Discuss about the Accounting Strategic.
Accounting software is the software that is developed by the engineers for maintaining accounting transaction within a period of time. I keep the records of the accounting information system. These systems are used in a home for the business purpose or it can be used in the organization where a huge transaction takes place. To keep accounting records daily is very hard so this software is used by the companies so that by the help of this software they can keep records daily without any problem and the workload will also be decreased and there will be less headache. There are many accounting packages used in Australia such as Intuit QuickBooks, MYOB, Reckon Saasu and Xero. This accounting software is mostly used in Australia. But among them, MYOB is mostly used and it is top rated software among all the software. MYOB provide tax accounting as well as service accounting packages. The company was founded by Christopher lee and his team. Data tech is the company who use to publish the software in the market. When the company’s software was running successful and they are getting a huge response. And later Data Tech changed their name to MYOB and listed the name on the Australian Stock Exchange. The company has developed subscription-based product and a browser based accounting product. And they have their own flagship on their products. In the 20089 the Archer capital bought MYOB. Later in 2011, the company sold MYOB to Bain Capital (Feller, 2007). Last year MYOB again became an independent software developing company and the name of the company was again listed on the Australian Stock Exchange.
Development and Adoption
The company has developed many accounting software for the banking system as well for the business system. As the company is a trustworthy company and many banks and business runs on the software developed by the MYOB. The software that is developed by MYOB is Payroll software, time billing software, data entry software, job costing software and much other software. The company has developed double-entry accounting system as it posts every transaction to the accounts which are connected to the software. This software helps to take care on the invoicing and it also helps in cash management. This software is used by the small business organization has it helps them to develop the business faster because this software provides bookkeeping function. In a small business organization, daily expenses should be recorded so that at the end one can calculate the profit of the business. So it is hard to keep every expense in the mind so they developed a bookkeeping software for the small business organization. And this software so helps to generate the management reports and financial reports which include trial balance, balance sheet, and income statement. The company has adopted some business policy to develop the software of the company. They introduced cloud accounting services which are designed in such a way that made the business life easier (Khosrow-Pour, 2006). The company is playing a supportive role to many small business organizations. They are providing a free subscription for the 12 MONTH to the business organization so that they can settle their business. Their main aim is to encourage the development of the business organization in the Australia. Through a survey, it is stated that Australia is the easiest place to start up a business and this company is helping them to start so that they can have the right path to gain success in the market.
Current Market Size of the Company
The company invests huge revenue in the research and development to increase their market. The main rival of the company is Xero in the cloud product. Every year the client of the company increases to 10 percent. There is around six lakh paying users of the company and now this is increasing because of the introduction cloud accounting system. The company was running in a loss for the few periods of time but after the development of cloud accounting system the revenue has jumped from normal rate to extraordinary rate. The cloud accounting system has become very demanding in the market. In last few years, the company has invested a huge amount of money for the development of the cloud products. This cloud product helps MYOB to stay competitive with the products of XERO. MYOB’s $833.1 million was the biggest technical company listing in the history of Australia Stock exchange (McLean, 2006). The company has gained support from the many business organization and they are staying with the company as they are doing a good business in the market and this trust from the small business organization helping them to look forward to the further investment.
Leaders in the Market
As in Australia, the business organization is changing all the system as they are introduced with desktop accounting software with cloud accounting system supported. Around 80% of the business organization in Australia has acquired this style of the accounting process. This accounting process is easier and easy to handle as well as it is not time-consuming. The main important thing of this accounting process is that from anywhere one can access data from any place. Xero is one of the famous accounting companies in Australia. This particular company is the main competitor of MYOB. The company develops cloud-based software and it aims to reduce the inefficiency in the process of accounting. To start the software the company has two type of scheme one with $25 per month which enables limited users and a standard plan of $50 which includes five team members and unlimited transactions, invoices and bills. On the other hand, MYOB is the post popular accounting software company in the Australia. This company deals with normal accounting products as well as cloud accounting product. This is the reason it is preferred by most Australia business organization. Since from early 80’s this company is running and it has gained trust from the public. To start up MYOB essentials $29 is needed and to start MYOB Account right $49 is needed. As compare to XERO, MYOB provides much cheaper rate which attracts many clients. This business strategy is helping them to become the best among all the accounting software in Australia (Mlecnik, 2013). MYOB also provides more features in Account right software and it is only based on Australia. The software which is introduced by the company is user-friendly. These qualities help the company’s growth in the market.
Current Gaps and Challenges
The MYOB’s business has faced many challenges in this long period of time. So it is not possible to point out every challenge. To retain in this type of business the companies should have the ability to retain in the business and they should know how to attract the users to their system. The company has faced a challenge when they failed to increase the paying user base. This situation has taken place because the company at first does have proper cloud accounting system. At first, MYOB has failed to provide the client requirement as per cloud accounting process. On the other hand, they had invested a huge amount of money on the development of cloud accounting process. This problem increased the financial problem in the organization (Sheikh, 2013). Another main problem of the company is the current gaps. Due to the current gaps, the company has failed to improve its existing software which is running in the market. As the company is old they are failing in adapting the new technologies and changes.
To overcome these issues the company has to hire high graded employees so that they can develop the software in a new way. And the company should make an investment in such a way so that they could earn revenue from the investment. As smartphones are introduced in the market it is easier to keep records on the phones. So the company has to think upon the market condition and should update the product in such a way the client will be satisfied (Ward and Peppard, 2002). They should build a user-friendly software will be in need for that period time. New thoughts and ideas are needed for the product development.
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