Importance of Accounting Systems

Accounting is one of the most influencing aspects related to the development of an origination and in order to facilitate this, availability of effective accounting system is largely important (Weygandt, Kimmel, KIESO & Elias, 2010; Anandarajan,  Anandarajan & Srinivasan, 2012; Schaltegger & Burritt, 2010). It helps an organization to classify different aspects that are related to making its accounts perspective efficient in overall management and operational context. These accounting systems are perfectly designed for organizational functions and thus provide a safe and effective approach to its assessment (Hall, 2012; Hall, 2010; Maskell, Baggaley & Grasso, 2016).

Areas like decision making, competitive analysis and progressive developments related to an organization is largely associated with a consecutive enhancement in accounting system and its relative operations. An efficient accounting system also boosts the economic possibilities related to an organization by mitigating key challenges and developing relevant approaches for further development. This proposal is largely related to the development of a major concept that reflects the importance of accounting system in the present day organizational management. It reflects the role as well as limitations that are related to the application of accounting system in the organizational structure.

2. Project Objective

Some of the major objectives related to this project are:

• To research and analyse the concepts and use of accounting in the business by the global organizations,
• To research the key challenges faced by the global organizations by the use of accounting systems

3. Project Scope

This project will be dealing with some of the major possibilities that are related to application of accounting systems in an organizational context. It will be assessing the implementation of accounting systems in business scenarios of an organization and identification of relative issues that are related to its development. It will also provide major perspectives that are related to the future of organizations in terms of applicable accounting systems.

4. Literature Review

Accounting is one of the most important aspect constituent of the present day organizational structure. The American Accounting Association describes accounting as a major fragment that is related to the development of decision making process under an organisation by identifying, measuring and communicating financial data related to an organisation(Daske, 2008). All of the major organizations depend on some or other accounting systems in order to facilitate the overall development of its business actions.

The accounting systems that are related to provide a stable and internationally accepted standard are agreed by various bodies. After this, a change in policies and legislation are also made that contribute to proper application of the recommended changes. These involve legal as well as financial bodies which play a major role and are impacted by the development of these modifications. 

In spite of the various advantages aspects, there are several challenges like affectivity, technicality, and safety, lack of speed and requirement of enhanced skills related to the development of accounting system in an organisation. The literature reflects inclusion of internationally accepted accounting systems that play a major role in developing sustainable perspective in accordance with the widely accepted aspects. In addition to this, a review will also be provided that can relate with the various issue which are faced in order to implement these accounting systems.  

Project Objectives

Systematic recording of financial statements and helping the organisations to analyse their respective market positions are some of the major roles of the accounting systems (Horngren et al., 2012; Chen, Tang, Jiang & Lin, 2010). Accounting has played a major role in context of Australian business structure as it has helped organisations to achieve financial stability and development for a major part of times (Jeanjean, 2008).

Human resource management, customer relationship management and business operations are some of the most influential aspects that are related to application of accounting system (Tollington & El-Tawy, 2010). The implementation aspects related to a communication system are largely related to factors such as availability of suppliers and security concerns related to the new systems. In addition to this, the accounting systems also require a significantly enhanced workforce in order to operate it effectively(Horton, 2013).

In addition to this, some of the accounting systems require ability to share information with a third party that makes its usage much more complex and less secure. These aspects reflect some of the major challenges that are related to development of an accounting system. In addition to these factors, there are several challenges that relate with accounting.

Some of the major challenges related to the development of accounting in an organisational context are:

• High implementation cost: This is a major concern related to development of an effective communication system. Along with a huge initial implementation cost the timely updates related to these accounting systems are also very high and this is a major barrier in efficient development of any organisation ((Ismail, 2014)).
• Involvement of different departments: Due to its wide area of acceptance and operation in order to maintain a high level of accuracy a combination of different departments like legal and finance is required which increases the issues related to its implication. This significantly reduces the overall implemental possibilities that are related to the accounting policies and standards thus restrict efficient business (Chen, 2010).
• Implementation Complexity: Accounting software uses a complex process of implementation and in order to facilitate that a considerably equivalent skill set is required. Employees often face difficulty in order to facilitate the overall implementation of these systems with the existing skills(Guerreiro, 2015).
• Unavailability of expertise: Similarly to its implementation, the operations of these facilities also require a significant amount of talent. This expertise is often lacked in majority of the organizational workforces and thus its operation becomes a major issue in some cases.
• Action gaps: In order to justifying the lacking of organizational workforce a supportive workforce is required which is related to application of further economic burdens in terms of high salaries and payment structures. This also accounts for the development of major gap between organizational objectives and applied actions(Bititci, 2016).

The Australian organizations largely relay over accounting systems in terms of their business operations and management. Sage 50, Xero and Intuit are some of the major accounting system based organizations which provide relevant solutions like cloud-based accounting system and effective integration system in order to achieve competitive advantages. Xero has largest market share in this industry accounting for around 65%; Intuit the second largest with market share of 20% and Sage 50 the least with 10% market share. These are the main organisations which provide a cost effective accounting systems to their respective clients(Bennett, 2017).

