Technological Advancement in Accounting Systems of SME
The small-scale and medium-sized enterprises work at the grassroots level where the government of any country is unable to reach. However, their contribution development as well as enhancing the level of growth inclusive of all the macroeconomic as well as the microeconomic factors that influence the economy is much more in case of small scale as well as medium size enterprises in the context of Australia. It has been found that the small scale and medium-sized enterprises execute different type of activities through implementation of these activities they encourage functionality of the common people in the country engineered empowerment as a whole. Hence the perspective of the small and medium-sized Enterprise is not only to boost the economy through it inclusive growth initiative but also to bring qualitative change in the over the environment of the country by accomplishing the sustainable activities. The major importance of the fact is that affected accountability enhances the quality of business performance of the small scale and medium-sized enterprises. It is essentially required to enable the implementation of the tools that are equipped with advanced technologies to raise the level of for business performance of the small and medium-sized enterprises throughout the country of Australia. Incorporation of the literature review, it has been found that there is a compelling need for execution of technological advance system in the sphere of accounting and financial management to effectively increase the level of impact of every financial decision making and transactions of forms in case of the small and medium-sized enterprises. Apart from that, the constant conclusion done by considering the issue of the loopholes that exist in the current scenario of the small and medium-sized enterprises regarding the gap in the financial effects that creates the possibility of financial anomalies as well as falsified transactions of financial information. The methodology of the research is being equipped with the implementation of appropriate tools and procedures to render directly to the nature of finance in the segment of small and medium-sized enterprises for effectively taking under consideration of the financial transactions and the accountability related to them in a technologically advanced manner. The study deals into the fact that how technological advancement can raise that affectivity of the nature of accountability in the case of financial decision making as well as providing solutions to financial anomalies that have been created or get created particularly in case of small and medium-sized enterprise the context of Australia.
Introduction to the Research
The modern system of every business encompasses the role of technology in supporting the accounting information system that is crucial in running the organisation as well as the business that is being performed by any organisation within the market. In case of small and medium enterprises, the same is found to be true because they are not small or medium size organisation due to their lower market share but due to their target consumers. However, the current state of the organisation reflects the fact that these enterprises are growing day by day and the numbers of stakeholders that are getting allied with the business are considerably increasing monotonically. With the advent of technological tools and advancement of managerial approach towards large scale as well as a small-scale business, the accounting system also has to traverse a path of renaissance (Norris and Vaizey, 2018).Hence, to ensure that the performance of the businesses that are being executed by these small and medium-size companies are optimally efficient as well as their contribution to economic growth is appropriate, the accounting subsystem regarding their every activity from fund allocation to implementation are in need of effective utilization of improved performance through adoption of better technology.So the research delves into this situation to put forth as well as create the essentiality of revitalising the technology-based accounting practices in the respective organisations coupled with advanced technology so that the process of the business can run smoothly.
Research Problem & Objectives
The major problem of the research encompasses the role of technology in supporting the accounting information system in small and medium enterprises. Specifically, Australia is abundant with small and medium-size business enterprises that are being compared to large corporations. So this situation creates the essentiality of revitalising the accounting practices in the respective organisations so that the process of the business can run smoothly through the involvement of all the efficient financial tools as well as the effectiveness of the operational management.In comparison to multinational companies, SMEs is one of the crucial sectors that triggers the economic growth and hence the research problem substantiates its plinth is ensuring the effective practice of the business through the accounting system.
The problem of the research can be put forth in the form of questions as follows:
- What is the effect of technological alignment with accounting function in SMEs about productivity level?
- What is the effect of information management generated by use of technology in accounting information system?
- What is the effect of technological infrastructure in the accounting system in the overall performance of the organisation?
- What are the security risks of tapping cloud technology for an accounting by SMEs?
- What is the effect of adopting tax software on understanding organisation's tax liability?
- What is the effect of technology on analytical tools for accounting in decision making?
The objective of the research is to determine the influence of adoption of technology in the accounting system of SMEs to improve on their performance.
According to Bouazza (2015), the small and medium-sized enterprises are in the verge of emergence as new business entities due to their effective contribution to the economic growth as well as rendering to the development of the overall economy. This aspect of these firms is due to the reason that they may be firms of small size. Regarding earning, the revenue or employee base but the plus point of these firms is that they can work at the grassroots level where it is tough for the large-scale organisation or even the public organisations including the government to reach and work effectively.
