Strategic Information System Small Business Accounting

Question: Discuss about the Strategic Information System for Small Business Accounting. Answer: Introduction Accounting is one area that is applicable in every single industry all across the world. The same has evolved over the years from the paper based to the automated information systems. The document covers the brief history of the accounting industry in Australia along with the development and adoption of the same. There are a number of accounting software and packages that are commercially available which have been described in the document along with the advantages that they offer. The challenges associated with this specific category of the software have also been elaborated in the report. History of Accounting Software/Packages Accounting industry saw some major revolutions right from 1970s. Prior to 1970, the traditional accounting practices were used all across the country which was followed by the double entry system and table methods. In the 1970s and mid 80s, personal computers were launched in the market which paved the way to client-server, proprietary accounting software packages. 1990s was the period when customer invoicing, supplier management and inventory were the features that were added in the accounting software made available to the customers. The latest development in the field of accounting software has been associated with Business Intelligence and Cloud Computing. These techniques are now applied to the accounting software which has enabled them to offer advanced features such as automated reporting, transaction management systems and many more. The various parties that are involved can now directly interact with each other which enhance the customer satisfaction as well (Ryan, 2016). Development and Adoption There has been a massive revolution in the field of digital innovation and technology over the past few years. The consumers in the present era look for a solution that is quick, easy to use and is also low on cost. The providers are now working towards making the same available to all of their customers. Accounting industry has also been affected by this change in the technology and the traditional paper based practices are now replaced by the automated information systems. The accounting software that is now developed integrates a lot many advanced features as the same is preferred by the users. These software and packages are developed in a manner such that they score low on cost and high on the technological aspects. Automation is a key component that is included while the development process in all the different elements of accounting such as reporting, transactions, records maintenance and likewise. The customers and the banking industry now adopt the software that fulfills all the features described above in the development process of the same (James, 2016). Current Market Size The Australian Accounting industry comprises of the firms that deal with a number of operations and services such as accounting, auditing and bookkeeping (www.afpbb.net.au, 2016). This industry is one of the few industries that did not get affected by the recent global financial crisis and got away with a few marginal losses. There are currently more than 9,968 firms that deal with the accounting services and operations and more than 133,000 Australians are engaged in the same. Accounting Services in Australia In resentment of the normal slight decrease in income for little non-utilizing bookkeeping undertakings because of the expansion of e-expense and rearrangements of individual assessment, it is normal that the Australian Accounting industry's income will develop at a normal rate of 5.5% over the five years through 2016-17 to achieve AUD 20.7 billion. Inspecting and other customary surges of income will assume a noteworthy part in this development as it is normal that cost rivalry will escalate and the quantity of business undertakings requiring evaluating will increment altogether in coming years. Accounting Software/Packages Current Leaders in the Market and their Competitive Advantage Intuit QuickBooks This is one of the most widely used accounting software in Australia and has a lot any striking features to offer. There are a number of reasons that make this software extremely popular among the users. The first and the foremost reason is the low cost associated with the same. The basic version is offered at $12 per month and the advanced version comes with a mere $21 on a monthly basis. The other reason is the bundle of features itself that come with this software. It allows the business owners and professionals across Australia to keep a track of their business income and expenses along with the revenues. This one allows payroll payments for free, manages huge amount of data, sends invoices and also manages the bills through desktop as well as mobile platforms. The software also scores well on the security mechanism as the level of security that is provided is the same as those of the banks (www.advisoryhq.com, 2015). MYOB Accounting Software MYOB is the accounting software that is one of the best among the ones available in Australia. The software was