What is the difference between an accounting process that uses computerized accounting software and is still manual? In the financial accounting process that is still manual, of course, you have to do a lot of recording manually on several separate books. Then compiling a journal that is quite complicated for those of you who don’t have an accounting background other than that this job will be time-consuming and risky if not thorough. If you need help with bookkeeping, you can visit Nottingham accountants.
What about the accounting process that already uses computerized and accounting software? Of course, the basic difference is that you don’t need to keep financial records on a piece of paper or book. By entering data into accounting software you can arrange and print it at any time if needed. If the online accounting software that you use like Xero, you are much easier to access and monitor your company’s financial statements anytime and anywhere even from a smartphone.
One thing you need to understand is that accounting software cannot replace the concept of financial reporting, but what can be replaced is data processing. Because the main purpose and benefits of accounting software are to help an accountant produce financial reports such as cash flow, balance sheet, profit and loss (Profit Loss Statement), and Final Financial Report. You must continue to use the services of a professional accountant or consultant who can assist you in making financial reports using the accounting software.
If you are an owner of a large or small company, of course now it will start to occur in your mind if using accounting software is something that can facilitate the preparation of your company’s financial statements. Especially to tidy up your company’s inventory management if you want to have many branches in the future.