The author has also shown interest in delving into the aspects of performance that the SMEs renders in overcoming the challenges that it faces. It is being put forth by the fact that the performance of the SMEs remained fragile in the context of progression in their business activities. It is due to the reason that the challenges that they are facing specifically in the segments of tourism, manufacturing, agriculture, etc. are quite significant and need thorough investigation.
On the same context, it was opined by Storey (2016), that the significant challenges that are being faced by the SMEs in upgrading the state of interaction between the stakeholders through effective communication channels. It is due to the reason that the stakeholders of the SMEs are from different economic as well as educational background and their level of perception varies from one other. So the set of information that is being deployed into the market regarding the undertaken activities by the SMEs for the betterment of the organisation as well as the business is being conceptualised by different participants in a different way that becomes way away from what is being the actual knowledge. Hence, to effectively use that equipment, it is quite a matter of concern that effective technological types of equipment along with training programs should be given to all the stakeholders to increase their understand ability as well as boosting their interpersonal and intra organisational exchange of information through an effective technologically advanced channel of communication. In this case, their state of perception does not mislead them towards the wrong side of understanding the activities that are being undertaken as well as executed by the SMEs.
According to Hossain,(2015), utilisation of the technological advancement is crucially essential in case of the SMEs since it will boost the sector effectively. It will lead to the fact that the SMEscan communicate whether in a faster pace since it is essential for the SMEs to interact with each other as well as communicate regarding activities that are being undertaken for the betterment of the organisation. It can be put forth that the significant factors that the small and medium size enterprises face the challenges regarding their communication technological advance system of exchange emphasizing this issue. To get rid of information from the senders point to the point of the receiversince the operation of the SMEs is the primary factor for bringing effective managerial initiative as well as a technologically advanced system of fast interaction. The central segment in which small-scale enterprises works, as well as medium size enterprises, do their business encompasses those levels of the society where the government is unable to reach. It may comprise of the accumulation of funds that is subsidised with the interest after the fund is utilised into the international market or it may consist of the products and services that can be marketed at a cheaper rate within the segmented population who is in a region by the SMEs. So the major objective of these firms is to boost the economic structure as well as the wellbeing of people through processing of common product and services in a much more comfortable way that will become costlier for other organisation. It is because another organisation has to reach the market that it has targeted as well as they have to understand the nature of the consumers within the market. It will call you much more time as well as it will cost higher. But for SMEs, the scenery is different as they are quite acquainted about the local environment the consumers that exist within the locality as well as the applicability of the products and services that are being deployed by them into the localised market. The natures of understanding of these organisations are quite well since the targeted consumer base as well as get influenced by the regional market on which this SMEs persists.
It was also put forth by Dunning (2015), that the maintenance of the business becomes inactive due to all these factors that are allied with the business that is provided by the SMEs is not appropriately accountable. The financial transactions that are executed by the organisations of small and medium-sized enterprise are often found to be inappropriately executed. The reason behind this is that the implementation of the activities, as well as the allocation of the fund, is done through the process, but the effective utilisation of the sperms as well as the verification regarding the return from the utilisation of the resources are not adequately examined. It raises the question necessity for a proper system that will be not only technological advance as well as raise the state of accountability of the financial affairs related to the small and medium-sized enterprises.
According to Barber et al., (2016), the small and medium-sized enterprises lot of challenges regarding implementation of the activities as well as utilisation of the funds that are doing allocated for those activities. Hence, the aspect of accountability of the financial transactions as well as the execution plan is of quite essential to raise the effectiveness as well as the impact of the undertaken activities towards the purpose for which the small and medium-sized enterprises run their business. It can be put forth to emphasise on this issue that the software that is being considered as a strong tool for creating a difference between the record keeping as well as the accounting of the financial transactions it is important that the best possible knowledge regarding the software is necessary. Mainly to stay in line or to regulate the compliance the software alone can't eliminate the financial anomalies. It is required that the professional in this segment take care of not only the accountability of the financial transactions but also keeping of the records up to the mark as it will render the effectiveness of the business through accurate estimation of the real-time bookkeeping as well as the true performance of the business. Usage of advanced technology will not only boost the time to time maintenance of records as well as keeping the book updated but also will render the bookkeeper by helping them in focusing on the activities that are running for maximising the profitability of the business. A healthy business needs to overall office liabilities considering the loans as well as the credits and also should be able to raise funds that will be exchanged as payoffs of the debts.
