Business Memo
Business Memo
Dear Sir:
This memo is written in response to your last week letter in which you asked about the implementation and usage of accounting software. I have made sure to include all the basic information of accounting software in this memo to help you make sound decision.
Accounting software is an effective tool that is commonly used in all types of businesses to make sound decisions and reduce the chances of errors. The objective of using accounting software is to store valuable data of the company such as financial information. Also, the accounting software is useful in running queries and generating reports of the firm that can later be assessed by the higher management to make effective financial decisions. In recent times, the companies make effective use of accounting software to manage their budgets by inserting the company’s data in the accounting software and running different analytical tools to draw useful information (Cunningham, Nikolai, Bazley, Kavanagh, Slaughter, & Simmons, 2011).
Businesses of different size use various accounting software to increase efficiency and improve their financial health. Some of the common and renowned accounting software include MS Excel Spreadsheets, QuickBooks, and ERP. The accounting software is important to gather the numeric data of the business and ensure the data accuracy of the company (Boone & Kurtz, 2009).
Spreadsheet
Small and large companies make use of spreadsheets to assist with bookkeeping such as listing and recording daily expenses, sales, and revenue. Spreadsheets allow the user to lay out valuable data of the business in an organized manner that eventually helps in making sound financial decisions. Also, spreadsheets are effective in producing flow charts and graphs using the company’s data that helps to get a better picture of the company’s financial status.
QuickBooks
QuickBooks is the accounting software that is mostly preferred by small or medium size businesses. The main features of QuickBooks software include electronic payment functions, worker’s time check, financial transaction and reconciliation. Also, QuickBooks software assists businesses in managing and making payments of bills and payroll.
Enterprise Resource Planning (ERP)
ERP is business software that is used by large and medium size businesses that help the business in vast fields such as marketing, sales, development, product planning and manufacturing. The integrated applications that are offered with this software are useful in managing daily operations of the business.
Improved Financial Decision Making
Different accounting software offer various features that are helpful for the business to achieve data accuracy, time saving, inventory check, and producing a report. It is believed that the main benefit that is obtained through accounting software is improvement in the financial decisions of the business. Accounting software allows the company to check the inflow and outflow of cash that is ultimately helpful in making future decisions. Also, accounting software enables users to examine and relate the division of income to various operating costs and expenses. On the other hand, the inventory check is automatically updated by the accounting software that allows the management to think before placing future orders. The accuracy of accounting software reduces the chances of loss and eventually impacts the financial position of the company.
Real World Example
Val Custer, who is the Chief Financial Officer of a food manufacturing company, Alpine Confections dba Fanie May Confections, believes that ERP accounting software has given uncountable benefits to the business. The accounting software has helped the top management of the company by offering valuable options such as customization of reports, flagging of data that needs consideration, and rapid calculations that increase inventory levels of the business (Bluemner, 2015).
I hope the information contained in this memo would help you in selection and implementation of suitable accounting software for your business. In case of any further queries, please call me on 111-111-110 during business hours.
Thanks and Regards
References
Bluemner, A. (2015, January 16). 20 Manufacturers Describe ERP Software Benefits in their Own Words. Retrieved from http://findaccountingsoftware.com/expert-advice/20-manufacturers-describe-erp-software-benefits-in-their-own-words/
Boone, L. E., & Kurtz, D. L. (2009). Contemporary Business 2010 Update. Hoboken: John Wiley & Sons.
Cunningham, B. M., Nikolai, L. A., Bazley, J., Kavanagh, M., Slaughter, G., & Simmons, S. (2011). Accounting: Information for Business Decisions. Boston: Cengage Learning.
