Accounting Software Packages used in Australia Small and Medium Organ

Question: Discuss about theAccounting Software Packages used in Australiafor Small and Medium Organizations. Answer: Introduction The literature review depicts the usage of accounting software packages in Australia. In order to reduce the traditional operational issues small and medium organizations are adopting this product in wide scale (Tijani and Mohammed 2013). The review will demonstrate the history of accounting software packages, development and adaptation of accounting software. It will also describe the current market size along with the challenges faced by the organization. Finally the literature review will provide certain recommendations or suggestion for accounting software packages used in Australia. History of Accounting Software/Packages Used in Australia From the market analysis five small accounting software packages such as Intuit QuickBooks, MYOB, Reckon, Saasu and Xero are identified in Australia. The features are as follows: Factors MYOB QuickBooks Saasu Xero Quotes and affordability It does not have the feature of Quotes. It charges $29 to $65per month for the subscription The range of products allows the users of the software packages to build quotes. The monthly charge for this software package is $15 to $35. It has the ability to built quotes Charges $35 in the monthly basis. Does not have any quote feature. . It charges $19, $29, $64 in every month. Feedback Provides different formats for feedback. Provides simple flow of invoices functionalities. Sales are easily recorded in case of Saasu. It allows the users to create draft invoice or feedback. Statements The statement template is highly customized From the software gallery the users can directly access the statements. Gives opportunity to the users to customize the feedback. Provides print and email statements in customized manner. Security Highly secured Highly secured Medium Medium Accounting software is referred to as a computational program mostly used by small to medium organizations to manage their accounting system effectively and efficiently. It helps to store accounting records of transaction, employee details, payroll management system etc. traditionally, the accounting system was manually processed with the help of paper but gradually after the invention of computer and technologies revolutionary changes occurred in accounting system (Daneshgar, Low and Worasinchai 2013). Much affordable software is currently available in global competitive market and the changed mechanism has moved the concept of traditional programs. According to Sam et al. (2012), the changes are adopted due to certain features such the operational speed and faster management provoked the traditional accounting system to move into this platform. Mayasari (2015) stated that once a data stored in the database will not get deleted and it reduces the chances of occurrence of data redundancy. Important information can be fetched with the help of simple queries from a large storage in minutes (Gupta and Sawyer 2015). Whereas, Seethamraju (2015) argued that, though the system is efficient but there is high chance of data hijacking if appropriate security service is not used. Development and Adaptation on Software Packages During market assessment it has been found that, most of the widely used accounting software packages are used in Australia such as Intuit QuickBooks, MYOB, Reckon, Saasu and Xero. According to Bradshaw, Pulakanam and Cragg (2015) traditionally immediate access was not possible as the system was maintained by human resources. There was a huge chance of error occurrence. Again the traditional system also cannot assure that the stored data will never lose. Arcega et al. (2015) opined that if a system is managed by more than one then interruption might lead to vast confusion within the system itself. In order to avoid these issues advanced accounting packages are innovated. Wongsim and Hongsakon (2015) stated that, the computerized system enhanced the accuracy of measurements than the traditional process. In addition to this, Rajasa and Faturachman (2015) stated that, computerized accounting process has the characteristics of easy insertion, deletion and update whenever required. Different small to medium organizations with exceptional characteristics and faster processing and transactional requirements are adopting software packages such as MYOB, XERO. Henny et al. (2013) stated that based on the quality and features of organizations the accounting software are developed. Most of the government organizations and small to medium business organizations are adopting accounting software packages. Mohamed (2013) stated that, this system serves the general purposes of data management uniquely. Mayasari (2015) argued that the general purpose software cannot provide all the requirements of an organization whereas, accounting software meet all the requirements of the consumers and the organization too. Current Market Size During the period of market analysis it has been found that, most of the small to large business organizations have adopted the accounting software packages in order to avoid improper data management. Over the last ten years the market distribution of accounting software has completely changed in Australia Sam et al. (2012). Again, Bradshaw, Pulakanam and Cragg (2015) mentioned that Xero has about 67% of total market share, whereas saga has shared 35% of total market share. Since two to three years MYOB is focusing on the trades following the successful market IPO. MYOB also joined other locally located accounting software providers (Gupta and Sawyer 2015). Domestic as well as international investment is giving wide mode of advantages to the businesses and to the software development organizations also. Wongsim and Hongsakon (2015) argued that, in order to gain significant benefits from the marketplace many businesses are switching its platform from traditional to cloud based accounting