How To Computerize Your Accounts Essays - Information Systems

How To Computerize Your Accounts Essays - Information Systems 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 worlds 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 th eir 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 companys 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 da ta will be posted automatically to all