Learning Guide - SWASTIK GOLD

BENEFITS OF USING ACCOUNTING SOFTWARE OVER MANUAL ACCOUNTING

•          No Duplicate Entry Required: A single entry will update all the data and reports. User does not require to prepare Journal and post data to Ledger after entering any voucher. All the Data will be updated instantly at the time of entry.

•          Error Less System : In Computerized Accounting Software, a Single Entry updates all the Reports, that is why there is very less chance of error when compared to Manual Accounting. Moreover, since all the figures are calculated by the System itself, therefore, any chances of human errors during calculations in any Report are eliminated.

•          Increased Efficiency: A good Accounting Software will generate all the reports instantly whenever it is required. User can generate as well as print Party Statements, Stock Statements, Sales Analysis, Purchase Analysis, Trial Balance, Profit & Loss Statement, Balance Sheet and lots of other Reports with the touch of a finger.

•          Decision Support System: In any Business, Management needs different types of Analytical Reports in order to make prompt and sound decisions. Manually, reports generation is a tedious and time-consuming job and often the results are inaccurate. But, with a good Accounting Software the task is No Big Deal. In-depth and accurate Analytical Reports can be generated within seconds by the use of a good Accounting Software.

•          Cost Saving In Operation: The use of Accounting Software saves operational cost in all departments including the accounting department. In manual accounting, generally it takes around two to three days in preparing a Trial Balance report, whereas, in computerized accounting system it can be generated in seconds. This means that it is saving your precious manpower time. Time is saved both during Data Entry as well as while generating Reports.

•          Helpful in Better Service to Customer: Through the use of computerized Accounting system you can put into place an Alert System as per the nature of your business. For example, you can implement Minimum Inventory Level System. Whenever your inventory goes below the prescribed minimum quantity the system will automatically alert you, and you can procure that particular inventory on time. In this way, your business will not be hampered due to sudden shortage of raw material and you will be able to provide better and on time service to your customers.

•          Better Security System : In a good Accounting Software, user can implement the concept of a proper Security System. User/s will have access to only restricted area/s as per the decision of the System Administrator, where as in manual system all the user/s will have access to all the areas. Similarly, in Accounting Software, User can not modify or delete any voucher until and unless he has the rights to do so. And, whenever a voucher is modified or deleted, the system keeps track of it. Whereas, in manual accounting, modification without making the books look dirty is not possible and deletion is not possible entirely. Moreover, better voucher checking and authorization system can be developed only in an Accounting Software.

•          Better Storage System : In manual accounting, multiple fiscal years accounting even for a Single company will mean multiple books and thereby, lots of physical space of the office is used up. Whereas, in computerized Accounting Software, data of multiple companies for multiple fiscal years can be stored in a single Hard Disk without using-up any extra physical space of the office.

•          Faster Access to Information: It is one of the most basic benefits of any Accounting Software. User/s can search for any type of information or reports within seconds whereas; in manual system it can take hours. Different types of searching and indexing facilities are available in a good Accounting Software. So, accounting software provides better access to information.

•          Clear Reporting and documentation: In computerized Accounting Software, it is a general practice to use a Printer to print any type of information. So, the output is very clear and the information reaches our hands in a well managed format. Whereas, in manual system, the clarity and understandability of the information depends upon the handwriting of the Report writer.

•          Match the pace of changing times: The outlook and working practices of any office projects either a positive or a negative image to its visitors. In this computer age, where everything is regulated by Information Technology, the use of manual accounting does not send positive signals to your customers and suppliers even though your thinking might not be old fashioned. The use of computerized Accounting Software helps to project a new and hitech image of you and your company.