Accounting Software in various types and kinds has proven to be of great contribution to making the accounting job easier. It provided major benefits in terms of speed and accuracy of operation, and more importantly, the ability to realize the actual state of the final position of a company.
According to Gary Hedler of ITS Education Asia, a typical computerized accounting package offers a number of different facilities which may include among others, an on-screen input and printout of sales invoices, as well as an automatic updating of customer accounts in the sales ledger; recording of suppliers’ invoices; automatic updating of suppliers’ accounts in the purchases ledger Recording of bank receipts; making payments to suppliers and for expenses; automatic updating of the general ledger; automatic adjustment of stock records; integration of a business database with the accounting program; automatic calculation of payroll and associated entries; and computerized accounting programs which can provide instant reports for management.
Basically, a computerized accounting system proffers several advantages such as speed, in which the data entry onto the computer with its formatted screens and built-in databases of customers and supplier details and stock records can be accomplished more quickly compared to any manual processing.
It also allows for automatic document production in which fast and accurate invoices, credit notes, purchase orders, printing statements and payroll documents are all done automatically. There is also the assurance of accuracy, in the sense that 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.
Other advantages of accounting software is using computerized accounting systems are getting up-to-date information by automatically updating accounting records; availability of information thus making it instantly available to different users in different locations all at the same time; management of information by producing reports regarding the date gathered; the automatic creation of figures for the regular GST/VAT returns; and legibility in which the onscreen and printed data should always be legible and so will avoid errors caused by poor figures.
It will also contribute to the wellness of the employees, as it allows for efficiency in making better use of resources and time thus improving cash flow through better debt collection and inventory control; allow for staff motivation by requiring them to acquire new skills in its use; reduction of frustration and stress associated with what is not known; and of course the benefit of saving costs by reducing audit expenses as it keeps records neat, updated and accurate.