BUS 707 - Improving Accounting Performance in Australian Hospitality

This literature review examines the improvement of accounting performance within the Australian hospitality industry. It explores relevant theories such as positive accounting theory, normative accounting theory, and modern accounting approaches, discussing their application in enhancing accounting practices. The review identifies gaps in the literature, including the importance of streamlining accounting processes, integrating cloud-based technologies, utilizing KPIs and variance analysis, and fostering inter-departmental communication. It also highlights the significance of continuous improvement in adapting to evolving accounting standards. The review emphasizes strategic decision-making and the consistency principle for better accounting practices in hotels, with a focus on computerized systems for efficiency and effectiveness.

BUS 707 Applied Business
Research

TABLE OF CONTENTS
SUMMARY.....................................................................................................................................3
Research Questions.....................................................................................................................3
Research Objectives....................................................................................................................3
Discussion of major theories.......................................................................................................3
Gaps in the Literature..................................................................................................................6
Discussion of theoretical bases in LR.........................................................................................7
REFERENCES..............................................................................................................................10

SUMMARY
Improving accounting performance in hospitality industry in Australia is the factors
which is very important to manage the transactions and books of the hotel. This research helps in
finding new ways and technologies which can be used for developing hospitality industry. With
the help of literature theories will explain how accounting performance can be improved.
Research Questions
 How to improve the accounting performance in the hospitality industry in Australia?
 What are the perspectives of hospitality students on accounting principles?
 Is computerized accounting better than manual accounting in the hospitality industry in
Australia?
Research Objectives
 To find out the causes of accountant’s problem in the Hospitality industry in Australia?
 To find out the result of accounting performance in the Hospitality industry in Australia?
 To find out the importance of accountant’s duty and responsibility in the hospitality
industry in Australia?
Discussion of major theories
According to Alfordy and Othman (2021) there are distinct types of the theories which
can be taken into the consideration by the business in the sector for the purpose of getting
improved level of performance. The one of the crucial theory that can be taken into the process
for the purpose of having modification in its accounting practices involves using positive
accounting theory. This is related with having use of the ability to understand the knowledge of
accounting so that suing reliable policies for the certain conditions can be exerted for
accomplishing the objective of improving performance. The main purpose behind this is to
analyze and evaluate current accounting practice so that seeking reliable action in accurate
manner can be done effectively in the particular industry as the environment of working keep on
changing.
In the contrast to this, Grinko and et.al., (2020) depicted that gnormative accounting
theory is related with having the explanation to justify the feasibility of accounting treatment that
is most in line with objectives. It deals with events in future which aids in gaining the significant

deal with the functioning of business by considering overall actions. This eliminates the usage of
past data that aid sin coordinating with the changing requirements of business. Focusing on this
approach can help in having relevant functioning which can provide the ability to achieve
information that decisions are made in theoretical principle. This allows the firm to gt the
appropriate insights to have the best option of predicting future financial sustainability of
company. It aids in cope up with having significant understanding to make strategic decisions.
In against to this Wiratama and Asri (2020) modern approach to accounting is the
theory that is helpful in gaining the information that the accounts are not debited and credited g
hence there is accounting equation is used to debit or credit an account, in addition to this, it is
related with having the proper classifications of accounts using the technology and accounting
software program to systematic financial tracking. This provides the assistance in achieving the
appropriate ability to get the reliable insights to having significant ability to make decision can
become possible. This is based on the fact and lays emphasis on factual study of political
phenomenon to arrive at scientific hand definite conclusion. For example- using this theory in
the accounting can provide help in achieving the better insights that can aid in using accounting
equation so that precise financial reporting can be done to obtain better information. This ensures
that errors & mistake from the accounting procedure can be eliminated to have smooth
functioning procedure in turn meeting goal of having better improved performance can become
possible.
According to Arad and et.al., (2019) in order to accomplish the purpose of gaining
appropriate capability in the business that can help in improving its accounting practices so that
significant functioning to get precise details for making strategic decision-making. This can be
easily met via using cost principle theory of accounting which is basically associated with having
the proper recording of the assets at the time of purchase so that reliable information for the
decision-making can be derived. For example- in the hospitality sector there can be use of the
cloud computing which can be helpful in having the proper compliance with the cost accounting
theory as h tend to reduce reliance on the paper work as proper recording can be done. This can
allow to improve the performance of accounting actions as helpful in giving precise help to meet
the goal of achieving strategic decision-making.
On the other side, Banerjee (2021) having the usage of consistency principle of the
accounting provides assistance in gaining the ability by the business which is tended to use the

