The Benefits of Computerized Accounting Program QuickBooks
Computerized accounting can help a company keep track of their financial situation, making it easier to perform managerial decisions. Not only will it keep track of profit, but it uses accrual accounting to keep up with all accounts. Computers can do all the math equations necessary for balance sheets, as well as keep an audit trail by showing all changes made. Disadvantages of computer accounting are the cost to train people to use programs and data entry styles. If proper back-ups are not preformed, a chance of losing information could be an issue.
Quick Books is an example of a program for computerized accounting and has four main components to help companies keep track of their accounts receivables. Lists can be made to keep track of groups such as customers, debtors, vendors and employees. As forms are completed, the names will be categorized into lists. Forms are pre-made template like papers that can be filled in different fields. Forms help to lessen data entry time as well as assuring that all necessary information is filled in and completed. Registers contain financial information in the many balance sheets accounts like accounts receivable, accounts payable, inventory as well as many more. With this program, if information is entered in to one account, the balances will change in the related accounts automatically. Reports and Graphs are another component of Quick Books that will take all the financial information entered into the various accounts, into a visual representation. Management can use these tools to create an easier way to understand pages upon pages of numbers to make decisions for the company.