Literature Review

Discuss about the Technology and Accounting Software Been Beneficial in Accounting Industry and Accountant.

Research Topic Introduction

Over the past few years technology has changed the accounting industry in an exponential rate. This has imposed a drastic impact on the way in which the individuals work within the organization and the ways they manage the distinct aspects of the business operations. Accounting information system has increased importance in developing quality accounting information for a broad range of users (Taleb, Gibson and Hovey 2015). Focused on this situation, the current research is focused on explaining the impact of accounting technology on accounting processes and as a consequence on the quality of accounting information systems. The paper will also evaluate the basic advantages and disadvantages related with the newly established accounting technologies that have impacted the performance or sustainability of accountants within the selected organization that is Wesfarmers.

Overview of the Company

The organization that is selected for analyzing the advantages of accounting software technology within the accounting industry is the Wesfarmers Company. Through the selection of this organization it will be simpler to understand the ways in which the accounting software use within the company can pose threats for the company’s accountants and entrepreneurs (Vasarhelyi, Alles and Kogan 2018). As observed from the annual report of Wesfarmers Company, it is observed that the company is involved within business operations like supermarkets, convenience stores, hotels, liquor, office supplies, home implement and business divisions within energy and safety goods. The company is positioned as one of the major retail companies in Australia that considers using technologically advanced accounting software for its business activities.

Research Problem and Probable Solutions

In the current global business environment certain issues has been observed in the current business environment advanced technologies are being implemented that is posing several implications as well as threat for the accountants. It has been observed that accounting software affect the accountants and the entrepreneurs in regard to the data leakage (Warren Jr, Moffitt, and Byrnes 2015). The accounting software used within the accounting software that is withholding it within the companies and the job of accountants are taken away in the near future because of technological replacement. Another issue is present regarding the trustworthiness of the accounting software by the accountants or entrepreneurs. Issues are also present regarding the fact that few accounting software can be costly to implement. Considering the same, several solutions regarding effective use of accounting software will be presented in this paper to enhance business productivity in efficient and timely manner (Zeff 2016).

Research Methodology

Report Structure

The first section of the paper is to introduce the research topic along with offering detailed overview of the selected company in this report. This section will also explain the research problem and likely solutions that are to be proposed in this research. The second section of this paper will explain the literature review on the selected study subject. This section will analyze the previous research available regarding the benefits attained by Australian companies after using suitable accounting software. The third section of the research will explain the research methodology that will be used in this research. This section will explain the research type, approach, data type used, data collection, sampling and sample size, data analysis technique and ethical considerations for the current research.

In the current global business environment certain issues has been observed in the current business environment advanced technologies are being implemented that is posing several implications as well as threat for the accountants. It has been observed that accounting software affect the accountants and the entrepreneurs in regard to the data leakage. The accounting software used within the accounting software that is withholding it within the companies and the job of accountants are taken away in the near future because of technological replacement. Another issue is present regarding the trustworthiness of the accounting software by the accountants or entrepreneurs. Issues are also present regarding the fact that few accounting software can be costly to implement. Considering the same, in order to address the identified research problem the following objectives are set:

• To analyze several drawbacks of accounting software that might indirectly or directly affect the accountants and entrepreneurs
• To evaluate whether the accounting software establishment can affect the job opportunities of accountants in future
• To evaluate whether the accounting software can be totally valid for use for the accountants in consideration to data leakage along with other disadvantages associated with accounting technology
• To evaluate whether the accounting software and related technology has supported in enhancing the accuracy and productivity of the business
• To analyses whether the accounting software are highly cost to be established within the small business companies

Impacts of Technology in Australian Accounting Industry

Alles, Kogan and Vasarhelyi (2018) stated that the increasing use of technology within accounting was attained that leaves a permanent impact on the Australian accounting industry. The previous research has explained five ways in which technology has transformed the accounting industry over the past few years that are explained below:

• Specialised accounting software: Alles, Kogan and Vasarhelyi (2018) elucidated that there has been emergence of highly efficient proficient tools along with specialised accounting software which facilitates faster input as well as data computation. It is also vital to be specific in the computations at the time of carrying out accounting operations in decreasing issues related with tax penalties. Accounting software has turned highly traditional of white collar industries within dynamic profession that has decreased that further enhanced productivity of the companies.
• Cloud based systems: Bennett and James (2017) explained that several accounting companies in Australia are employing the cloud based accounting systems in order to streamline al their accounting information. Attaining records in a digital structure and within a comprehensive system indicates that the accounting will be highly capable to manage as well as retrieve files as per the need. Employing simple cloud based accounting systems can decrease the file maintaining expenses.
• Mobile accounting: As individual are turning out to be highly dependent on mobile devices several mobile applications are introduced for managing companies accounting functions. This can facilitate the organizations in sending invoices, adding receipts along with generating expense claims. Bhasin (2015) stated that mobile devices has increased connectivity among accounting organizations that has developed better relationships among consumers and its accountants.

