Rise of Accounting Software

Rise of Accounting Software

Accounting Software is a type of Application Software which stores &
processes all accounting transactions within the functional module such
as accounts payable, accounts receivable, journal, general ledger, payroll,
and trial balance. It functions as an accounting information system because of it
provides all the information related to an account and its transactions.
By utilizing a well-designed & well-functioning Accounting Software, many
businesses can cut their cost & create their savings by increasing the efficiency
with which incoming cash flows and payments, outgoing bill payments and
liabilities, and payroll are handled. This makes easy for businesses to trust and; rely
on Accounting Softwares for their own use.
Accounting Software helps reduce expenses and report accurately on financial
activities, and improves the quality of accounting decisions. It can be used locally,
or in the cloud, depending on how do you want to manage or control your own
updates and security.
In South Africa, TurboCash launched in 1987 with an automated system for trial
balance, balance sheet and income statement. But it could not solve many
problems. In 1990, TurboCash began being distributed by Pastel. It was effectively
the same system. This product evolved in South Africa and has 80% of the local
accounting software market. Pastel has upgraded continuously and added in
functions for customer invoicing, supplier management and inventory. Ever since
then, the market has been undergoing considering using Accounting Softwares.
Accounting Softwares are of two types – Desktop & Online.
1. Desktop – Many small business owners use Desktop Accounting Software
because it is popular & it was more powerful because an owner had to pay
money only one time. It doesn’t need to have an internet connection for
work. That’s why owners can use it without worrying about internet
connectivity. But using it in a large amount of data, it causes a problem to keep
all of the financial information in one single place. If we are not in the place
where the computer is then we can’t use Accounting Software. Also if the

software is needed to be updated or repaired then it is difficult to share files
between computer.
2. Online –Cloud software, called as Software-as-a-service, is more flexible
with new features. Most cloud software runs on a subscription basis up to the
time when we need it. Cloud accounting software has an advantage of
automation which it can connect bank accounts & it reduces the amount of
manual data entry, errors & mix-up of data. It generates backup & updates
which increase the security of data. The owner can log into the account from anywhere
with the help of internet.

Key Features & Need of Accounting Software
1. Core accounting
2. Billing & Invoicing
3. Budget & Forecasting
4. Fixed asset
5. Payroll system
6. Project accounting
7. Fund accounting
8. Inventory management
Advantages of Accounting Software
1. Improved productivity
2. Savings
3. Resource Transparency
4. Automatic Production of Documents
5. Smarter Strategies
6. Reporting and analysis
7. Security
8. Expand ability
9. Sociability
10. Customization
11. Graphics
12. Simple data entry
13. Fast processes
14. Reduction of errors

15. Integration with other systems
16. Automation of tasks
Disadvantages of Accounting Software
1. Price is higher than Paper-based systems
2. Need to Learn Working of Software
3. Implementation fees are charged for setting up software
4. Need to maintain the software and its data
5. Change in software is difficult & may need extra charges
6. Dealing with technical issues is difficult
Conclusion
Accounting software has developed accounting all over the world&
business owners are still moving from bookkeeping systems to accounting
software. Its processes have been made easier and less costly. But, the
systems have advantages such as loss of jobs to most of the accountants. The
advantages which are brought by the packages are more both to small business
owners and big organizations. It is the role of every organization to keep working
with the changing technology for the development of & to compete in the
market.

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