Discuss about the Literature review of Reckon QuickBooks for Accounting Software in Australia.
The small business accounting and book keeping software has been used in all forms of business enterprise (Broughton 2012). The small to large sized business enterprises have been using Accounting software for forming and marinating the accounts and databases. The accounting software and it use has become very reasonable. Schorr et al. (2013) have argued that the accounting software can be implemented for all the transaction processing and it is vital for small industries. The accounting software can be used for supporting the accounting abilities of the small enterprises.
The literature review of Reckon QuickBooks® as one of the accounting software system can be done for analyzing the role of accounting software in the management of accounting system of small enterprises. The market size of Australia can be summarized into the development and adoption criteria of the leaders of the market. The study would help in identifying the gaps of the use of accounting software in small business structure.
History of Reckon accounting software
Reckon was founded and created in 1987 for small scale enterprise. It facilitated the basic credit card and loan activities at the initial phase. In 1993, Reckon Quicken® was introduced in Australia and a new history was made. It helped in developing the personal finance software in Australia (Reckon Australia. 2016). In the year 1994, Reckon QuickBooks® was unleashed in the Australian market. It started being used for as major business software in small and medium business enterprises. In the year 1998, Reckon was expanded to New Zealand and South East Asia. In the year in 1999, Reckon increases the list to 167% and the software usage increased exponentially. The strategic partnership rose for Reckon QuickBooks® by practice management software in APS. 70% of the companies around the countries started using this Reckon QuickBooks® for three of the four accounting firm. In 2004, Reckon QuickBooks® had been named the best accounting software and it added the lineup for desktop super (Parate Jain and Kim 2016). Reckon QuickBooks® added docs and bill back in world’s largest law firms. Reckon QuickBooks® launched hosted the best comprehensive software for larger business growth in the market. In 2012, massive branding and virtual document management by Reckon QuickBooks® quicken online. The automated data entry started in 2013 and Reckon One as online accounting software. Reckon QuickBooks® has launched software in UK market.
Development and adoption of Reckon QuickBooks®
Development of Reckon QuickBooks®
The development of Reckon QuickBooks® has been accelerated with the development of technology. It is possible for implementing the Reckon QuickBooks® in every size of enterprise. The programming tools and development skills must be improved for forming an effective and efficient accounting processing tools (Parate Jain and Kim 2016). It has been developed with the help of integration and features over the same platform. Reckon QuickBooks® was initially suitable for small scale enterprise operations. They have started adopting various features for supporting the accounting system. They have promoted many users with the accounting software they use. There are various tools for facilitating the processing with the accounting system (Reckon Australia. 2016). They have started using cloud system for promoting the facilities of accounting system using remote access. Remote access, outsourcing, electronic payment system and payroll system have been introduced in Reckon QuickBooks® for the accounting and business proactive system (Schorr et al. 2013). Finally the system was adopted and developed for all scales of industry.
Figure 1: Development of Reckon QuickBooks®
(Source: Go.reckon.com 2016)
Adopted technologies of Reckon QuickBooks®
Reckon QuickBooks® has introduced many technologies for satisfying the customers. Additional track system for duration of activities, remotely accessing the accounting data and electronic payment system. The features of Reckon QuickBooks® are,
More than one users: Reckon QuickBooks® has formed and introduced the system for more than one users (Go.reckon.com 2016). It has helped in promoting the users with the multiple access from many systems. Effective and efficient user system and controlling of the system has been developed.
Scalability: Reckon QuickBooks® can operate on a very large scale and also in smaller scale (Reckon Australia. 2016). The accounting data could be stored and the database can be scaled as per requirement. Hence it useful for performance enhancement and sustainability development.
Market size of Reckon QuickBooks® in Australia
Reckon QuickBooks® has been commonly used software package for managing the accounting transactions of many enterprises in Australia (Huy 2014). The companies have started using Reckon QuickBooks® for keeping records of their transactions (either sales or purchases) and calculating profit or loss at the year end. Reckon QuickBooks® has competition market with Xero, MYOB and Intuit QuickBooks. All those three are the major market holder of Australia. However Reckon QuickBooks® also capture a considerable market share of accounting software using companies of Australia. The accounting software package has primary objective of expanding their business operations and customers (Rafaeli 2014). Reckon QuickBooks® has introduced number of options for providing support to the customers. The target of the company is to capture market from the rival Xero an MYOB accounting system.
