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Identifying the Minimum Specification of Accounting Systems PDF

   

Added on  2020-10-04

11 Pages2259 Words114 Views
Research Task - Assessment 1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Producing report identifying the minimum specification of accounting systems and choosingthe best suitable accounting software for small business.......................................................1CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................6APPENDIXES ................................................................................................................................7Interview an owner of small business....................................................................................7Interview an accountant with regards to accounting packages..............................................7Chart of Accounts...................................................................................................................8BAS........................................................................................................................................8

INTRODUCTIONAccounting is crucial for business which helps to record transactions. Present report dealswith client who is planning to start small business in Canberra and is requiring advice forimplementing accounting software which will be the best suitable for the business. Moreover,three packages such as Reckon One, Quickbooks and MYOB are discussed and recommendationis provided to use by firm for securing financial process. Furthermore, minimum specificationsof accounting system required are explained. Benefits and weaknesses of accounting softwareare listed along with pricing plan of software. By considering all such information,recommendation is given to use accounting software meeting needs in a better way. MAIN BODYProducing report identifying the minimum specification of accounting systems and choosing thebest suitable accounting software for small businessLegal structure and requirementsAccounting software is essentially required in the business so as to attain clarity inoperations. It is used to record all data regarding the transactions and maintains various accounts.It includes accounts receivables, accounts payable, general ledger, payroll and extracting out trialbalance in effective manner. It helps firm to handle and record routine transactions in software soas to analyze financial standing at a particular period. Client will start his small business inCanberra and accounting software is must for transparency of numerical data. There are variousspecifications which are required for installing software (Kim, Jang and Yang, 2017). Newgeneration software requires operating system of Microsoft Windows 7 or higher for smoothperformance. Business will also require Pentium IV Processor, 4 GB of storage memory, 64 or32 bit operating systems. All these hardware requirements should be met. The software shouldallow input of entry in journal and then checking and reconciling the same for preparation of trialbalance. General ledger needs to be integrated with accounts payable, receivables, cash book,fixed assets. System should allow insertion of multiple GST tax rates on whatever goods andservices sold. The legal structure of business would be sole proprietorship which is suitable forrunning firm as it is an economical legal form of business. BAS is form submitted by thebusiness to ATO (Australian Taxation Office) registered for paying GST for reporting taxationliabilities.1

Accounting software packages available to small business ownersThere are various software packages which can be used by the business in order to meetaccounting requirements in effectual way. Three different types of packages are Quickbooks,Reckon One and MYOB which are the best suitable for small business in Australia. Thesepackages have reliability and integrity for the firm as accounting needs regarding transactionsmay be fulfilled quite effectually. Quickbooks was formed by Intuit for providing financialservices mainly for small and medium enterprises. This could be used by the business forattaining requirements in the best possible manner. On the other hand, Reckon One is anotherhighly integrated accounting software which can help business in meeting financial needs. Real-time data can be accessed in a better way and firm will be benefited by implementing suchsoftware. Whereas, MYOB is another software which can be utilized for day-to-day recording oftransactions occurred in the business. Moreover, it is required all the data should be collectedbefore choosing desired software for easing-off and securing the financial process (Pakroo,2018).CostsCost is a prerequisite for any small business firm because it has limited resources in handand it is required that funds should be used judiciously for meeting desired needs. Maximumbenefit could be accomplished with minimum costs so that dual benefit can be achieved. It isrequired that cost of accounting software should be low and at the same time, it should posses allessential features in it. The plan and pricing of different software have fair difference. This isevident from the fact that Quickbooks has price of $10 per month. While, Reckon One has $5 permonth and on the same basis, MYOB has much price difference in comparison to both as it has$20 per month. This is cleared from the fact that cost-effective package for whole year is ofReckon One as it is of the least cost which will be required to be incurred for availing servicesfor one year. The prices of other two software is high which is not to be used by client who plansto operate in Canberra for running small business (Collis, Holt and Hussey, 2017). There areimmense features which can be availed by using Reckon One. Among these are, real-timereporting of all payable and receivables recorded in software. Online invoice option is availablefor creating bills and also to track and effectively manage overdue and paid invoices or bills forenhancing cash flow. 2

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