Analysis of Accounting Software for Bunnings Warehouse - Report

This report provides a comprehensive analysis of accounting software, specifically focusing on Bunnings Warehouse and its use of MyOB AccountRight. The report begins with an introduction outlining the importance of accounting software in modern business operations, particularly for SMEs. It then details the organizational structure of Bunnings Warehouse and discusses different system acquisition methods, including commercial, custom, and enterprise resource planning (ERP) software, along with types of accounting software like spreadsheets, commercial software, custom software, and enterprise accounting software. The report includes a system flowchart analysis, identifying potential problems within Bunnings Warehouse's sales process and suggesting control measures. The second part of the report delves into the benefits of accounting software for financial management, highlighting MyOB AccountRight's role within Bunnings Warehouse. It also identifies market leaders like Xero, and analyzes the challenges and communication gaps that are currently faced by the company. The report concludes with recommendations for improving the utilization of accounting software and enhancing Bunnings Warehouse's financial operations and competitive advantage.

Literature Review

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1........................................................................................................................................1
PART 2........................................................................................................................................5
Market Size of MyOB.................................................................................................................6
Identify the leaders in the market and what gives them the competitive advantage...................7
Identify the current challenges and communication gap that is been faced by the company or
the users of accounting software's and provide better recommendation or suggestion..............7
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
With the advancement of technology and its effective incorporation in almost all the
business operations will lay a very significant and crucial impact on the operational capacity of a
business organisation. An accounting software is used to manage all the financial statements of
the company that will help in the better growth and development of a business organisation.
Majorly it is a real time based and give out the details and information on the basis of
information or data that is been fed into it (Dhar, 2018). It is utilized by SME's to save cost of
establishing the other department for it. For this report, Bunnings Warehouse (BW) is been taken
as the organisation of context. It is an Australian firm that works in household hardware
manufacturing and storing firm. The report will lay emphasis on the organisational structures and
their problems in a very effective way. The acquisition method and system flow chart is been
presented. The problem control methods are been presented and the factors affecting adoption of
accounting software in regard with market size is been discussed in respect to competitive
advantage. Also, the current technological gaps are been taken in consideration with
recommendations and suggestions (Otley, 2016).
PART 1
The current organisation structure of Bunnings warehouse is as follows :-
At the top CEO, MD are there. Below them General managers of all departments exits. Then,
regional managers or head of each area exits in middle level. After that supervisor is there. At
last employee and labour are there.
1

2

Bunnings warehouse is medium level organisation which is having many departments in
it. These are as follows :-
Top level management – It consists of CEO, COO, managing director that are responsible for
formulating goals and objectives. They decide Bunnings warehouse mission and vision. Besides
this, they monitor organisation performance by analysing financial reports. They also play an
important part in communicating with stakeholders to identify business performance
(Wickramasinghe, Cooray and Dissanayake, 2017).
Middle level- It contains managers of all departments that are responsible for developing
strategies on how goals will be achieved. Their role is also to evaluate employee performance.
Besides this, they act as mediator between top and lower level management. They have major
task to assign roles and responsibility to supervisor.
Supervisor- They are responsible for managing and controlling daily operations. They are in
direct contact with employee so they decide what task will be done by whom and when.
Supervisors role is to achieve short term goals and objectives set by managers.
Lower level – They lie at last in the organisational structure. They perform activities and task to
achieve business goals and objectives. Their role is to do what supervisors have told them. They
collect data and information from the market regrading change in taste and preference of
customers.
Three types of system acquisition method
Commercial software- These softwares are generally used by small and medium size
businesses. It is because it is designed for specific purpose and is mostly used for commercial
purpose. It designs charts and graphs by analysing data and information that helps business to
evaluate its financial reports and statements. It also helps in customising functions according to
specific business needs.
Custom software- These softwares are designed for solving a particular problem. It is mostly
used software in the market by business. It is used by small enterprises to record its transactions.
It lacks certain things such as modern tools and equipments (Ha, Manh and Van Anh, 2017).
Enterprise resource planning – It is the most common software that comprises different
functions. It provides an effective structure and process to manage overall business activities and
3

functions. The main feature of using ERP is identification of resources and its allocation in
different department according to their goals.
Types of accounting software's :-
Spreadsheets- It is very old form of accounting method that uses programs such as Microsoft
Excel, google sheets, etc. for recording transactions. By this only profits and loss is calculated on
daily basis. It is generally used for recording sale and daily expenses (Brandas, Megan and
Didraga, 2015.).
Commercial software- These software are generally used by small and medium size
businesses. It is because it is designed for specific purpose and is mostly used for commercial
purpose. Usually, it designs charts and graphs by analysing data and information that helps
business to evaluate its financial reports and statements. By using this it becomes easy for
business to create and effective financial report. It also helps in customising functions according
to specific business needs.
Custom software- These softwares are designed for solving a particular problem. It is mostly
used software in the market by business. It is used by small enterprises to record its transactions.
It lacks certain things such as modern tools and equipments that makes it lethargic for firms to
use it (Messner, 2016).
Enterprise accounting software –It is the most common software that comprises different
functions. It provides an effective structure and process to manage overall business activities and
functions. From top to bottom it helps in planning of resources. This makes it easy for business
to manage its operations. The main feature of using ERP is identification of resources and its
allocation in different department according to their goals.
Bunnings warehouse can use ERP as accounting software that will help them to analyse
resources that are required. By this it will be easy for them to allocate resources in different
departments. Also, it will help in maintaining financial records and statements (Leon, 2015).
This flowchart consists of various steps in entire sales process. It can lead to many
problems. Having such a complex sales procedure will result in late delivery of goods and
sometimes create critical situation. For this control measures must be taken to make it flexible.
4

