The paper 'Accounting Software and Packages in Australia' is a great example of a Finance and Accounting Essay. Accounting is one of the essential elements of a business world that need not be taken for granted. Technological improvement and advancement have come up with more diverse and efficient accounting practices unlike using manual manipulations and balancing of books of accounts (Xu et al. 2003). Many companies in Australia have embraced this new technology by use of sophisticated and more efficient accounting software and packages that include; cloud accounting software packages that comprise of; QuickBooks Online, Intuit, Xero, and MYOB( Mind Your Own Business) (Booth, Matolcsy, and Wieder, 2000).
Most of the Small and Medium-Sized Enterprises (SMEs) have been at the forefront in migrating from analog accounting practices to digital ones to keep up with the increased competition in the business world. Before the year 2000, many small and large firms were complacent with the use of paper-based accounting systems until late that GST (Goods and Service Tax) was introduced. This essay focuses on the history of accounting software/ packages, development, and adoption, current market size, challenges that face the users of these software packages, and how they gain a competitive advantage. History of accounting software/packages Each of the accounting software/packages has a distinct origin that needs to be elaborated.
Cloud computing represents this accounting software and packages, which are in use globally. Cloud computing was given to birth in the year 1998 by Evan Golberg. By then, it was founded in the form of NetSuite to be a standout software in carrying out accounting practices that replaced paperwork. This was a web-hosted accounting software, which eventually gained fame all over America.
Bigger companies majorly used it because of how costly it was. This marked a new beginning for a journey that would be reckoned in a new future. This then spread to most of the parts of the world that were tech-savvy in carrying out businesses (Daniele and Mistilis, 1999). In 2001, Microsoft became interested in benefits that accompany cloud accounting. This led to them buying Great Plains, which was unarguably an ASP (Active Server Pages) model that had undergone evolution and survival to becoming the popular SAAS (Software as a Service).
In 2009, it was the highest point of usage of cloud accounting where numerous players took shape in the market while the competition is increased due to improved efficiency of accounting practices. These key players include Sage and Coda (Booth, Matolcsy, and Wieder, 2000). It was in the following year, 2010, where cloud accounting recorded the highest amount of revenue, which amounted to 1.19 billion US Dollars. This was majorly derived from the accounting segment. Australia was one of the principal contributors to this increased amount of revenue ever recorded in the history of cloud accounting.
In 2013, more than 73 percent of companies made use of cloud accounting apps. This was according to data derived from the Cloud Accounting Institute. More is expected in the future in the rise of revenue in this field of cloud accounting (Christensen and Eining, 1991). Xero software that is used by many companies and SMEs in Australia was created in the year 2006. This was done by Xero Limited led by Rod Drury. It is an online account software, which is cloud-based in nature, and it is geared towards achieving efficient and honest accounting services in businesses.
This led to Xero Limited buying the largest payroll provider in the entire Australia called Pay cycle. This new development led to Xero Limited carrying out payroll services on behalf of the company. It signaled a new move-in computer affiliated accounting services in Australia, which was to shape how people viewed accounting at large (Daniele and Mistilis, 1999). The same company went ahead to acquire online accounting jobs from various small and big businesses in Australia.
Invoice management solutions were also at the forefront when it came to the introduction of a more sophisticated software called WorkflowMax, which was created in early January 2012. Xero is nowadays offering business accounts software not only in Australia but also in cutting across many countries in the world. Many accountants have recommended the use of Xero accounting software in carrying out accounting practices that would have been tedious when dealt with it using manual procedures (Xu et al. 2003).
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