Managing business finances requires the right tools. Essential tools like accounting software and information systems enable organizations to organize financial data, reduce the risk of human error, assist with budgeting, track inventory and manage accounts receivable and payable tasks. With the proper systems, businesses can streamline their financial operations, making it easier to maintain their fiscal strength and make informed financial decisions.
Accounting information systems (AIS) combine modern information technology with traditional accounting practices. Southeastern Oklahoma State University’s online Bachelor of Business Administration (BBA) in Accounting program includes an Accounting Information Systems course that offers students in-depth knowledge of AIS design, information flow, transaction cycles, internal control, auditing and transaction processing. Expertise in these systems is in high demand.
Software and System Applications for Accountants
AIS encompass a range of elements crucial to the accounting cycle. These systems house data on revenue, expenses, customer and employee information, and tax details. Typical AIS data includes sales orders, analysis reports, purchase requisitions, invoices, check registers, inventory, payroll, ledger entries, trial balances and financial statements. The database structure stores information securely, utilizing query languages for ease of access and data management.
AIS are versatile, enabling the production of various reports, such as accounts receivable aging reports, depreciation schedules for fixed assets, trial balances, customer lists, taxation calculations and inventory levels. However, items not directly related to financial reporting or bookkeeping, like correspondence, memos or presentations, are excluded from AIS.
AIS also facilitate interdepartmental communication. For instance, the sales department can upload the sales budget, which the inventory management team uses to conduct inventory counts and order materials. When new inventory is purchased, the system notifies the accounts payable department of the invoice while sharing information about new orders with manufacturing, shipping and customer service. Internal controls are embedded to protect sensitive information and ensure users only access data necessary for their roles.
Basic Types of Accounting Software and Information Systems
Double-entry accounting systems stand out for their precision and reliability. This method requires every transaction to have a corresponding entry in another account, ensuring balanced ledgers that are easier to audit. Businesses favor double-entry accounting because it helps identify and correct data errors, reduces fraud risk and simplifies financial statement creation. By using accounting software, managing double-entry systems becomes even more efficient, enabling businesses to easily evaluate profit and loss.
Single-entry accounting systems offer a straightforward alternative. This method involves only one entry per transaction, making it ideal for smaller businesses that do not need complex software. Single-entry accounting can be managed with simple paper records or computerized spreadsheets. While it may not be as error-proof as double-entry systems, single-entry accounting simplifies processes and allows small business owners to handle their bookkeeping independently without extensive accounting knowledge.
Different Resources for Different Clients
Accounting professionals utilize a variety of software tools tailored to their specific client needs. For instance, a small business accountant might rely heavily on billing and invoicing software like QuickBooks or FreshBooks. These tools help streamline the process of tracking income and expenses, generating invoices and managing cash flow. The simplicity and efficiency of such software make it ideal for small businesses that need to manage their finances without a dedicated finance department.
Accountants working with large enterprises often use more complex systems like ERP (enterprise resource planning) accounting software. ERP systems, such as SAP or Oracle, integrate a wide range of business processes into a unified system, including finance, supply chain and HR. This integration allows for better coordination and real-time data analysis across the organization.
Payroll software is another specialized tool used by accountants focusing on employee compensation and benefits. Platforms like Gusto or ADP are designed to handle various payroll functions, from calculating wages and withholding taxes to managing direct deposits and tracking employee time off. For companies with numerous employees, these tools help ensure accuracy and compliance with labor laws while providing valuable insights into labor costs and workforce productivity.
Accountants who work with startups or freelance professionals often use customizable accounting software like Zoho Books that can grow with the business. Modular solutions can be tailored to specific business needs, such as project-based invoicing or expense tracking.
Prepare to Use Accounting Technology in Your Career
Southeastern’s online BBA in Accounting program equips students to use accounting software and information systems effectively in many professional capacities. Students cover financial accounting theory and methodology, income tax law and CPA audit principles, all while learning to use and maximize accounting software and information systems. These skills are in high demand by leading employers as technology plays an increasingly important role in modern accounting practices.
Learn more about Southeastern Oklahoma State University’s online Bachelor of Business Administration in Accounting program.