Question

How would you respond to the two discussion posts made by Aimee and Julian? Write a response for each post. Both responses should should be 160 words.

Aimee

In this discussion, we will be talking about accounting software packages. We will be talking about how it can be used in the steps of the accounting cycle. We will also talk about which steps it will simplify and how. We will also talk about which steps the software is not able to handle without human intervention. Also, the advantages and the disadvantages of using the accounting software will be discussed.

The first thing is that you need to figure out just what you need the software for. A lot of small businesses use accounting software programs just to help them get started or to help track finances. There are many types of accounting software packages for example QuickBooks, FreshBooks, Quicken and Simple accounting etc. The most used accounting software among small businesses is QuickBooks.

What are the steps of an accounting cycle? The steps to an accounting cycle are journal, ledger, unadjusted trial balance, adjusting entries, adjusted trial balance, financial statements and closing entries. Once you plug in all the business information into QuickBooks you can get started. QuickBooks makes it easy to get reports such as a balance sheet, financial statement, and so many more. All you need to do is just click on the report that you need and the dates you want QuickBooks will then generate the report.

As easy as it is to get any report you want in an instant. It takes time to plug everything in. You can take payments over the phone which means you still have to do it manually. For example, someone calls, and you need to bring the payments page up and find the invoice that they want to pay and plug in all the information. Just about everything is cloud based, or you can save it to a USB so it's safer.

The advantages of using an accounting software program is that you can generate any report quickly and neatly. The disadvantages for using an accounting software program is that it does cost a lot to have the license, and you would probably need an Information Technology (IT) person just in case something goes wrong.

Response:

Julian

In terms of analyzing and recording business transactions, the program that I am going to identify is one that has been used continuously for years in regards to bookkeeping and that is Quickbooks. Quickbooks is used as a small business accounting tool that manages income and expenses and keeps track of the businesses financial history. Along with those features, you can also use the program to invoice customers, pay bills, generate reports/ledgers, and prepare for your taxes. Quickbooks simplifies accepting, recording, sorting, and crediting by the use of its internal software which categorizes(services) and separates activity by time and date. It can run an accounts payable report that shows profit/loss reports, balance sheet reports, and statement of cash flows. It also has the ability to automatically calculate federal and state payroll taxes and submit paychecks to employees both in check form or direct deposit. In terms of human intervention, Quickbooks needs someone to enter data and possibly manipulate the numbers from month to month or yearly in order for the program to continue to accurately do its functions. The pros of Quickbooks is that it is easy to use, very efficient, good at generating accounting reports, the price, and it is also flexible with 3rd party applications(add-ons). The cons with Quickbooks is that it does not scan/track products/shipments used for an ecommerce business(inventory), data entry can sometimes pose a problem, it can sometimes crash, and it does not generate many reports outside of the accounting world.  

Response:

Answer 1

Answer :-

Response to Aimee :-

Accounting Software is used by accounting professionals to process financial transactions like accounts receivable and payable, invoicing, tax ratingscompliance, general ledger, cash flow analysis, trial balance, income and expense statements, balance sheets, payroll among others.With the reports generated, an organization can get a glimpse of how they are performing financially and create future budgets. Accounting software enables the efficient and fast processing of financial transactions. Automation of processes leads to a reduction of staff costs who would previously be engaged in manual processing ofdata. There is also a reduction in human accounting error. Records are automatically kept up to date.

Use of Accounting software has got many benefits :-

• Simple and fast data entry capabilities
• Improved accuracy due to the reduction of human error
• Improved collaboration between departments through a centralized database
• Reduced operational costs through the elimination of outsourcing of bookkeeping
• Simplified tax compliance; software can be customized to handle local tax codes
• Improved productivity by reduction of approval processes
• Better decision making processes through the acquisition of timely and informative financial reports.

But the Best practice of using acccounting software would be :-

1. Have basic knowledge of the various financial statements like balance sheets. Thesoftware only prepares it, but accountants are tasked with interpreting them.
2. Find the right accounting method - cash or accrual
3. If for small business owner separate personal and business accounts
4. Be familiar with your tax liability - personal and corporate
5. Perform regular independent audits of the system
6. Reconcile records with monthly or yearly bank statements

Response to Julian :-

QuickBooks is widely regarded as very powerful and useful software for many businesses. It saves money and time, and since its introduction over two decades ago it proved to be ideal software for companies and businesses of all different types and sizes.If you plan to start a company or you already have one, QuickBooks is a must have software for any business. It really simplifies and streamlines the accounting, tracking and reporting and for the most part, guarantees that the process of managing your company finances will be much easier :-

1. QuickBooks has easy-to-use software that is customer oriented. Even if your company does not have a big accounting department, this software is made to be used by many people and its design is really easy to understand;

2. QuickBooks can help you manage your taxes easily. Filing in tax reports and monitoring income has never been easier. By using the software you will not have to worry whether your tax report will be made correctly and on time.

3. QuickBooks is constantly evolving and improving. There are lots of improvements inside the software that can always prove to be helpful for running your business. New features are added regularly, so all your financial areas can easily be covered.

4. QuickBooks is leading software in terms of safety and adaptation to the new technologies. QuickBooks is slowly, but steadily moving forward towards being the best financial software that can be on the market. It can be accessed from any type of modern devices, which makes the life of the business owners much easier.

5. QuickBooks has many integrated tools that will help you increase the efficiency. There are lots of helpful shortcuts as well as other working tools that make accounting easier. Users will save lots of time and their work performance will rise significantly by using this software.

6.   QuickBooks challenges companies to be oriented towards product innovation and open thinking. By using this software, the company productivity will rise, and that will encourage the workers to be open towards innovation and to be more focused on making their company better than it is.