FREE ESSAY ON HOW TO COMPUTERIZE YOUR ACCOUNTS

HOW TO COMPUTERIZE YOUR ACCOUNTS

Mark Demayo
OUTLINE
THESIS: 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 &
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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+.