Accounting Theory and Current Issues
November 21, 2023International Business Sample 1
November 23, 2023Introduction:
The research report deals with the study of the organizational structure and the issues regarding operation associated with it. The report describes the system acquisition method of the organization. The adoption and growth of the accounting software packages are illustrated in the report. The scope and market for Richard A Bobb are discussed in the assignment. Richard A Bobb practices as a firm of chartered accountants involving three partners, support staff, and a team of professional employees. The company offers different sections of professional expertise. The company provides expertise in tax planning, tax representation, and tax consulting (Campbell, 2015).
The company assists its clients in structuring accounting affairs to achieve the optimal outcome regarding tax in new ways. The services that are provided by the company basically regarding accounting, auditing, taxation consultancy, tax dispute resolution, taxation compliance, business valuation, migration services, tax advocacy and representation, self-managed superannuation fund, and tax compliance (Farantos & Koutsoukis, 2016).
The mission of the firm is to add value, generate synergy, and assist its team and clients in achieving personal success regarding finances by offering a wide range of highly professional services by continuing professional developments, engendering the environment of strengthening self-belief, strategy of goal-oriented winning, mindset of growth and impeccable ethics regarding ethics by leveraging the resources and expertise of stakeholders. The company has been developing with the advancement of time and the market for the accounting software package. The clients of the firm range from wider developers and builders to investors, business owners, and individuals for a variety of different transactions.
PART-1
Organizational Structure
Richard A Bobb follows a flat organizational structure with the CEO having supreme organizational control and power. An organizational structure that has all the functions of middle-level management and still has middle-level management eliminated from its structure is called a flat organizational structure (Hayward, 2013).
This facilitates the top management of the company to be in direct contact with the sales staff, the employees who are on the front line with the customers and clients, and the employees who are on the floor of the organization and deal with the clients and customers regularly. Irrespective of the breadth, the advantages of using this type of flat organizational structure by Richard A Bobb are varied. These advantages also include a faster and easier response time to the preferences of the clients of the company and altering conditions.
The domains of management that are provided by Richard A. Bobb assist a flat organizational structure only. It can be denoted that all the domains of the accounting software package are incorporated into a single flat organizational structure of Richard A Bobb. The accountant and tax service packages that are provided by Richard A Bobb are inculcated into the flat organizational structure of the company (Hughes & McDonagh, 2014). The functions of the company cannot be incorporated into a hierarchical organizational structure.
The service of accounting and tax by Richard A Bobb is very effectively handled by the company in a flat organizational structure. The current organizational structure of Richard A Bobb assists in creating a logical structure for the proper functioning of the company. Different departments of the company are under the direct supervision of the chief executive officer. Thus, no department has to undergo hierarchical stages for any kind of function and direct communication of both information and work can be efficiently done.
Operational Problem
The advantages of adopting a flat organizational structure are varied. On the other hand, the flat organizational structure of Richard A Bobb also gives rise to many issues and problems in the execution of the company. It is always hectic and stressful for one person to handle and manage everything in a company. There is probability for the single management to lose control over the functions of the company. The flat organizational structure is very much appropriate for companies that are not large-scale, especially start-ups. Richard A Bobb is a large-scale organization having massive functions and operations. In this case, the whole system can be threatened as the ratio of the managers is not in proportion with the rest of the employees (Lo, 2016).
The management fails to have proper and effective control over the management as there are fewer people to get hold of the unrequited behavior. There are fewer people for the support or backup of the decisions taken by the management of Richard A Bobb. The relationship of the individuals working in Richard A Bobb could undergo struggle and conflict may arise as the managers may have to deal with too many clients and employees at a time most of the days (Maharaj & Brown, 2015).
The managers may also find it difficult to be able to build a relationship with the employees on a personal level which is very much required to build and maintain trust. The managers need to build trust with employees as it is essential for the responsibility for the work and accountability for the company as a whole. This has the possibility of posing a threat to the respect and morale of the company at all levels of authority. There are also chances of having a power struggle in the company due to the current flat structure of the organization. Most of the time the employees in the company lack a specific higher authority to report or consult due to the flat organizational structure as most of the time the availability of the CEO is not certain.
This will give rise to a power struggle among the employees and more possibility of confusion. Employee retention in this kind of flat organizational structure can also be very challenging. The employees who give efficient performance are in constant search for an improvement regarding their working profile in the company and expect a raise in the pay scale. These employees would find it challenging to get satisfaction in the job under this flat organizational structure (Pita, Cheong & Corbitt, 2013). There is a huge possibility that these employees of Richard A Bobb end up seeking jobs in any other companies in the market where they happen to believe that their skills, talents, and efforts would be given better appreciation and recognition with a promotion in the profile and raise in the pay scale. Alterations in the organization are crucial including a lot of doubts.
The management of Richard A Bobb might consider the decision against the new opportunities with a renewed effort regarding the maintenance of the organizational structure which may result in the restricted growth of the organization in the long term. There is a possibility of unhealthy competition among the individuals working in the company in the flat organizational structure of Richard A Bobb which can lead to lowered motivation and lead to further confusion (Yang, Pita & Singh, 2013).
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System Acquisition Method
The system acquisition method that is most likely to fit Richard A Bobb would be the custom-developed software. The custom-developed software system acquisition method is appropriate for the company as the company is a large-scale company and cost is not a matter for the organization. Custom-developed software is suitable for this company as the processing requirements of Richard A Bobb resonate with the in-house application software that the company uses. Richard A Bobb has professional programmers along with highly experienced analysts. the company also has its group for internal information technology that makes the customer-developed software suitable for the company (Yang, Pita & Singh, 2014).
