Accounting Software: A Strategic Analysis for Nippy's Manufacturing

This report provides a strategic analysis of accounting software for Nippy's Manufacturing, a company specializing in orange juice production. The report begins by outlining the company's organizational structure and operational challenges, particularly the difficulties associated with using two complex and costly accounting software systems. A literature review explores the evolution of accounting software, from traditional methods to cloud-based solutions, highlighting the benefits of automation, integration, and accessibility. The report then examines control problems, system limitations, and market demands, focusing on the leading software providers like Xero and MYOB. It addresses potential problems such as price, usability issues, time constraints, and cyber security risks. The market condition section analyzes the competitive landscape in Australia, where Xero and MYOB are dominant. The report concludes with recommendations, including instructional sessions and implementing security layers, and suggests MYOB as a suitable solution. The report emphasizes the importance of cost-effectiveness and security in choosing the right accounting software for Nippy's.

Accounting
Software Strategic Information systems

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Table of Contents
Introduction.................................................................................................................................................2
Organization Structure.............................................................................................................................2
Operational Problems..............................................................................................................................2
Literature Review........................................................................................................................................2
System acquisition Method......................................................................................................................2
Control problems and system..................................................................................................................3
Systems................................................................................................................................................4
Problems possible in the system..................................................................................................................5
Market Condition........................................................................................................................................8
Recommendations.......................................................................................................................................8
Result........................................................................................................................................................10
References.................................................................................................................................................11

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Introduction
Organization Structure
The company we will talking about is Nippy’s manufacturing, who are specialized in orange
juices . It is founded in 1930, and still doing what it does best that is producing fresh juices for
Australian people. They have very horizontal organization structure in which all the managers
take the decision as per the situation and demand of their respective department.
Operational Problems
The company has been using two accounting software, which are both difficult to operate as well
as costly to maintain. The systems are not able to get the desired reports, there were always
calculation mismatch due to two accounting softwares.
Literature Review
System acquisition Method
Indeed, even 10 years back, the request and utilization of cloud based bookkeeping programming
was immaterial in Australia. Reliance on conventional method for bookkeeping was very high
among business firms. Manual bookkeeping passages with the utilization of pen and paper was a
typical situation in Australia amid the 80s. Be that as it may, presentation of a few bookkeeping
programming along with Excel spreadsheets had changed the arrangement of bookkeeping

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capacity in the nation amid 90s decade. Nonetheless, Brender and Markov (2013) specified that
the real constraint of predictable accounting programming is that the same can't be associated
with the web in addition to that, it is subject to establishment on the computer framework. The
cloud based programming is anything but difficult to utilize, web based and coordinated in
nature. These have added to the developing prominence of bookkeeping programming bundles in
the nation. In the perspective of Christauskas and Miseviciene ( 2012 ) , this cloud based
bookkeeping programming bundles has turned out to be more than a basic bookkeeping bundle
to a business administration apparatus. The primary test confronted by the business undertakings
amid the 2000's was absence of incorporation as the diverse components of bookkeeping
capacities were not ready to interface with each other.
There was absence of coordination among deals, buy and stock administration. Then again, with
the expanded complexities in directions, even non - bookkeeping disciplines felt the need to
develop past straightforward exceed expectations sheets. This prompted the production of
particular modules such as tax evaluation, consistence capacity, secretarial competence as well as
economics. Be that as it may, these capacities were required to be incorporated with the back
office facility. This was for the most part because of the issues confronted by established
bookkeepers in utilizing cloud based bookkeeping programming. Notwithstanding, circumstance
have changed in Australia at give the interest for cloud based bookkeeping programming getting
wide prominence among business firms in Australia.

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Control problems and system
Systems
The restrictions of the conventional bookkeeping framework are overwhelmed by the
bookkeeping software packages accessible in the market. The Xero, Intuit Quickbooks, Reckon,
Saasu, MYOB are some of the main names in such manner. Here, it is imperative to note that
due to immense market rivalry, the components as well as administrations platform offered by
the present bookkeeping programming are almost similar. In this context, Cleary and
Quinn(2016)mentioned that automation as well as integration of bookkeeping capacities are the
two important factors offered by accounting software’s. These two factors in addition increment
the aggressive edge of the organizations over the rivals. The most prominent elements of
bookkeeping programming bundles are simple invoicing, quick bank reconciliation, openness
through portable based applications, speedier stock administration, smart reports as well as
dashboards, incorporated finance, costs guaranteeing and online bill payment. In addition, these
bookkeeping programming likewise permit multi-cash exchanges, filling of GST returns,
producing buy orders as well as deals orders, making business intelligence dashboards along
with well settled resources bookkeeping. Here, it is essential to take note of that these accounting
programming bundles are generally cloud based programming which further allows multiple
access to bookkeeping data.
Market request:

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The interest for any item is dictated by the clients of the product in the market as in this case is
the bookkeeping softwares. In this specific situation, Marand et al. (2013) said that market
interest for cloud based bookkeeping programming has been expanded quickly in Australia
among various diverse organizations. The expanding interest for the cloud based bookkeeping
programming can be credited to the mechanization offices offered by such programming. Then
again, Öz demir and Elitaş (2015) expressed that cloud based bookkeeping packages not required
to be introduced on systems moreover they can be utilized from any type of gadget having web
association. These elements of cloud based bookkeeping programming are likewise adding to the
rising interest for the product in the market. There are expectation for organizations like Nippy’s
to choose a product bundle in light of claim size of operations, business nature and keeping
money prerequisites. Be that as it may, the prevalence of bookkeeping programming bundles is
by all accounts more if there should be an occurrence of little and medium scale associations
contrasted with huge associations. Extensive scale associations like Coles, Woolworths and
others like to perform bookkeeping capacities in the traditional route supported by cutting edge
innovations.
Problems possible in the system
Price
Execution of bookkeeping programming bundles is not all that simple. As specified by Pendley
(2015) , notwithstanding the cost of bookkeeping programming a firm is required to have least
norms of framework use as far as processor speed, RAM and hard drive memory. Production of
back - up information and specialized help in relation to the utilization of the product likewise
devours extra expenses. Besides, memberships or month to month rental for the vast majority of

