The use of accounting software in Commonwealth Bank of Australia

Document Type:Thesis

Subject Area:Accounting

Document 1

However, choosing the best, appropriate and effective system that can be incorporated into an organization to meet its demand and requirement is challenging. It is recommended that organizations select accounting software that is manageable, fits the organization and that can be updated in case of innovations or advancement in technology. Research shows that commercial banks in Australia are the leading organizations which are utilizing accounting software packages in their operations and that they are encouraging other organizations in that country to utilize the same. This paper will critically review Commonwealth Bank in Australia, which is leading in providing integrated financial services such as premiums, fund management, retails, institutional banking, product and services and share broking. Commonwealth Bank of Australia's Organizational Structure Operational problems associated with the structure Effective organizational structure helps the organization to achieve it's short-term, long-term and the strategic objectives. There must be effective communication between every individual working in the organization so that all departments are channeled at achieving a common goal (Jadhav et al 2011 p. If there is ineffective communication, important aims of the organization cannot be achieved since departments are moving in different directions. Moreover, both horizontal and vertical communication must be enhanced to ensure that clarification can be made where possible to ensure that losses are minimized as a result of poor communication. In addition, effective vertical communication ensures that duties are allocated perfectly and supervision is done accordingly. Teamwork and corporation among all members of the organization can be only achieved through designing an appropriate organizational structure (Moser & Caroline 2012, p.

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The problem of errors could occur in Commonwealth Bank of Australia due to lack of common accounting software, which is updated when there is the advancement of technology. The organizational structure is too long and every person in the structure must be consulted when the new system has to be installed hence time wasting (Šimůnek 2008, p. Moreover, the data that must be filled in the system so that the final report can be produced might contain errors hence affecting the whole process (Dimitriu et al 2014 p. The organizational structure of Commonwealth Bank of Australia may cause ineffectiveness if there is no good rapport between the management team and the subordinate who are working in the middle and the lower levels of management. System acquisition method There are the different method in which the organization acquires, install and adopt an accounting software in its operation.

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Control problem of the system There are various problem associations with the system while it is performing its operation. For instance, the issue of data insecurity has been prevailing in the most organization where unauthorized parties are seen to be accessing the information due to cybercrimes. This has led to the loss of information in Commonwealth Bank of Australia. In addition, when there is incorrect information entered in the system the result is always inaccurate (Jadhav et al 2011, p. Development and Adoption of accounting software Accounting software is utilized in an organization to facilitate the collection of information about and reporting of the financial viability of an organization. Developing and adopting accounting software is very critical to the organization especially those which deals with accounting and finance or commercial banks (Lalchandani et al 2015, p.

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It is very expensive to develop commercial software due to its technicality. Creating a team, which could be in charge of the project, is very important since the team supervises and ensures the successful installation and maintenance of the software. The Commonwealth Bank of Australia has ensured the development of the team whose responsibility is to ensure that there is effective usage of the commercial software that facilitates the accounting functions of the organization (Schorr et al 2009, p. These include preparation of several ledgers, cashbook, trial balance, purchase ledger and automatically adjusting entries in the system to achieve at the required report (Šimůnek et al 2008, p. Commercial banks have seen to be the leading organizations in the Australian market due to the use of software in their institutions, which are channeled toward meeting the need of the customers.

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The accounting software in the commercial banks of Australia does not only utilize the software for recording and processing functions only but the decision-making module in the software is also used by the top management to make decisions, which are intended at bringing the competitive edge (Kudo et al 2009, p. As leaders in the market, the commercial banks of Australia have reported a remarkable improvement in their performance due to the utilization of effective accounting software. Additionally, the small and medium-sized businesses are seen to be utilizing different types of accounting software at a faster pace (Dimitriu et al 2014, p. Leaders in market and characteristics that make them the competitive advantage Accounting software is computer software that is utilized in many organizations and institutions to record and process accounting transaction with useful modules such as payable module, payroll module, account receivable module, trial balance module and the overall function of report module.

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This accounting software is utilized at Commonwealth Bank of Australia and it assists the organization to perform its accounting functions without any kind of problem (Kudo et al, 2009, p. Moreover, the Xero accounting software is a very time-saving system as it facilitates its operation within a short period (Moser & Caroline 2012, p. Therefore, the software offers a competitive advantage in the market since there is no other software which can be utilized to facilitate faster processing and production of the report as the Xero software. Another feature which makes the Xero accounting software to contain a competitive advantage over its competitors is that, it contains an interactive dashboard which shows graphs and charts for the critical information such as bills need to be paid, invoices, bank balances and an icon showing the number of items which need to be reconciled (Jadhav et al, 2011 p.

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With Xero accounting software, expenses can be traced and added to invoice so that the organization's customers are rebilled. Various methods can be employed by the organization to solve some the problems associated with using accounting software in the organization. First organizations should install firewalls to prevent an unauthorized party from accessing the information of the organization. Secondly, before acquiring and installing accounting software, organizations should ensure that the system to be adopted is user-friendly so that the user could utilize it easily without problems (Moser & Caroline 2012, p. When accounting software has become outdated, the organization should adopt and install another one which is advanced in order to facilitate the proper and smooth running of the organization. Conclusion It is evident that the advancement of technology in Australia, has led to improvement of businesses due to availability of various advanced software.

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 Journal of Systems and Software, 84(8), pp. Šimůnek, J. van Genuchten, M. T. and Šejna, M. S. Patent Application 14/431,432. Moser, C. O.  Gender planning and development: Theory, practice and training. Conrad, M. Reccius, A. Klein, M. Hohendorf, M. Roesinger, A. Shirato, H. and Ogasawara, K. Differences in CT perfusion maps generated by different commercial software: quantitative analysis by using identical source data of acute stroke patients.  Radiology, 254(1), pp. Cairns, D.

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