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Components of a Computerized Accounting System

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Components of a Computerized Accounting System
Components of A Computerized Accounting System
A computerized accounting system has great potential to increase productivity, streamline workflow, reduce data redundancy and error reconciliation, and help with financial management for large and small businesses. There are many different accounting options to choose from, including Microsoft Money, Microsoft Dynamics, Oracle, QuickBooks, Sage, and Xero.
Software vs. Web Based
Choose between downloadable or installable software that lives on your desktop computer and web-based software that you access remotely. Neither option is better than the other. They both have advantages. With a web-based offering, you receive maintenance and upgrades automatically, as the software provider performs them for you. You can also purchase only the accounting modules that you need, then upgrade your plan to incorporate new functions at the moment of need. Because you access your data via the web, you can view your financial data any time. However, you'll also pay more as you use more server space and functionalities, and this can add up fast. With software, you have to perform maintenance and troubleshooting, but you retain the ability to maintain sensitive data storage in-house.
Computerized Accounting System Components
A good computerized accounting system or CAS will have a clean, easy-to-use interface. From this interface, you should be able to enter data, export data into other formats, and perform data validation operations. On the back end, databases will drive your CAS, responding to queries about the information stored therein. Your consultant should be able to install the CAS. While you don't need a large IT staff to install your computerized accounting system and get started, it helps if you need to troubleshoot operations or need help performing a specific function. Your CAS should have elements including: • Accounts Payable: Allows you to manage invoices and bills that you must pay. • Accounts Receivable:
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