NAB Accounting System: Analysis of Software Packages in Australia

This report analyzes the accounting systems used by companies, focusing on the National Bank of Australia (NAB), and promotes the benefits of ERP-based solutions. It identifies drawbacks in NAB's current accounting system and discusses the advantages of implementing ERP software like MYOB, Xero, and Saasu. The report covers the organizational structure of NAB, issues related to its accounting operations, and potential ERP acquisitions. It also addresses problems and fraud, offering countermeasures. Furthermore, the report examines the Australian accounting software market, highlighting market size, key players, and limitations of traditional systems. Recommendations are provided for NAB to improve its accounting processes by adopting suitable ERP solutions. The analysis includes a comparison of MYOB and Xero, focusing on lifetime value (LTV) calculations and churn rates. The report also details the features of different software packages, such as dashboard functionality, data exporting and importing, multi-user scope, bank feeds, customer management, and customizable features.

Accounting Software Packages in Australia

Executive Summary
The report is about highlighting the problems of the accounting systems that are used in different
companies along with promoting the different benefits and their uses for the ERP based
solutions. The company chosen for this report is NAB (National Bank Australia), where the
report is about handling the current drawback of accounting system in the Bank which is then
following a complete discussion for the benefits of ERP. The solutions are like MYOB, Xero,
and Saasu that works for their better benefits and the other marketing shares which then hold
solutions for NAB.

Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Part A...............................................................................................................................................4
Organisational Structure of NAB................................................................................................4
Issues related to operations in Accounting System.....................................................................4
Acquisitions of ERP....................................................................................................................5
Flowchart.....................................................................................................................................6
Problems and Frauds and its counter...........................................................................................6
Part B...............................................................................................................................................7
Accounting Software Packages in Australia................................................................................7
Market size of Accounting softwares..........................................................................................8
Leaders in Accounting software..................................................................................................8
Limitations of Traditional Accounting Systems........................................................................10
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................11

Introduction
The accounting software generally refers to the different applications or software that helps in
properly recording about accounting data. It is related to the organisation for software record
transaction for a particular organisation which is based on a daily standard. This requires
recording the payment transaction, receive the records and then also show the generalised ledger
for different accounts. A complete show of the trial balance is also effective with acting on the
information framework when it is related to the accounting contexts. The accounting software is
generally seen to be divided into branded one which is for the software company and other is
prepared generally by the organisation for using the software, effectively and personally.
Part A
Organisational Structure of NAB
According to the National Bank of Australia, it details about providing the services of banking in
Australia. The organisation NBA also works with 5 million customers in Australia where NMA
also works different branches of bank, with giving services of web banking and ATM service for
the customers. The organisation is working on different brands of banking with ATM service set
for the customers in different parts of Australia. Some of the brands are UBank and Advantage.
It helps in providing a better kind of commercial bank for the people to do business with using
the traditional system in accounting as well (Carmona et al., 2016). This is found to be cost
effective and it does not also clearly give the idea about the clear view and the exact amount. The
system for the paperwork is not well with major loss of data.
Issues related to operations in Accounting System
There are accounting system of NAB which are related to error in different times of the system
where transactions are mainly when bank is making use of the different ways for accounting.
This is set through accounting standards and other tasks which are based on creating errors in
accounting and then further balancing it (National Australia Bank, 2017). It is seen that
sometimes certain wrong entry leads to the issues mainly in the way of accounting. The next
issue is also about time mainly when the old techniques are about working by hand and it takes a
longer time, comparatively for doing a particular work. It then takes a complete day for
employees to conduct the whole work and focus on system of NAB. According to the analysis,

