Also, depreciation of the item over the years wouldīe calculated. The purchase costs associated with each item, along with any improvements made to the item, would be tracked by accounting software. Fixed Assets.įixed assets are the physical components of an organization -property, plant, and equipment. Job costing software analyzes costs such as labor, equipment, supplies, and materials. Job costing helps project managers and others deal with the process of analyzing and estimating data to provide a cost estimate for a given project. The basic calculations handle additions and subtractions from the quantity in stock at any given time. Inventory software tracks the goods and supplies an organization keeps on hand to either supply customer needs or for internal use. The accumulation of payroll data is posted to the general ledger on a periodic basis. Payroll accounting involves a series of calculations for taxes, benefits, and other payroll items. In addition, payroll records may also house demographic information related to employees (human resources data). Payroll deals with the calculation and payment of money to employees for work performed for the company. The accounts receivable software posts summaries of the data to the general ledger on a periodic basis. Data related to the reason for money due and the due date are contained in accounts receivable The accounts receivable area processes money due to an organization from customers or other parties. Summaries of payments are posted to the general ledger on a periodic basis. Data such as vendor information, payment amount, and related items are tracked by this software. The accounts payable area handles payments to be made to vendors or others who provide goods or services to an organization. It allows the organization to view the overall status of all accounting data. The general ledger is the final accumulation of financial data for an organization. These include general ledger, accounts payable, accounts receivable, payroll, inventory, job cost estimating, fixed assets, sales orders, and budgeting. In addition, there are several categories of general accounting tasks that any accounting software should support. Items such as loan interest computations, loan payment amounts, and tax due can be calculated with accounting software. Typical ApplicationsĪccounting consists of some basic calculations and accumulation of numbers. As capabilities advanced, more complex systems were used for tracking customer transactions and related calculations. The large early computing systems added and subtracted numbers to help companies keep track of their financial information. The first computer software designed for accounting purposes dealt with basic computations and accumulation of numbers. American inventor Herman Hollerith's original tabulating machine was used to count the U.S. In fact, the earliest applications of computers were for accounting purposes. Given the automation provided by computers and the routine nature of accounting, it was inevitable that the two would match up. Accounting and bookkeeping consists of a series of routine tasks (transactions) performed over and over with new data. Computers were developed to perform routine tasks over and over based on a set of instructions and data provided by the user.
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