Importance of Accounting Information System-Myassignmenthelp.com

Questions: 1.Discuss about the Current Organizational Structure what operational problems do you think the Organisation could experience because of this structure? 2.Discuss about the Development and adoption of the Accounting Software Packages. Answers: Introduction The present undertakes a literature review in relation to the significance and importance of accounting information system in global competitive business scenario. In this context, the literature review emphasizes on the use of accounting software packages by an Australian company. The literature review focuses on the current organizational structure, operational problems, type of system acquisition method used and the control problems faced by the company for integrating the use of accounting software packages. Also, the report depicts and describes a system flowchart of the sales procedures for the selected company. The company selected for the purpose is Woolworths, an Australian retail giant that has adopted the use of accounting software packages for maintaining its accounting information appropriately (Chanthadavong 2016). In addition to this, the report presents a literature review on the development, current market size, leaders in the market and the current challenges with t he use of accounting software packages. 1.Current Organizational Structure The Woolworths conducts diverse business operations having major retail interest throughout Australia and New Zealand. The company main operations include supermarkets, liquor retailing and operating gaming machines in hotels and pubs. The company has extensive retail stores and operates in various business areas and therefore has a complex organizational structure. The company in order to maintain the flexibility in its organizational structure is largely incorporating the use of accounting software packages. The retail giant has integrated the use of cloud software system for incorporating flexibility in its organizational structure. It is also emphasizing on the use of Google Apps for proper monitoring and controlling its diverse business operations. The Woolworths is largely focusing on implementing latest information technological devices such as SAP-based merchandising system for enhancing the performance of its accounting system. The introduction of the SAP system has graduall y transformed its organizational structure into more flexible and organized manner. The implementation and adoption of an adequate accounting software system is essential for the company to manage its accounting information appropriately. The use of SAP enabled the company to manage its accounting information properly (Chanthadavong 2016). The company had to maintain its accounting data properly as it has various business units and therefore has complex data to be managed properly. Operational problems due to Accounting Software Packages The Woolworths Limited is also facing various problems due to use of accounting software packages. The Woolworths has revealed its plans of implementing SAP all of its business areas such as petrol retailing. However, the company is also facing large number of IT issues in successfully implementing the use of accounting software packages. The company encounters operational problems such as system inefficiency and errors with the use of accounting software packages (Coyne, 2016). The cloud based accounting software used by the company such as point of sales system and XERO are not user-friendly. The employees of the company do not possess adequate knowledge about the operational functions of the software impacting its operational efficiency. Also, the current organizational structure of the company maintained through the use of IT devices is subjected to cause operational error in its accounting system that can occur through wrong input of financial data into the system. This can caus e incorrect flow of accounting information from one department to another resulting in misrepresentation of accounting data. The company must take proper measures for preventing the occurrence of such operational problems use to use of accounting software system (Curtis, 2015). System Acquisition Method The accounting software system used by Woolworths such as point of sales and XERO are developed through ERP (Enterprise Resource Planning) system. The company is presently large focus on stabilizing its SAP platform for integrating larger use of IT devices and technologies in its operational activities. The software used by the company are based on SAP software and therefore the accounting software system acquisition method is ERP planning. The ERP is regarded to be business management software that enables business organizations to manage the operational activities of their various departments effectively. The business corporations have to develop a long-term plan for acquiring the information systems and services for supporting their business initiatives. This involves determining the top priorities of the top management and therefore designing the essential applications as per the projected priorities. The Woolworths, as such, is presently planning to incorporate the use of Google Apps for proper maintenance of its complex data. The company has developed all its information system and devices through the use of SAP implementation based on ERP (Hall, 2015). System Flowchart of Sales Procedure of Woolworths Limited The different symbol conventions sued in designing the sales process flowchart is illustrated below: The Sales flowchart of Woolworths Limited maintained through MYOB Accounting Software System Description of System Sales Procedure of Woolworths The company has incorporated the use of online software system for monitoring and controlling its sales operations. It various components are described below: Sales Division: it is involved in developing the orders of customers and processing them to credit department. This is followed by aligning the customer order into the shopping cart to be processed through the online payment method. The order is processed after verifying it from the credit department. Credit Department: The credit department verifies the payment details processed to them by the sales department. The payment details are sent to sales department after verification to be process the customer order further. The credit department adopts a secure server for receiving the customer payments in order to secure the customer bank information (Rangaraju and Kennedy, 2012). Warehouse Unit: The unit after receiving the confirmation of a particular customer order passes the required product to the shipping department for delivering to the customer. Shipping Department: The department after receiving goods from warehouse holds the responsibility of delivering the customer order to the address mentioned by them (Buttle, and Maklan, 2015). All the above sales process of the company is mediated through online accounting software MYOB