Flow chart developed can be made simple by removing some steps. It is because it
requires a lot of steps in recording a transaction. Also, it can lead to chances of having fraud.
First of all order is received and then processed. Once, done it is finalised. Afterwards it is sent
to sales department for delivery (Ueno and Scarbrough, 2016). So if changes are done in order it
will not be shown in system. Moreover, inventory check is not done here. So it can lead to
cancellation of order. This will also affect other customers orders. Thus, by maintaining
inventory check it will help in recording each product sales. This will make it easy for Bunnings
warehouse to recording transaction in effective way.
Due to complexity in its organisational structure, Bunnings warehouse can face certain
difficulties. This will affect his business operations and efficiency. The main problem it will face
is communication issue. This is because of poor network that exists. There is not proper
communication between manager and employees. So sometimes it can lead to misunderstanding
of goals and objectives. This affect manager in decision making. Taking inappropriate decision
will result in affecting firm efficiency and productivity (Ossimitz, Wieder and Chapman, 2016).
PART 2
An accounting software is the core finance management tool for an organisation. It helps
a business firm to manage all its transactions and handle the financial transactions. Thus, this
help in the effective management of financial resources and help the firm to gain a better
competitive advantage in the market. Besides this, it will also support the profit management of
the company and help in effective decision making processes. These are few of the major
benefits of a well implemented accounting management software.
Bunnings Warehouse uses MyOB AccountRight at its organisation. It is effectively
implemented in all levels of the organisation and helps in better handling of the business
transactions of the company in a much effective and better way (Wouters, M and et.al., 2017).
This has helped BW to improve its operational and financial efficiency and will help in the better
handling of the wide range of business operations to increase its efficiency. MyOB will help in
the effective handling of the functionality that will help in effective rise in the production
capacity of the company. It is an Australian firm that provides the accounting software and tools
services and help in keeping the financial stability. It is widely used in Australia, New Zealand,
and UK. It provides a wide range of software services that will help in the better management of
its financial business operations (Quinn, M. and et.al., 2018). It helps the company to record,
5

access, maintain and analyse the internal as well as the external audit of the cited warehouse
firm. Besides this, it also helps in classification, verification and interpretation of the financial
data that is been taken in consideration for the better management of monetary resources of BW.
It has a single and double entry system which enables the functioning of a finance department in
a company and help in getting a cost effective measures. Besides this, the MyOB system will
also help in maintaining the payrolls, received amounts, inventories etc. and increase the
operational efficiency of cited business entity (Cooper, Ezzamel and Qu, 2017).
Besides this, it helped BW to maintain the record and manage the available resources to
facilitate their effective utilization. Along with MyOB, the company can use the additional
management software like Sassu, sage one and other tool kits that will help in better handling of
high quality transactional data and information. It will help the firm to increase its efficiency and
maintain the quality of services that will help in improving the operational capacity of firm.
Besides this, it will also support the usage of effective measure to incorporate them to improve
efficiency of the business firm. It will help in reduction of company's operational and
maintenance cost and will reduce the functional complexity (Kelly, 2017).
Market Size of MyOB
MyOB AccountRight is the financial accounting software that is been used by the small
or medium scale organisations with limited functional capacity. This software will help in te
better management of the operational capacity of firm and will help in the significant rise in
effective functional calibre. It s an online as well as offline account management software that
helps the better handling of cash flow, billing, invoicing, maintaining payments, and keeping the
effective record of transaction process that will help in meeting the operational capacity of the
firm and handling a wide range of business operations. Besides this, it also helps in keeping the
effective check on sales and purchasing of goods and products by the firm as well, as the
customers. Due to its real time data generation and faster approach, it is a time saving measure
and help the business entity to grow and flourish in a very effective way. Besides this, it will also
help the business organisation to keep its financial data safe and secure to ensure the better
growth and development (Jones and Jones, 2016).
The MyOB AccountRight is having a good market position in the Austarlia as well as
other operating countries.
6

