Using Accounting Software

1. Routine Savings

With accounting software, information is only entered once. The software automatically uses it wherever it is needed, including both the debit and credit side of the entry.

1.1 You complete pro forma (blank) invoices and bills on screen.

• The software should retrieve accounts, using an account number, name, address or other key information. The product name, code or other identifying information should also be recognised.
• Any necessary calculations such as VAT, discounts and commissions should be automatic. Check you can amend the basis on which each of these calculations are made.
• The software should check dates, customer numbers, VAT codes and other entries for accuracy.
• You can immediately print invoices, statements and remittance notes. Check whether you will need any stationery.

1.2 Routine book-keeping is done by the software.

• The sales and purchase ledgers will be updated automatically.
• Check the nominal ledger is updated regularly, to minimise invoicing delays.
• The latest information on customer status and stocks should also be readily available to anyone who needs it (see 3).

1.3 The software should also provide you with immediate updates on your cash position.

• The impact of payments and receipts on the cash position will be calculated and recorded automatically.
• The program should provide details of your bank balance, together with information on uncleared payments. Check the software can handle and collate different bank accounts, as well as any credit or debit cards.
• Most modern software packages will even allow data to be downloaded from your bank and automtaically reconcile for a truly up-to-date cash position.

1.4 Most accounting packages offer an additional payroll module.

• Payroll software makes it easier to calculate and print wage slips.