primarily designed to provide the basic accounting services to the users. Along with these, the software also allows the business owners to view the real-time picture of their financial operations and come up with better business decisions. With the advanced interface options, MYOB allows the integration of Point of Sale (POS) with the overall business operations. The software allows the online as well as offline usage of the same irrespective of the slippages in the internet connection. Other attractive features of the software that makes it stand out in the market are complaint capability, bookkeeping personnel and ability to be up-to-date with the compliance obligations. There are also a number of add-ons that are provided to extend the versions of the software. The cost of the software varies from $50 to $99 per month as per the version that is selected. Reckon Reckon is leading accounting software in Australia that suits the best for Australian businesses, accountants and bookkeepers. It is one of the most reasonable and affordable cloud accounting software present in the market. One of the prime features that provide competitive advantage to this software is its ability to manage all the Point of Sale (POS) transactions by linking the same to the desktop software suites. The other features include billing activities, management of credit, resource planning, digital imaging, tax processing and many more. It starts with the minimal cost of $5 per month and the same increases with the addition of features. Saasu Saasu is next generation accounting software that offers some of the brilliant features such as easy connect with the email, e-commerce store, CRM software and many others. It also allows the automatic alerts for the customers and has the ability to manage various categories of transactions in 50 different foreign currencies. This one is offered with the basic rate of $15 per month and goes up to $180 per month. Xero This is one of the most popular accounting software that is widely used in Australia. There are a number of advanced features offered by this software such as faster online invoicing, accessibility on the desktop as well as mobile platforms, advanced reconciliations processes, management of payroll taxes and many more. The starter version of this software comes with a cost of $9 per month and the premium one is offered $70 per month. Accounting Software/Packages - Challenges for users There are a number of challenges associated with the Accounting software that are faced by the users. Security issues are one of the prime concerns for the users. There have been cases of security breaches and fraud in the past that have been executed by the attackers on the accounting software. These issues possess a threat to the sensitive and confidential accounting information of the users. There is always a sense of insecurity due to increase in the development of newer security threats and vulnerabilities. Cost is another challenge that is faced by the users as the premium versions of the software come at a cost that is difficult to pay for the individual users on a long terms basis. Also, the startups and small scale industries find it troublesome to pay the cost (Crowder, 2016). Training requirements is another challenge that appears in front of the users. There may be some features of particular software that may be complex and difficult to understand. There is often absence of required user manuals for the same which make it tedious for the users to avail the benefits of the feature. Human error is another gap that is not always rolled back by all of the software. Such errors may have low to severe impact on the accounts of the users and the same can be extremely critical for the customers. References Crowder, C. (2016) [online] Techin.oureverydaylife.com. Available at: https://techin.oureverydaylife.com/disadvantages-accounting-software-1965.html [Accessed 21 Aug. 2016]. James, D. (2016) 7 accounting packages for Australian small businesses compared: including MYOB, QuickBooks Online, Reckon, Xero. [online] BIT. Available at: https://www.bit.com.au/Review/344651,7-accounting-packages-for-australian-small-businesses-compared-including-myob-quickbooks-online-reckon-xero.aspx [Accessed 21 Aug. 2016]. Ryan, E. (2016)The Evolution Of Accounting Software: Past, Present And Future |. [online] Gaaaccounting.com. Available at: https://www.gaaaccounting.com/the-evolution-of-accounting-software-past-present-and-future/ [Accessed 21 Aug. 2016]. www.advisoryhq.com, (2015) 5 Best Small Business Accounting Software in Australia. [online] AdvisoryHQ. Available at: https://www.advisoryhq.com/articles/5-best-small-business-accounting-software-in-australia/ [Accessed 21 Aug. 2016]. www.afpbb.net.au, (2016) The Australian Accounting Industry. [online] Afpbb.net.au. Available at: https://www.afpbb.net.au/Resources/TheAustralianAccountingIndustry.aspx [Accessed 21 Aug. 2016]. www.bankwest.com.au, (2015) Accounting Services Industry Report. 1st ed. [ebook] Bankwest. Available at: https://www.bankwest.com.au/cs/ContentServer%3Fpagename%3DFoundation/CS/Blob/Document%26id%3D1292539844555%26ext%3D.pdf+cd=3hl=enct=clnkgl=in [Accessed 21 Aug. 2016].