Technological Innovation's Impact on Accounting & Finance in Australia

This research report investigates the impact of technological innovation on the accounting and finance operations of manufacturing firms in Australia. It begins by introducing the increasing role of information technologies like AI and online accounting software in simplifying accounting tasks and improving accuracy. The research explores the importance and changes brought about by these technologies, discussing various types used by the manufacturing sector and their associated benefits and drawbacks. A qualitative research methodology is employed, utilizing secondary data from credible research articles and thematic analysis. The report addresses the complexity of implementing new technologies within Australian manufacturing firms and their need to improve operational efficiency through better allocation of financial resources. It further delves into the research problem of evaluating the impact of accounting system innovation, posing a research question to examine this impact. Through a literature review, the report evaluates the importance and changes caused by technological innovation, discusses various types of innovation used, and assesses the potential benefits and drawbacks. The research design and methodology section details the research approach, data types, collection methods, sampling techniques, and ethical considerations.

‘Impact of technological innovation on accounting and finance operations of
manufacturing firms in Australia’

Part 1: Title of the research
‘Impact of technological innovation on accounting and finance operations of manufacturing
firms in Australia’

Part 2: Abstract
Part 2.1: Research Introduction
The implementation of information technologies and systems are causing new
developments in the area of accounting and finance operations. The evolution of latest
technologies such as artificial intelligence and other online accounting software are proving to be
largely useful for the accountants to simplify their daily task roles. The tedious roles of
accountants is undergoing simplification and also there is improvement in accuracy of the
financial and accounting processes of the businesses, In this context, this research has been
undertaken for examining the influence of technological innovation on causing changes within
accounting and financing activities in particular reference to manufacturing firms in Australia.
Part 2.2: Matter Investigated
The research seeks to explore the importance and changes that have been brought by the
use of information technologies and systems on the accounting processes of the manufacturing
firms. The different type of such technologies that can be used by the manufacturing sector to
enhance the efficiency of their accounting processes will also be discussed within the research.
This research will also explore the benefits and problems faced while using the modern day
information technology driven accounting system within the manufacturing companies.
Accountants at manufacturing companies’ faces issues like server error, bugs and many other
issues that renders system unavailable to them. On the other hand, there are many benefits
received by the accountant such as hassle free inventory management, reconciliation of accounts
and many other benefits that make the accounting easier and fast.
Part 2.3: Research design & methodology
The research will involve the use of qualitative research methodology that involves
analyzing and exploring relevant themes developed from the secondary data collected from the
selected credible research articles. It will involve the use of descriptive research design for
addressing the research aims and objectives. The thematic analysis will be used to examine the
secondary data collected with the use of sample of 10 to 15 academic research articles.

Contents
Part 1: Title of the research..............................................................................................................2
Part 2: Abstract................................................................................................................................3
Part 2.1: Research Introduction....................................................................................................3
Part 2.2: Matter Investigated........................................................................................................3
Part 2.3: Research design & methodology...................................................................................3
Part 3: Introduction to the Research................................................................................................5
Part 3.1: Topic of the Research....................................................................................................5
Part 3.2: Client Organization.......................................................................................................5
Part 3.3: Problem Addressed by the Research.............................................................................5
Part 3.4: Structure of the Proposal...............................................................................................5
Part 4: Research problems and research objectives.........................................................................6
Part 4.1: Research Problem..........................................................................................................6
Part 4.2: Research Question and Research Objectives................................................................6
Part 5: Literature Review.................................................................................................................7
Part 5.1: Evaluation of the Importance & Changes caused by the technological innovation on
the Accounting and Financing Operations of Manufacturing Firms...........................................7
Part 5.2: Types of Technological innovation used in the Field of Accounting and Finance by
Manufacturing Firms....................................................................................................................8
Part 5.3: Evaluation of the Potential Benefits and Drawbacks Associated with the use of
Accounting Information Technologies......................................................................................10
Part 6: Research Design and Methodology...................................................................................10
Part 6.1: Research Design/Type.................................................................................................10
Part 6.2: Research Approach......................................................................................................11
Part 6.3: Data type used in the research.....................................................................................11

