“How To Computerize Your Accounts”

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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 ...

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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 ...

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