Since technology is getting more developed time after time, many of life aspects has been influenced by the presence of computer as a remarkable innovation in human history. Computers play an important part in the recording of finical information. There are many accounting packages available, and so many businesses are able to use computerized accounting system. One of the most important factors of computerized accounting system is that it provides the same functions as a manual accounting system. Technology in the accounting field has come very far.
With all the new technologies, the profession of accounting is growing and expanding and proving that information and skills provided by accountants using modern technologies can spill over and help other parts of a business. Before the advent of computers, accounting work was manually entered into ledgers. Separate journals were kept for the different accounts, including receivables, accounts payable, inventory records, and so on. It was an expensive, laborious, and slow process. Later, calculators and accounting software programs were used to help with the tabulating of numbers and billings, such as; Intuit QuickBooks, FreshBooks, and Great Plains.
Most business use computer systems instead rather than manual systems to record finical information, because it is a lot faster file can be shared more easily and changes can be made easily. I had taken Accounting 101 as well as Financial Accounting and I have learned that there are tasks that can be performed using spreadsheets on computers, which are used for a variety of functions such as producing invoices. Invoices work out the costs of products sold, calculate and add sales total. Working out budgets for future expenditure can also be performed with accounting software programs. One can also work out sales figures for different products or areas. However most accounting packages will provide the basis for daybooks, ledger accounts, trial balances and final accounts. Daybooks are used for listing sales, purchases and returned goods. These computer programs often use the batch system, which is a list the items with an overall total to check against computer input. It is common to find batches for sales, purchases, returns, checks received, and checks issued. The ledgers accounts calculate expense, income, assets, and liabilities. A trial balance is, typically prepared after numerous entries have been posted, this report totals all debits and credits to help you identify any recording errors (Understanding a Trial Balance, QuickBooks). If one had to handle every account by paper and pen, it would’ve been very difficult to keep up. Our generation is more dependent on technology and how to get work done fast and in a timely matter. With the help of computer software programs in accounting, accounts are being more prioritized and handled well. My sister, Rajvinder Kaur is an accountant and works for a company named Emigra Inc. She mostly works with intuit QuickBooks, FreshBooks, and Great Plains. QuickBooks is a software program which is now profoundly used across the nation. It allows the users to manage the companies’ capital including bookkeeping and inventory. It provides the most comprehensive tools for small business financial management. Intuit QuickBooks track expenses, prepare and send invoices, prepare financial statements, tracks inventory levels, and many other jobs that small businesses must perform to stay successful. New versions like Simple Start for new businesses and Enterprise version for larger businesses is currently out on the market available to purchase. Besides the desktop software, QuickBooks is offering an online version which is hosted through its online edition. Simple Start is the so called most simple version. It is designed for users that do not want or need full-fledged accounting software but still want an efficient way to keep track of sales, expenses, and customers. Simple Start provides essential small business accounting tools while leaving out more advanced features that are usually unnecessary. You will find a good set of features for most new and many existing small businesses in this online accounting software without being overwhelmed by unneeded modules (QuickBooks Simple Start Review, the balance small business). Basically simple start is designed to help the user see how much money was made in a given month, which invoices have or have not been paid, and who are the best customers. QuickBooks Online Simple Start is $20 per month, which is $240 per year. You can save money on a paid QuickBooks subscription by paying for the year upfront instead of monthly. QuickBooks Simple Start is the most economical plan versus $40 per month for Essentials, which is the next plan, or the top-tier plan (QuickBooks Online Advanced), which is a whopping $150 per month (FitSmallBusiness.com). Intuit QuickBooks was designed to help the small business owners who had no accounting training. In a short amount of time the product was used by many companies and became a huge hit. With its deep concern for the non-accountants, and for a lower price than other competitor products, Intuit QuickBooks outsmarted their competition and succeeded in the accounting world.