Use of Technologically Advanced Accounting Software in Australian Accounting Industry

According to Cleary and Quinn (2016) technology has impacted numerous accounting organizations in Australia in their everyday financial recording. However, it is also evidenced that every accounting software or technology needs manpower for better functioning or operation. In case the data or information sent by the employees are not complete or reliable them misconception regarding the report generated through technology will take place. Coyne, J.G., Coyne and Walker (2016) also stated that the accounting software needs customization to fit within the business needs and it is important for the organizations to train its employees for better software use that involves huge time and cost and also conditions of economic and technological realities have reflected limitations in accounting technology. Flick (2015) indicated that the interactive and cognitive abilities are promoted by workforce involvement within the organization as well as computer technologies. The researcher has also believed that communication abilities, literacy along with the self planning abilities are significant for employees to deal with advanced accounting technology, numerical as well as problem solving skills. In contrast, Guthrie and Parker (2016) stated that technology requires manual control of the employees and for better accounting technology use certain better employee skills are needed in order to gather effective and relevant data. It is also evidenced by these researchers that increasing academic skills and experience is needed for the technologies for working in a better way in the organization. For this reason, it can be indicated that technological advancement within the accounting industry ahs only supported accounts to an extent.

Advantages of Accounting Technology

Hopper and Bui (2016) elaborated that the accounting system is impacted greatly by the organization technology as the companies are being highly complex as well as competitive with respect to international extension and company structure that are obliged to deal with large information volume. Humphries (2017) also stated that technology turned out to be a great help for the company’s accountants in being capable of faster and effective decision making relied on real time information. These researchers have also made increased attempts in clarifying the technology impacts in the accounting industry. It has also been evidenced that computerized systems have supported several Australian organizations in tracking, evaluating as well as recording financial transactions that has huge impact on the company facilitated by technologically advanced software used within accounting industry. Janvrin and Watson (2017) elucidated that advanced accounting technology has also facilitated the management considerably in making effective decisions. In addition, enhanced accuracy, fast processing, better functionality and superior external reporting are the advantages related with accounting technology.

Managerial Implications of Using the Accounting Software in Wesfarmers

The literature explained in above sections explained that the technology has impacted several manners of accounting procedures and also elaborates several drastic impacts of technology within the business as well as accountant jobs in Wesfarmers. Jasinski, Meredith and Kirwan (2015) stated that accounting technology offered a drastic support to the accountants and supported the companies and businesses to operate in time effective and better way. Conversely, accounting technology is also deemed to affect the future generations accounting job as technology has the chance to replace the accountant job of individuals. Kogan, Sudit and Vasarhelyi (2018) evidenced that accounting technology has also resulted in the businesses to develop misconception as technology is completely relied on employees for their functioning. Considering same, in case range data entered within the system develops numerous errors as this can result in the businesses to operate with misconceptions. Ledford and Gast (2018) indicated that technology also has concerns related with security and adaptability to its new users for the reason that technology might be different from one company to another. In this situation the company’s employees might find it complex to adhere with different accounting software and technology. These researchers also explained that the accounting technology can encompass several cost as well as time consumption to the organization as it requires to train its employees in using the technology in better manner and effectively. Lewis (2015) added that this is because accounting technology itself also encompasses cost at the time of purchase. For this reason, technology needs to be supportive to the accountants as well as the companies only to a certain extent. Moreover, the limitations of accounting technology use can be effectively gathered at the time such accounting software technology is highly useful to accountants in order to enhance the business productivity and can be able to conduct accounting process accurately, effectively as well as efficiently. Fast processing, increasing functionality as well as superior financial reporting quality serves as other advantages of accounting technology.

Limitations of Accounting Technology

Mackey and Gass (2015) stated that several huge and small organizations are these days supported with the technology in order to manage their operations or accounts. These researchers also indicated that accounting technology serves as a vital factor for any organization for the reason that it can improve the accounting process speed, the change flexibility when desired as well as safety of the information at the time of storing. Malmi (2016) indicated that the technological advancements within the accounting sector are dramatically transformed by means of technology as the computers and the relevant technology that has considerably enhanced the productivity. This has been possible as numerous accounting technologies has considerably increased the productivity of the organization through rapid exchange information, research as well as faster collecting of financial information. In contrast, Panneerselvam (2014) stated that conducting business activities associated with the accounting activities has been transformed because of the reason of technological advancements. Growth within the technological area ages attained reforms within economic, financial, social and culture areas. This information era has attained a drastic changes within the information technology usage within the business that has impacted the accounting closely. Panneerselvam (2014) gathered that the necessity of keeping up with the changing situations of the information technology has facilitated practitioners to alter and train themselves as per the new software or business. The accounting professionals are required to maintain such types of accounting technology within the Australian organizations. Success of the organizations are greatly relied on the accounting education of the staff and for this reason adequate experience and training is needed for a graduate employee in order to address the needs of accounting within this advanced technological era.