there are customers who are found to be working on accounting and other figure balances that
directly leads to the major loss of the bank. Hence, the customers need to wait for the entire day
to work on their personal transactions.
Acquisitions of ERP
Th ERP based accounting error is by use for traditional accounting where management of NAB
needs to work on deciding about ERP based Accounting Software. It will also help in removing
different types of errors for accounting in the system. The management needs to also decide for
applying Xero accounting software that is an ERP based software. Xero works with development
in New Zealand which is a cloud-based software that comes under SaaS model of cloud service
to manage the different subscriptions. The software needs help on how the organisation works
for advancement and then predict the figures of accounting in a particular and exact manner.
With this, the data that is related to the customer can then be easily stored in the online hard
drive or local hard drive (Costa et al., 2016). There are primarily very less chance of loss in the
data. ERP helps in integrated management of the core business with real time and mediated
software processes. There are integrated applications for storing, collecting, managing and
interpreting the day from business activities. It provides the integrated and proper view of
business processes with maintaining database management system. ERP productivity capacity is
set through orders, purchase, and payroll where applications are then determined for sharing data
on different applications (Hossack, 2015). The IT investments have become the largest category
of expenditure with varied organisational systems that work on facilitating error-free transactions
and production. The setup is through developing ERP which differs from traditional
development and work on different computer hardware or network configurations. ERP system
works on automating back office functions with customer relationship management to deal with
customers or e-business systems like e-commerce or e-government to handle simplified
communication in external parties. The process of ERP includes the processing capacities that
enable collaborative initiatives along with including decision making, standardisation and
transparency process (Mas et al., 2014).

Flowchart
Figure 1: flowchart of workflow in bank
Sources: (ProcessOn, 2017)
The flow of work is determined on a monthly basis where the software also gives a complete
feature for the new customer to enter in the bank and work over the related processes with new
entry for the customer. There are procedures which are maintained by system software like Xero
with giving benefits to the customer, related to the service for banking. The sign-up process
includes the new client with proper explanation of data entry procedures which works for the
client account information (Zahra et al, 2016). The procedure is about monthly accounting
services where additional data, email, reviews are important for the proper evaluation and
revisions. The additional services are related to payroll, taxes and controller which are important
for calculating the different values.
Problems and Frauds and its counter
There are problems which takes place when Xero is used for the web-based functioning. It
requires a proper connection of network for running along with working on proper needs of web
browser to work (Eden et al., 2014). The software does not handle the full administrator rights
for the users and so the level of privacy for the system is found to be lower as well. There are

connections which are linked of the software for failure and then it takes a long time for
recovery.
The solution is determined through removal of problems when the user is working on the file and
the file destination has to be on the system of local drive. Here, the user can work on offline
mode without any internet connection. Hence, to maintain the privacy of the software database,
one needs to link the local hard drive of the system with proper updates of data and then handling
the data deletion as well (Chofreh et al., 2017). It is mainly to work on as per the choice so that
the user can make a good use of network connection for using a connectivity in system.
Part B
Accounting Software Packages in Australia
The accounting software package in Australia has been MYOB, Xero and Saasu which are
effective for bookkeeping purpose and programming solutions through cost effective methods
for small-medium organisations. They generally are seen to be handling the different modules of
sales and purchase, with accounting modules and inventory. There are certain intense and simple
to use business programming modules that are relevant for handling the deals and buys and then
to keep a proper track of payables, GST as well (Tarhini et al., 2015). The options are to email
the quotes and other solicitations with effective stock administration framework. The Accounting
Software are effective to record information along with working on functional modules like
accounts payable or receivable. They are based on accessing it at any time with any device that is
Internet enabled (Seethamraju. 2015). The implementation is determined through personal
accounting with target towards home users to support accounts payable type accounting
transactions and managing the budget as well. The market needs to determine applications with
long implementation period that offers the significant integration, customisation and
configuration for reassembling the accounting system. With growing technology, the software
vendors have also been able to work on improving the advancement of software at lower prices
(Parhizkar & Comuzzi, 2016). This helps the companies to work on multiple locations as they tend
to grow in size. The advent of faster computers and internet connections have been able to help
in creating software accounting with recurring charges instead of any larger upfront license free.
Here, the rate of adoption for business model increases steadily to point with forcing them to
come with online versions (Alomari et al., 2018).

Market size of Accounting softwares
Considering the MYOB Essentials, there is a need to work on security factor with more income
per unit that is set in contrast with Xero. There are higher stirring rates and with higher edges,
MYOB LTV is seen to be higher as well. Xero is expected to rise with time.
Figure 2:MYOB vs. Xero LTV calculation
Source: (Evans & Partners, 2015)
Thereby, lessening the client mixture is also important for the cloud as clients have a higher
lifetime esteem which is then contrasted with the advertisements on desktop. As indicated, the
MYOB reports are for yearly churning over cloud client base which is approximately 16.8% with
Xero working agitated between 12-13%.
Leaders in Accounting software
Considering the different features, the different software is effective under certain circumstances:
a. Dashboard; It indicates about the outlining of the money related positioning which is
possible in SaaSu, MYOB and Xero. They are effective for observing different bank
parties as well as unpaid deals or bills. SaaSu has been effective for accounting reports.
There are options of customisation except in MYOB as there is a possible modification of
business target sum.
b. Data Exporting and Import: It include the details of contact, the outlining of record and
solicitation or charges which are important (Altamony et al., 2016). With this, there are
certain bank explanations and manual diaries where MYOB focus on importing different
articulation of bank, contacts and things that are important for exchange in business.

