Strategic Information Systems: Accounting Software in Australia

This report provides a comprehensive analysis of accounting software packages in Australia, focusing on the strategic information systems used by businesses. The report begins with an introduction to the importance of accounting software in business operations and then delves into the organizational structure of Woolworths, an Australian retailer, highlighting issues associated with its functional structure. It explores Enterprise Resource Planning (ERP) systems as a solution and includes a system flowchart of sales processes and activities. The report also addresses control and monitoring issues, potential frauds, and the development and adoption of accounting software. It examines the current market size of the accounting industry in Australia, including auditing, bookkeeping, and accounting operations. Furthermore, it profiles leading software packages and vendors, such as MYOB, Intuit QuickBooks, Saasu, Reckon, and Xero, highlighting their competitive advantages and features. The report concludes by discussing challenges faced by users and providing references. This report, contributed by a student, can be found on Desklib, a platform offering AI-based study tools.

qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklz
xcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklz
xcvbnmrtyuiopasdfghjklzxcvbnm
Strategic Information Systems
Accounting Software Packages in Australia
5/9/2018

Accounting Software Packages in Australia
Table of Contents
Introduction.................................................................................................................................................3
Organizational Structure..............................................................................................................................3
Issues Associated with the Organizational Structure...................................................................................4
Enterprise Resource Planning (ERP): System Acquisition Method.............................................................4
System Flowchart of the Sales Processes & Activities................................................................................5
Control/Monitoring Issues & Frauds...........................................................................................................5
Development and Adoption.........................................................................................................................6
Accounting in Australia: Current Market Size.............................................................................................6
Leading Software Packages & Vendors with the Competitive Advantage..................................................7
MYOB Accounting Software..................................................................................................................7
Intuit QuickBooks...................................................................................................................................7
Saasu.......................................................................................................................................................8
Reckon.....................................................................................................................................................8
Xero.........................................................................................................................................................9
Challenges for the users.............................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11
2

Accounting Software Packages in Australia
Introduction
A business organization can efficiently function only when the several units and departments are
in sync with each other and are integrated. The integration of the business units and departments
ensures correct and timely flow of the information sets. The business organizations are composed
of certain essential and non-essential departments. One of the essential units in any of the
business organization irrespective of its size, location, or domain is the accounts department. It is
the department that keeps track of all the funds and costs associated with the project and business
activities along with the salaries of the employees. Thus, a business organization shall ensure that
it makes use of adequate accounting tools and techniques to efficiently execute the accounting
tasks. With the demand of such tools and techniques, there are several accounting software
packages that have been developed with numerous vendors in the market. The accounting
industry has witnessed several changes and transformations over the years with the use and
involvement of latest technology. There are integrated software solutions and packages that are
developed that serve the accounting needs of an organization with a single package. Australia is
one of the primary users of such packages in its accounting and backing firms. Woolworths is
one such Australian organization uses these packages and the report covers the information of
accounting software packages being used in Australia.
Organizational Structure
Woolworths Limited is an Australian organization that has been selected to study the accounting
software packages and information systems that are in use in Australia. Woolworths is a
company that is an online and offline retailer of groceries and household products. The company
has its e-commerce cite to allow the customers to order the products online.
The business operations that are carried out in Woolworths have increased with the passage of
time due to increase in the number of customers. There are leaders and managerial resources
deployed in the organization along with the middle level managers and operation staff members
to carry out all of the business activities and tasks (Woolworths, 2017).
3