Moreover, it has been highlighted by López and Hiebl (2014), the act of the accountant is not only to distract the professional way of running a business from all financial anomalies but also to put forth the best solution that can be implemented to overcome the challenges faced by the business. It should be created by the external as well as the internal financial environment of the business.
These facts from the literature review all together directs towards the research problem relating to the small and medium size enterprises where there exists necessity of incorporating the technological advancements to raise the effectiveness of the accounting system.
The primary data will be collected from the survey, interviews, and focus groups. The stakeholders of the small & medium size enterprises of Australia are the participants of the surveys based on appropriate questionnaire. The techniques and methods have their advantage and disadvantage. The procedure for the data collection and analysis will also be discussed, and justification will be given for their selection. The reason for the selection and its appropriateness will also be provided in this chapter. The research paradigm is important for having a set of beliefs that will guide the researcher and will also determine the research methods to be used and also the interpretation of the data received. The term epistemology which is defined as what is to be true and as opposed by doxology what are trusted to be true are the two pillars that encompass the different philosophies of the research. There are various research philosophies such as positivism, interpretivism, and constructivism. Depending on the need of the research study, the philosophy is chosen. Thus in this study, the positivism philosophy is used. The adoption of the positivism philosophy will guide the research to use the innate disposition in the systemic enquiry in the research process. This philosophy allows the researcher to have a spirit of enquiry and use both qualitative and quantitative research methods in the study.
The research design refers to an arrangement of the conditions that will be required for the data collection and analysis in such a manner that it will uphold the research purpose. Descriptive, correlation followed by reviewing semi-experimental, experimental as well as a meta-analytic type within the study of the research encompassing the dependent, independent variables, the hypothesis of the problem along with the research problem determines the extent of the design of the research. However, there are three main research designs: descriptive, exploratory and explanatory research design. In this research purpose, the descriptive research method had been used as per relevance. In the descriptive research design, the case studies, journals, existing studies on the factors influencing the employee retention had been analysed, and the survey had been used for collecting data on the research topic. The descriptive research design will be made appropriately in this study as it will help to depict participants in an accurate manner. The sampling that will be done for this purpose will be probabilistic sampling and the technique will be simple randomization of data.
In this research design, the observational method for recording the views of the participants as possible and case studies are also analysed for in-depth study of the research topic.
Apart from this aspect, the significant factors that are being crucial investigated or unnecessary to be investigated are that the independent variable all the in an explanatory variable that influences the state of technologically advanced accountability of the financial system of the small and medium-sized enterprises (Schaltegger et al., 2016). The methodology of the research has been a bolster to increase the study on the research in a proper manner through which the understanding of the topic of the research will be effective as well as appropriate recommended so that the research remains in the right direction as well as the track. It is found to implement this objective that the different predictor variables are responsible for influencing the state of accountability in a technologically advanced way specifically in the case of small and medium-sized enterprises. Notably, it is found that in the current century technology has a crucial impact in every kind of business performance. It not only improves the quality of financial factors as well as it fills the gap that persists between the actualisation of the accounting entities and the perceived level of mobilisation of the funds. Small-scale enterprises don’t have a massive amount of transactions. Other day deals with the small number of transactions in most of the case show the objective of the research is not only to identify those transactions in a more effective and better way of accountability but also to raise the level of financial transactions in an optimally efficient manner. From the literature review, it has been found that different factors are killing the business due to a low quality of accountability of the financial transactions in the small and medium-sized enterprise. They are needed to incorporate better quality of the system that not only will be technologically advanced as well as they should be efficient from the perspective of organised management.The framework of the research methodology is being redesigned to equalise the actualisation of the funds that are being utilised for the activities with the objective of maximisation of profitability as well as social welfare as well as to measure the financial estimates with proper accountability through the technologically advanced method of measurement.