system. In case of MYOB, it has been found that, more than 1 million of small to medium business are adopting the desktop based product invented by MYOB itself. In addition to this Arcega et al. (2015) opined that, the equity return percentage is 10% and 28 % respectively for MYOB and XERO. The Australian investors are continuously paying for further development of this accounting software. Financial circumstances are needed to be stronger for the potential development. Figure 1: Current market size of accounting software packages used in Australia (Source: Wongsim and Hongsakon 2015, pp- 1297) Identification of Leaders in the Market There are many accounting software used in the current market of Australia but based on the features of all the software packages the best one which might lead in the market is needed to be identified by the small to medium business enterprises (Tijani and Mohammed 2013). Different accounting software contain various characteristics for example payroll and accounting software is holds cash flow calculator, standard tools and it can manage huge number of users at a time without any kind of error. Wongsim and Hongsakon (2015) stated that, both the accounting software Xero and QuickBooks are cloud based but regardless of subscription planning Xero attracted vast number of users. Hongsakon (2015) stated considering the pricing aspects it has been detected that, for integrated payroll services Xero and QuickBooks both are similar. Competitive Advantages According to Rajasa and Faturachman (2015) over last two to three years cloud based accounting packages are widely used by different small to medium business organizations. These products are time saving, secured and also easily accessible by the employees and consumers as well. Again Seethamraju (2015) stated that, integration of these products along with the existing strategies will be much beneficial. The competitive advantages are defined during research and these are as follows: Reduction in the IT maintenance cost: Most of the cloud based product does not require adopting particular software (Wongsim and Hongsakon 2015). Thus it reduces the cost of regular update and backup. Availability: The stored banking and personnel information related to the employees can be easily accessed regardless of time and location (Daneshgar, Low and Worasinchai 2013). Even, it allows the users to view information from different digital devices. Feeds from banks: Information of credit cards can be easily downloaded to the bank accounts and according to Mohamed (2013) this is the most time saving operation. Easy sharing: Without using the USB keys information can be shared from one to other. Analysis of Current Gaps and Challenges Identified by the Consumers During analysis it has been found that the users are facing challenges while using the products these are as follows: Cost: According to Gupta and Sawyer (2015) the cost of counting software are reasonable but associated cost are very high during its utilization. For example RAM, speed of the processor, memory capacity require minimum standard. Difficulty: Non expert employees found difficulties while using it. Hongsakon (2015) opined that, improper accounting terms and business layouts are leading to massive loss. Time management: The feedback processes of accounting software take huge time. Lack of time management is leading to business failure. Maintenance: The maintenance does not include only software update the associated devices are also needed to maintain as well (Seethamraju 2015). However, due to lack of maintenance the organizations are facing competitive challenges. Conclusion and Recommendations From the overall discussion it can be concluded that, in order to avoid accounting based issues small to medium organizations are adopting accounting software packages in Australia and among them, most widely used software package in Xero. Due to the operational speed, production of automatic documents, appropriate management of information and accuracy these products are used. The literature has elaborated the history of accounting software including the development and adaptation procedure. The current market size and among them the leading brand is also identified. However, still certain issues are facing by those, who adopted the packages. Those challenges and there mitigation process are also recommended in this literature review. The recommendations are as follows: Advanced technology adaptation: In order to avoid the current challenges the small and medium business organizations should adopt more advanced and innovative technologies. Security: This is one of the major concerns; the organizations must keep the banking data and personnel information secured with the help of proper encryption key so that unauthorized users cannot access those data from the storage. Training to experts: enterprises must develop regular training programs for the employees so that they become familiar with the technologies very soon. Platform selection: Best cloud based platform is required to be selected to avoid data management and storage issues. References Arcega, C.K., Datinguinoo, E., Guerra, J., Guno, C., Mayuga, H.J., Villamena, E. and Manongsong, J.L., 2015. Computerized vs. Non-computerized Accounting System of Small and Medium Enterprises in Lipa City, Philippines: A Comparative Analysis.Asia Pacific Journal of Academic Research in Business Administration,1(1). Bradshaw, A., Pulakanam, V. and Cragg, P., 2015. Knowledge Sharing in IT Consultant and SME Interactions.Australasian Journal of Information Systems,19. Daneshgar, F., Low, G.C. and Worasinchai, L., 2013. An investigation of build vs. buydecision for software acquisition by small to medium enterprises.Information and software technology,55(10), pp.1741-1750. Gupta, R. and Sawyer, A.J., 2015, November. The costs of compliance and associated benefits for small and medium enterprises in New Zealand: Some recent findings. 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