Accounting Software in Australia (Myob)

Question: Discuss about theAccounting Software in Australia (Myob). Answer: Literature Review on Accounting Software used in Australia Introduction: Accounting software is class of computer programs that enables the business financial transactions. Complexity of the programs depends on the demand of the organization (Aleqab et al. 2015). Some program just operate the bookkeeping of any organization whereas, some program operates all the comings and goings of the organization. Every small and medium sized company needs this software support for better performance (Dunbar et al. 2016). Small organizations faced problems due to lack of accounting ability, low directional activities, these issues make accounting software more important in theindustry. Consultants exterior to the system are playing main role in implementation of SBA software. This literature review is based on the accounting software used in Australia. This summarizes the area of importance, capabilities with adoption and development areas. Current market size for Australian software is analysed for recognizing the dominating leader in the country (Timotheou and Riordan 2014). Competitive advantages of accounting software are discussed for analysing the gaps and challenges of accounting software in the small and mid- sized business sector. Recommendations are also provided to resolve the issues with accounting software. History of Accounting Software used in Australia Around 1986 future of the accounting software was introduced in the scenario by the future father of accounting. Accounting system got several advantages for this innovation of accounting software in its domain. Certified practitioners of accounting system was responsible for this huge change in the accounting profession. Christopher Lee was the inventor of MYOB in Australia in 1980 (Myob.com.au 2014). This is known as Mind Your Own Business. This is mainly used by the small organizations for handling their accounting details. This cloud dependent accounting system has replaced all the paper related accounting solutions and system (Mayasari 2015). Cloud system in accounting has dominated around 67 percent of accounting systems. MYOB launched their news package for online service and domain registration in 2008. Development and Adoption Development: Thorough research done on the developmental perspective of the MYOB reveals the history behind the development of MYOB. MYOB is the name of the Australian Multinational Corporation. The software products of the organization are used by 1, 00,000 business owners all over Australia and New Zealand (Boulianne 2014). Christopher Lee first time used MYOB as accounting software for checking the product originality in business. in 1996 the Data Tech software first purchased the intellectual property rights of the software and the equity was provided to Christopher Lee. In 1999 the company changed its name to MYOB and in 2004 it was merged with Solution 6 Holdings. This collaboration was to introduce the expansion of MYOB in Australia and New Zealand (By et al. 2016). In 2008 MYOB expanded their providence of services in USA and UK. A private consortium takes over MYOB in 2009 successfully. In 21st August, 2011 MYOB handed over to the Bain Capital. Adoption: According to the several facts gathered in order to achieve knowledge about MYOB adoption process it was revealed that this accounting software provides access to all web based customers. In Australia most of the SMEs utilizes the MYOB to track their customer accounting details with effective monitoring. All the accounting data related to each transaction are transferred into the server with the help of MYOB. SME uses the collaboration of MYOB with other software that is mainly known as back end accounting software. Updated records and data are transferred and collected properly for the noting down the payment details. Current Market Size MYOB is one of the dominating accounting software in Australia. The battle of supremacy in cloud accounting market has been covered up by MYOB mostly in Australia. Every company in Australia wants to remove the need of bookkeeper. In their place most of the SMEs want to place accounting software in order to increase efficiency and reduce cost involved for human (Curtis 2015).According to the surveys done on the impact of accounting software in Australia, it was found that the market share value was raised from 831.7 AU dollars to 33. 8 millionAU dollars. This variation was based on the inductive price range of 3 to 4 dollar in its IPO. Most of the Australian SMEs are investing 250 million for expanding their usage all over the country (Lim 2013).In addition to this the organization had more than 400,000 paying customers across 180 countries for implementing MYOB within their system. This involves 240 billion dollar transactions with 95 million invoices (Lipi et al. 2015). According t o the CEO of MYOB, the fund manager of their company says that MYOB has reported by asked fund managers to value MYOB in line with Intuit, which has a market cap of over 27 billion dollar. Identify the Leaders in the Market Australian market is very much developed in the field of accounting software. There are several softwares that are used for handling accounting details and payment measures. Among all of these software MYOB is the most effective and innovative one that has grabbed the market value by providing its superior performance (myob.com 2015).All over Australia there are 1.2 million people those are getting the management facility in business accountings. MYOB is providing ERP to the enterprise market. This service is provided to almost 7000 clients. According to the basis of performance it was found that MYOB is one of the toughest contenders of Australia (Curtis 2015). The software is dominating the accounting needs of Australian market. There are several benefits of MYOB: establishment of