Rezaee, Sharbatoghlie, Elam and McMickle (2018) have revealed the similarities within their researchers through elucidating that the accounting technology as an effective role to play within several accounting process within the modern business world. These researchers have also presented a view that the organizations are greatly affected through advanced technological reforms that in turn has directly affected the efficiency, productivity and reliability of the business operations. In contrast, Silverman (2016) presented a view that the accounting technology might not operate in an effective manner devoid of appropriate training and knowledge offered to employees that operates. In addition several limitations such as miscalculation, security concerns as well as several other drawbacks are elucidating in previous researches.

Type of Research

Descriptive research type is intended to be chosen for this research for the reason that it can effectively facilitate in analyzing the ways in which the new accounting software implementation provides useful implications along with threats for accountants in Wesfarmers. This research type can also facilitate in elaborating the ways in which the accounting software is deemed to be costly in implementation and is observed to replace the jobs of accountants (Warren Jr, Moffitt, and Byrnes 2015). Descriptive research method also facilitates in explaining condition in the organization after using accounting software in managing business operations. Moreover, it also supports in making effective estimations on the use accounting software within Australian organizations.

Justification of Research Approach

Quantitative research approach will be used in analyzing the positive and negative impacts of advanced technology based accounting software use within Wesfarmers. This research approach is selected for the reason that it facilitates in reliable analysis of the collected data in providing suitable research findings (Taleb, Gibson and Hovey 2015). In addition quantitative research approach can also support in providing important information regarding subject of human inclination as it requires a huge research population for analysis. In consideration to that selection of employee sample will be selected in Wesfarmers are chosen for evaluating the use of technologically advanced accounting software within Austrian organizations.

Data Type Used

Secondary data type will be used in this research for analyzing the ways in which technology or new accounting software are used in the Australian companies or Wesfarmers. Secondary data regarding this research subject will be gathered by means of employing previous research papers, journals, articles, books along with the company website and annual reports of Wesfarmers (Taleb, Gibson and Hovey 2015). Analysis of the literature review will also be considered for attaining significant data on accounting software use impacting the accountants within Wesfarmers and accounting industry of Australia. Collection of relevant secondary data will be done for attaining effective research findings aligned with the set research objectives.

Collection of Data

Case study data collection process will be employed for gathering relevant data on accounting software use within Wesfarmers and its likely implications as well as threat faced by its accountants and entrepreneurs. This data collection method is used in this exploration for the reason that qualitative research method is employed in this investigation and the case study method will be most suitable in analyzing the contemporary real life situations through applying the findings of the case to the research problem developed in this study (Warren Jr, Moffitt, and Byrnes 2015).

Sampling Method and Size

In this research of analyzing the advantages and threats related with the use of technologically advanced accounting software within Australian companies such as Wesfarmers, non-probability sampling method will be used. In this sampling technique, the samples will be collected in a manner that it offers chance to all the individuals in the population to get selected in the study. This sampling technique is used in this research for the reason that it is the best suitable sampling type for qualitative research type and thematic analysis process. In non-probability sampling, convenience sampling method will be used for the reason that offers easier, quicker and cheaper research findings. This sampling method is useful with use of the explanatory research as it intends to find the issue or research problem along with supporting an existing theory.

Data Analysis Method

In order to analyses the data that is gathered from the secondary sources thematic evaluation will be considered. Thematic data analysis technique used in this research will facilitate in analyzing the advantages as well as disadvantages related with use of advanced accounting technologies in the organizations such as Wesfarmers. Qualitative data that will be gathered from employing secondary sources will be analyzed through conducting thematic research analysis (Taleb, Gibson and Hovey 2015). This is for the reason that this analysis process can support in evaluating the identified patterns and themes and analyzing them through such data. Thematic analysis can efficiently evaluate the qualitative information for obtaining relevant knowledge regarding the viewpoints offered by the company, individual, situation or the culture.

Ethical Considerations

For conducting research on the benefits of employing accounting software within the accounting industry and the selected company Wesfarmers proper and reliable ethical considerations are maintained in maintaining reliability of research findings (Warren Jr, Moffitt, and Byrnes 2015). It maintaining ethical obligations for the research, the researcher has considered following suitable code of conduct in conducting every important processes in the secondary data collection process. The researcher has entertained that while carrying out thematic analysis secondary data has been gathered from reliable and peer reviewed journals, articles and authentic government websites along with annual reports of Wesfarmers

References

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