Accounting Processes

All accounting information historically has been done manually. In modern society we now have access to computers that actually performs the same tasks with much improvement.

Computerised accounting systems may be obtained in modular packages or be fully integrated. Modules include Stock control, sales order processing, purchases order processing, pay roll, fixed assets, Sales Ledger, Purchases Ledger, debtors’ and creditors’ schedule, and general ledger. These accounting systems follow the basic rules of double entry.

Most accounting software has these common modules which can be used each by themselves or combined with other modules in the same packages.

Accounts receivable – where the business enters money receivable from activities

Accounts payable – business records and discharges its financial obligations

General ledger – the company’s “books”

Billing – where the company creates invoices to customers

Stock/Inventory – the business maintains inventory management

Purchase Order – Goods are order as required

Sales Order – the business records customer orders for stock items they need

Cash Book – the business records money collected and paid out.

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