Use of software in Accounting Will Save Much on Everything

Complete financial accounting course or tutorial covers a range of following topics. It is being evaluated that how computers have affected traditional accounting methods and practices.

• Financial Accounting with Double Entry Bookkeeping
• Principles of Accounting
• Basic Book of Accounting - Journal
• Accounting Ledger
• Accounting Sub Journals - Cash Cook
• Subsidiary Accounting Books
• Accounting Verification by Trial Balance
• Banking Transactions Bank Reconciliation Statement
• Depreciation
• Rectification Of Accounting Errors
• Balance Sheet and Profit and Loss Account
• Single Entry Bookkeeping Accounting System
• Non Profit Organization Accounting
• Capital and Revenue
• Reserves and Provisions

In a very short span of time, computer has grown from a scientific curiosity to an indispensable tool of modem society. There is hardly any scientific/technical or business activity which is not in one way or the other, affected by modern data processing techniques.

The human mind can handle only a limited number of things at a time. The digital computer, on the other hand, can be programmed to compare, measure, calculate and evaluate thousands of readings in an extremely short period of time.

The computer industry has become the fastest growing industry these days. The sale of mainframe computers is increasing day by day. The computer industry has been further pushed up by the introduction of mini computer and micro computers which are small, cheap, reliable and very light. These are being routinely used for process control, production testing, scientific instrument recording, in store check out systems, in automobile test and evaluating systems, and medical monitoring etc.

Computers are now being used extensively in office administration to perform the routine clerical work. Today, most large and medium sized organizations are almost totally dependent on their computers. Routine uses of computers are given below:

(i) Accounting, Billing, Inventory Control Software with MIS, CRM

Computers are extensively used in accounting and there are multitude of computer software for Accounting, MIS, CRM. HiTech Financial Accounting is one such software which has been customized for users in many segments in business and services.

(ii) Payroll and personnel records.

Payroll accounting was the first commercial area to become widely computerized. The calculation of wages or salaries involves a number of variables which relate to the personal details of each employee, such as gross pay or rate for the job, individual deductions, tax liabilities of the employees and so on. These facts can be retained in the computers and processed every month of produce pay slips for the employees.

(iii) Stock control

The computer helps to exercise the type of stock control needed by the organization. It upto dates the sales and purchases records, determines optimum re-order levels for different items and prints out the stock lists when desired. The system can be so designed that it triggers orders when stock level reaches order point for various material items; tests those item which are slow moving or gives list for over stock items.

(iv) Sale accounts records

Programming can be done for any sales accounting system. The computer will pin point defaulting debtors, determine the right limit for credit for each debtor and maintain stores ledger.

(v) Costing and budgetary control

Costing and budgetary control can be affected through the computer, the computer will point out the variations from the planned performance.

(v) Production control

The computer also helps greatly in production planning and control. It is possible that scheduling of the work may become necessary due to break downs etc. A new critical path may have to be worked out. A critical path is the shortest path to be followed in production to achieve production objectives. The computer helps the management lay down this new critical path. Advantages and disadvantages of a computer

A computer is surely advantageous because of the high speed of operation and greater accuracy it provides, savings effected by better managerial control, savings in labor because it is fully automatic and finally because of its flexibility in use. However, there is a considerable capital outlay with difficulty of obtaining experienced analysts and programmers, break down and maintenance troubles and finally fear of obsolescence due to rapid development of computers.

Type of other applications in relation to accounting system

WORD PROCESSOR

It is a software package to help in text processing. Words are processed. Processing includes insertion, deletion changing, moving words, paragraphs etc. Word processing is the preparation of type scripts, using computing facilities for the storage and manipulation of text. For example, word processor has ability to merge name and addresses with standard text so as to give impression that the latter is personalized even in case of circular letter.

HiTech Financial Accounting has got features so that you can export its reports to Microsoft Word, a word processing and Mail Merge Program. You can also write letters to various parties and store the details in the program database.

DATA BASE

It is simple collections of information (data) on a particular subject. Data base file allows you to manipulate the data in desired form. So, data base allows us to work on facts and figures to store and manipulate that data in any desired way. For example, from the same basic information trial balance is prepared; trading and profit and loss account may be prepared; list of debtors and creditors may be prepared; purchases and sales forecast may be made and so on. So, an efficient data-base management is needed to provide flexibility in uses of information. HiTech Financial Accounting uses MS Access and MS SQL server databases for robust database connectivity.

SPREAD SHEET

It is one of the software programs which have increased the utility of computer for accounting purposes. Spread sheet programs help you to draw vertical as well as horizontal columns on a large sized paper. Each .column's length and breadth can be adjusted according to suitability. Even when columns are once drawn subsequently these can be altered, increased or decreased additional columns can be inserted, existing columns can be deleted. It is very useful for businessmen and professionals. It enables us to study multidimensional data at one sheet and helps in arriving at logical decisions. For example, if profit and loss account has been prepared for the year 1989 and you want a comparison with 1987 figures and 1990 forecast then spread sheet shall enable you to provide two additional columns on each side for inserting 1987 actual figures and 1990 forecast estimates.

Tips For Choose Accountant For Your Small Business

Choosing the right accountant for your small business can mean the difference between success and failure. After all, it’s your financial numbers that make or break your business.

Unfortunately, once you’ve selected an accountant, it’s a pain to switch. Your accountant gains detailed knowledge of you, your business and your data —it makes it very tough to transition to a new accountant. The end result is that many businesses that work with mediocre accountants don’t make the change to a better accountant simply because the switching costs are too high.
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Given the inertia that settles in after you’ve selected an accountant, it’s important to make a good choice the first go-around. Makes sense, right?

