Using Accounting Software

1. Routine Savings

With accounting software, information is only entered once. The software automatically inputs the information 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 look up and retrieve accounts, using an account number, name, address or any other piece of 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 done automatically. Check you can amend the basis on which each of these calculations is 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 special stationery.

1.2 Routine book-keeping will be done for you by the software.

• The sales and purchase ledgers will be updated automatically.
• Check the nominal ledger is updated as often as you require.
• This should minimise any delays between making a sale and raising the invoice.
• 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 any uncleared cheques. Check the software can handle and collate different bank accounts, as well as any credit or debit card accounts.

1.4 Most accounting packages offer an additional payroll module.

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