Decent Accounting System for your business and computerised accounting
Accounting is called the language of business which communicates the financial results of an enterprise to various interested parties by means of financial statements. It has to picture a true and fair view of the enterprise’s state of affairs. Most of the accounting data is numerical and most of the processing is also repetitive in nature. Those can be easily processed by computers in comparison to other types of data. Like any other language, accounting has its own complicated set of rules. However, these rules have to be used with a reasonable degree of flexibility with respect to the specific circumstances of the enterprise and also in line with the changes in the economic environment, social needs, legal requirements & technological developments. A new system of accounting has come that is computerized accounting.
Preparation of financial statements and accounting practices have to be conformed to the prescribed standard set by the professional accounting body of the country or prescribed by the International Accounting Standards Board (IASB).
Advantages of computerized accounting
- Entries are more accurate
- Operation on entries are accurate
- Large entries can be uploaded without any errors which personnel generally do out of work pressure
- Reports can be supplied and prepared quickly and precisely.
- Computers can prepare profit and loss account and other accounts as frequently as needed by the user with the push of button or keyboard.
- Many reports can be produced which cannot be produced practically in manual accounting system because of time and cost.
Features of Computerized Accounting
It is difficult to identify the general structure of accounting packages has so much diversity. Nevertheless, it is helpful to get an overview or general picture of accounting software. Most of the software is having the same internal structure. In some cases, some components may be missing or in others, some components may be added. Computer programs for financial accounting follow the system of dividing the ledgers into nominal ledgers, sales ledgers, and purchase ledgers. Most of these accounting software’s are integrated packages so that entries in one ledger will automatically update accounts in another ledger package.
Advantages of Modular & Integrated Approach
The major advantages of such a modular and integrated approach are:
- Cost saving
- Data redundancy
A fully integrated accounts package will consistently contain more than just sales, purchases, and nominal ledgers. Most software houses also offer packages for payroll, stock control, invoicing, and financial planning which can all be integrated into the accounting package.
With accounting software are increasingly becoming popular, the question arises “how I can select the right accounting software for my business?” There is thousands of accounting software. One thing is sure; a decent accounting system will let you produce better and more sophisticated reports, and will certainly boost your business.
Your organization should have the people or time, resources, or expertise that can be devoted to analyzing, purchasing, installing, and maintaining a system. If it isn’t there, a software consultant can help considerably. Consultants have special expertise in purchasing and implementing processes many times.