Rationale for the Accounting Software Program

Date:  2021-03-06 13:35:49
4 pages  (1165 words)
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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Problem or context/background

The company has for the past three years been using the manual accounting methods done in accounting books. In as much as the company's accounting officer is familiar with this old method, the research done has shown that there is a need for the company to shift and begin using a computerized accounting software program. (Shelly, Vermaat, Jeffrey J. Quasney, Susan L. Sebok, & Steven M. Freund, 2010, p. 378)

Reasons for the need of an accounting software program

The first reason the accounting program is necessary because of the growth of the company. The company has experienced growth in the past three years, and some of the simple transactions that were easily done manually have now become increased and complex. For instance, the number of clients has increased, the number of employees has also increased, and this as lead to a rise in the company figures. These expansions reflect the growth of the company, and, therefore, the use of physical accounting books cannot handle the companys accounting Gerson & Gerson, 2007, p. 739).

The second reason is that the business needs to purchase the software accounting program to enhance efficiency and speed. Due to the increase and growth of the company, as noted above, the accounting work has also increased. To ensure that the accounting work is done efficiently and with the speed the company needs to purchase the software Gerson & Gerson, 2007, p. 739).

What the program will do

The package will be capable of making it easier for the computer user to do onscreen input and printing out of sales invoices. The package will automatically update the accounts of the suppliers in their particular purchase ledger recordings of the bank receipts. Among other things, the software package will make payments to suppliers and pay for expenses. Another task will be to update automatically the general ledger and also automatically adjust the companys stock records. Furthermore, it will be able to integrate with the business database, not to mention automatic calculation of company employees payroll and associated entries (In Gould, 2015, p. 51).

The problems it will solve

Accuracy in accounting will be made possible. Using the manual system has caused accounting errors severally; moreover, these errors have almost cost the company a lot of losses. The product will bring the losses to zero and maximize accuracy to 100%. Since the program is a computer software program, maximum efficiency will be realized since if correct entries are made, then correct results will be expected. With accuracy and efficacy comes speed. Unlike the manual that takes the accounting officer about three weeks of heavy work to streamline the records, the software will be able to do the same amount of work in a matter of hours. This means that office hours will be spared for other productive activities. The final and most serious solution is security. Manual accounting creates a lot of room for malpractices like fraud, with computerized accounting program; the accounts can be monitored and further be protected using passcodes (In Gould, 2015, p. 51).

Alternatives

The first alternative would be to increase the number of accounting officers for the company. For which in this case, this will lead to increment in companys size and also increase in activity, the company may require two extra officers to work efficiently. Moreover, they will need an auditor to run audits as often as possible to ensure there are no malpractices (Gerson & Gerson, 2007, p. 739).

The second alternative is the use of spreadsheets combined with database programs. These can be naturally found in the computer, for instance, the Microsoft Office Excel, and Microsoft Office Access. These two can be applied if the computer user/ accountant is conversant with working with these two programs. They are however having limitations because unlike the software programs, these may not print receipts when needed. The programs will also work on one activity at a time, something that will cause time consumption (Gerson & Gerson, 2007, p. 739).

Criteria for comparing alternatives

The first criteria to be used to compare the alternatives will be on the cost. In this case, the product will be put alongside the two variants, and the cost of each will be measured. Therefore, the one with the least cost shall be considered better for the company (In Gould, 2015, p. 51)

The second criteria will be on the effectiveness of the alternatives. In this case, the alternatives will be put alongside the recommended products and the effectiveness measured by describing the speed and efficiency of each. The one with the highest level of efficiency will be considered the best alternative (In Gould, 2015, p. 51).

The third criteria will be to examine the viability of the options. In which here the recommended product will be put alongside the alternatives and the three will be compared regarding viability. The one that will offer a lasting solution will, therefore, be considered a better option.

Evaluation

Cost: The Accounting Software Program is expensive since it may cost the company about USD $ 550. The increase of two accounting officers will cost the company about USD $ 600 every end month for each officers salary. This is double.The third option which is the use of spreadsheet and database. Accounting packages will cost the company about USD $300 to train the officers, since there are computers available with the office packages (In Gould, 2015, p. 5.

Alternatives Cost in USD $ Cost Ratings on a scale of 1-10

Accounting Software 550 5

Two Accounting officers 600 6

Using Spreadsheet & Database 300 3

Effectiveness: The computer software program can work throughout the day ensuring efficient results. It further requires only one operator. The Two accounting officers need time to rest and may not work all throughout the day. Due to human error, efficiency may also be low when using the agents. The use of spreadsheet and database accounting packages, on the other hand, will be efficient, can work throughout the day and, however, it will lack some features that make accounting simpler, e.g., producing receipts (In Gould, 2015, p. 51.

Alternatives Efficiency Rating on a scale of 1-10

Accounting Software 10

Two Accounting Officers 2

Using Spreadsheet & Database 5

Viability: The Accounting Software Program and the spreadsheet will offer a viable solution than the use of more accounting officers (In Gould, 2015, p. 51.

Recommendation based on the analysis

The Accounting Software Program will make the best alternative since it comes with efficiency and viability. However, the cost is slightly higher than the spreadsheet and database packages. The use of more accounting officers will cost the company more, there will be less efficiency, and the problems might not be entirely solved. It is therefore recommended that the enterprise uses the Accounting Software Program with the Spreadsheet and Database packages as the alternatives.

References

Gerson, S. J., & Gerson, S. M. (2007). Workplace Communication: Process and product. Upper Saddle River, NJ: Pearson Prentice Hall.

In Gould, A. L. (2015). Statistical methods for evaluating safety in medical product development. Chichester, West Sussex: Wiley.

Shelly, G. B., Vermaat, M., Jeffrey J. Quasney, Susan L. Sebok, & Steven M. Freund. (2010).Discovering Computers 2011: Living in a digital world: complete. Boston, MA: Course Technology, Cengage Learning.

 

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