Posted by Robb Briggs on Wednesday, December 14, 2011
Many corporations and
businesses use accounting software to help systematize routine accounting
tasks, to create financial reports and to establish controls. With numerous offline
and online accounting software packages on the market, there is usually
one that can match most of a business's needs, whether it is a large
corporation or a sole proprietorship.
The main reasons why many businesses use accounting software is to help
automate routine accounting tasks, to create financial reports and to establish
financial controls. There are some
disadvantages of using accounting software despite the fact that it can be a
time saver and help preserve data. Any
loss of service due to a power or computer outage could cause a work disruption
especially when a business is dependent on accounting software. Work disruptions can stop the input of new
data as well as prevent access to the stored information. A computer outage could result in lost
financial data when the information stored is not properly backed up. Another disadvantage is the risk of wrong
information. The
information put into the system is must be as valid as the information in an
accounting system. Since most accounting systems entail some manual input of
data, financial results might be incorrect unless all input data are
reviewed. It may be difficult to find
faulty information if there is a tendency to only review the final reports or
output of an accounting system. Another disadvantage of accounting software is the
cost involved in maintenance, customization, and training and computer
hardware.
Tags:
accounting software reviews
online accounting software