Small and medium-sized enterprise is being found to have fewer amounts of financial resources in the form of human capital or financial capital. Due to this reason, to improve the functionality of the available resources, it is essential to hire skilled labour at affordable cost. The large companies are compressing of the multinational firms. It is found that the share of financial capitals as well as information related to the accountability of the financial entities is significant. However, in the case of Australia, the small and medium-sized enterprise have to fill up the gap that exists between the accounting process as well as the financial information that is being transacted through methods of the technological advance system. It is essential to identify the factors to make the technological advancement responsive that responsibility for creating the gap within the technological alignment, information management as well as the technological infrastructure that takes care of the financial risk as well as the security risk of the financial information through analytical tools and tax software. These are in fact the independent variables of the explanatory variables that predict the nature of the impact of technological advancement up on the financial accountability of the small and medium-sized enterprises effectively. Hence, the reformulation of the research methodology is being done to adequately understand the level of accuracy in the financial transactions by the small and medium-sized enterprises to cover up the gap that exists between the perceived financial health of the small-scale enterprises and the actual health of the small-scale enterprises in the context of Australia.
It can be concluded the impact of technological advancement can effectively enhance the label of the performance of small and medium-sized enterprises undoubtedly in an upgraded manner. It is revealed that up-gradation is essential to estimate the factors that are responsible for creating the advancement by usage of technological tools as well as the implementation of the technological equipment. In case of the activities that are not only financially efficient, are executed with a purpose of generating empowerment and advancement within the sectors that are targeted by the small and medium-sized enterprises Australia. Accountability of the financial transactions that have been executed by small-scale and medium-sized enterprises will lead to optimisation of the activities that are being undertaken by these firms. Technological advance equipment is found to enable the effectiveness of the accounting procedures as well as financial transactions inappropriate manner. This necessitates the implementation of useful technological tools that are not only at once but also upgraded from all possible manner and along with that implementation of such technologically advanced equipment impact the way of financing as well as enhance is the accountability of each and every transactions comprising of the human capital of the financial capital within the small-scale and medium-sized enterprise in the most efficient way. So the importance of executing the activities in the SMEs with the help of technologically advanced as well as software in case of financial transactions of a significant amount or small amount triggers urgent necessity as well as the requirement for effective business performance of the small scale and medium-sized enterprises in the context of Australia. Be avoided by the literature review as well as the mythology of the research that is formulated based on the former with the objective to investigate the nature of the impact of technological advancement upon the necessity of accounting system in the context of small-scale and medium-sized enterprises of Australia. The conclusion can be drawn on this aspect regarding the effectiveness of the accounting system. The management initiatives to measure the financial transactions as well as factors that are related to the accounting in the best possible manner in case of small and medium-sized enterprises through the process of the effective accounting system which is not only technologically advanced but also can implement the technological advance system of accounting.
Application for Ethics Approval
|Proposed Research Details :|
Impact of Technological advancement in Accounting system of small and medium-sized enterprises of Australia
|Summary of the proposed research project, including brief description of methodology (bullet points where applicable)|
Accountability of the financial transactions that have been executed by small-scale and medium-sized enterprises will lead to optimisation of the activities that are being undertaken by these firms. The following things can be put forth:
|Ethics Checklist (Participants)|
|How do you propose to select your participants?|
The stakeholders of the small & medium size enterprises of Australia
|Will your research involve adults who might be identified by you or anyone else reading the research? (Yes/No). If yes, how will you obtain their consent?|
|Does your research involve children under eighteen years old? (Yes/No)|
|Ethics Checklist (Participants)|
|Will your research take place in an institution? (Yes/No)|
|Are in a position of power over participants? (Yes/No), if yes, describe any ethical implication andhow you deal with them|
|Describe any risk or harm to participants which might be associated with your research and how would you propose to minimize these risks|
|Privacy and Confidentiality|
|How will you protect the confidentiality and privacy of your participants?|
The information acquired from the respondents will be kept into the database that will be accessible only by the researcher
|Will it be possible to identify participants from published data? (Yes/No), if yes, is there any ethical issue which may arise from such identification.|
|Data Collection and Storage|
|Who will have access to the data?|
|How will you store the data in order to ensure its security|
Through effective database management system the data will be stored in secured information base that will be only accessible by the researcher.