Using a computerised bookkeeping system can provide a small business with several distinct advantages, compared to using manual books to record the enterprise's transactions.
Built-in Error Checking
Electronic or computerised bookkeeping systems usually have built-in error checking and reporting. Examples of such features are:
- Prohibiting users from entering a transaction date in a future year.
- Entering a sales invoice to a purchase account.
- Excluding narratives and explanation when making an entry.
- Making single sided journals.
Having the above and other controls in the program can prevent users from making basic errors in their work and help to maintain the overall integrity of the accounting data.
Cost Savings
Computerised bookkeeping systems can save the business on the costs of the preparation of its annual or statutory accounts. Most packages are capable of producing a trial balance which accountants will use as the basis of their work to produce returns for Revenue and Customs and Companies House, if required.
Manual ledgers will require substantial analysis, summarising and presentation work in order for them to be in an appropriate format to be submitted to the relevant authorities.
Professional Appearance and Presentation
The presentation features inherent in bookkeeping systems on a computer enable records to be easily understood and viewed by non professionals. Although annual accounts are a standard requirement for all businesses, there may be other instances where interim figures might be required.
Such cases might include a bank’s request for current year’s results to support a loan application or where the business wishes to analyse its actual performance against the budgeted position.
The ability to produce presentable accounts quickly can be a strong feature of computerised bookkeeping systems over the manual counterparts.
