Computerized Accounting Functions and Organizations Productivity Essay Example
TYPES OF COMPUTERIZED ACCOUNTING SYSTEMS
By Kathy Adams McIntosh, eHow Contributor
Businesses use financial information to create statements and to file income tax returns at the end of the year. Some businesses use manual accounting systems, but many businesses opt for computerized accounting systems to simplify the process and reduce errors. Businesses can choose between different types of computerized accounting systems. 1. Purpose * A computerized accounting system serves many purposes for the business owner. It improves accuracy, enhances reporting capabilities and simplifies recording. Accuracy increases because math processes occur automatically without human error. The business owner can record each transaction in the computerized accounting system as it happens. This allows the system to pull the necessary information into different reports. The business owner can also create different reports in the system to run on a regular basis.
Spreadsheets
* One type of computerized accounting system uses spreadsheets to track each transaction and create financial statements. A business owner familiar with a spreadsheet program can design a variety of worksheets to maintain each account balance and to pull those balances into various reports. This system requires the business owner to invest in spreadsheet software and learn how to use it. Spreadsheet programs provide the additional benefit of using spreadsheets in other areas of the business.
Off the Shelf * Another type of computerized accounting system involves standard software programs sold on store shelves. Several programs exist, such as QuickBooks or Peachtree. These programs provide the framework for business owners to enter financial transactions and run reports. These systems also include options for managing payroll or reconciling accounts. These programs work well for small-business owners who want to focus on their business operation, not the bookkeeping.
Custom Designed *
By Kathy Adams McIntosh, eHow Contributor
Businesses use financial information to create statements and to file income tax returns at the end of the year. Some businesses use manual accounting systems, but many businesses opt for computerized accounting systems to simplify the process and reduce errors. Businesses can choose between different types of computerized accounting systems. 1. Purpose * A computerized accounting system serves many purposes for the business owner. It improves accuracy, enhances reporting capabilities and simplifies recording. Accuracy increases because math processes occur automatically without human error. The business owner can record each transaction in the computerized accounting system as it happens. This allows the system to pull the necessary information into different reports. The business owner can also create different reports in the system to run on a regular basis.
Spreadsheets
* One type of computerized accounting system uses spreadsheets to track each transaction and create financial statements. A business owner familiar with a spreadsheet program can design a variety of worksheets to maintain each account balance and to pull those balances into various reports. This system requires the business owner to invest in spreadsheet software and learn how to use it. Spreadsheet programs provide the additional benefit of using spreadsheets in other areas of the business.
Off the Shelf * Another type of computerized accounting system involves standard software programs sold on store shelves. Several programs exist, such as QuickBooks or Peachtree. These programs provide the framework for business owners to enter financial transactions and run reports. These systems also include options for managing payroll or reconciling accounts. These programs work well for small-business owners who want to focus on their business operation, not the bookkeeping.
Custom Designed *