Part 6.4: Data collection method................................................................................................12
Part 6.5: Sampling method, size and technique.........................................................................12
Part 6.6: Data analysis................................................................................................................13
Part 6.7: Ethical Consideration..................................................................................................13
Part 7: References..........................................................................................................................14
Part 8: Appendix............................................................................................................................17

Part 3: Introduction to the Research
Part 3.1: Topic of the Research
This research intends to examine and explore the research topic of analyzing the impact
of implementing information technology systems and processes on accounting and finance
operations of manufacturing firms in Australia.
Part 3.2: Client Organization
The research has not been carried on any specific organization but has been carried out in
the context overall manufacturing sector in reference to Australia
Part 3.3: Problem Addressed by the Research
There exists large complexity within the manufacturing firms in Australia for
implementing the use of new software and technologies that can enable them to improve their
operational efficiency. The supply chain activities of the manufactuirng firms are assocaited
with recording and interpretaing large amount of financial data such as tracking of inventory,
creating invoices, determining price of products, centralising the various accounting data for the
purpose of developing financial reports. There is large need for manaufacturing firms to improve
their oepratioanl effeiciency by better aloocation of financial resources to ensure that various
operatinal processes are carried out without any constraint. Therefore, the use of IT systems that
helps in better tracking cost of inventory, expenses and revenue in a regular manner by gaining
access to real time data would enable these firms to better meet their strategic goals and priorties.
(Perry and Newmark, 2011).
Part 3.4: Structure of the Proposal
This research proposal is developed for providing a brief regarding the way in which
actual research will be conducted regarding the selected research topic. This proposal has
primarily addressed the research aims and objectives which help in providing the nature of the
research. This is followed by conducting a comprehensive literature review that explores and
analyses the key findings provided by the previous authors in relation to the research topic
selected. The comprehensive literature review is conducted by identifying and exploring the
relevant data from the selected research articles selected in the context of the research topic. The
proposal then includes a section for detailing the type of research design that will be adopted for
addressing the research aims and objectives. This includes description regarding the type of

research, approach used and the type of data collected including details regarding the ways of
selecting sample and relevant ethical considerations.
Part 4: Research problems and research objectives
Part 4.1: Research Problem
The shift of traditional accounting process to modern accounting has initiated the
requirement to make use of new and highly developed informational technology driven
accounting system to process all the modern day transactions. The accounting process and
financial reporting process within any entity has increased to significant level that cannot be
handled through use of manual accounting system. Also the nature of accounting system has
shifted to complex level that requires use of modern day accounting software to be installed with
ERP of organization. Currently there are so many accounting information system available in the
market that are capable to enhance the productivity of the accounting process and allow the
management to manage the issues such as inventory management, financial reporting and other
accounting issues with ease. It made organizations to adopt the accounting information system
within their ERP system so that all the issues of accounting process can be resolved.
The use of accounting information system has been greatly increased by the
manufacturing firms in Australia. It has been seen that the use of technology driven accounting
information system of manufacturing companies in Australia has helped them to succeed in their
business. Inventory management in the process of supply chain management is the most complex
task in manufacturing companies and it is not possible to manage through use of manual
accounting process. The problem of inventory management has been effectively management
through use of modern day and technology driven accounting information system. Similarly,
there are many manual accounting issues that have been resolved through the use of new and
modern day accounting system. In this context the research problem that has come across is to
evaluate the impact of accounting system innovation on the accounting and finance operations of
manufacturing firms in Australia.
Part 4.2: Research Question and Research Objectives
On the basis of research problem following research question has been developed:

