How to Move From Manual to Computerized Accounting

Even a small business can benefit from computerized accounting. While the switch from paper to computers requires an initial transition phase, it could soon pay off in recovered errors and duplications. Once you choose the right software, it's just a matter of creating template files and transferring data from your books and ledgers to the databases and spreadsheets. Learning how to put data to use in reporting, printing statements or billing in familiar formats is the next step. Remember to save your files often and copy data to CDs.

Instructions

1. Gather all paper components of your manual accounting system. Include expenditure sheets, general ledgers, wage statements, accounts receivable and payable, and any daily written transactions. Collect debit and credit journals, assets and liabilities data, real estate and equity records, and inventory sheets.

2. Set up computer forms and spreadsheets that mimic your paper accounting system. Create forms and spreadsheet template files for daily, weekly, monthly and yearly accounting activities. Save files using specific and meaningful names. Avoid using cryptic names that will only serve to confuse you later when you’re looking for data.

3. Enter data using your computer accounting software. Start with current data and develop a schedule to input data from previous months as desired. Save your files often.

4. Practice tasks such as retrieving data from your newly created accounting files. Perform a task that would normally be done in your accounting business, but instead of searching for answers on paper, search using your new accounting software. Learn the features of your computer accounting software through its tutorials and help menus.

5. Save important and end-of-month files on CDs for easy retrieval. Create CDs for client accounts, both as a backup measure and for audits.

6. Consider getting a backup system for your accounting files. Tape backups require backup tape drives, a backup scheme and lots of tapes. You’ll either need to have lots of tapes on hand or rotate tapes that are writing over.

7. Train your employees to use the new software or consider the additional costs of hiring computer savvy staff.

References

• Accounting - Basic Accounting: Components of the Accounting System
• Manual Accounting Versus Computerized Accounting