Courtney Lowes
Methods of accounting
Manual accounting: Manual accounting is a way of keeping business financial records in a written
format and not using any computers of software for them. This method would be best for smaller
organizations as they would have less financial transactions.
Computerized accounting: Computerized accounting is where a business will produce their
documents on software on a computer. This method would be best for larger businesses as they
would have a lot of financial transactions and documents that would need to be created.
Advantages of computer accounting:
The system is fast so documents can be produced faster
Cost saving as they wouldn’t have to hire as many staff to produce the work
Up to date information as figures can be changed automatically
Can reduce the stress in the business as there is less pressure put on staff to produce the
accounts
Managers will be updated on the figures making them able to monitor and control the
business
Disadvantages of computer accounting
The cost of training staff to use the software could be high and would stop the business
investing into something else
Possible breach of security as people could hack into the software and see others accounts
Possible system failure if the computer crashes and then the business would lose their
accounts
Staff may feel not as motivated as they may feel like their job is less needed and may feel
like they will be fired.
There are a lot of different computer accounting software that businesses could use. An example of
one is Sage software, which offer a wide range of different software’s that can benefit a business
such as accounting, payroll and CRM software.
The accounting software that they offer has a lot of features:
Manages a business’s income and expenses
Invoice customers with professional, customisable invoices
Bank accounts kept accurate with easy bank reconciliation
No limits to the number of transactions you can enter
Automatically calculate and submit VAT returns securely
All software comes with support
Another accounting software would be KashFlow, this is useful for smaller businesses and they offer
the packages at a cheap price, they say their accounting software is:
Quick and easy to set up
It is portable and can be used anywhere
Methods of accounting
Manual accounting: Manual accounting is a way of keeping business financial records in a written
format and not using any computers of software for them. This method would be best for smaller
organizations as they would have less financial transactions.
Computerized accounting: Computerized accounting is where a business will produce their
documents on software on a computer. This method would be best for larger businesses as they
would have a lot of financial transactions and documents that would need to be created.
Advantages of computer accounting:
The system is fast so documents can be produced faster
Cost saving as they wouldn’t have to hire as many staff to produce the work
Up to date information as figures can be changed automatically
Can reduce the stress in the business as there is less pressure put on staff to produce the
accounts
Managers will be updated on the figures making them able to monitor and control the
business
Disadvantages of computer accounting
The cost of training staff to use the software could be high and would stop the business
investing into something else
Possible breach of security as people could hack into the software and see others accounts
Possible system failure if the computer crashes and then the business would lose their
accounts
Staff may feel not as motivated as they may feel like their job is less needed and may feel
like they will be fired.
There are a lot of different computer accounting software that businesses could use. An example of
one is Sage software, which offer a wide range of different software’s that can benefit a business
such as accounting, payroll and CRM software.
The accounting software that they offer has a lot of features:
Manages a business’s income and expenses
Invoice customers with professional, customisable invoices
Bank accounts kept accurate with easy bank reconciliation
No limits to the number of transactions you can enter
Automatically calculate and submit VAT returns securely
All software comes with support
Another accounting software would be KashFlow, this is useful for smaller businesses and they offer
the packages at a cheap price, they say their accounting software is:
Quick and easy to set up
It is portable and can be used anywhere
