The Advantages of Computerized Accounting

Posted on March 1, 2013

<strong>abc Payroll</strong> can help you with your company payroll nh area” src=”×225.jpg” width=”300″ height=”225″ /></a> A business has to keep a record of their income and expenses and these records should be very detailed. But the idea of endless spreadsheets, journals, and ledgers can be a daunting one. This is where computerized accounting comes in.</p>
<p>There are two major advantages to using a computerized accounting system: speed and accuracy. The problem with a manual accounting system is that every step has to be performed by hand. You have to pay the bill, write the check, record the check in the check register, and write that transaction in the account ledger. This isn’t so bad for a small business with only a few transactions a month, but for a large company with hundreds maybe thousands of transactions? It could be a nightmare if there isn’t staff to keep up with it.</p>
<p>A computerized accounting takes all those steps and condenses them all down into a single entry. The entries for the cash going out and for the company receiving the money are automatically posted in each company’s ledgers. This takes a process that can take minutes or longer with travel to deliver a check and shortens it to only a few seconds with a few keystrokes. Since the check only has to be entered into a system once, there is less chance for an incorrect entry, saving you headaches later on with balancing.</p>
<p>With a manual accounting system, the end of period reports can be a hassle to produce as each ledger entry would have to be posted to financial statements by hand. An advantage of computerized accounting is the ease of producing these reports. Since the transaction is computerized, it is automatically posted in the general journal and all necessary ledgers. This can make trial balances, producing balance sheets, and end of period reports as easy as selecting the desired report from a menu. Some other advantages to computerized accounting include:</p>
<li>Easy document production</li>
<li>Staff motivation</li>
<li>Instant access to any accounting information</li>
<li>Taxes can be computed automatically</li>
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