Accounting Software Packages in Australia
Issues Associated with the Organizational Structure
The organization structure that is followed in Woolworths is functional structure. According to
this structure, the skills and expertise of the resources are assessed and the resources are
distributed in functional units. These functional units are then utilized to carry out the business
activities and operations. The implementation of this organizational structure in Woolworths has
brought up a number of issues. Collaboration and communication between the functional units is
one of the major issues that are seen. There is lack of communication between the functional
units that adversely impacts the business performance and quality of operations. Integration of
the units is essential so that all the departments are aware of the organizational information at all
times.
The issues that have been listed above can be resolved with the implementation of information
systems and tools (Henderson, 2004).
Enterprise Resource Planning (ERP): System Acquisition Method
The information systems that are developed can be acquired through several methods. Some of
these methods may include acquiring software from a third-party or there may also be
configuration & installation of such a package utilizing commercially available software
packages. The software vendors and providers have also come up with Enterprise Resource
Planning (ERP) solutions that may also be utilized in this case (Yang and Tamir, 2015).
Woolworths shall install and implement an ERP package. Enterprise Resource Planning (ERP) is
the software package that integrates the back-end functions that are carried out in a business
organization. The strong integration of these back-end functions ensure that the organization
benefits from the execution of the business activities as the desired results are achieved (Mallery,
2011).
4

Accounting Software Packages in Australia
System Flowchart of the Sales Processes & Activities
Sales Process at Woolworths
Sales are one of the primary set of activities that are carried out at the organization. The results
of the sales activities determine the profits and revenues that are earned by an organization. The
sales process at Woolworths includes the definition of the business objectives which are used in
the marketing research and other marketing activities followed by utilizing the suspects and
results in qualifying and identification of the opportunities. The opportunities identified are then
used in the proposing phase to agree upon the terms of implementation followed by the delivery
processes. The goal of the sales processes is to earn the satisfaction of the customers (Gulledge,
2002).
Control/Monitoring Issues & Frauds
There is numerous control issues that are detected in association with the sales activities and
processes carried out at the Woolworths organization. The business organizations are now
required to include latest technological measures and techniques in all of their activities.
However, the sales process that is depicted above has not been updated since long. As a result,
the use of latest technologies is not reflected in the process. This leads to the lack of automation
and slower processes. The review of the sales processes along with the monitoring is not easy to
carry out as per the current flow. The overall sales and business performance gets negatively
impacted as a result.
5

Accounting Software Packages in Australia
The sales data and information is accessible to the numerous sales resources in the organization.
There are privacy concerns that have emerged as a result of uncontrolled data access. The
unauthorized access may lead to the exposure of the information and data sets to the external
entities and the sales data may be incorrectly utilized (Mohapatra and Patnaik, 2011).
Development and Adoption
There are transformations that the accounting and banking departments have seen over the years.
A business organization shall ensure that it makes use of adequate accounting tools and
techniques to efficiently execute the accounting tasks. With the demand of such tools and
techniques, there are several accounting software packages that have been developed with
numerous vendors in the market. The accounting industry has witnessed several changes and
transformations over the years with the use and involvement of latest technology. There are
integrated software solutions and packages that are developed that serve the accounting needs of
an organization with a single package (Seethamraju, 2012).
These changes have had impact on the business operations which in turn has impacted the
customer expectations and demands. The customers now expect the accounting software
packages to be integrated with the reflection of latest technologies, such as business automation,
artificial intelligence, and Internet of Things (IoT). The accounting firms are now trying to
incorporate such technologies in the automated tools and applications to meet the demands of the
customers. There are also regular updates that are installed so that the customers are offered with
innovative solutions at all times (James, 2016).
Accounting in Australia: Current Market Size
Woolworths and other business organizations that are set up in Australia and other locations
carry out a number of accounting activities and operations. Most of the accounting activities that
are performed are classified in three types of activities or operations. These include auditing
services, bookkeeping services, and accounting operations (Afpbb, 2016). Australia is composed
of over 10,000 organizations and vendors that provide the customers with the automated
accounting services or packages solutions. There are close to 150,000 resources that work in
these organizations and units so that the latest accounting services are provided to the customers.
6

