Accounting Software Packages in Australia Executive Summary This report highlights the weaknesses of traditional accounting systems used in companies and promotes the benefits & use of ERP based Accounting software solutions. The chosen company here is NAB (National Bank Australia). The report highlights the drawbacks of the current accounting system in NAB followed by the discussion of the benefits of ERP solutions like MYOB, Xero & Saasu along with their benefits & market shares, followed by recommended solutions for NAB. Introduction The software of accounting is refers a type of application or software which help in record the different accounting data related to the organisation for example this software record transaction of a particular organisation on the daily basis, record payment transaction, record receiving transaction, show the general ledger of the different accounts, show trial balance at the end of the month and act an information framework in context of accounts. This accounting software is divided into 2 different types first one is branded one, which is made, by the software company and the other one is prepared by the organisation and use the software personally. Part A Organisational Structure of NAB National bank of Australia provides banking services in the country of Australia. This organisation has at least 5 million customers in Australia. NAB have several bank branches, have, and give the service of web banking and ATM service for their customers of Australia. This organisation has different brands of banking are UBank and Advantage, This bank provides a different kind of kinds of the commercial bank to do business. This bank uses the traditional system in their accounting, which is very cost effective, but some it does not give the clear view and exact amount. This system consists of paperwork, which is not very well good nowadays in the view of data loss. Operational Issues related to Accounting System The accounting system of the NAB created error several time in the system of the transaction because the bank is using the traditional way of accounting by using this way the all accounting related task is done manually with the hand, so the system creates the error in the accounting system and also in the balancing of the account. Sometimes wrong entry also takes place because of the traditional way of accounting. The next issue is time because of using the old technique and do all work by hand it takes a long time to do a particular work, and it takes completely day and more employee to conduct the whole work. In the system of the NAB, it is found out that, many customers reported the accounting and balancing figure, which leads to customer loss for the bank. Many customers have to wait for the whole day in order to do their personal transaction. Acquisition of ERP based Accounting Software – Xero After notice, the different kind of accounting error by use of traditional accounting the management of the NAB is decided to ERP based Accounting Software, which helps to remove a different kind of accounting errors in the system. The management is decided to apply the Xero accounting software, which is an ERP based software. Xero accounting software is developed in New Zealand. Xero is cloud-based software came under the SaaS model of the cloud of service and managed on the monthly subscription. This software can help the organisation to do their work in an advanced manner and make the accounting figures in an exact way. As software, the data related to the customer can be stored in the online hard drive or on the local hard drive of the system, so there is less chance of data loss in the system. Flowchart Figure 1: flowchart of workflow in bank Sources: The workflow used in the bank on monthly basis the software give the full feature to the bank to do the entry of new customer in the bank and different related process related to new entry of a customer. This procedure is totally maintained the system software (xero). In addition, it gives the feature of giving several types of benefits to the customer in context of banking service Possible Problems & frauds & its counter The possible problem can take place with the xero software is that the xero software is full web based software which required a network connection to run and it also needs the proper web browser to work. This software does not give the full administrator right to the user, so the privacy level of the system is very low in nature. Sometimes link connection of the software become fail, and it takes a long time to recover back The solution of removing this problem is that when the user is working on a file, the destination of the file must be on the local drive of the system so that user can easily do the work in offline mode without the connection to the internet. In order to maintain the proper privacy the database of the software should link with the local hard drive of the system so user can easily update the data and delete the data as per their choice in order to maintain the proper link connection the user should use the good network connection which helps the user to give proper connectivity in system link. Part B Accounting Software Packages in Australia Well known Accounting software packages in Australia include MYOB, Xero and Saasu. These bookkeeping programming solutions are most cost-efficient for small-medium organisations. They come finish with Sales and Purchasing modules, Accounting modules, and furthermore Inventory modules. They are intense, yet simple to-utilise business programming, and are relevant for any sort of business. These business bookkeeping virtual solutions will help in handling deals and buys, keep track of payables, GST as well as those received. We get options to email our quotes, and solicitations. With an effective stock administration framework, we will know precisely what is in stock, on request and submitted. Market size of Accounting softwares From the table beneath, MYOB Essentials secures more income per unit contrasted with Xero. However it likewise has a higher stir rate. With higher edges, MYOB's LTV is likewise higher however specialists expect after some time Xero's will likewise increment as it enhances net margins. Figure 1:MYOB vs. Xero LTV calculation Source: Lessening client mix is essential considering the space in the cloud since clients have considerably high lifetime esteem contrasted with the desktop advertise. As indicated by the report, MYOB's