Accounting Packages
Cloud Accounting Packages - Computer programs would be the instructions that tell the electronics the best way to process data. The overall term used for these is software.
Some application software program is devoted specifically with an accounting task, such as a payroll package, a set asset register or a stock control package.
Other applications have numerous uses in business, including their use for accounting purposes. Packages of this sort that we shall describe are databases and spreadsheets.
In principle, it is exactly the same as manual accounting,. That's one of the important facts to remember about computerized accounting.
Accounting functions support the same names in computerized system as in classical written records. Computerized accounting still uses the familiar ideas of day books, ledger accounts, double entry, trial balance and financial statements. The principles of working with computerized sales purchase and nominal ledgers are exactly that might be expected within the manual methods they replace. Xero Trial Packages
The only difference is that these various books of account have become invisible. Ledgers are now computer files which can be held in a computer-sensible form, ready to call upon.
Disadvantages and Advantages of Accounting Packages
Advantages
Advantages of accounting packages in contrast to a manual system are listed below.
• The packages can be utilized by not-specialists.
• A lot of data could be processed quickly.
• Computerized systems are more accurate than manual systems.
• A personal computer is capable of handling and processing large volumes of information.
• When the data has been input, computerized system can analyze of data rapidly to provide useful control information for managers like a trial balance or a debtors schedule.
Disadvantages
The benefits of computerized accounting system far outweigh the disadvantages, particularly for large business. The following may be identified as possible advantages, however.
• The initial time and costs associated with installing the system, training personnel etc.
• The need for security checks to ensure that unauthorized personnel usually do not access data files.
• The necessity to produce a system of coding (see below) and checking.
• Insufficient 'audit trail' it is really not always easy to understand in which a mistake continues to be made.
• Possible resistance on the part of staff to the creation of the device
Coding
If vital information is expressed in the form of codes, computers are used more efficiently. As an example nominal ledger accounts will be coded individually, perhaps by means of a two-digit code: example
• 00 - Ordinary share capital
• 01 - Share premium
• 05 - loss and Profit account
• 22 - Purchases
• 30 - Debtors ledger control account
• 40 - Creditors ledger control account
• 55 - Interest
• 56 - Dividends etc
In the same way, individual accounts should be given an exclusive code number in the sales ledger and buy ledger.