Surprisingly, most business owners don't thoroughly consider their needs when selecting an accountant. That’s because many of us who don’t have a strong accounting background view all accountants as being equal.

But the reality is that all small business accountants are not created equal.

This article explains how accountants can assist your business and provides useful questions you should use to choose an accountant that truly can help your business grow, not somebody who just crunches the numbers.

Questions to Ask Your Prospective Accountant

The bottomline is that you should expect today’s accountant to be much more than a bookkeeper. Most do add considerable value. The trick is to separate the wheat from the chaff.

So, with your raised expectations, how do you choose the right accountant for your small business? Like any relationship, it boils down to a compatibility of interests, experience and outlooks. Seek recommendations from your peers and ask prospective accountants the following questions:

Do you have your CPA?
Business owners are often confused as to the certified public accountant (CPA) designation. A CPA has a surpassed accepted financial education levels, passed state-administered tests to prove competency and periodic re-certification exams. Certain situations, such as audits and many loan applications, require CPA involvement. Not surprisingly, CPAs can charge higher fees than a non-CPAs. But there are a great many non-CPAs who excel at small business accounting and financial and technology consulting. Again, getting to know them and your needs is the necessary first step.

What kind of creative business advice will you offer me?
A good accountant can deftly handle data and numbers but should also be able to demonstrate quick and creative business acumen. Ask the candidate to offer three quick ideas on how your firm might be able to save money right now. Ask them for three examples in which they offered useful business advice to other clients that went beyond just tracking the numbers. While “creative accounting” is usually a negative, having a creative business mind can be a huge asset towards helping your company to grow.

Do you consider yourself to be tech-savvy?
Small business accounting software has made powerful accounting tools available to everyone. But these accounting packages, most notably MYOB and QuickBooks, are only as useful as the person who installs them and runs the applications. Even if you are not a “tecchie,” do your homework to be able to determine whether the candidate understands the role computer technology plays in turning business information into business intelligence. For example, ask them how they will integrate your computer files with the technology in their office. What role will the Internet play in keeping in touch and interchanging financial information?

Who are your other clients?
Imagine this scenario. You hire an accountant based on the assumption that he understands the basics of your business. Then, you find out that he’s never had a client like you before. Instead, he’s only prepared tax forms for wealthy individuals that don’t own businesses. Avoid that possible disaster by asking who the accountant works with. If they are businesses that are similar to yours, that’s a good sign. In asking about their clients, you will also want to understand how busy they are and whether they have the time and resources to support you adequately.

How do you calculate your fees?
Ask the accountant what you can expect fees to be and will he guarantee that you will not exceed certain amounts that you agree upon up front. In a time-based fee structure, make sure to find out the hourly rate, as well as all fees for expense reimbursement. Find out now whether a simple two-minute phone call or a one page fax means an hour of billable time. If that’s the case, run for the door.

Are you active in the local business community?
Who do you know that can help me? Find out whether your prospective accountant can introduce you to people who might be useful to you, including prospective customers, suppliers, bankers, and investors. Since talk is cheap, take it one step further. Ask the accountant for examples of introductions they’ve made in the past for other clients and how those introductions played out.

Why should I use you?
As a final question, it’s always good to let the accountant make the case for why you should engage them. Find out whether your prospective accountant can introduce you to people who might be useful to you, including prospective customers, suppliers, bankers, and investors. Since talk is cheap, take it one step further. Ask the accountant for examples of introductions they’ve made in the past for other clients and how those introductions played out.

Save your Work in Business and Financial Software

Business and accounting tools up until now used to have Spartan, decidedly minimalistic user interfaces. This approach worked in the early days of text-based spreadsheets and black-and-white trading terminals. However, the latest trends in operating system and software design require a better, more usable and more visually appealing user interface. Is your team of designers prepared for the challenge?

Designing clear text messages, wizards and intuitive dialogs and window layout is only one side of a coin. It is still easy to spoil a good user interface with improperly designed, rushed graphics, with alternatives being spending more on graphic design or moving the deadline. There is another, less talked about alternative: using ready-made stock graphics to empower your accounting product or service.

What's so good about stock images? Stock images are a great way to make your product stand out with professional, balanced design and strikingly good looks. Stock graphics are readily available, meaning that you see exactly what you get, and you get it right away without the long wait. Stock icons are sold as matching sets, ensuring color and stylistic integrity of your project. Finally, stock icons are a much less expensive alternative to drawing icons even in-house, let alone outsourcing them to a contractor.

Working specifically on making a usable tool for business-oriented customers, you need stock images designed with that in mind. While there are many generic sets of icons available, there are only a few designed for business developers. Business Toolbar Icons by Perfect Icon (perfecticon.com) are hand-crafted by professional software designers for the purpose of integration with business and accounting software.

Business Toolbar Icons depict many objects, actions and symbols that are widely used in financial tools. Currencies such as Green Dollar and Euro, accounting terms such as Debit and Capital Gain, actions such as Forward, Down, Pick and Transfer, and human-related icons such as Staff, Employee and Administrator are supplied among many other images.

Technically speaking, your purchase gets over 200 icons in all standard sizes, color depths and file formats. Semi-transparent True Color images for Windows XP and Vista operating systems with high resolution displays are complemented with 8-bit, 256-color images. Each picture comes in all resolutions of 16x16, 20x20, 24x24, 32x32, and 48x48 dots, and is supplied in three different states: normal, disabled, and highlighted. All images are available in Windows Icon (ICO), Bitmap (BMP), GIF, and PNG file formats.