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the product are principally in view of the inclusion of components along with number of clients
permitted by the product. This further expands the price of accounting programming bundles.
This frequently ends up noticeably trying for little scale firms to hold up under such cost of
bookkeeping bundles.
Trouble being used:
The issue with this type of bookkeeping programming is that these are not in view of conformist
framework as well as have possessed exactness. Staffs familiar with the customary bookkeeping
strategies shall almost certainly tackle disputes in utilizing the product. This expects firms like
Nippy’s to organize extra preparing office for the staffs to utilize the bookkeeping delicate
product. Indeed, odds of submitting mistakes are very high amid the underlying period of the
usage.
Time Boundation
At first, the preparing time for making solicitations as well as costs in the product would take
additional time when contrasted with essentially recording the same in an exceed expectations
sheet or a record. Be that as it may, the speed of bookkeeping runs up with the advance of time
when the staffs progresses toward becoming habituated to the utilization of bookkeeping
programming. In this unique situation, Marand et al. (2013) assumed that usage of bookkeeping
programming shall prompt transitory stoppage of business operations.

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Cost streamlining:
The cost related with the buying as well as utilization of software can be repaid by firms by
concentrating on cost diminution as well as price management. It is fitting for business firms
such as Nippy’s manufacturing to distinguish non - esteem including business exercises plus it
shall take out the same to lessen asset wastage.
Risk from cybercrimes:
A notable issue related with the cloud based bookkeeping programming is that the same depends
on web. This raises the peril of digital violations, which might lead to dire outcome. The ledger
of the business is likewise connected to cloud based bookkeeping programming which enables
the proprietor to access the account balance from anywhere. Be that as it may, this expands the
odds of cybercrimes such as identity theft, phishing using Emails, malware and stealing of
organization data . Privacy of business data may be in danger.

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Market Condition
At present in Australia, there are two major software companies that are market leaders in
bookkeeping or accounting softwares. The Xero and MYOB, these companies have advantage
over other in terms of product development and reliability factors.
These companies have been active in Australia from the past decade and they cover quite lot of
ground. Xero have engaged individual accountants, SMEs and start ups for its refresh content
and communication with its users. But the MYOB, with its unique blend of robustness have
quickly gain popularity among the accountants and companies. With MYOB user friendly
interface and dashboard reporting, the ground breaking competition started in the market. Both
the companies are day by day improving the product for the various advantages to be given the
users.
Recommendations
There ample products for Nippy’s but they have selected the vendor with the help of following
procedure:

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In the end, MYOB have been considered, after long examination of the companies need to go
away from two accounting systems. However, other systems are also very good but they have
their own limitations. The accompanying proposals have been created for better usage of cloud
based bookkeeping programming for Nippy’s manufacturing business purposes:
Instructional meetings:
This software is the perfect fit for the business to organize earlier instructional courses to make
such staffs outfit with specialized aptitudes to utilize cloud based bookkeeping programming.
Here, it is imperative to prepare staffs equally to sustain the particular input information into the
software in addition utilize its various section of the product.

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Establishment Security layer in the bookkeeping or accounting software:
It is prescribed for the businesses to purchase and actualize against cyber crimes or malware
intrusion in their system. To lessen the danger of cybercrimes because of online nature of
bookkeeping programming MYOD is the perfect fit for its encryption technique used. This could
make the whole bookkeeping framework more secured as well as free from the danger of loss of
privacy.
Result
This literature review has outlined the most notable advancement of bookkeeping programming
bundles in Nippy’s manufacturing, one of the leading Food & beverages company in Australia.
It is discovered that the utilization of cloud based bookkeeping programming has for the most
part expanded among the most prominent business endeavors in Australia. The review also
uncovered that continuous stock administration, invoice management, account exchanges via
web based interface as well as incorporation of finance are a portion of the main components of
cloud based bookkeeping programming. Be that as it may, it is recommended for the all
organizations to cloud based bookkeeping or accounting solution which has advance features of
security as well as reliable costing methods.

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References
Brender, N. and Markov, I., 2013. Risk perception and ri sk management in cloud
computing: Results from a case study of Swiss companies. International journal of
information management , 33 (5), pp.726 - 733.
Christauskas, C. and Miseviciene, R., 2012. Cloud – computing based accounting for small
to medium sized business. Engineering Economics , 23 (1), pp.14 - 21.
Cleary, P. and Quinn, M., 2016. Intellectual capital and business performance: An
exploratory study of the impact of cloud - based accounting and finance infrastructure. Journal
of Intellectual Capital , 17 (2) , pp.255 - 278.
Marand, A.A., Marand, E.A. and Dashtebayaz, M.L., 2013. Investigating the effects of
cloud computing on accounting and its comparison with traditional models.
Advances in Environmental Biology , 7 (10 S1), pp.2836 - 2847.
Özdemir, S. and Elitaş, C., 2015. The Risks of Cloud Computing in Accounting Field and
the Solution Offers: The Case of Turkey.
Pendley, J.A., 2015. Information Security and Cloud ‐ Based Computing: Tools for the
Corporate Treasurer. Journal of Corporate Accounting & Finance , 26 (3), pp.27 - 30.