The Effectiveness of Accounting Software in Business

Contents
Introduction...........................................................................................................................................3
Research aim and Questions.................................................................................................................4
Literature Review..................................................................................................................................6
Research Design....................................................................................................................................8
Summary...............................................................................................................................................9
References...........................................................................................................................................11
Introduction

This report will explain the main impact of using accounting software in a small or large
business. Accounting software is now becoming a necessity for every company. Small
businesses have realised that manually handling finances would not help them produce the
desired results. As the world economy has become more globalised, businesses from all over
the world have been forced to compete with its competitors, posing new accounting problems
such as dealing with various currencies and adhering to a slew of financial and reporting laws
(Loyeung & Wells, 2016).

As a result, more advanced accounting software packages capable of handling complex

foreign accounting issues are becoming increasingly necessary. However, due to enormous
technological advancements, strategic methods for using accounting data have become
available. Accounting Software acceptance has become a critical factor in deciding an
institution's viability and performance, as organisations need more data, both economic and
non-financial, to cope with a greater range of challenges in the competitive market, and data
analysis ability and systems to improve to meet their information requirements (Yau-Yeung
& Green, 2020, October).

Money planning, which is meant to help businesses handle their expenditures more
effectively, has become one of the leading risks of health loss in several instances. Money
planning, which is supposed to help businesses handle their expenditures more effectively,
has become one of the leading causes of financial loss in many instances. Accounting
software provides improved precision by reducing or removing human measurement errors.
Doing a lot of complex equations by hand is a big part of manual record keeping. Early in the
cycle, an inaccurate estimate may have a significant effect on the final equilibrium. Computer
systems, on the other side, are practically immune to such mistakes. It should be remembered,
however, that accounting software is not impervious to human mistakes such as data entry or
translation errors. Accounting software helps companies to manage their accounts faster than
they could if they did it manually. Part of this improvement in speed is due to the use of
computers, which can process data even quicker than the human brain. Accounting software
also helps businesses to improve productivity by automating processes. Assume that a
company must keep track of sales tax on all of its purchases (Loyeung & Wells, 2016).
Instead of making a member of staff carry out the taxes longhand, accounting software might
be programmed to do so dynamically for every entry. The advantages of accounting
microsoft's speed and reliability are often accompanied by lower overall costs. Because an
accounting programme helps each representative of the finance team to accomplish more in
less time, a limited team might be required overall. As a result, the finance agency's
accounting and management expenses can be reduced. These savings, nevertheless, must
always be weighed against the cost of the programme and any additional hardware required
to run it. Filing your tax rates can be a time-consuming process that requires you to maintain
meticulous records of all of your company's payments. Accounting software advantages
include making this step simpler by centralising all of the company's financial information.
Tax return technology that combines with accounting systems is also available from
organizations like Intuit and ATX. This helps you to measure your own return in a semi-
automated manner rather than wasting time and money manually figuring out the data
(Escriva-Bou & Tweet, (2020).

Research aim and Questions

The main objective of this research is to understand the efficiency of accounting software in
business. Accounting software is a valuable tool to accounting professionals because it
greatly improves the productivity of the financial department. Aside from that, there are a few
other significant advantages of using this programme (Klippmark & Crawley, 2018).

The other aim of this research is to look into the effectiveness of accounting software
business operations. This research looks at how accounting information systems derived from
accounting systems can help business owners and managers recognize the importance of
using AIS to improve business efficiency. Previous studies have shown that using AIS is
critical for businesses to ensure their safety and sustainable development in an intensely
competitive world, as well as to improve their business business process level of competence
and effectiveness (Loyeung & Wells, 2016). 

It is also to look into the impact of accounting software characteristics on a company's

results. This research finds out various methods of Accounting software enables company
owners to efficiently manage their accounts, even though they are not accounting experts.
They can handle all accounting processes using their computers and other electronic devices
with a little preparation, and they won't have to pay third parties to keep their budgets in
check (Khosa & Wilkin, 2020).

