Business Accounts Computerization

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 world’s 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 their
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
company’s 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 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 buy"(Stevens 108). They are generally uneconomical
and unnecessary. In most cases you are able to purchase pre-packaged software at
a fraction of the cost of custom software. The