THE RELEVANCE OF ACCOUNTING SOFTWARE
Accounting software is computer software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and general ledger. It functions as an accounting information system. It can also be seen as a system of recording financial transactions on a computer across a full range of accounting options. It can vary from simple software for managing income and expenses to very expensive solutions for major public companies.
Accounting software is useful for all sizes of businesses. Self employed small businesses that do not require a balance sheet can use the software based upon single entry bookkeeping. Also limited companies which are required by financial standards to have a system of financial control can use accounting software as an essential tool in achieving this. There are different levels of accounting software. There are simple easy-to-use ones for small businesses, and there are sophisticated level of software for the larger companies. Each business can obtain that which suits its size.
THE BENEFITS OF USING ACCOUNTING SOFTWARE
There are numerous benefits to implementing an accounting software program in a business. No matter what the size of the business, the software can assist the business in the areas of:
I. Time saving: Manual system of preparing financial statements would normally require a lot of time, since accounts have to be balanced and cross-checked for errors, and this could be time wasting, considering the fact that some of these financial statements are needed to make urgent and important decisions. The use of accounting software packages would help manage time and produce financial statements and records at relatively short time. All the user need to do is to input the values or figures into the computer, and the software would help in the process of balancing the accounts.
2. It helps to access financial data quickly and easily: They help the users to have assess to their financial data quickly and easily. For example, data of a prior period is needed, the accountant need not go through a process of searching or files, he can just type the year or transaction he wants to access and it would be displayed within few seconds.
3. It helps to prepare financial statements in advance: Accounting software can help prepare the necessary financial statements, such as balance sheet in advance even before it is needed, and this can allow the accountant check for errors easily.
4. It improves the overall efficiency of a business: It helps to prepare financial statements which are accurate and timely, and this increases the overall efficiency of the business.
5. Some small businesses can benefit from more advanced accounting processes, such as job costing, fixed asset management, and advanced inventories which are provided by some accounting software packages.
Accounting software is useful for all sizes of businesses. Self employed small businesses that do not require a balance sheet can use the software based upon single entry bookkeeping. Also limited companies which are required by financial standards to have a system of financial control can use accounting software as an essential tool in achieving this. There are different levels of accounting software. There are simple easy-to-use ones for small businesses, and there are sophisticated level of software for the larger companies. Each business can obtain that which suits its size.
THE BENEFITS OF USING ACCOUNTING SOFTWARE
There are numerous benefits to implementing an accounting software program in a business. No matter what the size of the business, the software can assist the business in the areas of:
I. Time saving: Manual system of preparing financial statements would normally require a lot of time, since accounts have to be balanced and cross-checked for errors, and this could be time wasting, considering the fact that some of these financial statements are needed to make urgent and important decisions. The use of accounting software packages would help manage time and produce financial statements and records at relatively short time. All the user need to do is to input the values or figures into the computer, and the software would help in the process of balancing the accounts.
2. It helps to access financial data quickly and easily: They help the users to have assess to their financial data quickly and easily. For example, data of a prior period is needed, the accountant need not go through a process of searching or files, he can just type the year or transaction he wants to access and it would be displayed within few seconds.
3. It helps to prepare financial statements in advance: Accounting software can help prepare the necessary financial statements, such as balance sheet in advance even before it is needed, and this can allow the accountant check for errors easily.
4. It improves the overall efficiency of a business: It helps to prepare financial statements which are accurate and timely, and this increases the overall efficiency of the business.
5. Some small businesses can benefit from more advanced accounting processes, such as job costing, fixed asset management, and advanced inventories which are provided by some accounting software packages.