appropriate policies for having recording, analyzing, etc data. This can permit getting ability to
firm to have continuous improvement via eliminating that where it is lacking as in case of non
application f theory the firm's attention get diverted in application the distinct method. For this
purpose using this particular method can help in achieving the greater efficiency in establishing
smooth flow of work practices via providing clarity and transparency in the overall proceeding.
This can help the organization in particular sector to get the significant information in turn
accomplishing the higher productiveness can become possible via eliminating complications and
confusion.
In against to this, Wang and et.al., (2022) depicted that there are various accounting
principles which are required to be emphasized in respect to get the higher knowledge in turn
accomplishing the objective of taking suitable course of action can become possible. This
includes matching, materialize, conservatism and monetary principles which all are concerned
with providing the guidance to accountant so that accomplishing the ability to conduct practices
in higher fair manner can become possible. These can permit to have higher understanding
dealing with the accounting actions in turn making proper capability to minimize interruptions &
continuous improve processes.
As per the views of Sterling (2021) computerized accounting system is an accounting
information that aids in getting processes that helps in gaining the reliable information by
customized reporting, multi functional, invoicing & billing, payroll, inventory management,
facility collaboration, etc These actions can be effectively done by having significant information
that provides ability to make the actions in greater manner. There are different kinds of the
objective that is helpful in accomplishing data in good manner so that attaining goal of making
the proper information to make the proceeding in effectual pattern.
On the other side, Staubus (2021) manual accounting is the procedure of conducting the
practices of accounting so that accomplishing the objective of having involvement of human
resource with these practices. This in the current era of accounting is avoided to get greater
information which is not helpful in meeting the appropriate framework so that achieving goal of
improved performance does not become possible. On the basis of this, it can be specified that
significant computerized accounting system should be taken into the consideration. This is
helpful in accomplishing the gaol of getting higher efficiency and effectiveness in the accounting
activities in the business.

Gaps in the Literature
According to the previous research the accounting performance can be improved with the
help of using methods like activity based costing. However, it can be said from the study of
Abou-El-Sood and Ghoniem, (2021) that streamlining of the accounting process is much more
efficient way in which the hotels can incorporate new services or add clients in their accounting
process with better efficiencies. With the help of this process the accounting performance will
improve as it will be able to create a list of tasks which are needed to be completed by the
organization for the management of the accounting performance. Streamlining of the accounting
process is known to be the way in which a plan or concept can be created for better analysation
of the resources (5 ways to improve efficiency at your accounting firm, 2022).
The previous research suggested that the organization would be able to improve its
accounting performance with the help of integration of computerized accounting system. Le and
Nguyen, (2019) argued that the accounting performance in hotels can be improved with the help
of cloud based technology. This is due to the support which it provides as an important metric for
any accountant to be able to improve the seamless experiences with the clients. In the hospitality
organization were the number of transactions are high even for effectively build computerized
system may face issues. With such technology there are also issues related to the damage and
failure which can lead to catastrophic results in the accounting practices. Cloud based technology
will boost the transparency towards the documents and their efficiency.
The previous research it was found that the management accounting is also the strategy
which is considered to be effective form of improving the accounting performance. This is
effective however management is a wide concept and certain areas of management accounting
proves to be more effective for the hotel accounting performance. Jovanović, Todorovic and
Medved, (2022) added that the utilization of monitoring methods such as KPI and Variance
analysis is considered to be very much more effective way in which accounting performance can
be improved and their interruptions can be diminished. This is also going to help the managers
understand and evaluate the performance of the resources. With the help of this accounting
stability and accuracy will be maintained and increased.
Other than this the previous research was unable to highlight how the good
communication is one of the essential factors responsible for the efficiency of the accounting
performance in the hotel. As per the study of Lee, (2021) inter departmental communication with