trusted network, relationship establishment between local employees. The package provides support of training to the local as well as company workers. Competitive Advantage of the Accounting Software Accounting software has several competitive advantages over the Australian market. Among several accounting software MYOB is one of the effective and best one. These competitive advantages are explained below: Greater speed of input: Manual accounting process are extremely slow than the conventional accounting software (Myob.com.au 2013). This manual process helps in maintaining the valuable time of the user. Manual accounting requires multiple entries for same kind of data. Greater accuracy: Accurate data is mandatory for the effective and correct financial management system (Boulianne 2014). MYOB generates automated manual process that reduces the chance of error. A real time application of accounting becomes easy with the help of MYOB. Reduction in cost: Hardware, operating system, and accounting fees can be quickly reduce a solid budget required for the set up (By et al. 2016). In more details operational expenditure are reduced. Impressive tools: MYOB provides impressive tools for the handling accounting details. MYOB reduces expenditure on assets by using enterprise- grade tools within the system. Identification of Current Gaps and Challenges The major concern is related to the safety measures of the MYOB. Data security is one of the major concerns within the MYOB system. The major concern regarding the cloud accounting system is related to data security. This is because of the online data transfer may be vulnerable for the hackers (Mayasari 2015). 46% of the users provide the positive response for MYOB. Hackers may utilize the leaked data from the user platform. Though MYOB invests a lot of money for the security and designing measures still there are chances for the hackers to hack the information and important data (Myob.com.au 2014). This aspect makes MYOB less effective in the competitive market. In addition to this, security measures for MYOB are not cost effective; therefore many SMEs and medium sized organization dont afford the application. Another challenge of the MYOB platform is that this software is not novice- friendly. Therefore, the organization must have to invest more money for the making the users aware of the applications (ABC News 2015). This not only increases the cost involved but also increased the processing hazards while considering the implementation process. Conclusion It is concluded that accounting software is introduced into the business in order to reduce the complexity and reduce the cost involved within the concerned system. This literature review is introducing the impact of Australian accounting software with their advantages, challenges and applications within the Australian target market. It is analyzed that the employees of the organization must be trained properly so that they can use the accounting software properly without facing any difficulty. The accounting software also helps the employees about different activities which include calculations of payrolls, bookkeeping etc. Recommendations Following are recommendations to the user those are utilizing MYOB for their accounting systems: Designing and data security aspect should put more focus in case of MYOB. Usefulness of MYOB in SMEs of Australia can be improvised through changing their configurations in their online websites. To make the international customers more attractive it important to add more features within their software. It will create more brand value and will place into an supreme position. The MOYB should provide individual training kits for the first time uses. This will impact on the customer satisfaction and use of MYOB will be increased more from different perspective. In case of security aspect, MYOB requires to put more focus and update their system for providing their customer better amendments. New software backups should be provided to their customers of MYOB in case of urgent requirements. References ABC News.2015.MYOB shares rise on market debut. [online] ABC News. Available at: https://www.abc.net.au/news/2015-05-04/myob-shares-rise-on-market-debut/6442986 [Accessed 12 Aug. 2016]. Aleqab, M.M.A., Nurunnabi, M. and Adel, D., 2015. Mind the Gap: Accounting Information Systems Curricula Development in Compliance With IFAC Standards in a Developing Country.Journal of Education for Business,90(7), pp.349-358. Boulianne, E. 2014. Impact of accounting software utilization on students' knowledge acquisition: An important change in accounting education.Journal of Accounting Organizational Change,10(1), 22-48. By, S., Habib, A., By, P. and Anik, I.M., 2016. A Report on: Responsibility Accounting A Case Study on Newspaper Industry: The Daily Star. Curtis, V. 2015.MYOB Software for Dummies-Australia. John Wiley Sons. Dunbar, K., Laing, G. and Wynder, M., 2016. A Content Analysis of Accounting Job Advertisements: Skill Requirements for Graduates.The E-Journal of Business Education Scholarship of Teaching,10(1), p.58. Howard, A., 2012. Media release. Lim, F. P. C. 2013. Impact of Information Technology on Accounting Systems.Asia-PasificJornal of Multimedia Services Convergent with Art, Humanities and Socialgy,3(2), 93-106. Lipi, I., Rama, R., A and garaj, X. 2015. Implications of Accounting Information System Implementation in SMEs: A Study on Retail Business in Vlore Region.Mediterranean Journal of Social Sciences,6(3), 553. Mayasari, M., 2015. The Influence of Personal Characteristics, Interaction:(Computer/Individual), Computer Self-efficacy, Personal Innovativeness in Information Technology to Computer Anxiety in use of Mind your Own Business Accounting Software.International Journal of Economics and Financial Issues,5(1S). myob.com. 2015.Defining the challenges of a growing business. [online] www.myob.com. 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