c. The multi-user scope is determined through how one client is able to work on product at a
particular time. With this, there are bundles that needs to be considered at an endless
client level.
d. Bank feeds: They are important for information that is bolstered in the bundle OR the
capacity is to physically determine about import bank explanation. This will help in
cherishing bank nourishment that is important for Saasu, MYOB and Xero. The simple
conciliation and quick coding is set through natural and proper instinctive coordination
with approaching towards the sustained information of bank. The interface specification
looks for Xero that focus on Partner and Yodlee where Partner focus on paper
applications and Yodlee is for associating from inside the interface.
e. Customers: There is a need to send solicitations to clients, along with formation of
estimates and orders. Xero and MYOB do not offer a complete capacity of deals to
arrange yet offer a proper approach to raise cites (Ha et al., 2014).
f. Features: They are customised with solicitations and change in notes, where suppliers
generally make payable solicitations from the bundle. Here, purchasing orders are
determined through MYOB which does not offer any type of buying orders. Hence, there
are certain expenditure assertions where Xero tends to make a proper show in regard to
taking care of certain costs than Saasu.
g. GST & BAS: The capacity is about handling advancement of reports to work with action
proclamations. Saasu tends to work on detailed report assessment which leads to
enhancement if there is a GST imposing exemptions and then revealing elements as well.
Multi-Currency is about offering the operations where it is not accessed in different
arrangements. Hence, for this, reports offer a complete collection of details with bolstering
formation of certain taxable payments which are for organisations in building and development
industry. The consideration is also about appending the records to report and other exchanges.
The focus is on offering global exploration utility where Saasu offers the hunt work which is
known as Jump. Xero then offers to seek all important factors till there is a bookkeeping zone.
The budget is about offering a planning usefulness which is not available in MYOB (Tian & Xu,
2015). The point of sale supports operations with bundles utilising the programming that is
associated through by means of API. The capacity is to transfer the client and provider contract
data to the bundle. The time and job tracking are not possible in MYOB and so Saasu utilise

labelling for this component where Xero is effective for tracking. The mobile application iOS
and Android is functional for all this software (Ha et al., 2014).
Limitations of Traditional Accounting Systems
Considering the conventional and the traditional system of accounting framework, there is a need
to work on incorrect data costs as well. It will help in prompts of wrong choice that comes
mainly from the top administration. They lead to controlled tenacities and then set a cost for
sending different citations. Hence, the re-distribution takes place which does not mirror any
assets that are generally found to be devouring the final results. Thereby:
a. Overhead rates for recuperation with machine hour rate and work hour rate requires to
work on utilised ingestion for different aberrant expenses, i.e. for overhead.
b. The aberrant expenses are then designated through relocation at a particular item level
with waking up through item assembly as well.
c. There is a trouble in the accumulation or handling arrangement or portion of different
overheads to different items.
d. The costs are then settled which is managed with variables that are found to be complete
far-fetched (VORONKOVA et al., 2017).
e. The innovation is set through creating business world with work that is through
computerisation and automation process as well.
Recommendations
The recommendation is about how ERP framework is able to work on helping different
associations with variable dimensions. This is through working on reconciliation of information
that is set through joint venture format. The guarantee is to work prominently over permeability
in different business aspects and day-to-day operations for matching with the choice level. The
use of ERP solutions like Xero is effective to oversee completely all the operations which are
found to be more than one of the office areas. There is a diminishing cost and the aspects of the
assets are wasteful. Hence, the upgradation of profitability and customer loyalty helps in
matching to adaptability and control. It will also lead to enhancing correspondence and joint
efforts in between the different ranges for business with increased procedures for better control.

Conclusion
With the upcoming time, the traditional accounting is gone, and, in this era, there are
technological advancements which work on using ERP based Accounting Software Systems.
They are effective for using accounting software like Xero, MYOB or Saasu which will be
helpful for NAB to overcome the present time drawbacks as well.
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