yearly churn over its cloud client base is around 16.8% while Xero's yearly agitate between 12-13% in Australia. Figure 2: MYOB vs Xero shares Source: Leaders in Accounting software & competitive Advantages Table 1: MYOB vs. Saasu vs. Xero; Source: Author (from secondary research) Feature Saasu MYOB Xero Comments DASHBOARD Indicates outline of current money related position Rapidly observe bank parties, unpaid deals and bills. Saasu likewise gives an accounting report and P&L depiction. Option of Customisation In MYOB, the main part that can be modified is the business target sum. DATA IMPORT/ EXPORT Import & export out contacts, outline of records, things, solicitations, charges, bank explanations and manual diaries MYOB takes into account import of bank articulations, contacts and things and fare of business exchanges. MULTI-USER SCOPE Takes into consideration more than one client to work the product at once. All bundles take into account endless clients. BANK FEEDS Your bank information bolstered specifically into the bundle OR capacity to physically import bank explanations into the bundle Cherish bank nourishes, The next best thing since dishwashers were designed Simple conciliation and quick money coding The process of reconciliation is made so natural and quick by instinctive coordinating of your information to the approaching bank sustain information. Interface specifically from inside the bundle Xero offers 2 sorts of bank encourage to set up: Partner and Yodlee; Partner sort requires paper applications, and Yodlee sort implies you can associate from inside the interface. MYOB works likewise. CUSTOMERS Make and send solicitations to clients straight from the bundle Formation of estimates as well as orders As of now, Xero and MYOB don't offer the capacity to make deals arranges yet both offer the capacity to raise cites/gauges. Customisable solicitations, change notes and proclamations SUPPLIERS Make payables solicitations from inside the bundle Purchase orders As of now, MYOB does not offer buy orders. Handling of expenditure assertions Xero makes a superior showing with regards to of taking care of cost cases than Saasu GST & BAS Capacity to advance BAS reports to use in handling action proclamations GST Audit Recording & GST Calculation Log Saasu gives an assessment detail report, however, would be enhanced if a GST impose exemptions revealing element were accessible MULTI-CURRENCY Offering of multicurrency operating Multicurrency is not accessible in each arrangement - see evaluating joins for more data. REPORTS Offers complete collection of reports Bolsters formation of the Taxable Payments Annual Report Just for organisations in the building and development industry. Takes into consideration transferring and appending of records to reports and different exchanges Offers global exploration utility Saasu offers a hunt work known as Jump ,Xero offers to seek usefulness inside each bookkeeping zone. BUDGETS Offers planning usefulness Predicting Cash flow Saasu consists of an integrated tool named Forecaster INVENTORY Offers completely incorporated stock Xero has fundamental stock usefulness yet propose that you utilise one of their Add-ons for more strong stock. PAYROLL Offers completely incorporated finance Tables related to tax are refreshed consequently Awesome - no compelling reason to buy assess tables or programming redesigns on top of procurement of an item. POINT OF SALE Supports POS operations Both bundles utilize POS programming associated by means of API - see their Add-ons connects underneath. CONTACTS Capacity to transfer client and provider contact data to the bundle TIME TRACKING Worker timesheets and time-following JOB TRACKING Capacity to track tasks and classifications Saasu utilizes labeling for this component, while Xero has Tracking. MOBILE APP iOS and Android No offer of an Android app from Saasu ADD-ONS Capacity to associate with different online programming through API Saasu and Xero offer consistent association with numerous another programming. SUPPORT Free support available All bundles come finish with definite online help focuses. MYOB Essentials likewise offers a live visit benefit. PRICING Saasu Pricing $29/month including finance for 1 representative OR $40/month including finance for boundless workers. Xero Pricing Valuing of Xero and Saasu is changed. Subtle elements of what each arrangement offers can vary between each bundle. Limitations of Traditional Accounting Systems Conventional/Traditional Accounting frameworks have their downsides since they regularly wind up giving incorrect costing data prompts taking of wrong choices from the top administration if utilised for control tenacities or at settling offering costs or sending citations. In addition, the distribution of aberrant expenses doesn't really mirror the assets devoured by the finished results. ⦁ Overhead recuperation rates, for example, machine hour rate, work hour rate and so forth are utilised for ingestion of aberrant expenses i.e. overhead. ⦁ The aberrant expenses are designated and reallocated at item level simply in the wake of assembling of an item. ⦁ Trouble in accumulation, arrangement, portion and recuperation of overheads to individual items precisely. ⦁ The part of cost into settled and variable is frequently far-fetched. ⦁ In the present day innovation created business world, the greater part of the work is done through computerisation i.e. automation of manual work. Recommendation of ERP based Accounting – Xero ERP based bookkeeping frameworks help associations of varied dimensions see their organisation in a clear fashion. Reconciliation of information over the venture guarantees that we have more prominent permeability in every aspect of your business, from day to day operations to a key choice level. Use of ERP accounting solutions like Xero will help in: ⦁ Oversee operations from more than one office area ⦁ Diminish cost and asset wasteful aspects ⦁ Upgrade profitability, consumer loyalty, adaptability and control ⦁ Enhance correspondence and joint effort between all ranges of the business ⦁ Increase better control of procedures Conclusion The days of traditional accounting systems are gone. In the modern era of technological advancements, use of ERP based Accounting software systems is the de-facto in the industry. With so many features on offer, use of accounting softwares like Xero, MYOB or Saasu will definitely help NAB overcoming its present system drawbacks.