With the advancement of information technology and computer science several accounting software are discovered and implemented in many companies. This type of software has brought a real time response in the organization’s functionality. Macquarie is an Australian financial organization which also implements accounting software to get an integrated and faster accounting service.
In this report the advantages and security related issues of accounting software are discussed on the basis of implementing those in Macquarie.
1. Current Organizational Structure
Macquarie is one of the biggest organizations in Australia. It mainly deals with the global investment and banking and diversified financial services. The head quarter of Macquarie is situated in Sydney. It has a huge number of employees which is almost 14000 and it has several office locations in more than 28 countries all over the world (Arvidsson, Holmström and Lyytinen 2014).
Macquarie has a well structured company having five operating groups and its structure is a non hierarchical one. There is a central group which is consisted of the managing director and the executive committee is consisted of Global chief operation officer and the heads of major operating groups. The risk management group, legal management group, financial management group, corporate operation group are the parts of the operating team. It is very important to maintain the functioning of the Macquarie and to make a good relation with the clients.
2. Operational problems due to the present structure
The present structure of the organization is designed in such a way so that the operations are done with better and faster response (Boonstra 2013). There are also some issues which can be overcome in order to make the organizational structure more effective. Those problems are discussed below.
- In this organization there are several groups of operations are designed like risk management, legal and governance group, financial management group and the corporate group. Too many numbers of operational groups can slow down the whole operation in the company. It is important to create a real time response in case of making the organizational affectivity in the operations.
- Sometimes the organizational structure has many issues regarding the communication among various groups. A proper flow of communication can be very useful in case transferring the information among several groups of the organization.
- The management of the organization sometimes fails to convey the main principles of the company to the lower order employees. They should be very transparent about providing the organizational goal to all the employees of the organization.
- Sometimes the higher level management does not listen to the lower level employees. The lower level employees should also take an important part to share their views about the several operations and they should take part in solving the problems of the organizations.
- The present organization structure should be more motivating for the employees who are working in the organization. There are should be levels in the structure on the basis of the ability and performance regarding the work of the employees.
3. Suitable system acquisition method
For being a financial and banking management organization Macquaire uses various accounting software and system acquisition methods like commercial software, custom software and ERP (Boulianne 2014). In recent days many advanced software are designed to manage the organizational structure which have brought an evolution in the accounting management. These types of software are created based on new algorithms and are consisted of several modules which can effectively provide the solution for the organizational.
The custom software is used in managing the accounting functions of an organization and the primary feature regarding the organization is that it can be designed with respect to the needs of the company. The command driven software and the commercial software help to solve critical problems and also provide the platform and environment for the new comers to learn about the features of the software related to accounting. In recent days the ERP software is used mostly and it provides best environment and features for accounting management. ERP stands for Enterprise Resource Management. The key elements of the ERP system are inventory management, materials managements, marketing and sales and production planning and many more (Galliers and Leidner 2014).
An organization is consisted of several departments like human resource, customer services, accounting distribution, corporate performance, customer services, sales, procurement, and production. The ERP system manages not only the accounting part but also interconnects all the departments of the company. It also effectively deals with business intelligence, enterprise asset management and e-commerce. ERP integrates the whole system of the organization and thus increases the response time and quality of the functions and products. The primary advantage of ERP system is that it acts as a real time operator and a common database which supports every application (Laudon and Laudon 2016). From this discussion it can be said that the ERP system is the most advanced accounting software.
4. Describes and prepare a system flowchart of the sales procedures for the chosen organization
5. Identification of the control problems in the system and possible frauds in the system
After the use of the accounting software in the organizations many cases are found in which the organizations have given lots of issues regarding the uses of the software. Since the software are newly developed and introduced in the commercial uses, old employees are facing problems in using the software (Machado 2016). There is a lot of difference between the classical accounting and the accounting using the software. If there is an error due to the software then it also brings that error in the real world. In many cases it is seen that the employees are facing problems regarding their salary due to some errors in the software. Then it takes a lot of time to correct that error again in the main system.
Many risk factors are also there in case of using the accounting software. As all the records and calculations of the company are operated in form of information, it also brings a new threat like hacking, data loss and security breach which can really be a security issue for the organization (Schiff and Szendi 2014). Natural disaster and power loss or loss of internet connection can also be considered as the issues regarding the software.
Development and adoption of the accounting software packages
In recent days due to the advancement of information technology and computer science several accounting software are introduced in the field of business. With the successful implementation of the software the demands are also increasing for these in accounting and management (Sampaio and Bernardino 2016). In the field of accounting software MYOB has brought a huge response with their new accounting software which are effectively providing solutions for several accounting issues.
Many advanced software like MYOB, Xero are used successfully in several organizations. iN this field the most revolutionary invention is the ERP system which is implement in most of the organizations worldwide (Rahman et al. 2015). This type of software is providing easy invoicing, smart reports and mobile software for the advancement of the functions related to the accounting and management of the organization.
2. Current market size
The amount of international income by Macquarie is almost 68%. It has more than 14,300 staff all over the world. Currently it is operating in more than 28 countries in the world. The amount of asset under management is A$ 479 billion. It has 14.7% returns on equity. The amount of net income of Macquarie is A$ 2.2 billion (Kelly 2017). Some records of the net profit are given below of the year 2016 from the website of Macquarie group.
3. Leaders in the market and competitive advantage among them
There are many accounting companies in the market which are also making a huge profit. Some of the biggest competitors of the organizations are Greenhill & Co, Lazard Group, TD Bank, the Charles Schwab Corporation and the Raymond James Financial.
The main advantage of the competitive environment among the organization is that the companies are interested in making the advanced accounting system (Pearlson Saunders and Galletta 2016). The response and services are automatically increased due to the competitive environment among the organizations. This competition also encourages the organizations to implement several accounting software.
4. Current gaps or challenges encountered by users or customers of accounting software
Since the software are newly developed and introduced in the commercial uses, old employees are facing problems in using the software (Gögüs and Özer 2014). There is a lot of difference between the classical accounting and the accounting using the software. If there is an error due to the software then it also brings that error in the real world. In many cases it is seen that the employees are facing problems regarding their salary due to some errors in the software. Then it takes a lot of time to correct that error again in the main system.
Many risk factors are also there in case of using the accounting software. As all the records and calculations of the company are operated in form of information, it also brings a new threat like hacking, data loss and security breach which can really be a security issue for the organization (Godfrey 2014). Natural disaster and power loss or loss of internet connection can also be considered as the issues regarding the software.
5. Recommendations for the accounting software
- The software should be fully upgraded.
- This software should be utilized in a well structured way so that it can be synchronized with the organizational structure.
- Software should be fully dedicated and should be active for whole day.
- The main feature of this software is that it provides real time response and in order to maintain these fast responses it should be maintained bug free.
- To maintain the security encryption and the firewall should be designed in a strong manner.
From the above discussion it is cleared that the accounting management has been advanced to a greater level due to the implementation of the new accounting software like ERP. There is some security issues which should be overcome for maintaining the information related to the organizational functionality.
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