COMPUTERIZED ACCOUNTING SOFTWARE
Nowadays we live in a modern or fast-growing world. So, it’s important to run with the world with a smooth and fast tech approach!
The companies, these days, are using different type or technologies or software. Computerized Accounting Software is one of the software which is used by many big or small companies.
Before proceeding to “Computerised Accounting Software” it’s important to understand what exactly is accounting and software.
Accounting is the process of recording the financial transaction of an Organisation or firm. It helps in providing valuable insights and information about the transaction in future.
Software is a part of computer system. It is information system processed by computer system. Software provide proper information and consume less time.
What is a Computerised Accounting Software?
Computerised accounting software is a tool in which we record company’s financial transactions. The performance of accounting software is different form one product to another product. The big organisations use these types of software because they have large number of transactions and it is very hard to take out the output from the data and the process of maintaining the account takes so much time. The computerised accounting software helps the organisation to maintain its records and also provide the required information. In modern business it is a very useful resource. The features are preparation of balance sheets, recording of sales, LIFO and FIFO inventory reports.
Advantages of computerised accounting software: –
Entry data: It is more frequently enter data, forthright and only required data.
Fast working: It gives the fast result, as compare manually.
Analysis or report computerization: For example, prepare debit and credit, profit and loss, inventory, forecasting and sales.
Task perform: calculating the bills, VAT, Tax,GST Sum of transaction values etc.
Less errors: The information accounting software is reduced the error.
Combination with other information system: such systems are online shopping, online banking or e-banking, etc
Disadvantages of computerised accounting system: –
Cost: The price of the software is too high, that’s why the big organisation can afford and the other small firms have to do the work manually.
Applications: The software provider or the accountant charge the amount for the service.
Substructure: company have to buy yearly or half yearly package or maintenance packages.
So, the information accounting system is not perfect for all kind of business. If you have new starting or small business firm no doubt work manually there is no need of accounting system. You have to hire a person who has knowledge about the software with high price. The organisation has larger data then to work on these information accounting systems because it gives you beneficial information and take the business to the next level. The accounting software is built according to the size of the business. For example: When the business man starts a new business he or she may have many questions in the mind related to business. How many employees they need how to manage, and how to manage all the transactions and records of the employees. At that point they want a software for manage all the things. The software helps you to do less manual work and reduces the burden. This is the reason of buying an accounting software. The business person starts new business and growing the business day by day and also records all the money transaction in the software and the software shows the result when he starts the business and the today’s position of the business as well as the market position. With these results he or she can make the future goals and work on it. The software also shows in which place we need to spend more, to maximize the profit. So, computerised accounting software is beneficial for the business.