Melbourne Institute: Electronic Accounting Systems Research Report

This report provides a comprehensive overview of electronic accounting systems, examining their definition, different types, and the importance of these systems for businesses. It delves into various electronic accounting software options, including cloud-based solutions like Freshbooks and NetSuite, and enterprise accounting software. The report highlights the advantages of using such systems, such as time-saving and improved accuracy, while also addressing the problems faced by companies, including data theft, lack of management information, and technical issues. Furthermore, the report explores potential solutions to these problems, such as cloud storage and the implementation of multi-function ERP systems. The report is based on the research assignment for Melbourne Institute of Technology, MA619 Accounting Research, and it also includes a literature review, identified gaps, and references.

Various Decision Support
Available Through the
Electronic Accounting
System

Contents
INTRODUCTION.......................................................................................................................................3
LITERATURE REVIEW............................................................................................................................3
SUMMARY................................................................................................................................................8
IDENTIFIED GAPs....................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Electronic accounting system implies a digital system that offers a safe means of
collecting, storing and accessing data and recording autonomic functions and events, as provided
for in the Government-Tribal Gaming Act. Accounting is the mechanism for documenting
financial transactions related to a business. The reporting method involves the review,
examination and reporting of these payments to supervisory authorities and revenue collection
bodies. Accounting financial reports are a broad description of money transactions over a
reporting cycle, outlining the activities, employment status and cash flow of a business. To
complete this report selected topic electronic accounting system which is used by most of the
business in order to keep all the records in electronic manner. For this companies are using
several types of accounting software to calculate all big calculation and keep broad details of
clients. At this time they are facing various types of problems like keep information confidential
and many others. In this report consist of research issues, methods and current finding in regard
of topics. To present findings use 15 articles that present about the accounting methods and apply
in business.
LITERATURE REVIEW
1. What is electronic accounting system?
As per the Tara Schofield (2020), computerized accounting systems are software
programs installed on a business's device, database infrastructure or accessible directly over the
Network. In the field of accounting, e-accounting or online accounting is a new technology. It
ensures that all your purchases will be registered in your online registry or database, much like
your email or forum or web page. Yet login I’d and password are used to open or build accounts.
E-accounting is now in the evolving era and will definitely consumer use until 2010. There are
several businesses that have begun E-Accounting. As well as the administrator and the employer
feel confident in e-accounting since it is cheeping without any errors or glitches in software.
Electronic accounting systems require income and expense reports to be create, including profit
from rental or selling, wages, marketing expenditures, and cost of materials. They can also be
used for handling bank accounts, paying bills and planning schedules. Some accounting systems
also require tax documentation to be prepared, payroll handled and task expense to be controlled,
varying on the programme.
According to Cynthia Gaffney (2018), A computerized accounting system comprises of
software developed to monitor all the accounting activities of company with the aim of
generating financial performance for financial reports, annual financial reports, tax filing details
and other reporting specifications used to assess the activities of business, productivity and
competitiveness.