This leads us to the key research objectives:

 To look at the effect of software productivity on corporate strategy.
 To look at the effect of model validation on company performance.
 To look at the effect of software simplicity of use on organizational effectiveness.
 To look at the effect of software quality assurance on company performance.
 To look at the effect of the accuracy of the accounting software on company
performance.

Accounting software enables company owners to efficiently manage their accounts, even
though they are not management experts. They can handle all accounting processes using
their computers and other electronic devices with a little preparation, and they won't have to
pay third parties to keep their expenditures in check. Accounting software automates core
estimates and administrative processes, as well as taking care of your sales system, so you
don't have to rely on a third party to handle your finances. Since all data is electronically
stored in a secure and controlled location, the programme will also reduce the cost with
printing and transmitting documents (Loyeung & Wells, 2016).

One of the most critical advantages of a good paid plan, as per professional accountants, is
that it eliminates human error, which is common during estimation and data entry. Income
statement inconsistencies may lead to problems that have a long-term effect on your
company, and the payroll system can help you avoid these problems. One of the most
significant benefits of applying advanced management accounting is this. You would struggle
to grasp the company's financial situation without the need for an automated fare collection
method. It gives you figures to help you find out where you can cut costs and where you
should spend more. Financial data is one of a corporation's most sensitive assets, and it must
be well-protected to avoid falling into the wrong hands. Your monetary data is secure in an
accounting system because it is stored in a centralised system that is shielded by firewalls. As
a result, only those with access rights can see the information. Business owners may use
efficient payment apps to build, maintain, and submit different forms of bills and receipts. E-
invoices, as well as their elements, can be personalised to meet the specific needs of a
company and created in the blink of an eye (Dunbar & Wynder, 2016).

This leads us to the Research Questions:

 What effect does software quality have on company performance?
 What effect does software reliability have on company performance?
 What effect does software convenience of use have on company performance?
 What effect does software quality of the data have on company performance?
 What effect does software reliability have on business performance?

Literature Review

The main question that this research paper tries to focus on is whether online software
systems are better than manual data handling for account systems of small and large scale
businesses. The main motive of any business organization is to facilitate a system of conduct
that ensures faster services and easier ways of handling the important information. The
authors’ journals and researches that inspired this report to gain a place is that they really
focussed on the issues that can be faced without an Accounting Software and what are the
advantages of it. This also makes it difficult for the user to find out the important data at once
from a huge chunk of raw data. Therefore, the major problem in dealing with the issue of the
company is to identify the problems that are faced by the company in maintaining their excel
sheets and thereafter providing a solution (Loyeung & Wells, 2016).

Yau-Yeung, D., Yigitbasioglu, O., and Green, P. (2020) addresses the main issue in dealing
with the manual accounting system in a business organization is the inefficiency of the excel
spreadsheets, maintaining poor security for the important information and lack of availability
of prompt shortcuts to find important information. The main issue of handling an excel
spreadsheet for accounting is that the fundamental data is hidden. Moreover, it is also often
overlooked by small and large business groups that while opening a spreadsheet, the user
witnesses the raw data all at once and therefore it becomes puzzling and confusing to select
the data which is more important.
  INEFFICIENCY OF EXCEL SPREADSHEETS
Khosa, A., Burch, S., Ozdil, E., and Wilkin, (2020) explains that using spreadsheets can also
result in difficulty since there are various situations where it becomes difficult to analyze the
data that is required. Therefore, analyzing the data also becomes difficult for normal people
as well as a lay man. Moreover, the major problem with using excel spreadsheets in a
business is that they are insufficient for recording the historical data which means that
historical data is not stored in the excel spreadsheets which makes things further difficult for
the company. 

 MAINTAINING POOR SECURITY

Malins (2019) highlights the second problem which however is the security of the data that is
recorded. The main issue here is that using excel spreadsheets also gives rise to various
dangers that may take place as a result of the maintenance of poor security of data. Excel
spreadsheets may attract various dangers such as security and integrity of data in the business
place. Therefore, another problem in using the excel spreadsheets is that there is a minimum
automation problem in the excel spreadsheets. This is why the problem is that using excel
spreadsheets may result in poor security and integrity of data. This is why there is a huge
problem. 

