Advantages of Accounting Software

29/06/2014
 
Small and medium sized businesses can now buy ‘off the shelf’ accounting programs at remarkably low cost. The accounting programs carry out functions such as invoicing, dealing with payments, paying wages and providing regular accounting reports such as trading and profit and loss accounts and balance sheets.

Therefore, this article demonstrates the main advantages of the accounting systems to small and medium enterprises.
Speed
Data entry onto the computer with its formatted screens and built-in databases of customers and supplier details and stock records can be carried out far more quickly than any manual processing. 

Automatic document production

Fast and accurate invoices, credit notes, purchase orders, printing statements and payroll documents are all done automatically. 

Accuracy  
There is less room for errors as only one accounting entry is needed for each transaction rather than two (or three) for a manual system. 

Up-to-date information  
The accounting records are automatically updated and so account balances (e.g. customer accounts) will always be up-to-date.
Availability of information 
The data is instantly available and can be made available to different users in different locations at the same time. 

Management information 
Reports can be produced which will help management monitor and control the business, for example the aged debtors analysis will show which customer accounts are overdue, trial balance, trading and profit and loss account and balance sheet.

Cost Effectiveness
computerized accounting programs reduce staff time doing accounts and reduce audit expenses as records are neat, up-to-date and accurate

The ability to Deal in Multiple Currencies Easily
Many computerized accounting packages now allow a business to trade in multiple currencies with ease.  Problems associated with exchange rate changes are minimized.
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