Accounting and Finance Foundations

Unit 6

Accounting and Finance Foundations Unit 6: Journalizing 505

Lesson 17.5 Computerized Accounting Systems

Journalizing

Chapter 17Chapter 6

Student Guide

There are several computerized accounting systems available to individuals and/or businesses who need

help in successfully managing their accounting records. These accounting software applications typically

offer multiple chart of accounts features and functions, post the general journal systemically to the ledger,

and make “real-time” data readily available to financial decision makers. What’s more, computerized journals

can usually be set up to reoccur without any manual input—saving time and labor costs.

The most popular computerized accounting systems include:

1. Quicken—Quicken is targeted at individuals who want to manage their personal finances electronically.
   Quicken users can upload information from their bank statements directly into their financial records
   and even manage their self-employed business records. Quicken also offers teaching applications and
   web-based training for parents interested in teaching their children how to successfully manage their
   finances.


2. QuickBooks—As a result of Quicken’s overnight success among individuals, Quicken’s developers
   quickly expanded their product line to include software designed specifically for small business owners
   who have no formal accounting training. QuickBooks provides users with remote and/or multi-user
   access to business financial records and makes it possible to upload data into the accounting system
   without recreating the data. Plus, the chart of accounts, vendor records, and customer data can be
   easily updated.


3. Peachtree/Sage 50—Peachtree, now called Sage 50, requires users to have more in-depth knowledge
   of accounting than Quickbooks. What’s nice about Peachtree/Sage 50 is that business owners can
   customize their software to manage their unique cash flow, customer payments, and collections. In
   addition, Peachtree/Sage 50’s inventory tracking system is more in depth than many other software
   packages.


4. Microsoft Excel—To be successful, every accountant and financial manager must know how to use
   Microsoft Excel to produce reports and analyze data. The latest version of Excel, Microsoft Excel 2010,
   allows individuals to analyze, manage, and share information as well as track and highlight important
   data trends. Using Microsoft Excel, individuals can create graphs, journal vouchers, invoices, vendor
   logs, charts, and more. Excel users can even access their data via their smart phones and practically
   any computer.

Regardless of their individual features, all of these systems are good tools for working through the Account-

ing Cycle. They all make journalizing an easier process, reducing errors resulting from manual input, and

save time and money. Computerized accounting systems offer real-time data—a valuable feature for most

managers or small business owners.

Unfortunately, security is a significant concern when working with computerized accounting systems.

Viruses, fraud, and loss of data—which are all possible when you maintain your records electronically—

could easily destroy a business.