Richard A Bobb could make appropriate use of the service of the computer bureau or software house for its assistance in its work which would be insignificant for the organization as it is a large-scale company. Richard A Bobb has a highly experienced full-time developed team for the department. The company needs to attain the resultant software that is costumed developed software as it is appropriate according to the company’s requirements. Richard A Bobb can derive the advantages of using custom-developed software acquisition software. This involves the resultant program which would fulfill the exact needs of the company.
System Flowchart
The flowchart of procedures of sales (as shown in the Appendix) is an integral part of creating sales of the services of Richard A Bobb. The sale is the beginning of the engagement between the clients and the service provider. It can also be defined as the extension of the engagement in the completion at the prospective stage regarding completion. The provider of service through the salesperson marks the completion of the sales in response to a request or an appropriation, even an acquisition (Zubovic, Pita & Khan, 2014).
This is followed by the passing of the title of the service and the application along with the due settlement of the price of the services including the obligation that arises due to the seller’s requirement to hand over the ownership that is followed.
Control Problem
Richard A Bobb would have issues or problems regarding the software package such as threats regarding data security and data privacy.
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PART-2
The adoption and development of the accounting system package are essential for the complete realization of the benefits of the computerized accounting system by Richard A Bobb including the technical support. The Internet can be considered as the essential support that incorporates all the installations related to telecommunications due to which the inculcation of the accounting software package is required. The human resource has to undertake various functions and responsibilities in every department of accounting, technical and training skills, and computer centers that are considered essential for the availability of the staff (Yang, Pita & Singh, 2014).
The field of application, design, and development of information technology and accounting systems would have considerable implications due to the lack of an accounting software package. The human resources of an organization is an essential element that reflects the efficiency and effectiveness of the operation and execution of the computerized accounting software package. The accounting software package must have direct implications on the individuals at the human resource level.
Richard A Bobb has various advantages of using the innovation that is based on technology like the computerized accounting system adoption. Adoption and the growth of the computerized accounting software package develop the productivity of the company by making the service cheaper and delivering at a faster rate incorporating the development of the operations.
The current market size for the accounting software package includes China, the USA, Europe Japan, and other regions. The companies that have adopted and inculcated accounting software packages have provided the reference regarding the market for the software package and the distribution has been observed to have changed over the last 10 years. The market size happens to keep varying from country to country (Pita, Cheong & Corbitt, 2013). The current market size for the accounting software package is approximately 65% of the market share. Every company may have a various depiction of the specific market which may again vary from other companies.
The leading companies in the accounting software package industry in the market of Australia are Xero, MYOB, and Intuit. The competition for leading the market in the accounting software market is very much relevant.
Every business needs to have control of the track regarding the accounts which are easily implemented by these companies. Many organizations in Australia are including accounting software packages to minimize the hectic paperwork that has scope for errors, wastage of time, and costs.
The current challenges confronted by the clients or customers using the accounting software package are the lack of security, lack of efficiency, and weak service regarding reporting. The lack of accuracy, lack of new and innovative features, high costs, and outdated are also included as issues with the current accounting software packages. This software is complicated and not user-friendly (Hughes & McDonagh, 2014).
The users face worries regarding the lack of security of their data as unknown and foreign parties can gain access. Some solutions are limited and powerless in helping the users who need to get the business data out. This leads to disappointment for the users as the data is easy to put and difficult to retrieve.
The companies should concentrate more on updating the accounting software. The details associated with the software must be accurate and fast, without errors. Innovative and new features must be added to make the software more user-friendly.
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Conclusion:
The report illustrates the relevance of accounting software packages in the business organizations in the market. The major accounting software companies of Australia are leading in the market characterized by a constant growth of middle and small-scale business organizations. It is required that companies should include information-centric security for the accounting software to provide better services.
References
Campbell, J.A., 2015. Evaluating Strategic Information Systems Projects.
Farantos, G.I. and Koutsoukis, N.S., 2016. Strategic Information Systems Planning Of Public Sector In Economic Crisis: An Integrated Framework. European Scientific Journal, ESJ, 12(19).
Hayward, J., 2013. Vision and strategic information systems planning in the UK HE Sector. In Proceedings of the UK Academy for Information Systems Conference 2013.
Hughes, J. and McDonagh, J., 2014. New Avenues in Strategic Information Systems Planning Research: A Strategy as Practice Perspective. In Paper submitted to the British Academy of Management Conference.
Lo, J., 2016. Factors Facilitating Strategic Information Systems Innovativeness.
Maharaj, S. and Brown, I., 2015. The impact of shared domain knowledge on strategic information systems planning and alignment: original research. South African Journal of Information Management, 17(1), pp.1-12.
Pita, Z., Cheong, F. and Corbitt, B., 2013. A maturity model of strategic information systems planning (SISP): An empirical evaluation using the analytic network process. In Competition, Strategy, and Modern Enterprise Information Systems (pp. 277-302). IGI Global.
Yang, J., Pita, Z. and Singh, M., 2013. A conceptual framework for assessing Strategic Information Systems Planning (SISP) success in the current dynamic environments. In 24th Australasian Conference on Information Systems (ACIS) (pp. 1-10). RMIT University.
Yang, J., Pita, Z. and Singh, M., 2014. Measurement of Determinants for Enhancing Strategic Information Systems Planning (SISP) Success and Dynamic Capabilities in South Korea. ACIS.
Zubovic, A., Pita, Z. and Khan, S., 2014. A Framework for Investigating the Impact of Information Systems Capability on Strategic Information Systems Planning Outcomes. In PACIS (p. 317).
Appendix
Figure 1