Strategic Information Accounting Software

Question: Discuss about theStrategic Informationfor Accounting Software. Answer: Introduction Accounting software is used in an organization to maintain a record and process the transactions further for functional modules such as payroll, accounts receivable and payable and trial balance. Basically, it is a computer programme that helps an accountant or book keeper to record and present a report on financial transaction of a firm (Deshmukh, 2006). Different accounting software works differently. Some companies built their accounting software in house; some purchase it from third party or sometimes firm modify purchased software according to their requirement. It can be accessed from anywhere by authorized persons. Accounting Software in Australia: History: As year passes, People are depending on computers for almost everything. Computers are helping person to running their business, deliver entertainment, communicate globally and soon it is expected from them to drive the cars also. Accounting and computers are natural match and familiar to each other. The very first time a computer used in a private business for accounting purpose was in 1955; 61 years ago from now. The first accounting software was Univac1 (Scott, 2015). Up to 1974, accounting was done in the same manner as Egyptians had started before 3000 years. Before 2000, almost all businesses were using an accounting system based on paper work. But after launching of GST, they all switched to accounting software for the purpose of recording the transactions. While some people were still using Paper and books for record the transactions (GAA Accounting, 2012). The benefit of using software was convenience. Software is significant and convenient for businesses with several transactions in a day. Development and Adoption: The very first Univac 1 was launched in 1955. With time, the quality of software has been increased. Still there is great deal of room for more improvement. With the time, capacity of computer has also been increased, and it directly affected on quality of software. Earlier small entrepreneurs were not ready to adopt. Because they didnt feel any need of final documents or some extra accounting and financial documents. But after implementation of GST in 2000, it has become compulsory for every entrepreneur to maintain the final documents. According to Debra, software is most important thing for a new business. It took a long time to understand the businessmen that accounting software is more convenient then paper based accounting. But once they understood about accounting software and its usage, advantages, almost all the businessmen adopted accounting software. Currently on an average, every Australian business are using accounting softwares to maintain their financial records. Accounting software industry is not a huge industry but it is growing up rapidly over the last 5 years because of new technology, high speed internet, cloud computing, new software etc. The total share of accounting software industry in market is so less. Xerox is important player in the industry with 65% share (IBIS, 2016). There are so many products in the market but top 5 products which are the main player are: Xerox, MYOB, Reckon, Intuit QuickBooks and Saasu. Intuit QuickBooks is highly ranked Australian accounting Software. This is very popular among small business owners. MYOB is top rated accounting software of Australia (James and Maher, 2013). The main motto of this software is to be highly rated software. Reckon Is a comprehensive suite of features of accounting. Saasu is expected to be a future accounting software. It is convenient for cash flow transactions. Xerox is most popular software of accounting in Australian market. Currently, its subscribers are 5,00,000 in Austr alian market. There are huge numbers of accounting software in the market. All the software are doing well and satisfying the users by unique features. All accounting Software are pursuing different purpose in the market. A user according to his requirement can choose best one and use it. Leaders in the Market and their Competitive Advantages: As discussed, the above 5 accounting software are playing a role of leader in the market. There is a huge competition among all of them. All of them are in the market with some unique characteristics, users can choose best one according to their requirement. Intuit QuickBooks accounting software is first choice of all the small business owners in Australia. The main factor of this software is its price and its comprehensive level. It is used by owners for tracking their business, profits, income and expenditure. QuickBooks securities are as good as a banking security system. It is offering a 30 days trial also (QuickBooks, 2015). The main competitive advantage of this software is its Price as the whole software and even premier version are just in $12/ month and $21/ month and its features are just unbeatable. This software is providing the best security for its users. MYOB is the top rated software in Australian market. This softwares is developed to help the business owners in increasing their profitability and make a better decision by analyzing the real view of financial operations. The main competitive advantage of this software is its feature that it can work online as well as offline. Its ATO-certified Super stream solution is designed to make its client up to date and it is totally free for its clients. Its new version is better than all the versions. Reckon is offering all the comprehensive accounting features. Its main motto is to be the best software for accountants, bookkeepers, business etc. It is a well organized as well as affordable accounting software (MYOB, 2016). Its comprehensive features are credit management, billing, Practice IQ, resource planning, desktop super and many more. Reckon is offering a free trial and its starting price is just $5/ month. That is lowest in the market (Reckon, 2016). Saasu is trying to be the best one. The team of Saasu is claiming to be the future of accounting software. Businesses are able to perform cash flow transaction with just a click by using Saasu (MYOB, 2016). Saasu can be easily connected with CRM, Email platform, e-commerce store and many more. Its competitive advantage is its smart banking services (Saasu, 2016). Saasu is quite simple and convenient. Xerox is the most popular Accounting software in Australia. Currently its market share in software industry is 65% and more than 5,00,000 business owners are using it to have a track over their business. This software provides a wide range of accounting features. It can be used on desktop as well as mobile platform also (Xero, 2016). Its advance reconciliation process allows users to import and categorise all their banking transactions. Gaps and Challenges: Like all the industries in the market, accounting software industry is also facing some issues because of new technology, customer preference, new competitors, some innovation and many more. Due to it, it becomes difficult for existing one to maintain their market share. The biggest challenge facing by these software are: Intuit is fewer features as it is not providing all the accounting feature to its user, MYOB is charging high price from users and all small business owners cant afford this software because of such a high price. Reckon is failing to provide all the facilities like online and offline feature, banking facilities etc. Xerox is doing awesome in the market but still its price is quite high that small owners cant afford it. Suggestions and Recommendation: After studying many articles, journals, research papers and more, it can be concluded that accounting software are had a great history. The developments and adoption of accounting software in Australian market was quite interesting as earlier it was not easy for business owners to change their whole accounting system. But now almost all owners are using software to keep a track on their business and maintain all the financial documents. Software industry is doing very well in Australian market but still software users are expecting some changes from the industry. Industry must offer all the accounting features and some good updates in their software. Software companies must provide a learning kit also. Software must be updated with new technology and according to customer preference. It must not be complicated also, so that client can understand it easily and working on it become convenient for them to work. References: Scott B. (2015). The Accounting Journal: 60 years of accounting software. Myob The Pulse. Deshmukh A. 2006. Digital Accounting: The effects of the internet and ERP on accounting. Idea Group Inc. IBIS World. 2016. Software publishing in Australia: market research report. Retrieved on 8 Dec 2016 from https://www.ibisworld.com.au/industry/default.aspx?indid=5275 Scott B. (2015). The Accounting Journal: 60 years of accounting software. Myob The Pulse. Scott B. (2015). The Accounting Journal: 60 years of accounting software. Myob The Pulse. James D. And Maher W. (2013). 7 accounting packages for Australian small business compared: Including MYOB, QuickBooks online, Reckon and Xerox. BIT. Retervied on 8 Dec 2016 from https://www.bit.com.au/Review/344651,7-accounting-packages-for-australian-small-businesses-compared-including-myob-quickbooks-online-reckon-xero.aspx GAA Accounting. (2012). The evolution of accounting software: past, present and future. GAA accounting the journal of the global accounting alliance. QuickBooks (2015). Home. Retrieved on 8 Dec 2016 from https://www.quickbooks.co.za/ Xero (2016). About Us. Retrieved on 8 Dec 2016 from https://www.xero.com/au/about/ Reckon (2016). About us. Retrieved on 8 Dec 2016 from https://www.reckon.com/au/about-us/ Saasu (2016).About. Retrieved on 8 Dec 2016 from https://www.saasu.com/about/