In addition to this, the recent developments are also related to the overall development of these perspectives as it helps in coping with major possibilities like information loss or theft. This is the major reason that all of the organisations attain a resemblance with the respective association of accounting systems in their core operational structure (Vasarhelyi, Kogan & Tuttle, 2015).

The application and association of accounting theories facilitate organisational requirements such as budget analysis, payroll analysis, sales analysis and stock analysis. Apart from these traditional advantages, the recent developments related to accounting systems have also integrated abilities like self-refreshing and factor customizations(Ismail, 2014). In addition to this some of the major applications that are related to the inclusion of accounting systems in organisational structures account for increased accuracy, developed efficiency and information management up to a larger extent (Sam, Fazli, Hoshino & Tahir, 2012).

This justifies the large scale use of accounting systems in Australian organizations. Association of Australian organisations with the application of accounting system reflects the majority of its advantageous factors and thus it can be considered as most suitable with the growing business needs.

5. Research Questions/Hypothesis

Primary Question

Project Scope

What is the role of accounting systems in context of an organization?

Secondary Questions

What are the major issues related to application of accounting system in an organization?

How can be the effectiveness of an accounting system is improved?

What are the advantages of applying accounting systems in an organization?

6. Research Design and Methodology

Research methodology is the process of research evaluation that is based on structure and effectiveness (Mackey & Gass, 2015; Panneerselvam, 2014). The aim of the present study is to analyze the association perspectives of accounting systems with relevant organizations with respect to their positive impacts as well as limitations. This study will be based over exploratory research basis in order to facilitate the resolution of research issues. In order to facilitate the accumulation of accurate and reliable research results, both approaches that are qualitative and quantitative are to be used in this research.

The method of data collection is one of the major factors that are largely responsible for the development of successful results associated with a research. In this research the researcher will be using both primary as well as secondary methods of data collectionas it will be helpful in assessment of each and every perspective that is related to overall development of this subject(Daske, 2008).

Collection of fresh and latest data will be carried out by the application of primary data collection which will be including personal interviews and questionnaire development. In addition to this, secondary data collection sources will be used to collect old information that is previously available in books, journals and websites. This method of data collection will be of major help as it will help in developing an all-round development related to the informational perspectives of the organizations and application of accounting systems in their basic operational frameworks.  

Qualitative research

In order to conduct the qualitative research, the researcher will be using theoretical tools and techniques (Silverman, 2016). The quantitative data analysis process will be done by facilitating the overall development of relevant conceptual as well as theoretical implications relevant to the respective study. The researcher will be using 3 books, 5 journals and 1 websites in order to facilitate this method of sampling and data collection process. All of these sources of data collection will be from reliable sources in order to facilitate the data validity and correctness in terms of its association with the respective issue.

The data collected from these sources will be of major use in order to facilitate the development of proper understanding of the subject. The selection of these data collection sources will be done on the basis of their relevance with the specified subject and thus completion of data collection will largely do in an efficient manner(Ismail, 2014). This section of research will be using pre-existing information sources that can be assessed in order to facilitate the overall development of this concept and that to in a pre-checked and justified format. This enhances the association of relevant possibilities of success full completion of this data collection process.

Literature Review

Quantitative research

The quantitative mode of research involves the use of various quantitative tools for collection of reliable and correct data. The research findings will be presented in a numeric or graphical value in order to facilitate the overall development of a major subject understanding and concept development. Primary sources of data such as interviews and questionnaire are two major possible methods that can be used in order to facilitate the overall understanding related to the data collection process. It will also ensure the reliability and correctness of data that is collected as these two methods of data collection are largely considered as some of the majorly important methods of primary data collection.

Questions related to the interview and questionnaire will be largely related to the groups that are associated with accounting perspectives of any organizational influence, this will help in accessing proper data collection and its relevance with the presented issue. The use of quantitative research will be very important in order to access relevant information from respective sources in order to enhance the understanding perspectives of this subject(Jeanjean, 2008). Initially, there are mixed feelings related to the application of accounting systems in organizations but with development of questionnaire a huge bunch of relevant questions will be raised and then it would lead to an overall development of the proposal.    

7. Research Limitations

A major limitation that is related to this research is the time constraint that is provided. In comparison to the vast area that this research covers availability of time and resources were some of the most influential aspects that can be termed as a major limitation. The in-depth researching possibility is also a major challenge as it will be requiring a much larger consideration of time and resource availability and that is not available with this research. This initiates a limitation in research area. Apart from the mentioned limitation, the research will be helpful in attaining reliable results.   

9. Conclusion

A major conclusion that can be drawn from this proposal reflects the wide area utilization of accounting systems in order to facilitate the overall development of an organization. It helps in developing the relatable approaches in the field of information management that can be utilized for an overall quality development of the organization. This proposal reflects accounting systems as major factors that are accountable for the development of financial recording possibilities related to an organization of its application.

The availability of major challenges like effectiveness, requirement of extra time and expertise but the advantageous factors related to it are of major importance. It helps in providing the organizations a reliable medium for operating their business. Use of in-house application and policies are some of the most influential aspects that are related to the development of major possibilities associated with the application of accounting system in organizations. Reliance of a large number of Australian organizations over the accounting system provides its feasibility and associated advantages.    

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