Chapter:-19
Usage of Software in Account
1. Write about computer software.
Ans:-Software is a set of computer programs used to operate computers and execute specific tasks. Software guides the computer at every step, where o start and stop during a particular job. Excel, widows, audio player, video player, photo editor etc are the examples of software.
2. Write the meaning of Accounting software.
Ans:-Accounting software is a computer program that assists accountants in recording and reporting a firm’s financial transactions. Tally, Swastik Gold, Quick Book Accounting etc. are the examples of accounting software.
3. Write the usage of Accounting Software.
Ans:-Accounting software is used to:
a. Improve accounting accuracy.
b. Speed up the accounting calculations.
c. Reduce overall cost by reducing payroll and administrative cost.
d. Improve data security.
e. Generate accurate reports.
f. Increase accounting transparency.
g. Generate accurate forecasts.
h. Enhance productivity.
i. Comply easily with applicable law and tax.
j. Maintain better relationships with the customers.
4. Describe the features of accounting software.
Ans:-The features of accounting software that are generally taken into consideration before sourcing an accounting software are:
a. Flexibility: It must be flexible enough to data entry and design of various reports expected from it.
b. Cost and maintenance: The cost for maintenance, modification, training of staff, updating of versions, and data recovery in case of failure should be considered.
c. Size of organizations: The software and its capability varies as per the nature and the size of the organization. Small organization can select the different one compared to the medium or the large one.
d. Training needs: Certain accounting software requires simple and easy training. Such software are user friendly and require less efforts on the part of the staff.
e. Level of secrecy: The software must have security features in order to avoid its authorized usage. Some accounting software are highly secured as compared to others.
f. Transfer of data: The accounting software should be capable of transferring data to other systems and software. It makes the software more flexible.
5. Write the activities of accounting software.
Ans:-Common activities performed by the software are:
a. Creating a company
b. Creating groups for ledger accounts
c. Creating required ledger accounts under groups
d. Creating units of measurement for stock items
e. Creating groups for the stock items
f. Creating the stock items
g. Creating of vouchers type
h. Preparation of journal voucher
i. Generating reports