that helps in integrating the accounting information across the various channels of the sales department (Curtis, 2015). Control and Fraud Issues in the System Sales Procedure of Woolworths Establishment of Duties: The Wooloworths Limited is a complex organization and thus its sales procedure comprises of multiple tasks to be completed. As such, it becomes highly critical for the company to effective monitor and control its sales activities through establishing the duties if different personnel. The sales manager should also ensure that each and every sales activity is properly managed and controlled through the use of the sales management software. Policies and Procedures: The Company is also required to establish effective policies and procedures that provide guidance to its sales management personnels regarding the use of the system software. This is essential so that the software used become friendly to use for the sale management personnel and proves to be helpful in managing the sales procedure of the company. Lack of Security Accuracy: The use of system software in managing the sales procedure also involves security and accuracy issues. The data can be accessed by the parties thus involving the loss of company data to outside parties. Also, the use o inaccurate software systems can result in data corruption that can further misrepresent the sales data before the management leading to wrong decision-making (Terkper, 2008). 2.Development and adoption of the accounting software packages There is increasing use of accounting software by the Australian business companies due to their large-scale affordability and managing complex business operations adequately. The business companies in Australia are selecting the most appropriate accounting software as per their needs and requirements. The accounting software are mainly developed to record and manage the complex financial data of the business companies and produce organized data for better decision-making by the management. The accounting software was introduced in the Australian business market around 1990S. The accounting software brought a revolution in the country as these cloud-based software are easy, integrated and internet based for effective co-ordination of accounting functions of various departments of a business organization. These have become a critical business management tool in the Australian business firms since their evolution and large-scale integration for integrating the accounting processes (Mag eto, 2017). The current market size The accounting software industry is growing steadily over the past years due to increasing need of industry-specific software management services. The industry is estimated to provide about annual revenue of about $3.1 billion annually over the coming years with the increase in industry participants (Software Publishing in Australia, 2017). Identify the leaders in the market and what gives them the competitive advantage, The major market leaders in the accounting software industry of Australia are MYOB, Xero, Zoho Books and Quick Books. There is intense competition among this software as they provide almost similar features. The competitive advantage of these companies is based on the quality of service provided by them with easy acquisition method. The companies tend to provide high-quality services to the businesses for developing long-term customer relations with them (Software Publishing in Australia, 2017). Current gaps or challenges encountered by users or customers of accounting software/packages and relevant suggestions or recommendations The use of accounting software packages is associated with some challenge as addressed below: Difficult to Customize: The accounting software cannot be customized by the business users as per their needs and requirements. Also, the systems are very complex to be understood by the users and require software training for developing an understanding of their features. Delay Problems: The accounting software is based on the use of internet and thus encounter problems such as delay in processing of data due to slows speed of internet. Breach of Security: The business users also face problem of lack of confidential data as the data provided by them to the accounting software can be easily accessed over internet by outside users. This can result in loss of their private information to the competitors. Compatibility Issues: The accounting software also does not become easily compatible with other programs. This provides a hindrance to the users as they may not be able to import some data into their program due to computability issues (Liguo, 2014). On the basis of above challenges addressed, it is suggested to the business companies to select the accounting software as per their scale of operations and requirements. There are wide number of accounting software available in the market and therefore companies are required to be extremely cautious for selecting the adequate software for them. This involves a proper research on the part of the IT personnel and management so as to determine the best suitable software in accordance with the business operations (Hall, 2015). Conclusion It is inferred from carrying out the literature review in relation to the importance of accounting software system that there is high need in business world due to integration and co-ordination feature provided by them. However, the businesses for addressing the challenges associated with the use of accounting software system should carefully select the best system as per their business requirements. References Buttle, F. and Maklan, S. 2015. Customer Relationship Management: Concepts and Technologies. Routledge. Chanthadavong, A. 2016. Woolworths upgrades HR system to the cloud with SAP. [Online]. Available at: https://www.zdnet.com/article/woolworths-upgrades-hr-system-to-the-cloud-with-sap/ [Accessed on: 22 August, 2017]. Coyne, A. 2016. Woolworths makes fixing IT a priority. [Online]. Available at: https://www.itnews.com.au/news/woolworths-makes-fixing-it-a-priority-434957 [Accessed on: 22 August, 2017]. Curtis, V. 2015. MYOB Software for Dummies Australia. John Wiley Sons. Hall, J. 2015. Accounting Information Systems. Cengage Learning. Liguo, Y. 2014. Overcoming Challenges in Software Engineering Education: Delivering Non-Technical Knowledge and Skills: Delivering Non-Technical Knowledge and Skills. IGI Global. Mageto, J. 2017. Accounting Softwares in Australia. An Overview. GRIN Verlag. Rangaraju, M.S. and Kennedy, H. 2012. Innovation in Management Challenges and Opportunities in the next decade. Allied Publishers. Software Publishing in Australia. 2017. [Online]. Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/information-media-telecommunications/except-internet-music-publishing/software-publishing.html [Accessed on: 22 August, 2017]. Terkper, S.E. 2008. Accounting Challenges for Semi-Autonomous Revenue Agencies (SARAs) in Developing Countries, Issues 2008-2116. International Monetary Fund