accounting department is very effective for improving the accounting accuracy and be able to
understand the practical aspect of the transactions. Ensuring the organizational communication
ca help the new workflow in the accounting department to be able to achieve and create shared
language across the entire business. It can be said that the continuous improvement process is
also a very effective way to improve the accounting performance of hospitality industry. In
Australia the changes in the accounting standards are very common due to which an organization
requires a continuous development mentality to be able to increase the efficiency of their
process.
Discussion of theoretical bases in LR
In the Literature Review it was found that the accounting performance can be improved
with the application of positive accounting theory. As this theory suggests that the explaining of
process which uses the accounting knowledge and understanding of the most suitable way of
dealing with future conditions (Madhani, 2021). In a way this theory suggests the hotels to be
able to use the cloud technologies and streamlining of accounting process in order to be more
efficient in the accounting process. According to this theory adaptation in accounting is very
effective for influencing the performance of the accounting practices.
The literature review was able to highlights how the strategic decision-making is a
concept which can be used effectively for enhancing accounting performance. Accounting this
concept the process of understanding the interactions of decisions and their impact is very
important. Hence, for better accounting understanding the process and its performance can help
with better accounting practices (Trabulsi, 2018). Therefore, utilization of metrics such as KPI
and Variance analysis will help the accounting of hotels be more strategical driven towards better
performance. It is a method which allows the organization to gain competitive advantages in
management of operations which are helpful for the hotels to notice.
The consistency principle of accounting which has been identified in the Literature
review is a factor which involves the accounting to be much more flexible and versatile in order
to avoid problems and issues. Hence, intercommunication between departments helps the
accounting department for efficiency in the results. Another theory that LR was able to identify
was normative accounting theory that supports the hospitality organization to bring innovative
practices in order to meet the unpredictable future events. This theory supports the use of

continuous development in the accounting practices for being able to enhance the performance of
the organization.

REFERENCES
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management in accounting education: the case of Egypt. Accounting Education, pp.1-33.
Alfordy, F. D. and Othman, R., 2021. Students’ Perceptions of Factors Contributing to
Performance in Accounting Principle Courses. International Journal of Higher Education.
10(5).
Arad, H. and et.al., 2019. Modernism, Post modernism and Financial Accounting
Theory. Journal of Management Accounting and Auditing Knowledge. 8(32). pp.1-16.
Banerjee, B., 2021. Cost accounting: Theory and practice. PHI Learning Pvt. Ltd..
Bloom, R., 2021. George Sorter's Influence on Accounting Thought. Accounting Historians
Journal. 48(2). pp.1-10.
Grinko, A., and et.al., 2020. Development of an adaptive accounting system on the basis of
quality improvement of information resources. Academy of accounting and financial
studies journal. 24(5). pp.1-7.
Jovanović, D., Todorovic, M. and Medved, I., 2022. Environmental management accounting
support to iso 14001 implementation in Serbia: a case study. Fresenius Environmental
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Le, T. and Nguyen, T., 2019. Practice environmental cost management accounting: The case of
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Lee, C. C., 2021. The Effect of Strategy Alliance Mechanism on the Operating Performance of
Accounting Firms. International Journal of Public Administration, pp.1-15.
Madhani, P. M., 2021. Lean Six Sigma in finance and accounting services for enhancing
business performance. International Journal of Service Science, Management, Engineering,
and Technology (IJSSMET). 12(6). pp.141-165.
Staubus, G.J., 2021. Economic Influences on the Development of Accounting in Firms. Garland
Science.
Sterling, R.R., 2021. The subject matters of accounting. In The Quest for a Science of
Accounting (pp. 615-647). Routledge.
Trabulsi, R. U., 2018. The Impact of Accounting Information Systems on Organizational
Performance: The Context of Saudi's SMEs. International Review of Management and
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Wang, J. and et.al., 2022. Sunk cost effects hinge on the neural recalibration of reference points
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