the use of Google Apps for proper
maintenance of its complex data. The company has developed all its information system and
devices through the use of SAP implementation based on ERP (Hall, 2015).
System Flowchart of Sales Procedure of Woolworths Limited
The different symbol conventions sued in designing the sales process flowchart is illustrated
below:
The Sales flowchart of Woolworths Limited maintained through MYOB Accounting Software
System

Description of System Sales Procedure of Woolworths
The company has incorporated the use of online software system for monitoring and
controlling its sales operations. It various components are described below:
 Sales Division: it is involved in developing the orders of customers and processing them
to credit department. This is followed by aligning the customer order into the shopping
cart to be processed through the online payment method. The order is processed after
verifying it from the credit department.
 Credit Department: The credit department verifies the payment details processed to them
by the sales department. The payment details are sent to sales department after
verification to be process the customer order further. The credit department adopts a
secure server for receiving the customer payments in order to secure the customer bank
information (Rangaraju and Kennedy, 2012).
 Warehouse Unit: The unit after receiving the confirmation of a particular customer order
passes the required product to the shipping department for delivering to the customer.

 Shipping Department: The department after receiving goods from warehouse holds the
responsibility of delivering the customer order to the address mentioned by them (Buttle,
and Maklan, 2015).
All the above sales process of the company is mediated through online accounting
software MYOB that helps in integrating the accounting information across the various channels
of the sales department (Curtis, 2015).
Control and Fraud Issues in the System Sales Procedure of Woolworths
 Establishment of Duties: The Wooloworths Limited is a complex organization and thus
its sales procedure comprises of multiple tasks to be completed. As such, it becomes
highly critical for the company to effective monitor and control its sales activities through
establishing the duties if different personnel. The sales manager should also ensure that
each and every sales activity is properly managed and controlled through the use of the
sales management software.
 Policies and Procedures: The Company is also required to establish effective policies and
procedures that provide guidance to its sales management personnel’s regarding the use
of the system software. This is essential so that the software used become friendly to use
for the sale management personnel and proves to be helpful in managing the sales
procedure of the company.
 Lack of Security& Accuracy: The use of system software in managing the sales procedure
also involves security and accuracy issues. The data can be accessed by the parties thus
involving the loss of company data to outside parties. Also, the use o inaccurate software
systems can result in data corruption that can further misrepresent the sales data before
the management leading to wrong decision-making (Terkper, 2008).
Part 2
Development and adoption of the accounting software packages
There is increasing use of accounting software by the Australian business companies due
to their large-scale affordability and managing complex business operations adequately. The
business companies in Australia are selecting the most appropriate accounting software as per

their needs and requirements. The accounting software are mainly developed to record and
manage the complex financial data of the business companies and produce organized data for
better decision-making by the management. The accounting software was introduced in the
Australian business market around 1990S. The accounting software brought a revolution in the
country as these cloud-based software are easy, integrated and internet based for effective co-
ordination of accounting functions of various departments of a business organization. These have
become a critical business management tool in the Australian business firms since their evolution
and large-scale integration for integrating the accounting processes (Mageto, 2017).
The current market size
The accounting software industry is growing steadily over the past years due to
increasing need of industry-specific software management services. The industry is estimated to
provide about annual revenue of about $3.1 billion annually over the coming years with the
increase in industry participants (Software Publishing in Australia, 2017).
Identify the leaders in the market and what gives them the competitive advantage,
The major market leaders in the accounting software industry of Australia are MYOB,
Xero, Zoho Books and Quick Books. There is intense competition among this software as they
provide almost similar features. The competitive advantage of these companies is based on the
quality of service provided by them with easy acquisition method. The companies tend to
provide high-quality services to the businesses for developing long-term customer relations with
them (Software Publishing in Australia, 2017).
Current gaps or challenges encountered by users or customers of accounting
software/packages and relevant suggestions or recommendations
The use of accounting software packages is associated with some challenge as addressed
below:
 Difficult to Customize: The accounting software cannot be customized by the business
users as per their needs and requirements. Also, the systems are very complex to be
understood by the users and require software training for developing an understanding of
their features.

 Delay Problems: The accounting software is based on the use of internet and thus
encounter problems such as delay in processing of data due to slows speed of internet.
 Breach of Security: The business users also face problem of lack of confidential data as
the data provided by them to the accounting software can be easily accessed over internet
by outside users. This can result in loss of their private information to the competitors.
 Compatibility Issues: The accounting software also does not become easily compatible
with other programs. This provides a hindrance to the users as they may not be able to
import some data into their program due to computability issues (Liguo, 2014).
On the basis of above challenges addressed, it is suggested to the business companies to
select the accounting software as per their scale of operations and requirements. There are wide
number of accounting software available in the market and therefore companies are required to
be extremely cautious for selecting the adequate software for them. This involves a proper
research on the part of the IT personnel and management so as to determine the best suitable
software in accordance with the business operations (Hall, 2015).
Conclusion
It is inferred from carrying out the literature review in relation to the importance of
accounting software system that there is high need in business world due to integration and co-
ordination feature provided by them. However, the businesses for addressing the challenges
associated with the use of accounting software system should carefully select the best system as
per their business requirements.

References
Buttle, F. and Maklan, S. 2015. Customer Relationship Management: Concepts and
Technologies. Routledge.
Chanthadavong, A. 2016. Woolworths upgrades HR system to the cloud with SAP. [Online].
Available at: http://www.zdnet.com/article/woolworths-upgrades-hr-system-to-the-cloud-with-
sap/ [Accessed on: 22 August, 2017].
Coyne, A. 2016. Woolworths makes fixing IT a priority. [Online]. Available at:
https://www.itnews.com.au/news/woolworths-makes-fixing-it-a-priority-434957 [Accessed on:
22 August, 2017].
Curtis, V. 2015. MYOB Software for Dummies – Australia. John Wiley & Sons.
Hall, J. 2015. Accounting Information Systems. Cengage Learning.
Liguo, Y. 2014. Overcoming Challenges in Software Engineering Education: Delivering Non-
Technical Knowledge and Skills: Delivering Non-Technical Knowledge and Skills. IGI Global.
Mageto, J. 2017. Accounting Softwares in Australia. An Overview. GRIN Verlag.
Rangaraju, M.S. and Kennedy, H. 2012. Innovation in Management Challenges and
Opportunities in the next decade. Allied Publishers.
Software Publishing in Australia. 2017. [Online]. Available at:
https://www.ibisworld.com.au/industry-trends/market-research-reports/information-media-
telecommunications/except-internet-music-publishing/software-publishing.html [Accessed on:
22 August, 2017].
Terkper, S.E. 2008. Accounting Challenges for Semi-Autonomous Revenue Agencies (SARAs) in
Developing Countries, Issues 2008-2116. International Monetary Fund.