 LACK OF PROMPT SHORTCUTS FOR IMPORTANT INFORMATION

Dunbar, K., Laing, G., and Wynder, M. (2016) highlights another major problem that was
identified in this research is that there is a lack of prompt shortcuts for finding information
that are important for the business organizations. In this digital era, every piece of
information is available under one single click and therefore having the patience to search the
entire document to locate the important piece of information is very difficult. Thus, the
people mainly prefer availing online software services where information can be located at
once with one single click. Such software also provides time to time updates which help the
organizations to find their information at once in one single place. It is also important to
update the important information from time to time and update the accounting system which
is not available in the manual accounting systems.
This is why most of the small and large business organizations prefer to have an online
software system that provides shortcut methods to locate important information with ease at
once. Moreover, during using excel spreadsheets, the users are generally unable to review
their information that they have entered in the system (Dutta & Lerat, 2017).

Research Design

Accounting software is a type of computer programme that allows you to keep track of your
company's finances. The complexity of such systems will vary greatly, with some designed
for nothing more than basic bookkeeping and others designed to handle the entire financial
comings and goings of large corporations. Accounting software has now become a necessity
for every company. Business owners have realised that personally handling budgets would
not help them produce the desired results (Malins, 2019).

The aim of this study is to generate deeper insights and determine the relationships between
variables using descriptive and confirmatory methods of research. It is explorative since the
investigator is gathering information in an unorganised and informal way to investigate the
relationship between variables factors, and it is informative since the investigator clarified the
effect of variables used in this study. A questionnaire consists of a list of queries sent to
chosen participants for them to address at their leisure and return the completed questionnaire
to the investigator.

Questionnaire was used to gather data from participants in this research. Questionnaires are
used when they cover a broad sample at a cheap price and give respondents the opportunity to
provide thoughtful responses. The randomized quantitative research approach was used in
this study, which would be common among investigators because it removes biases by
encouraging results to differ depending on the population sample. Participants chosen by the
investigators in a non-probability sampling process, on the other hand, could have an effect
on the conclusions' credibility (Yu & Le, 2018, November).

The methods used in this study are experimental, concise, and informative. The quantitative
analysis methodology was used in this study because it allows for the collection of more data
to analyse the evidence and evaluate arguments and theories. For this study, primary data
were collected as it is more reliable and valid. An interview is a form for gathering primary
data that is well-organized. There are 2 parts to this article. The First Section included survey
data aimed at gathering information about participants and ensuring that they selected
accounting software users, while the Second Section collected data on the independent and
dependent variables. The survey had a total of 48 items, 45 of which assessed the variables
listed and 9 of which calculated the demographic characteristics of the respondents (Dutta &
Lerat, 2017). The Likert scales were used to collect data in the Second Section. In order to
collect data from answers, the study used closed-ended questions. To extract meaningful data
or details, the survey was organised in a 5-point Likert layout. In converting the Likert scale
to an internal measure, each point on the magnitude was given a weightage (Loyeung &
Wells, 2016).

SCALE WEIGHING

Very Important / Strongly Agree / Very High 5

Extent

Important / Agree / High Extent 4

Neutral / Moderate Extent 3

Unimportant / Disagree / Small Extent 2

Very Unimportant / Strongly Disagree / Not at all 1

A total of two hundred questionnaires were circulated, 150 were submitted, and 42 were
dismissed due to questionable responses. The data for this study was collected using a cross
sectional method. In this study, the randomized probability sampling approach has been used
as a systematic sampling. The auditors or users of accounting software who work in
Australian companies are the main target for this research (Dutta & Lerat, 2017).

Summary

To summarise, accounting software results are highly important and valuable to enterprises,
organisations, and the community. The distribution of accurate data is critical to the nation's
growth. Performance management is critical to increasing an institution's total cost. Prior
researches have shown that accounting information system adoption does increase a firm’s
performance, profitability, and efficiency operations. This research found a clear link among
accounting software features and business success, implying that having access to reliable
accounting data leads to organisational success. As a result, accounting software has an effect
on the financial results of Australian businesses.
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