Accounting Software Packages in Australia
The use of accounting services will not be eliminated from the business units as it is one of the
essential elements in the organizations. the industry will witness further growth of close of 6
percent in the coming years and the overall revenue earned by the accounting industry will touch
AUD 21 billion by the end of this year (Bankwest, 2015).
Leading Software Packages & Vendors with the Competitive Advantage
MYOB Accounting Software
MYOB is an integrated accounting package that is provided by the vendor in Australia and other
global locations. Australia is one of the prime users of accounting software packages and the
solution serves such huge demands. There are innovative features that are offered to the
customers as a part of this package. There are also regular updates done so that the technology
and features do not become obsolete. Some of the interesting features that are offered by MYOB
package are listed below.
 The real-time accounting and financial information across different categories is available
and can be viewed
 Point of Sale activities and transactions can be adequately carried out
 The software package can be used in offline mode also so that the disruption in the
services never occurs
 The software package complies with the legal, regulatory, and ethical policies at all times
 The users can customize the software package as per their needs and demands. The level
of personalization that is maintained in the package is high (Myob, 2016).
Intuit QuickBooks
Intuit QuickBooks is an accounting software package that is widely used across Australia and
beyond. The package has an excellent response rate in the market owing to the wide range of
features that it comes with. There are also some of the unique features that are included in the
package that are not available or offered by any other vendor in the Australian markets as of
now. Some of the interesting features that are offered by Intuit QuickBooks package are listed
below.
 Extremely cost-effective solution that meets the accounting needs of the customers.
7

Accounting Software Packages in Australia
 There are no performance lags witnessed with the increase or decrease in the load.
 Data and information management is carried out with the integration of advanced data
analytics, databases, and Big Data tools.
 The payroll features and operations in the tool come for free of cost.
 The package can be easily accessed without any platform dependability.
 The security risks and attacks that may come up with the financial information and data
sets can be avoided with the use of the advanced security protocols that come with the
package (Advisoryhq, 2015).
Saasu
Saasu is another accounting package that is high on demand and is used in the Australian
organizations and other business organizations spread all across the globe. Australia is one of the
prime users of accounting software packages and the solution serves such huge demands. There
are innovative features that are offered to the customers as a part of this package. There are also
regular updates done so that the technology and features do not become obsolete.
This software package has succeeded in maintaining good market profile due to the excellent
customer support and customer service that the vendor offers to its users. One of the primary
features of the tool is the enhanced customization and personalization that comes along with
Saasu and the users can modify the features as per their needs and requirements.
Reckon
Reckon is an accounting software package that is widely used across Australia and beyond. The
package has an excellent response rate in the market owing to the wide range of features that it
comes with. There are also some of the unique features that are included in the package that are
not available or offered by any other vendor in the Australian markets as of now. The feature set
of the package have been listed below.
 The vendor has an excellent market reputation and therefore the customers can easily
trust the vendor with the investments that they choose to make on it.
 The package would be compatible with the other technical components and tools installed
at the client-side.
8

Accounting Software Packages in Australia
 The tool offers unique set of features, such as resource management, tracking of the
credit scores, billing and invoicing activities, and many more (Carey, 2015).
Xero
Xero is another accounting package that is used by the Australian and other global customers and
business organizations. There are varied accounting packages that are available in Australia and
provided by the vendors. Xero is one such package that comes with abundant features and
services. Some of these features are as listed below.
 The processing speed, response rate, and throughput time associated with the tool is
quick that leads to time savings and enhanced performance of the package.
 The reconciliation and auditing activities that are carried out using Xero are quick and
easy to carry out.
 The user interface and user experience that comes along with the tool is rich and visually
appealing.
 The tool can be collaborated with other tools and systems in the business organization
(Miller, 2016).
The list of costs that are associated with the various accounting packages are illustrated in the
table below.
Type of Cost MYOB Intuit
QuickBooks
Saasu Reckon Xero
Basic
Accounting
Software
Package
The customers will
be required to pay
a monthly charge
of $50 to avail the
features and
services
The customers
will be
required to pay
a monthly
charge of $12
to avail the
features and
services
The
customers
will be
required to
pay a
monthly
charge of
$15 to
avail the
features
The
customers
will be
required to
pay a
monthly
charge of $5
to avail the
features and
services
The customers will
be required to pay a
monthly charge of
$9 to avail the
features and services
9

