Till the 1980’s, accounting was carried out manually. Then emerged fast operating computers and reliable, accurate and easy to use software for accounting.
An accounting system is a collection of procedures, processes and controls designed to record, collect, summarize and classify financial data for interpreting and decision making in management.
Computerized accounting involves using accounting software and computers to analyze, record and store financial data of a company. A system of computerized accounting brings along many advantages which are absent in manual accounting systems. Today, there is great demand for cheap online accounting software.
Here are some uses of computerized accounting software:
All calculations are handled by the software. So, computerized accounting avoids many of the time consuming and mundane work related to manual accounting. For instance, after issuing, invoices can be processed automatically which makes accounting less wasteful of time.
Computerized accounting is designed to be accurate to the last detail. After data is fed into the system, all calculations like multiplying, dividing, subtraction and adding are completed automatically by the software.
Since calculations made by computer are very accurate, financial statements designed by computers are very reliable.
- Access to data
By using accounting software, it becomes easy for various persons to access accounting data securely, outside of office. This is true, particularly when you use online accounting solutions.
With growth of the company, the scale of accounting required both increases and becomes complex. Using computerized accounting, all details and processes become straightforward because sifting through computer based data is much easier than going through bunches of papers.
Accounting software makes the complete process of accounting faster. Moreover, reports and statements can be generated instantly at a button’s click. It is not required for managers to wait for hours or days to gain access to a crucial report.
Because computerized accounting is more efficient than manual accounting, work will be completed faster saving time and money. There are many accounting software available in the market for very low cost. This makes accounting software the better choice, any day.
The most current data can be stored and saved in offsite locations, rendering it safe from manmade and natural disasters like floods, fires, earthquakes, terrorist attack and arson. In the event of any dangers, it is possible to restore the system on other computers.
Making use of computers to view your accounts enables you to gain benefit of viewing the data in various formats. The data can be viewed in form of tables and charts.
- User friendly
When you buy accounting software, it is simple to learn and use in daily business operations. After it is set up, you can make data up to date using a few regular data entries (information from invoices and bank statements which can be uploaded automatically and processed into proper categories). This saves you and employees the worry about details of advanced accounting. Using a few clicks, you can achieve what you want.
- Preparing payroll
Instead of all the paperwork, accounting enables it to be easier to fill out employer forms in a timely and accurate fashion.
These are some of the benefits of accounting software.