Accounting software and its impact on business activities

Word: 1015 words

Background
A kind of application software that is designed to process and record the every essential
transaction of the business within the modules of accounting is known as accounting
software(Chong & Nizam, 2017). Accounting software is based on online which can be accesses
from anywhere at any time. In the today’s modern business world, implementation of accounting
software has become very essential to any kind of business organizations. Every business owners
from every corner of the world has started comprehending that just manual management of the
finance could not help them to achieve the targeted goals and objectives of the organization. In
most of the cases, traditional financial management system which helped business firms to
manage their financial activities more effectively is now a day becoming one of the main reason
for the loss of business.
With the main objective of solving this problem, various accounting software and application has
been designed and implemented. This system helps to effectively manage the financial
transaction of the business organizations and helps to easily operate the financial operation.
Different kind of accounting software ranges from simple to very advanced level. Simple
accounting system helps to store the individual record keeping. Whereas advanced accounting
system helps to properly maintain the journals, ledgers, assets of the company, salary and wages,
account receivable, account payable and many more financial activities. Using accounting
software and applications, manager can keep track of the various financial activities and
transactions which help to prepare the financial report instantly(Chenhall & Moers, 2015).
Research questions
For addressing the problems of the research, following questions has been administered.
a) What is the result of accounting software development in the overall performance of the
business?
b) How accounting software affects the performance of the business?
c) How developments of the accounting software affect the financial position of the
organization?
d) How accounting software affects the decision making and data security of the
organization?
Research objectives
The main objective of this study is to analyze the impact of accounting software on performance
of the business. The other specific objectives include:
a) To analyze the result of accounting software development in the overall performance of
the business.
b) To identify how accounting software affects the performance of the business.
c) To find out how developments of the accounting software affect the financial position of
the organization.
d) To examine how accounting software affects the decision making and data security of
the organization.
Theoretical foundation
Accounting software is regarded as very fundamental technology to enhance the efficiency of the
business organization. Implementation of an effective accounting software and application helps
to perform some financial operation of the organization very easily and it reduces the error while
measuring financial achievement of the organization. Implication of accounting software
supports the organization in drawing exact financial position with no any error and
mistakes(Busco & Quattrone, 2018).

Every business organization aims to enhance their performance in order to uplift the profitability
of the firm. Right planning and decision along with sufficient resources are essential to achieve
this goal. Adoption of accounting software has been regarded as the essential tool that helps to
draw the exact position of the organization and organization can make decision considering the
suggestion of the accounting software.
Accounting software provides reliable data and information that can used critically while
planning the organizational activities and making decision about the investment in business
activities. It helps to control the operation of the business and leads organization towards success
in the highly competitive business environment(Chong & Nizam, 2017).
Accounting software and applications are very easy to use by all kinds of business organization.
Small firms can make use of simple accounting system. Large international organizations need to
hire advanced systems of accounting software and technology. Due to ease of using such
accounting software, organizations can achieve success easily(Grande et al., 2011).

The benefits of accounting software on business activities involve:

Ensuring financial control
Adoption of accounting system gives permission to the owner to make control over the financial
activities.
Cost saving
Accounting software helps to draw accurate cost and revenue of the organization so that the
owner does not need to outsource the finance to an external.
Improving decision making
Accounting software provides accurate financial information so that owner of the firm can
decide where cost need to be cut down and where investment needs to be made.
Increasing security of the financial data
Financial data is regarded company’s secret information so it must be well protected. Accounting
system provides guarantee that data will remain safe as it stores in a centralized method which is
highly confined by firewalls.
Methodology
In this research plan, qualitative research method is used to discover the impact of accounting
software on operational and financial activities of an organization(Grossoehme, 2014). The
information in this report has been collected from the secondary sources and to collect the
information four different articles of different scholars has been evaluated related to this topic.
This research plan is totally descriptive in nature.
Ethical consideration
While preparing research plan, ethics and norms should be followed properly. Some of the ethics
has been considered while writing this research plan. They are:
Validity
This report meets the precise question of the research proposal.
Formulation of effective research questions
Effective research questions have been formulated which addresses the specific propose of the
research.
Research methods
Effective research method is selected and risk of using specific material must be eliminated.
Proper citation and reference
Reference used for the material gathered from other sources has been provided in proper format.
Conclusion
Accounting software and applications helps to draw accurate financial data and information of
the organization. Through this information organization can decide upon where they need to cut
the cost where they need to increase their amount of investment. This helps in saving the cost of
the organization. Accounting system also provides guarantee that data will remain safe as it
stores in a centralized method which is highly confined by firewalls. It helps to control the
operation of the business and leads organization towards success in the highly competitive
business environment.
References
Busco, C. & Quattrone, P. (2018) Performing business and social innovation through accounting
inscriptions: An introduction. Accounting, Organizations and Society, 67.
Chenhall, R. & Moers, F. (2015) The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, Organizations and
Society, 47.
Chong, Y. & Nizam, I. (2017) THE IMPACT OF ACCOUNTING SOFTWARE ON
BUSINESS PERFORMANCE. ational Journal of Information System and Engineering, 8
(1), pp.1–25.
Grande, E.U., Estébanez., R.P. & Colomina, C.M. (2011) 41B. The Impact of Accounting
Information Systems ( AIS ) on Performance Measures. The International Journal of
Digital Accounting Research, 11 (February), pp.25–43.
Grossoehme, D.H. (2014) Overview of Qualitative Research. Journal of Health Care
Chaplaincy, 20 (3), pp.109–122.