Question

‘Accounting software is an integral part of the computerised accounting system’ Explain. Briefly list the generic considerations before sourcing an accounting software

Answer 1

An Accounting software plays an important role in the computerized accounting system and hence it should and hence it should meet upon the generic needs of any company in the following manner:

a. Cost of Installation and Maintenence: The accounting software must fulfill the need of the maintenance and the installation of the company.

Thus it is important the accounting system evaluates the software against the cost and the benefits it offers to the company.

b. Training Requirement: Training requirement is a crucial factor which the companies should consider while selecting any accounting software.

If the accounting software is user-friendly, it will be less complex or them to use.

c. Exchanging Data Facility: Whether if the accounting software is able to transfer the data or not is another aspect which the companies should consider while talking the decision for the accounting software.

The data through the accounting software must be easily transferrable to another accounting system.

d. Flexibility: The accounting software must offer flexibility when it come to the aspect of the generation of the reports, entering, retrieving and processing the data.

e. Size of Company: the accounting software must be meet the need of the size of the company.

For instance, if the company in small in scale and size, the accounting software must be concerned to meet its specific need in this case.

In another instance, if the company is a multi-national company, then the accounting software must meet the general need of the large number of the users.

f. Level of Secrecy: The companies should consider the level of secrecy as an important aspect while selecting any accounting software.

The unauthorized access and the manipulation of the data must not be allowed by the usage of such software.