Strategic Information System Recurring Accounting

Question: Describe about the Strategic Information System for Recurring Accounting. Answer: Introduction Significance of accounting software in both the small and medium sized business cannot be overemphasized, as it has been becoming one of the major topics of discussion. It can be stated that the aim of using accounting software is to critically reduce the amount of error made in financial transactions. Apart from that, it can be stated that by automating most of the recurring accounting functions like budgeting, one can enhance the flow of activities in their business (Burgess and Paguio 2016). This particular research work would try to shed light on different accounting software from some major perspectives and this would help to analyze the importance of using this software into business. History of development of accounting software in Australia Daneshgar, Low and Worasinchai (2013) have stated that before the invention of this accounting software, the firms used to depend on large transactional journals to keep track of its accounts and several other financial transactions of the organization. However, it can be stated that with the invention of these accounting software, the small and the medium sized businesses have achieved success in automating time-consuming tasks and the costs as well has been reduced. Development, growth and adoption Research works have stated that like any other country, Australia used to rely on the traditional methods of accounting and with invent of these accounting software, the business firms have been able to upgrade their present system of accounting. From the history, it can be found that TurboCASH was one of the first accounting software that came into the market in 1987 (Lam 2015). This free accounting software was highly reliable among the users and was useful for recording transactions in the respective accounts. However, with the course of time, necessary was felt for other accounting software, as this was not highly beneficial and was incapable of performing complex calculations and invoicing for the clients (Hyvnen 2013). Apart from TurboCASH, Reckon is another major leading Australian Software and here highly embraced among the users, as it was beneficial in providing desktop and cloud-based accounting software. Moreover, it was highly useful for the medium and small sized firms because this software was useful for the book-keepers. Christopher Lee established Mind your Own Business software in the year 1980 and this served many purposes of the users of accountancy. From the reports, it can be found that Attache, Pastel and Evotools are some of the highly simple and easily affordable accounting software that ensure the security of the companys financial details (Lam 2015). Early accounting software were bespoke and painstakingly handcrafted byte by byte over the course of months. As time passed, computer capacity grew gradually to enable the use of some high-level development tools. From that time, with the gradual technological expansion, some big players of Australian accounting software came to the market like MYOB, Intuit and Xero. This software has removed the requirements for the book keepers and has allowed the business to make necessary invoice and cash flow management decisions on the run through desktop and mobile apps. There is less room for errors because only one entry is required for each transaction rather than multiple transactions for a manual system. These software programs are helpful for high availability of data and the information is instantly available and can be made available to several users in different locations at the same time (Mayasari 2015). Moreover, all these software are highly efficient in nature and excessively cost savings and at the same time capable of reducing frustration of the users of this software. The already mentioned accounting software in Australia has the potentiality to deal in multiple currencies easily, as this business friendly software allows the business to trade in multiple currencies with ease. In case of all these software, issues related to the exchange rate changes are minimal and thus are highly embraced in small, medium as well as large business firms (Mihai 2015). Present market size Some researchers have stated that the market share of all these mentioned leading software are one of the big questions and this changes from one country to another. It can be seen from the market report that at present Xero has near about 65% of the market share, where Sage has 10% and Intuit has 20%. On the other hand, it can be stated that SOHO has 33% market presence and this is soon to expand (Burgess and Paguio 2016). Apart from that, it can be stated that in some large institutions, CA has a prominent market share, share of these Real-World, SAP and Navison accounting software is a subjective measure (Ng, Harrison and Akroyd 2013). Leaders in Australian market Parente (2012) has stated that the accounting software not only enables the small and the medium sized firms to save money and time, this has made the entire work concept easy. Thus, it can be easily stated that the market size of the accounting software is huge. Most importantly, it can be stated that these accounting software assists the managers to record and control several financial transactions, even though they do have the proper accounting degree. The market share of this accounting software is gradually increasing and the software under this list include Cash-Flow Manager, Reckon-1, Saasu, Sage and Xero, Manager along with Nominal and MYOB (Romney et al. 2013). Factors that have led to high competitive advantage Romney et al. (2013) have found that one of the major reasons for the Australian accounting software to gain strong competitive advantage is that all these software are available at enough affordable prices. Besides this reason, the low annual rate as well as the application of this software is easy enough and thus all these software are highly embraced among the users in both small and medium firm. Apart from that, it can be mentioned that without installing any of these software, the cloud software is directly delivered by Xero, Saasu and some others that assist the firms in recording data and at the same time assist in integrating several services for safe maintenance of data (Spotlight on Xero, 2015). Present gaps and challenges Van Akkeren et al. (2013) have identified that in spite of affordability of all these accounting software, the gap can be observed and this is because of the fact that these software fail to satisfy the customers properly. This is because the Saasu Software is not capable enough to perform a wide range of tasks, as its operation depends on the entire amount of subscription amounts paid. For example, it can be said that if an organization is paying less, the software would allow usage of only 1000 transactions. On the other hand, if another organization pays more, the same software would allow more than 10000 transactions (Romney et al. 2013). Apart from that, it can be mentioned that one click access to some of the common financial functions are not possible and thus this software are not welcomed all the time. Last, but not the least, it is required to mention here that none of these software focus sufficiently on the requirements and thus some issues regarding security often occurs (Romney et al. 2013). Suggested recommendations After completion of the entire research paper, it can be stated that these organizations must keep updating the software on a regular basis; otherwise, the companies might face security issues. Apart from that, the organization need to make sure, that every data must be SSL encrypted. Along with that, the organizations require to improve their customer support service and the persons responsible for this part must be well trained. Besides, it is recommended that the one click option of this accounting software must be enhanced, as crashing of the system might leave a negative impact on the image of the corporation. 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