Accounting Software Packages in Australia
and
services
Advanced
Accounting
Software
Package
The customers will
be required to pay
a monthly charge
of $99 to avail the
features and
services
The customers
will be
required to pay
a monthly
charge of $21
to avail the
features and
services
The
customers
will be
required to
pay a
monthly
charge of
$180 to
avail the
features
and
services
There are
add-ons that
are available
with the
package and
the pricing
depends upon
the same
The customers will
be required to pay a
monthly charge of
$70 to avail the
features and services
Cost of the accounting software (Advisoryhq, 2015)
Challenges for the users
 There may be fraudulent activities given shape by the malicious attackers with the
execution of the security risks and attacks, such as ransomware attacks, denial of service
attacks, distributed denial of service attacks, and other malware attacks.
 There are occurrences wherein the vendors and the service providers keep certain costs
hidden and these costs are revealed at the time of configuration or installation. This may
come up as a major challenge for the users with stringent budget (Crowder, 2016).
 System documentation is one of the necessary deliverables that shall come along with the
final release of the package. It is often encountered that the vendors do not provide
detailed documentation to the users and as a result it becomes difficult for the users to
resolve the errors and operational mistakes that occur.
 Post-production support and the after sales support offered by the vendors may not be
adequate which may prove to be challenging for the users at the time of security incidents
or other technical errors.
10

Accounting Software Packages in Australia
Conclusion
Woolworths is a company that is an online and offline retailer of groceries and household
products. The company has its e-commerce cite to allow the customers to order the products
online. The company may deploy Intuit QuickBooks as the accounting software package across
all of its business units and locations. The recommendation has been made on the basis of the
requirements of the company along with the pricing model and charges associated with the
package. The feature set of Intuit QuickBooks will match up with the needs of the organization.
11

Accounting Software Packages in Australia
References
Advisoryhq.com, (2015) 5 Best Small Business Accounting Software in Australia. [online]
AdvisoryHQ. Available at: http://www.advisoryhq.com/articles/5-best-small-business-
accounting-software-in-australia/ [Accessed 09 May 2018].
Afpbb, (2016) The Australian Accounting Industry. [online] Afpbb.net.au. Available at:
http://www.afpbb.net.au/Resources/TheAustralianAccountingIndustry.aspx [Accessed 09 May
2018].
Bankwest, (2015) Accounting Services Industry Report. 1st ed. [ebook] Bankwest. Available at:
https://www.bankwest.com.au/cs/ContentServer%3Fpagename%3DFoundation/CS/Blob/
Document%26id%3D1292539844555%26ext%3D.pdf+&cd=3&hl=en&ct=clnk&gl=in
[Accessed 09 May 2018].
Carey, M. (2015) Cloud Accounting Overview 2015: MYOB Essentials vs Xero vs Intuit
QuickBooks Online vs Reckon One - Digital First. [online] Digital First. Available at:
http://www.digitalfirst.com/2015-overview-cloud-accounting-software/ [Accessed 09 May
2018].
Crowder, C. (2016) [online] Techin.oureverydaylife.com. Available at:
http://techin.oureverydaylife.com/disadvantages-accounting-software-1965.html [Accessed 09
May 2018].
Gulledge, T. (2002). Business process management: public sector implications. Business Process
Management Journal, 8(4), pp.364-376.
Henderson, L. (2004). Encoding and decoding communication competencies in project
management ? an exploratory study. International Journal of Project Management, 22(6),
pp.469-476.
James, D. (2016) 7 accounting packages for Australian small businesses compared: including
MYOB, QuickBooks Online, Reckon, Xero. [online] BIT. Available at:
http://www.bit.com.au/Review/344651,7-accounting-packages-for-australian-small-businesses-
compared-including-myob-quickbooks-online-reckon-xero.aspx [Accessed 09 May 2018].
12