Search This Blog

Computerized Accounting Not a Trend but a Necessity By Jason Tsang

Wednesday, 19 September 2012

Computerized Financial Information
 System
The advantages of Computerized Accounting seem to be unknown by business owners and individuals who are in doubt of purchasing Accounting Software. Accounting Software has been a trend nowadays. With the vast Computerized System Providers and the wide range of versions to choose from, Accounting System has evolved to be one of the trends in information technology.
With the advancement of latest technology in Computerized Accounting, one can question why some business owners, especially in the areas of Small and Medium Enterprises, remain to be reluctant when to persuade to purchase Accounting Software. Is the lack of accounting knowledge the reason why these business owners are hesitant to acquire Computerized System? Why should business owners rely on Accounting Software for their Small Businesses? Is Computerized System designed only for Big Companies? Is it necessary to acquire the latest trend in Accounting Software like others do?
Computerized Systems are designed to create more value in Financial Accounting. Value can be relayed in terms of speed, accuracy, and reliability of accounting data. The advantages of Computerized Accounting can be classified using these values.
Speed
Business owners aim to deliver goods and services as fast as they can. With Computerized System, invoices can be transmitted in an instant through email; inventories are appropriately monitored, and disbursements are tracked for payments to be done before due dates. It helps Bookkeepers to reduce manual activities. When transactions are entered into the Accounting System, automatic entries are posted to generate data needed for financial reporting.
Accuracy
Every business establishments aim to attain the value of accuracy in the Financial Statements. Although Accounting is defined to be an art, Accountants should ensure that Financial Reports are accurately presented. Accounting Software enables Bookkeepers and Accountants to adjust necessary accounts to reflect the correct amount of each Account. Computerized Accounting allows Accountants to trace erroneous data and entry in a creative and organized manner through the help of summaries, the list of accounts and original entries.
Reliability
Reliability of Accounting Data and Financial Reports is enhanced with Computerized System. Financial Information using Manual Accounting with the use of Ledgers and Journals are also reliable; but with Accounting Software, data can be updated immediately. Current financial data can be generated in a timely manner. Customized Reports are ready for use and supporting list of transactions are easy to retrieve in order to support any financial and tax audit. Finance software enables data to remain secure because they are properly stored and appropriate users are only allowed to use and modify financial transactions and reports.
Computerized Accounting nowadays is necessary to cope up with busy and hectic schedules and reduce manpower. The choice of having one kind of the Software over another depends on upon the specific needs of businesses. Small Business and Medium Enterprise has the option to know the typical versions of Computerized Accounting System that suits their preferences. Accounting Software providers make sure to create the latest trend in presenting Computerized Accounting in a simple manner with terms specifically designed to make it more understandable by Non-Accountants.
If you've been caught up with making a decision to acquire an Accounting System, don't be hesitant. Why not ask from colleagues, Finance Professionals and read some reviews? Why not develop some sense of enthusiasm and eagerness to learn? You don't have to be an Accountant to understand the basics of Finance and Financial Software. You don't have to acquire computerized system because it has been a trend, but because it is necessary to achieve your business and individual goals. The advantages of Computerized Accounting System are at hand; if only you possess the desire to have them.
Jason is an IT expert with a background in business administration. He is writing about how to improve SME business processes in Singapore by using business software like accounting software, payroll, leave and time and attendance software.
Read more ...