2. What are the different types of electronic accounting system?
As per the Steven Bragg (2020), accounting software is being used to gather data about a
company and to report on its financial viability. The software is essential to an organisation's
effective management. It is useful to consider the various kinds of accounting software until
settling on the piece of software to be using, and in what conditions each will be included. The
following article discloses the general accounting software categories.
According to Nestor Gilbert (2020), There are identified different types of electronic
accounting software which is used by the business for cloud accounting such as:
Fresh books: Accounting software fresh book is a completely integrated and quick customer
invoicing and time monitoring program used among over 5 million organizations worldwide. It is
suitable for graphic designers and smaller companies wanting to easily monitor their selling
process and maintain their procedures in accordance with rules and standards. The software is
well designed and suited for mobile use.
Netsuite: Cloud-based ERP and accounting software NetSuite ERP is mainly developed for small
to medium sized companies. The system simplifies later part-to-end back-office operations from
marketing to CRM to ecommerce business processes, featuring a full suite of stock, payroll, store
processing, supply chain management, and CRM. In addition, NetSuite ERP provides integrated
monitoring and data analysis applications that provide business-wide monetary transparency in
genuine-time.
Tipalti: Cloud-based accounts payable program Tipalti is a comprehensive system developed to
simplify the payment system for end to end transactions. The system simplifies worldwide
payable transfers, avoiding distributor’s large sums of yearly online bank equalization payments.
Some of its prominent features involve distributor control, tax estimates; cash transfer payments,
legislative enforcement control and production of invoices.
As per the Andra Picincu (2018), Selecting the right program for financial planning based on
the size and requirements of an organization. For example, with add-on components so can opt
for design bookkeeping alternatives, business-specific solutions, or apps. There are mentioned
some other electronic accounting software such as:
Enterprise accounting software: Enterprise accounting software is a form of business
applications for large corporations, corporations, and financial institutions. This has sophisticated
safety features and can perform complicated accounting functions, such as point of sale
processes, monitoring of client relationships and sophisticated reports. Thought about it as an all-
in-one program that can automate the activities that take up the next most resources.
Cloud accounting software: Most of the owners of the company are comfortable with Xero, Sage
50, Quickbooks, Freshbooks and other products for cloud accounts. These services are available

publicly, and are distributed in the database. They cater to entrepreneurs and small companies,
delivering versatility and cost-effectiveness.
3. Why electronic accounting systems are important for business?
As per the Andy Walton (2019), Accounting software is a category of software
programs which allow you to manage the money transfers of company. Such systems can vary
greatly in complexity, with certain systems designed for nothing more than basic accounting, and
others built to handle all the monetary happenings of big business. Including online software
allows companies effectively leverage the tools of their finance divisions, which can
decrease costly accounting errors.
By Chetan maini (2020), Earlier the accounting method was performed on a sheet of
paper. Preserving accounts took sufficient time individually and therefore expanded the capacity
for errors. By applying the principles of conventional approach it was not reasonable to hold
huge records. Bookkeeping is about taking care of the company's business activities. Forms an
important portion of the finance department are loans, rewards, expenditures etc. Apprentices are
educated on every accounting element. The app provides various advantages. If the correct way
is used, the participants will definitely learn a great deal from the instruction.
As per the Sadia (2018), Accounting software is close to the local business home. If take
a moment they'll know the value of database software in your company by themselves. Consider
of the ones in BBA who are businessmen and not big. But of necessity a businessman with a
small budget would not be able to recommend an authority for that. Bookkeeping Program then
becomes the godsend
Save time: Specifically when they just began their venture, time is by far the most critical
thing in company. It required a lot of precious time to personally perform the bookkeeping. At
the other side, the entire framework has been streamlined when using accounting software. This
streamlining allows time to spend in other industries.
Perfection in work: Measurement errors are very common. In the very same sense the
brain often does not function. The question is one minor error that can be catastrophic to
company in financial measurement. But in this phase optimization ensures consistency in the job,
because there is no possibility of making such an error.
According to Kenya (2019), the accounting program has now become a critical
requirement for every company nowadays. Company owners have begun to suspect that handling
the financing systematically does not allow them to produce the outcomes anticipated. In certain
situations, financial planning, which is meant to help corporations control their expenditures
quite successfully, is now one of the causes of financial loss.
4. Which types of problems are facing by companies by these systems?

According to Pranav kumar (2019), There are identified various problems that face by
the company due to use different electronic accounting system such as:
Theft of computer time: Data generated by someone individual can be effectively accomplished
by someone else, who might just say that the statistics was own and that is the original maker. It
is nothing on machines like initial duplicate and repeat version.
Theft of data: It is possible to copy information stored on a machine into floppy disks and to send
it to adversaries. With advanced communication channels accessible, organization executives can
submit one enterprise's private data to the next. Cybercriminals can link and steal information
from system.
As per the J. Carlton Collins (2018), some companies adopt widely regarded
accounting systems but instead struggle to fully enforce or run themselves. It also leads to
dissatisfaction among staff, discontent with administration and low rate of return. This article
outlines seven increasing reporting system development and organizational failures to help the
organization prevent such losses, and offers advice about how enterprises can stop itself from
performing them.
As per Bill gerber (2019), There are discussed various types of problems due to
implement accounting software system:
Lack of management information: Good accounting offers company leaders the clearest view of
how they work, what requires to be changed and how the potential is developing. Eventually, all
investment plans and KPIs are calculated towards the income statement, even with an extremely
clear image of current financial results, any preparation is rarely effective and will trigger
difficulties more probably.
Delayed accounts payable: When the business refuses to pay receipts on schedule, legacies can
be harmed, but the big risk is to receive late payment penalties, reduce financial health, lose
preferential prices or lose a manufacturer entirely. The more complicated the accounts payable,
the further critical it is that they are handled in a systematic way, paying particular attention to
financial statements and incorporating the data into the P&L process.
According to Harinder pal Singh (2019), There are discussed some disadvantage of
quick books accounting software such as:
Loss connection of data file: Although this is typically its most common issue, troubleshooting is
generally among many of the hardest. Many of the disadvantages of QuickBooks is the
possibility that the communication links may be quite fussy. When the channel is having some
kind of difficulty, also moment, it is likely to disappear for the link.
As per the Maduqne (2013), Accounting difficulties are very frequent in those who now
use database software that they assume can facilitate their accounting activities. Accounting

software which gives providers that different challenges are typically obsolete and not very user
friendly. Following are a few of the issues most organizations face and using accounting
software:
Lack of security: Applications of apps are concerned regarding their confidentiality, since they
are available by state actors. Although security systems are assumed to be capable of solving this
challenge, sometimes the firewall configuration on a machine can get screwed; when that occurs,
there was nothing they could do.
Weak reporting service: Many accounting software systems are helpless to support consumers
trying to even get the information from under operation. People are irritated with the assumption
that putting data into yet difficult to let them out afterwards is easy – it seems futile if they don't
help both directions. Just like with data transmission, certain financial software services do not
enable the retrieval or importation of information.
5. How to sort out electronic accounting system problems?
As per the Amanda Cameron (2016), There are defined various solutions in regard of
problems that face by the companies such as:
Storage in the cloud: A web-based reporting system lets save the maximum number of
documents in a safe location. The best reporting program lets you customize through project lists
and workflows. Also, document filtering with custom search filtering from a single platform can
greatly improve your organizational efficiency. The reporting program can easily and effectively
manage the majority of documents.
Consider a multi function ERP: An Enterprise Resource Planning (ERP) device, integrating
financial functionality with data analysis software, takes into consideration to another stage.
designing accounting, market analytics, supplier and client handling, and pricing software, all
integrate with many of the other "ordinary" reporting functionality to offer accountants more
trust – accompanied by automation – in forecasting their enterprise' future. In addition, if it takes
to modeling and instead planning for liquidity problems, ERPs are the nearest method that
resembles time machine that can find in finance currently.
As per the Nestor Gilbert (2020), Corporation reporting moves outside core reporting
and integrates many primary business practices that influence the method. Those consist
of money management, stock control, orders and buy, salaries and handling information
technology, and so on. They may claim they are tools for organizational management
development or ERP as these applications extend their applications to include the essential
aspects of operations management.

SUMMARY
According to this research it is getting that in present time electronic accounting systems
are using by every type of organizations. It helps to conduct all the data and collect all the
information on time. Along with it helps to maintain accounts of business. The benefits teach us
how they handle our significantly higher-time jobs and how might preserve all documents.
Invoices and payments are stored correctly and a key benefit is that they do not have any
mistakes in the process, as well as the software is very quick and accurate as well as the other big
good thing about having a computerized invoice system is the capability to manage analyses to
assess which customers have paid. Regular and regular management programs can aid in
organizations, especially planning client receipts. Having the accounting program has many
benefits. There have been a significant number of individual using the reporting tools to gain an
unfair advantage. The reach of electronic reporting has expanded day after day as prices have
gone up and the technology has slowly become user-friendly, and for those that do not
understand about accounting. Compared to the accounting, the operating systems arrive in
models such as physician, development and various forms of advisory services; they generally
make their configuration and usage much easier, with vocabulary.
IDENTIFIED GAPs
1. What is electronic accounting system?
2. What are the different types of electronic accounting system?
3. Why electronic accounting systems are important for business?
4. Which types of problems are facing by companies by these systems?
5. How to sort out electronic accounting system problems?
Qualitative analysis: Qualitative analyzes use subjective assessment depended on actual-
quantifiable knowledge, including experience in administration, market periods, procurement
power, and corporate governance. Qualitative analysis compares with quantitative analysis,
relying on the figures contained in documents and balance sheets. Moreover, the two methods
may also be used with each other to analyze a business's activities and determine its value as an
incentive for development.
Quantitative analysis: To order to analyze companies' actions and results, quantitative analysis is
the method of gathering and analyzing observable and provable data including sales, profitability
and salaries. Business owners and corporation leaders in the past depended heavily on their
expertise and judgment in decision taking. With either the data analytics age, nevertheless,
quantitative analysis is now seen as a stronger method to independent decision taking.
To carry out research for these questions apply qualitative analysis because all the
questions are based on theory. Accordingly conduct research and present all the research in
particular manner.

REFERENCES
Tara Schofield (2020). Definition of accounting system. [Online]. Available through:
<https://study.com/academy/lesson/what-is-a-computerized-accounting-system-types-advantages-
disadvantages.html>
Cynthia Gaffney (2018). Definition of accounting system. [Online]. Available through:
< https://bizfluent.com/facts-6793889-definition-computerized-accounting-system.html>
Steven Bragg (2020). Accounting software system types. [Online]. Available through:
<https://www.accountingtools.com/articles/types-of-accounting-software.html>
Nestor Gilbert (2020). Different types of accounting software. [Online]. Available through:
<https://financesonline.com/accounting-software-analysis-features-types-benefits-pricing/>
Andra Picincu (2018). Other accounting software. [Online]. Available through:
< https://bizfluent.com/list-5911787-types-accounting-packages.html>
Andy Walton (2019). Importance of accounting software. [Online]. Available through:
<https://smallbusiness.chron.com/importance-accounting-software-71524.html>
Chetan maini (2020). Importance for business. [Online]. Available through:
<https://www.selfgrowth.com/articles/why-is-e-accounting-important-for-business>
Kenya (2019), Benefits of accounting software. [Online]. Available through:
< https://www.hashmicro.com/blog/accounting-software-benefits/>
Sadia (2018). Importante in business. [Online]. Available through:
<https://wperp.com/28847/why-accounting-software-is-important-in-business/>
Pranav Kumar (2019). Problems in business.
<http://www.yourarticlelibrary.com/accounting/computerized-accounting/top-10-problems-in-
computerized-accounting-system/62783>
J. Carlton Collins (2018). Misuse of accounting system. [Online]. Available through:
<https://www.fm-magazine.com/issues/2018/oct/how-companies-misuse-accounting-systems.html>
Bill Gerber (2019). Drawbacks of accounting systems. [Online]. Available through:
<https://www.accountingdepartment.com/blog/five-biggest-problems-for-smbs-lacking-accounting-
processes>

Harinder Pal Singh (2019). face problems by business. [Online]. Available through:
<https://www.cogneesol.com/blog/5-common-quickbooks-accounting-software-problems-you-may-
face>
Madqune (2013). Major problem face by entity. [Online]. Available through:
<https://qneaccountingsoftware.wordpress.com/2013/09/13/problems-faced-by-companies-that-are-
using-accounting-software-for-their-businesses/>
Nestor Gilbert (2020). Solutions of accounting system problem. [Online]. Available through: <
https://financesonline.com/5-accounting-software-solutions-built-for-the-big-players/>
Amanda Cameron (2016). Solution for problems. [Online]. Available through:
<https://www.patriotsoftware.com/blog/accounting/cloud-accounting-software-startup-problems-
solved/>