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Describe the advantages and disadvantages of the different accounting packages?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked almost 3 years ago

Hi, Explain about the advantages and disadvantages of the different accounting packages?

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6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

For some businesses, keeping hand-written ledgers and spreadsheet-based accounts may be entirely sufficient. For others, computerised accounting can simplify many tasks and offer clear advantages over keeping manual accounts.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

simplifying data entry – inputting data is fast, straightforward and only needs to be carried out once speeding up processes – eg reducing delays between making a sale and generating an invoice automating reports and analysis - on profit and loss, debtors and creditors, customer accounts, inventory counts, sales, forecasting, etc automating tasks – such as calculating pay, producing payslips, automatically calculating VAT, etc reducing errors – by computerising calculations that would have historically been done manually supporting other functions, such as online banking and e-filing

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> Describe the advantages and disadvantages of the different accounting > packages? --One of the most important advantages of an accounting package is that it saves a substantial amount of time over manual bookkeeping. With a computerized accounting package, front end business documents and back end transactional recordings are completed simultaneously. For example, you can create customer invoices, prepare bank deposits and write checks in the program, with the added benefit that the system records each transaction for you. Automatic Financial Statements --In a manual bookkeeping system, the general ledger is reconciled at the end of the year and the balances for each account are gathered to create a set of financial statements for tax and management purposes. In a computerized accounting system, financial statements for any period of time can be generated with the click of a button. This allows a business manager to review a company's financial performance in real time and address concerns before they become problematic. Cash Flow Management --Accounting packages allow you to record receivables and payables in the system before the money changes hands. This allows the system to project your cash flow position into the future. For example, if you have entered all of your bills and customer invoices into the program with their appropriate due dates, you can print a report that will tell you if you will have enough money between what you have now and what you expect to be coming in to cover the bills that are due. This forward planning tool can help you avoid overdraft charges and late fees. Learning Curve --Every accounting package has a learning curve, especially if you have not used one before. It can often be difficult for a small business owner to spare the time to learn how to use the package properly, which can lead to errors and reconciliation issues. Proper training is essential to getting the most out of your accounting system. Tied to Computer Availability --Another downside of computerized accounting packages is their dependence on the company's computers being up and running. If your business undergoes scheduled computer maintenance or other downtime, you will have to wait until the work is completed to be able to access financial information on customers, suppliers or employees.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

For some businesses, keeping hand-written ledgers and spreadsheet-based accounts may be entirely sufficient. For others, computerised accounting can simplify many tasks and offer clear advantages over keeping manual accounts. Advantages of using accounting software

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

Saves Time One of the most important advantages of an accounting package is that it saves a substantial amount of time over manual bookkeeping. With a computerized accounting package, front end business documents and back end transactional recordings are completed simultaneously. For example, you can create customer invoices, prepare bank deposits and write checks in the program, with the added benefit that the system records each transaction for you. Automatic Financial Statements In a manual bookkeeping system, the general ledger is reconciled at the end of the year and the balances for each account are gathered to create a set of financial statements for tax and management purposes. In a computerized accounting system, financial statements for any period of time can be generated with the click of a button. This allows a business manager to review a company's financial performance in real time and address concerns before they become problematic. Cash Flow Management Accounting packages allow you to record receivables and payables in the system before the money changes hands. This allows the system to project your cash flow position into the future. For example, if you have entered all of your bills and customer invoices into the program with their appropriate due dates, you can print a report that will tell you if you will have enough money between what you have now and what you expect to be coming in to cover the bills that are due. This forward planning tool can help you avoid overdraft charges and late fees. Learning Curve Every accounting package has a learning curve, especially if you have not used one before. It can often be difficult for a small business owner to spare the time to learn how to use the package properly, which can lead to errors and reconciliation issues. Proper training is essential to getting the most out of your accounting system. Tied to Computer Availability Another downside of computerized accounting packages is their dependence on the company's computers being up and running. If your business undergoes scheduled computer maintenance or other downtime, you will have to wait until the work is completed to be able to access financial information on customers, suppliers or employees. Thanks

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Open uri20170510 32134 1c996lj?1494421732 Anil answered almost 3 years ago

Advantages and disadvantages of accounting software A reliable accounting system is essential for any business, regardless of its size. For some businesses, keeping hand-written ledgers and spreadsheet-based accounts may be entirely sufficient. For others, computerised accounting can simplify many tasks and offer clear advantages over keeping manual accounts. Advantages of using accounting software Accounting software can help you save time and money, and offer you valuable insight into your business. It can do so by: simplifying data entry – inputting data is fast, straightforward and only needs to be carried out once speeding up processes – eg reducing delays between making a sale and generating an invoice automating reports and analysis - on profit and loss, debtors and creditors, customer accounts, inventory counts, sales, forecasting, etc automating tasks – such as calculating pay, producing payslips, automatically calculating VAT, etc reducing errors – by computerising calculations that would have historically been done manually supporting other functions, such as online banking and e-filing If you choose the package carefully, investing in accounting software can be one of the best decisions you can make for your business. Find tips on choosing the right accounting package. Disadvantages of accounting software Not all businesses will benefit equally from using accounting software. If you’re thinking of switching from manual to computerised accounting, you should consider these possible drawbacks: Price - the package cost, although small in relation to your other costs, is higher than a paper-based system. Implementation - you will probably need some initial help setting up an accounts package. This will usually be a chargeable service, perhaps obtained from your accountant or the system provider. Support - you may need to purchase yearly maintenance and support for your package. Specialised needs - an accounts package is designed to suit most types of business. However, if your business is very unusual you may find that you need to change the way you operate to suit the package, or pay to have the package adapted to suit your needs. You can’t successfully manage your business without some sort of an accounting system. Whether you choose manual over computerised solution, it’s entirely up to you.

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