How would you respond to the two discussion posts made by Aimee and Julian? Write a response for each post. