Analysis of Accounting Statements: Xero Software Implementation

This report examines the factors influencing the adoption of Xero accounting software by RPG Limited, focusing on its client, a "Family" of 17 inter-linked companies. The core problem was the incompatibility of different accounting systems, particularly the mismatch of trial balances between Quickbooks and XPA. The study investigates how the introduction of Xero, a cloud-based accounting software, addresses these issues and aligns with RPG Limited's accounting goals. The report reviews relevant literature and empirical studies to identify factors promoting cloud accounting adoption. The research question addresses the motivations behind RPG Limited's adoption of Xero, with a focus on reducing time spent matching data across different systems. The methodology involves a post-positivism research framework using a multiple case design and semi-structured interviews to explore the adoption of Xero cloud accounting software and its impact.

Running Head: ACCOUNTING STATEMENT ANALYSIS 1
Accounting Statement Analysis
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ACCOUNTING STATEMENT ANALYSIS 2
Contents
Introduction................................................................................................................................3
Method.......................................................................................................................................5
Results........................................................................................................................................5
Discussion..................................................................................................................................5
Conclusions................................................................................................................................5
Recommendations......................................................................................................................5
References..................................................................................................................................5
Appendix....................................................................................................................................6

ACCOUNTING STATEMENT ANALYSIS 3
Introduction
In this report, the factors responsible for incorporation of Xero accounting software
into the accounting practice of RPG Limited’s Client that has 17 inter-linked companies
which is known as “Family” are being discussed. RPG Limited is an organization that is
mainly focused on providing the industry-specific assurance of the highest quality, taxation,
accounting, and the consulting services related to business to organizations all across the
upper North Island. It is known that the accounting practices of the organization will be
composed of professional accountants who will be providing professional services related to
financial and accounting works like tax, audit, consulting of management and recommended
business. But the problem here which RPG Limited faced is that the compatibility issue. As
mentioned above family uses different accounting software and different accounting system
which known as XPA. The problem Family faced is the mismatch of Trail Balances of two
different accounting system i,e Quick-books and XPA. Ans in order to correct these issues
lots of time is spent just to match with the XPA accounting system. So for RPG Limited
thought by the introduction of the Xero accounting software into their cloud accounting
would be beneficial and how this digital innovation would be helping them in achieving their
accounting goals and the factors responsible all across the various firms will be put forth. The
term cloud accounting can be defined as the accounting that is cloud-based and the software
for business for RPG limited. The development of this software in the firm has been initiated
by Xero Ltd, which is the vendor from New Zealand that will be offered exclusively on the
cloud system and it will also help the firm in targeting the largest segments of the business.
The literature review would give the idea of investigation that has been carried out on
the relevant theories that are pertaining to the adoption of this software. The study that is
conducted by Brandas, Megan & Didraga has been used in identifying the factors that are

ACCOUNTING STATEMENT ANALYSIS 4
responsible for promoting the firm in adopting this cloud accounting software (Brandas,
Megan & Didraga, 2015). The model and the research methods that are adopted by Dimitriu
& Matei, has been used in this study as it has provided the support in generalizing this study
(Dimitriu & Matei, 2014). It can be noticed that this study is aligned more closely with the
current study because of the fact that it has been conducted in the context of New Zealand
and also the technology that has been examined is having the similarities with cloud
computing.
The review of the experimental studies has been carried out about cloud computing
for examining the methods used along with the key findings. However, the empirical
evidence has been provided from these studies towards the factors that are responsible for
encouraging the adoption of cloud accounting Xero software by the firm (Păcurari & Nechita,
2013). On the basis of the literature review and the relevant empirical studies, this report also
gives the idea of the gaps that are identified within the body of the literature that has been
reviewed and also it points out the research question that this particular research is willing to
answer. Apart from this, the scope of the study and the parameters are defined and also the
model that is used is specified for guiding the direction of the research.
The research question that will be addressed in this project is; what are the factors that
have motivated the RPG Limited in adopting the Xero cloud accounting software solution in
order to reduce the time spent in matching Family’s Quick-books and Trans-logic System to
XPA for all inter-companies. Based on this question the methods that are used in carrying out
research are highlighted along with which the justification is provided for the method chosen.
According to the view of Zhang & Gu, a typical research design is known to consist of three
coherent and consistent components such as the methods, methodology, and research
framework (Zhang & Gu, 2013). Hence, in this study, the research framework that is adopted
is the post positivism which indicates the domain of the critical realism. In the methodology,

ACCOUNTING STATEMENT ANALYSIS 5
both quantitative and qualitative approaches have been made conventionally. Overall, this
study has been carried out by making use of multiple case designs and the interviews that are
semi-structured have been used as the primary method for the collection of data. As a result,
an investigative perspective role of cloud accounting Xero software solution and factors
responsible for its adoption in the firm is provided by this study.
Method
Results
Discussion
Conclusions
Recommendations
References
Brandas, C., Megan, O., & Didraga, O. (2015). Global perspectives on accounting
information systems: mobile and cloud approach. Procedia Economics and Finance,
20, 88-93.
Dimitriu, O., & Matei, M. (2014). A new paradigm for accounting through cloud computing.
Procedia Economics and Finance, 15, 840-846.

ACCOUNTING STATEMENT ANALYSIS 6
Păcurari, D., & Nechita, E. (2013). Some considerations on cloud accounting. Studies and
Scientific Researches: Economic Edition, 18, 193-198.
Zhang, L., & Gu, W. (2013). The simple analysis of impact on financial outsourcing because
of the rising of cloud accounting. Asian Journal of Business Management, 5(1), 140-
143.
Appendix