Business Accounts Computerization
I will explain the steps that need to be taken to computerize
business
accounts. The steps are planning and informed selecting of
hardware, software, and training.
I. Making the decision to computerize
II. Choosing the correct tools A. Software
B. Hardware C. New and old
technology III. Installation and training In the
normal course of a day our
lives are affected by the technology of computers in
ways we can only begin
to imagine. "The word ubiquitous means ever-present or
occurring everywhere.
This term could be used to describe the use of the
computer in the
business"(Perry 11). The business world’s benefit alone is
enough to make
your head spin. Every time you go to the grocery store, the bank,
the local
ATM, or even the neighborhood gym you cannot help but benefit by the
use of
computers in modern society. The common civilians’ encounter with
computers
is not the only area where technology has changed our lives. Many
fields in
business such as accounting depend on the convenience, speed,
accuracy, and
reliability that computers have become known for. But not all
companies are
large enough to benefit from the use of computers. First a company
must
research the impact a computer will have on keeping track of its
accounts.
Then they must choose the correct hardware and software to best
suit their
particular needs, while at the same time making themselves
familiar with the new
enhancements that increase productivity. Finally, the
company must allow time
for installation and training. When evaluating the
need to convert from a manual
accounting system to a computerized accounting
system you also need to forecast
the future demands of your company. After
all to survive in the business world
you must anticipate the future and not
react to the past. How do you know when
it is time to make the critical
transition? "It is when management finds
itself unable to keep track of its
business. Which products are profitable?
Which are not? Which customers
pay on time ? Which are delinquent? Having easy
access to this data is
essential to running a healthy and competitive
business"(Stevens 106). When
your company has grown so large that management
no longer has access to the
data used to make informed decisions, then it is
probably time to switch to a
computerized data management system. These
computerized data management
systems are often called information systems. The
company now has two
choices. It can either hire a professional consulting firm
to help select and
install the computer system, or venture out on its own to
make these
important decisions. "Adequate planning is the most important step
in
assuring the successful use of computer technology" (Perry 23).
Most
companies would be better off seeking the aid of a consulting firm. They
are
better informed on the different types of hardware and software that
would best
suit your computing needs. An outside firm is a better choice
because they are
less likely to make a costly mistake when choosing the new
system. Another
benefit to using a consulting firm would be their help in
setting-up the
procedures for using the new computer system and the necessary
training to
implement those procedures. Once you have decided that your
company can benefit
from computer enhancements it is then a matter of
choosing which software and
hardware at would be most useful. Software is
just another name for the
programming that computers run on. It is the
language that tells computers what
to do. When choosing accounting software
it is important to, "make sure to
select the right number and combination of
software ‘modules’ to meet your
company’s accounting needs. Most software
packages include modules for
accounts receivable, accounts payable, general
ledger, inventory and payroll"
(Stevens 108). The objective is to come up
with an integrated system by
selecting the modules important to your company.
Here is an example of an
integrated accounting system. "Say you send a bill
to customer. With manual
systems you would have to post it three times: to
the sales journal, to a
customer receivable account and to the general
ledger. But with an integrated
computer system you can make one entry and the
data will be posted automatically
to all the appropriate files" (Stevens
108). There is an alternative to buying
packaged software. You can have a
custom program written for your company.
Custom programs are very
expensive. Costing, "up to $25,000 more, depending on
the number of modules
you buy"(Stevens 108). They are generally uneconomical
and unnecessary. In
most cases you are able to purchase pre-packaged software at
a fraction of
the cost of custom software. The software will be able to handle
up to 80% of
your accounting needs while you learn to live without the rest or
find other
ways to accomplish your needs. So when it time to choose computer
software,
"never take any thing for granted. Price is not the only
consideration.
Before you buy, find out what comes in a software package. Read
the manuals
and determine if the features satisfy everything that you
require"(Clark 36).