“How does technological innovation impact on accounting and finance operations of
manufacturing firms in Australia?”
The above research question has proposed to develop the research aim to examine the
impact of accounting innovation on the accounting and financial reporting process of
manufacturing firms in Australia. In this regards, following research objectives has been
developed:
 To discuss the types of technological innovation used in the field of accounting and
finance by manufacturing entities in Australia
 To examine the changes caused by the technological innovation on the accounting and
finance operations of Australian manufacturing firms
 To evaluate the potential benefits and drawbacks that are associated with the use of such
technologies within the manufacturing firms of Australia
Part 5: Literature Review
Part 5.1: Evaluation of the Importance & Changes caused by the technological innovation
on the Accounting and Financing Operations of Manufacturing Firms
According to Alsarayreh, Jawabreh, Jaradat, and Alamro (2011) the evolution of large
scale information technology and devices is causing widespread changes within large number of
professions. As such, accounting profession is also significantly influenced by the technological
innovations due to changes caused by such technologies on recording, classification and
interpretation of the accounting information. The increasing need within businesses for
improving the accuracy of developing accounting information and reducing the time involved in
maintenance of complex accounting information is causing the need for integration of new and
improved technologies (Alsarayreh, Jawabreh, Jaradat, and Alamro, 2011). As per Coman and
Coman (2016), these technologies are helping the accountants to perform accounting functions
with much accuracy and involving less time thereby helping in effective monitoring and
controlling of the accounting and financial data. The newer and improved ways of conducting
accounting processes with the use of information technologies is causing significant changes in
the routine accounting work. The higher speed in carrying out daily accounting work and

improved accuracy are the major reasons that are driving the integration of IT in the accounting
environment (Coman and Coman, 2016)
In the opinion of Esmeray (2016), the competitive environment is causing the need for
business organizations to improve the efficiency of their accounting operations. The
manufacturing firms possess highly complex accounting operations due to presence of complex
supply chain requiring accurate tracking of inventor and other expenses. Therefore, developing
adequate accounting and financial data in relation to supply chain activities is essential for
streamlining the operational processes within manufacturing firms and maximizing productivity
(Esmeray, 2016). Preda and Watts (2004) has stated that the Australian manufacturing sector is
highly competitive and therefore there is increasing need for the firms operating within the sector
to improve the efficiency of their accounting operations for maximizing the operational
efficiency and thus maintaining their competitive position(Preda and Watts, 2004). Hall and
Agrawal (2014) has also stated that the international growth and development of the
manufacturing sector requires standardization of its accounting practices that enables the firms
operating within the sector to reduce the time involved in manual handling of large volume of
accounting data. It will also help in reducing the labor required for developing and recording the
complex accounting and financial data related to their operations thus enabling in reducing the
cost of operations (Hall and Agrawal, 2014).
Nwakaego and Ikechukwu (2016) stated that the widespread integration of new and latest
information technologies systems and processes within the manufacturing firms has resulted in
better management of their supply chain activities. Inventory management is a major area of
concern for the manufacturing firms and therefore they are emphasizing on use of improved
information technologies that result in better management of inventory. The physical counting of
inventory and recording on the balance sheet is a complex process and therefore manufacturing
firms are using the inventory management system that is able to track the real-time inventory
levels (Nwakaego and Ikechukwu, 2016).
According to Tabitha and Ogungbade (2016), the use of inventory management software
is increasingly being done by the manufacturing firm to create purchase order, creating bill of
materials and tracking of inventory so that it can be replenished in a continuous manner. The
information systems are also proving to be useful for the manufacturing firms to conduct sales

forecast that enables them in better planning of inventory. The accounting software systems that
are used by the manufacturing firms provides the features such as developing invoices, tracking
of inventory and expenses and also assisting in centralizing all the accounting data that enables
in improved decision-making within the manufacturing sector firms of Australia (Tabitha and
Ogungbade, 2016).
Part 5.2: Types of Technological innovation used in the Field of Accounting and Finance by
Manufacturing Firms
As per the views of Irie, Nagayoshi and Koyama (2016), there are various types of latest
information technology tools and devices that are used for managing the accounting and finance
operations within the manufacturing firms. Artificial intelligence and robotics can be regarded
as the latest IT systems that are used by the accountants and finance managers for conducting the
complex accounting and finance activities of these firms. The use of Artificial Intelligence (AI)
tools has proved to be largely useful for causing changes in the traditional bookkeeping tasks by
automating the accounting operations such as accounts payable and receivable. The
manufacturing firms have to maintain large payable and receivable accounts having large
number of suppliers and vendor. Therefore, manual generating of invoices and bills involves
large time of accountants and it also involves high labor in maintaining and recording of huge
volume of financial data (Irie, Nagayoshi and Koyaman, 2016).
According to Ghasemi, Shafeiepour, Aslani and Barvayeh (2011), AI has provided the
feature of automatic entry and categorization of data that has provided help to the accountants in
quickly analyzing the wider financial trends. The automation of the major accounting processes
is helping the manufacturing firms to improve operations and reduce the costs. The invoice
management system provided by the IT tool of artificial intelligence has direct impact in
improving the operational efficiency. The procurement process of the manufacturing firms also
requires large volume of paperwork which can be quite tedious for the accountants. The use of
AI helps in centralizing all the purchase orders and structuring such accounting data and thus
reducing the paper work. Also, the use of robotic process automation (RPA) has resulted in
minimizing the cost of financial reporting development within the manufacturing firms by
reducing the time taken in auditing. The auditors are easily able to search the required documents
in less span of time. The digital audit also helps in improving the efficiency and accuracy of the