Identify the leaders in the market and what gives them the competitive advantage
One of the major market leader in the Accounting software is Xero which is also
Australia based firm. It has the major competitive advantage that it provides better data
encryption and information security to the individual user as well as the business organisational
firm. Besides this, it has the major advantage that the UI of this accounting software is very user
friendly and easy to use.
Identify the current challenges and communication gap that is been faced by the company or the
users of accounting software's and provide better recommendation or suggestion.
The number of factors that provides the competitive advantage to the firm is increasing
every day. With the rise of new entrants, the company's using the accounting software are facing
the stiff competition and problems in implementing and handling the business operation. The
users and the business organisations are facing the stiff problems that will lay a very deep and
significant impact on the overall operations of the company (Machado, M., 2016). Some major
challenges that are been faced by the users or companies using accounting software's are:
 Security issues: with the usage of the digital technology and the online operations, the
internet based accounting software have become more susceptible to the threats like
7
Illustration 1: Market share of MyOB Account Right
Source: Xero Blog, 2016

hacking, stealing of data or information mutilation. This is the serious concern that is
been faced by the individual users and the business organisations alike. The organisations
are required assimilating the better anti hacking measures.
 Making the system more user friendly: MyOB undoubtedly is one of the major factor
that is been taken in the consideration the effective measure that is been taken in the
better consideration by users and companies to manage their financial business
operations. But, as it is an accounting software, it requires high skills to understand its
functionality and usage. Thus, the company had to effectively look after the better
incorporation of the effective measure that will help in reducing the complexity of the
software for the organisation and its individual users.
Recommendations and suggestions:
Some effective manures can be taken in consideration by BW and MyOB AccountRightt
to improve the usage and quality of utilization of online accounting softwarte that will help in the
betetr growth and development of the organisation. Some major recommendatory measures that
can be taken in thought process are as follows:
 Companies can make software more user friendly and effective. They must make it
simple and flexible so that it can be used without any difficulty. Also, it will help
business to change it processes accordingly and maintaining smooth flow of operations.
 Firstly, training must be provided to employees for using the software. It will help in
getting a brief overview of how it works and what are its benefits. Also, employee will
know overall functioning of entire software (Cooper, Ezzamel and Qu, 2017).
 Second thing that can be done is removing third party from software. It will be beneficial
in protecting data and information. Also, having own infrastructure will help in making
software's more effective and user friendly.
 Companies should install strong security measures so that confidential data can be
protected. Along with this, they can have a separate infrastructure to have a back up of
data. It will enable business to use software with trust and reliability.
Software companies can make can improve its services. It will help in protecting data and
making software more secure and safe. Moreover, it will provide efficiency in using this and
8

making it more user friendly. Hence, by implementing them accounting software can be more
advanced and effective. It will be able to protect data by making software more secure.
Conclusion
From this report it is evaluated that accounting software helps an organisation to maintain
its accounts. It helps in creating reports and statements so that enterprise financial performance
can be analysed. In this report Bunnings warehouse uses MYOB accounting software. It is
beneficial for them to record daily transactions. It has provided efficiency to them in maintaining
accounts. Besides this, there are certain factors that can restrict organisation to use accounting
software are shown. It creates several challenges for them such as lack of security. For this
business must take effective measures to overcome this that is described in this report.
9

REFERENCES
Books and journals
Machado, M., 2016. Management accounting software and accounting practices: empirical study
on SME enterprises. WSEAS Transactions on Business and Economics. (1). pp.94-103.
Jones, D. and Jones, M., 2016. Using QuickBooks® Accounting Software to Improve Financial
and Production Records for Better Decision Making. In 2016 Annual Meeting, February
6-9, 2016, San Antonio, Texas (No. 229772). Southern Agricultural Economics
Association.
Kelly, M., 2017. Quickbooks Online: Best Accounting Software for Small Business.
Cooper, D.J., Ezzamel, M. and Qu, S.Q., 2017. Popularizing a management accounting idea:
The case of the balanced scorecard. Contemporary Accounting Research. 34(2). pp.991-
1025.
Quinn, M., Hiebl, M.R., Moores, K. and Craig, J.B., 2018. Future research on management
accounting and control in family firms: suggestions linked to architecture, governance,
entrepreneurship and stewardship. Journal of Management Control. 28(4). pp.529-546.
Wouters, M and et.al., 2017. T Course: Management Accounting 1 [T-WIWI-102800]. Module
Handbook Industrial Engineering and Management (B. Sc.).
Ossimitz, M., Wieder, B. and Chapman, P., 2016, May. Management Accounting Functionality
in SAP Solutions–Implications for Research and Practise. In International Conference on
Enterprise Systems, Accounting and Logistics (ICESAL) 2016.
Ueno, S. and Scarbrough, D.P., 2016. Japanese Management Accounting: An Overview of
Current Methods and Practices.
Leon, A., 2015. Software configuration management handbook. Artech House.
Messner, M., 2016. Does industry matter? How industry context shapes management accounting
practice. Management Accounting Research. 31. pp.103-111.
Brandas, C., Megan, O. and Didraga, O., 2015. Global perspectives on accounting information
systems: mobile and cloud approach. Procedia Economics and Finance. 20. pp.88-93.
Ha, D.B., Manh, D.G. and Van Anh, D., 2017. The System of Management Accounting
Information to Support Decision Making in Business. Accounting and Finance
Research. 7(1). pp.99.
10