| > | | | | tom operate a database accounting software |
| Many types of accounting software exist to | | | | system and that financial knowledge is usually |
| record the financial transactions of business and | | | | available within the company as most companies |
| provide the management with financial control to | | | | that use database accounting software also |
| achieve the profit and loss performance required. | | | | employ a bookkeeper or accounts clerks to input |
| The correct choice is highly dependent upon the | | | | data and in slightly larger small companies also |
| size of the business and the degree of | | | | qualified accountants to manage the accounting |
| sophistication and financial control required. | | | | function. |
| Accounting software is a system of recording | | | | Database systems assume a knowledge of what |
| financial transactions on a computer across a full | | | | happens to the financial data after it has been |
| range of accounting options almost invariably | | | | input to the system to enable the accountant to |
| dependent upon the size of business being | | | | be able to extract from the system the required |
| catered for. Accounting software can vary from | | | | information for better financial cvontrol. And most |
| multi million pound solutions for major public | | | | important, a qualified accountant has the financial |
| companies to simple managed lists of income and | | | | knowledge, training and experience to know what |
| expenses. | | | | the system should be producing and how to |
| The requirements from accounting software are | | | | query the database to retrieve that information. |
| diverse with the most complex and | | | | In addition to inputting the prime income and |
| comprehensive financial accounting packages | | | | expenditure details the most benefit of a |
| incorporating financial reporting information and | | | | database accounting system is the level of |
| managed by teams of qualified accountants | | | | financial control the information it contains can |
| supported by accounts clerks, bookkeepers and | | | | provide the company management and financial |
| substantial input from automated data sources. | | | | directorship. The accounting function also has the |
| Many small businesses with limited financial | | | | security of producing trial balances, periodic profit |
| transactions can produce annual financial accounts | | | | and loss accounts, balance sheets and other |
| in a single day. | | | | financial and statements for tax and control |
| Different accounting standards are required from | | | | purposes. |
| accounting software dependent upon the fitness | | | | Accounting software packages requiring little or no |
| for purpose and client needs. Double entry | | | | accounting knowledge are available. |
| bookkeeping automated through a database | | | | Small limited companies must obtain accounting |
| system and probably arranged in financial modules | | | | software based upon double entry accounting |
| would normally be the choice of the majority of | | | | principles as in addition to producing a profit and |
| public companies. Single entry bookkeeping would | | | | loss account and a trial balance to demonstrate |
| not be an acceptable accounting solution for a | | | | accuracy and integrity of the financial records plus |
| limited company due to audit requirements and | | | | a balance sheet is required for reporting purposes. |
| statutory obligations. | | | | Accounting standards require the limited company |
| Single entry bookkeeping does however have its | | | | to have a system of financial control and |
| place in the market place for the smaller less | | | | accounting software is an essential tool in |
| complex businesses who maintain financial control | | | | achieving this. |
| through a close intimate knowledge of every | | | | Some accounting knowledge either from the |
| financial transaction. The main objective of a sole | | | | management or outsourcing the bookkeeping |
| trader is more likely to be the production of the | | | | services is usually required with even the simplest |
| tax accounts and complete the periodic and annual | | | | database accounting solutions eve3n if this |
| tax return forms. | | | | requires the understanding of what accounts |
| The most sophisticated level of accounting | | | | receivable ledgers, accounts payable ledger and |
| software in the largest companies mirrors the | | | | control accounts mean. |
| accounting functions in those organisations with | | | | There are other possibilities and those businesses |
| various financial modules for accounts receivable, | | | | with a minimum of accounting knowledge can |
| accounts payable, stock control, general ledger | | | | consider spreadsheet based accounting software. |
| and fixed assets. These accounting modules may | | | | Accounting and bookkeeping software produced |
| also be integrated with non accounting functions | | | | on fixed templates is less flexible as it is not |
| such as production and dispatch functions and also | | | | intended to be a source of queries such as a |
| divided into separate modules within the | | | | databased accounts package would. These |
| accounting function. | | | | disadvantages of flexibility being compensated by |
| In larger companies the sales daybook and data | | | | the fact that all entries are visible, transparent and |
| entry of sales turnover would often be the | | | | changes can be made more easily. |
| responsibility of one department while the | | | | Small business has different requirements from |
| accounts receivable function might be split with a | | | | accounting software due to the intimate |
| specialist credit control function within that | | | | knowledge those businesses the owner manager |
| accounting module. A further division may also | | | | has. More sophisticated accounting aspects such |
| include sales administration and customer records. | | | | as debtor and crditor control accounts,trial |
| Accounts payable would normally be multi | | | | balances and financial control information are not |
| functional of the purchasing department, purchase | | | | present. The most important aspect of self |
| invoice accounts department and a legal function | | | | employed accounting software is often to |
| for overdue payments. | | | | produce a set of accounts for tax purposes. |
| Small business accounting software need consist | | | | Small business accounting that does not require |
| of little more than listing sales invoices, purchase | | | | the production of a balance sheet can use single |
| invoices and bank transactions. The prime entry | | | | entry bookkeeping. In these respects the simpler |
| of these documents being to a database which | | | | an accounting solution the better and in this |
| automates the double entry accounting principles | | | | market an accounting solution written on |
| and produces both accounts receivable, accounts | | | | spreadsheets that can produce the net taxable |
| payable and general ledger databases. | | | | profit would meet the requirements. |
| Some accounting knowledge is usually required | | | | |