Assignment On

Importance of Accounting Software

Course Code: ACC 406 Course Title: Accounting Information System

Submitted To:
Ms. Mahmuda Nasrin Lecturer, Department of BBA Stamford University Bangladesh.

Submitted By:
Md. Rifat Khan ID NO: . . . .

Date of submission: 22nd August 2010.

Introduction:
Business technology has revolutionized the mundane world of accounting. Accounting software applications enhance the way companies record their financial transactions and flow information through their divisions and departments. Accounting software is a computerized version of traditional accounting ledgers and journals. Rather than use paper ledgers to record information, accounting software allows accountants to maintain electronic records of financial transactions. Business owners can use accounting software to improve their company's security for sensitive financial information. Software also allows companies to limit employee access to accounting information. Companies can use accounting software to improve the accuracy and validity of financial information. Many accounting software applications include defaults or exception reports to alert owners about invalid information.

Importance of Accounting Software:

To determine the importance of accounting software we took a company, which use accounting software for their work. Atif Paper Mill Company is a company who use accounting software for their transaction. We will try to find how accounting software is important for them.
1. Holds All Transaction: The main importance of accounting software records

for Atif Paper Mill Co. lies in the fact that it holds true for all uneven

situations and keeping a proper note of financial transactions can prove useful for the company in times of problematic conditions. By using accounting software they records all of their transactions taking place in the company so that they can always have a check on the losses if required and according to generally accepted accounting principles, the basic framework of accounting should always include finance and accounting records.

2. Improving Quality: Employees of Atif paper Mill are skilled to use

accounting software. So accounting software is improving the quality of their work.

3. Timely information: Accounting software helps them to improve the

efficiency of operations by providing more timely information.

4. Timely Decision Making: By getting the timely information the management

can take timely decision which is very important for the firm.

5. Time Savings: Using computerized accounting software saves companies time

and money. The use of a computer makes inputting accounting information simple for the firm. Transactions are entered into the system and the system posts transactions accordingly.

6. Distribution: Accounting software allows the company to distribute financial

information easily. Financial statements are printed directly from the system and are distributed internally and externally to those needing the information.

7. Reduced Workload: Accounting software virtually eliminated the majority of

paperwork of manual posting of accounts as well as posting of perpetual inventory for them.

8. Reduce the cost of the organization: As the firm use computer automated

software they need minimum workforce which reduces their cost of the organization.

9. Reduces Errors: The firms sales invoices are automatically posted to the GL,

their software dont allow an out of balance (debits and credits) condition. Pricing of inventory is automatic which reduces pricing errors as well as extension errors for the firm.

10. Saving Paper: With an interface, invoices can be electronically filed, which

eliminates paper waste, saves money as well as helps to make good environment of the firm.

11. Real Time Updates: Using accounting software employees of Atif Paper Mile

Posting to inventory as well as other accounting updated immediately.

12. Easy to Use: Accounting software is easy to use and clearly understandable

for the employees of the firm, so its important for them to use the easy but reliable system.

13. Improve Employees performance: Accounting software help the employees of

the firm to improve their performance by which the employee of the firm can get significant reward.

14. Expansion of Business: Knowledge of accounting software can help to

expand their business and help in building a bright future in accounting and finance. Accounting asset can include their employees, monthly input, services offered by them, products being produced. Accounting statements can track the entire positive and negative aspects of their company's growth therefore having knowledge of accounts formats can help you in reach new heights and in turn business success.

15. Performance of the Company: By using accounting software the firm can

determine their Sales, Cost of goods sold, Inventory, Cash, Accounts receivable, Freight, Sales tax, Labor cost and other transaction which help them know their performance very easily.

16. Use of Modern Facility: As an industry of Akiz Group, Atif Paper Mill

Company always tries to use the modern technology for their work. So it is important for them to use the facility of software.

Considerations:
Business owners should carefully consider which accounting software package to purchase. Many applications are customizable and allow owners to easily increase the number of users in response to growth and expansion.

Misconceptions:
Accounting software is not a panacea for a company's financial information. Businesses can face difficulties implementing the software, training employees or correcting errors. Technical support or maintenance fees also create ongoing business expenses.

Conclusion:
Accounting software helps firms to improve their efficiency and to take decision, thats why most of the firms prefer computerized accounting software. Employees of the Atif Paper Mill Company believe that, in modern time the accounting software is important and necessary for any business firm. Using accounting software the employees can store the day to day transaction very easily and can take timely decision. So importance of accounting software plays a vital role in determining the company goals and objectives. But proper training to use accounting software and implementation of the software is also necessary to get the maximum benefit.