Identifying the accounting software leaders of Australian market
The accounting software market of Australia has been distributed among the three large software system in Xero, MYOB and Intuit QuickBooks. However, Reckon QuickBooks® also cover a considerable market share (Huy 2014). The Australian market is dominated by Xero and MYOB. The smaller market enterprise uses Reckon QuickBooks® for most of the accounting operations. Xero has covered almost 60 % of the market followed by MYOB and QuickBooks at 13% and 17% respectively. The market share of Reckon QuickBooks® covers almost 7% of the total accounting market of Australia (Rafaeli 2014). In large scale business enterprise CA, VAR and SAP dominate the market.
Figure 2: Leaders of accounting software market in Australian
(Source: Easterly and Pennings 2014)
Competitive advantage by Reckon QuickBooks® against other accounting software
Reckon QuickBooks® has less market coverage than other accounting software marketing. The remote access and cloud service provided by Reckon QuickBooks® has helped in gaining small scale market condition (David and David 2016). Most of the accounting software that are used by the enterprises of Australia does not provide remote access. The Reckon QuickBooks® has easy and simple user interface for configuration. The software setup of Reckon QuickBooks® has easy setup procedure and maintenance for user access. It has helped in beckoning the software applications and getting edge of competition over the rivals. The shortcuts and accuracy of the accounting software is beneficial for reducing the errors of financial transactions and expenses of the using company (Lim and Perrin 2014). Hence most of the enterprises are using Reckon QuickBooks® for managing the operations of their transactions.
Identification of the gaps and challenges in Reckon QuickBooks®
The major gaps and challenges that are faced by the application of Reckon QuickBooks® are threat from the rival companies and security. The security lacks in the Reckon QuickBooks® for maintaining the privacy of transactions data (David and David 2016). The cost factor has played an important role for decreasing the use of Reckon QuickBooks® by accounting software users. The accounting software leaders like Xero and MYOB act as a threat for Reckon QuickBooks® and it market supremacy (Hossack 2015). Most of the organization has not been utilized for all enterprises. The accounting software has threat from many of the competing and rival companies.
Security improvement: Reckon QuickBooks® would have to improve its inbuilt security system. However, the users of Reckon QuickBooks® would have to investigate on the security architecture of data as well for its application.
Increasing online activities: Reckon QuickBooks® have to implement and improve the online services for gaining market condition. The features could have been used for improving the online and accounting distribution system of Reckon QuickBooks®.
The literature review of Reckon QuickBooks® had helped in understanding the role of the accounting software system. It has been analyzed for analyzing the role of accounting software in the management of accounting system of small enterprises. The study had helped in identifying the gaps of the use of accounting software in small business structure. The primary motive of the implementing the Reckon QuickBooks® in small scale industries and enterprises for gaining the fame and name of the accounting software. Reckon QuickBooks® has provided the market enterprises with the ease of more accuracy of the accounting software system. The challenges of Reckon QuickBooks® consist of privacy and security issue that can be solved by implementing architecture of the company. The issues solved can be sorted out and it would improve the security and dataflow of the software. Reckon QuickBooks® has targeted to improve the market capture and form their own online service.
Broughton, P.D., 2012. The Start Uprising: Eighteen Months of the Startup America Partnership. Available at SSRN 2186472.
David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
Easterly, W. and Pennings, S., 2014. How much do leaders explain growth? An exercise in growth accounting. Unpublished manuscript.
Go.reckon.com. (2016). Reckon API Integration. [online] Available at: https://go.reckon.com/api-developers/ [Accessed 4 Sep. 2016].
Hossack, S., 2015. Cloud-based accounting and productivity tools for practitioners and taxpayers. Taxation in Australia, 50(5), p.265.
Huy, D.T.N., 2014. Impacts of External Financing on The Risk Level of Viet Nam Software Industry During and After The Global Crisis 2007-2009.
Lim, N. and Perrin, B., 2014. Standard Business Reporting in Australia: Past, Present, and Future. Australasian Journal of Information Systems,18(3).
Parate, A., Jain, P. and Kim, K.H., 2016. Reckon: An Analytics Framework for App Developers.
Rafaeli, S., 2014. Advertising to finance software: the feasibility of soapware. The Economics of Information Systems and Software, p.44.
Reckon Australia. (2016). Reckon | Accounting, Business & Bookkeeping Software. [online] Available at: https://www.reckon.com/au/ [Accessed 4 Sep. 2016].
Schorr, M., Sylvester, M., Dopf, G., Henrich, D., Liebich, G., Conrad, M., Reccius, A., Klein, M., Hohendorf, M., Roesinger, A. and Soltek, R., 2013.Providing accounting software application as enterprise services. U.S. Patent 8,442,850