The next step is selecting the appropriate hardware to
handle your computing
needs. Hardware comprises all the physical items that
allow a computer to run
programs, such as a printer, a monitor, a mouse, a
keyboard, and a modem
among other things. The memory where information is stored
on a computer is
also considered hardware. When choosing the proper hardware you
should not
base your decision on price alone. "Compare several vendors,
selecting the
one with the best combination of service, training, and
warranties" (Stevens
108). Your company will start to rely on that computer,
so make certain that
you can get it serviced. Try and look for a vendor with a
strong service
outlet near your company. Also steer clear of systems that have
just entered
the market, considering the high mortality rate in the computer
industry. The
company may not be around when it comes time to get service. There
are many
things to consider when purchasing hardware as well as software, so be
sure
to give proper consideration to using a consulting firm. They could
end-up
saving you money. A good word to describe computers is ever changing,
and
accounting systems are no different. You should always be on the lookout
for new
and old computer technology to help your company. Very often you can
increase
productivity with just a few enhancements. For example, two products
have grow
more important to accounting over the past few months and are sure
to become
more popular as time goes on, they are the mouse and multilingual
programs.
"The mouse became popular in the early days of personal
computers because it
simplified their use. Today the mouse and other pointing
devices increasingly
are being integrated into mainstream accounting
programs, especially those for
Windows" (Johnson 91). A mouse is most
useful when accessing shortcut menus or
by selecting icons which are jump
gates that perform commonly use commands by
merely clicking a mouse button.
Icons are the graphical representations of
commands. "Software publishers
continue to integrate the mouse and other
pointing devices into their
programs, making the program easier and faster to
use and enhancing
accountants’ productivity" (Johnson 91). As trade barriers
in the world
crumble and new accounting opportunities continue to grow. More
mid-sized and
even small businesses expand their market beyond U.S. boarders,
they are then
faced with using multilingual computer systems. "The basic tools
that do
these jobs constitute a unique class of accounting software
especially
designed for the international arena"(Lebow and Adhikari 66). As
you can see
technology does not have to be new in order to be useful. The
need for it is
what is important. So do not over look anything when searching
for new
accounting tools. When you finally make the decision to computerize
and you have
selected the suitable hardware and software. You must then allow
an appropriate
amount of time to install the system and also train the
employees. The new
system may take several months before it is thoroughly up
and running, so be
patient. When training employees, they can sometimes be
hesitant toward
computerization. So you must " extend assurances that the
computer is a tool
to help them, not to replace them" (Louvau and Jackson
118). The rule of
thumb, as with anything, is to be patient. This whole
process of computerizing
may at first leave you totally confused. However, if
you take everything step by
step, before you know it you will be up and
running. First make sure it is time
change from a manual system. You may only
confuse things with a new system.
Second, make informed choices when
choosing your hardware and software. Perhaps
a consulting firm would be the
smart way to go. Also remember to keep track of
new technology, it can
sometimes make your company more productive. Finally,
allow plenty time for
installing and training. Taking your time may help prevent
costly time
delays. The most important things to remember are take your time and
make
informed decisions.
Bibliography
Clark, Frank J. The Accountant
and the Personal Computer. Englewood Cliffs:
Prentice Hall, 1986.
Cushing, Barry E., and Marshall B. Romney. Accounting
Information
Systems. 6th ed. New York: Addison-Wesley Publishing Company,
1994.
Johnson, Richard A. "Computer/Technology : The mighty mouse. "
Journal
of Accountancy Aug. 1993: 91-94. Lebow, Marc I., and Ajay
Adhikari.
"Software That Speaks Your Language." Journal of Accountancy
July.
1995: 65-72. Li, David H. Accounting, Computers, Management
Information Systems.
New York: McGraw-Hill Book Company, 1968. Louvau,
Gordon E., and Marjorie E.
Jackson. Computers in Accountants' Offices.
Belmont, CA: Wadsworth, 1982. Perry,
William E. The Accountants' Guide to
Computer Systems. New York: John Wiley
& Sons, 1982. Siegel, Joel G., et
al., Accountant's Microcomputer Handbook.
Englewood Cliffs:
Prentice-Hall, 1987. Stevens, Mark. "Let Your Computer Do
The Work."
Working Woman Apr. 1986: 102+.