audits and thus improving the financial reporting process of the manufacturing firms. The
chatbots provided by the IT system of AI also enables in efficiently resolving the customer
queries regarding their accounting balances or invoices (Ghasemi, Shafeiepour, Aslani and
Barvayeh, 2011).
As per Lin (2013) the use of cloud-based online accounting software applications such as
XERO or MYOB is also prevalent among the Australian manufacturing forms for better
management and co-ordination of their diverse accounting and finance operations. The cloud-
based online accounting software application possess the features of creating online invoices,
complying with tax obligations, better tracking of inventory, monitoring the income and
expenses by gathering real time accounting data and development of financial reports by
accessing database from individual departments. The major benefit of using the cloud-based
accounting software is that these types of online application enables in accessing the real time
data at any point of time and thus business managers can access the data ant any location for
making decisions (Lin, 2013).
Also, it helps in protecting the accounting and financial data thus enabling the
manufacturing firm to protect large volume of their accounting data which is required for making
strategic goals and objectives. The tax software also improves the accuracy in calculating the tax
returns and thus helping in avoiding paying tax penalties also leads in streamlining the audits.
The tax returns can be filled on the required date and therefore continually meeting the tax
obligations would help in promoting the business growth and development. The accounting
software vendor such as Xero is providing the features to companies to reconcile developing
invoices add receipts and create expense claim from the mobile app by providing the feature of
mobile connectivity (Australia Tech Future, 2018).
Part 5.3: Evaluation of the Potential Benefits and Drawbacks Associated with the use of
Accounting Information Technologies
Zwiertes and Alves (2013) has stated that the major benefit that the adoption of
technological innovations is causing to the business firms operating within the manufacturing
sector is simplifying the complex and tedious accounting and financing operations. It has enabled
in better management of inventory, procurement, billing, sales and financial activities within the
firms. It has reduced the number of accountants required for manually handling of large volume

of data and this has helped in reducing the cost of operations (Zwiertes and Alves, 2013).
According to Beg (2018) the reduction in the time involved by the accounting and finance
managers in recording and processing the accounting transactions has also resulted in placing
more focus on developing the business strategy for promoting the growth and expansion. The use
of Enterprise Resources Planning (ERP) systems having the advanced features of managing the
accounting functions with supply chain activities of the manufacturing firms. The improved
accuracy of the accounting and financial results also help in better management of financial
resources leading to the continued growth and development of the manufacturing firms (Beg,
2018).
However, as per Medina-Quintero, Mora and Abrego (2015), there are also some
significant limitations that are associated with larger integration of technological innovation
within the accounting processes and systems of the manufacturing firms. This is due to greater
reliability on these IT tools and systems can led in degrading the skills and competencies of the
accounting and financing managers which in the long-term can results in negatively impacting
the business growth and development (Medina-Quintero, Mora and Abrego, 2015). Aboud
(2018) has argued that it will initially incur high cost for the firms and therefore it is not possible
for small and medium-sized firms having lack of adequate financial resources to implement
them. The accountants also need to provide specific training for gaining an understanding of the
above discussed IT tools and systems for ensuring their best use. This would also require large
time and cost on the part of manufacturing firm which can results in restricting their production
capabilities (Aboud, 2018).
Part 6: Research Design and Methodology
Part 6.1: Research Design/Type
In the process of research, selection of appropriate research design is very important in
order to gather required information about the research problem. To complete the research
project in successful manner, there is need to choose one of the two research design or type
available. The two research designs available are exploratory and descriptive research design.
Exploratory research design required to gather required information particularly for the new
research area (Leary, 2016). On the other hand, descriptive research design is related with