Choosing Accounting Software

1. Why Computerise?

Basic accounting software is cheap and easy to use. Unless your business processes a very small number of transactions each month (fewer than ten), it will almost certainly save you time and money.

1.1 A computerised system can automate many tasks.

• Book-keeping is simplified and automated. For example, when you enter an order, the software will update the stock and customer records and allows you to translate the order into a sales invoice.
• Bank reconciliations, VAT returns, monthly management accounts and other tasks can be completed quickly and accurately.
• Some software supports electronic banking and online tax filling. This could save time.
• Most packages let you add a payroll module to automate the calculation and payment of wages.

1.2 Accounting software provides a wide range of up-to-the-minute management reports at the touch of a button.

• For example, aged debtor and creditor lists, the bank account balance, tax and VAT owed, balance sheet, profit and loss, stock values and performance against budget.
• Other useful calculations, such as project profitability assessments, can be produced by linking into job costing software.

1.3 The software makes it easy to prepare for your annual accounts, or your audit.

1.4 You can make further improvements by integrating different processes.

• For example, you could use the information contained in your ledgers to generate debt-chasing letters or mailshots automatically.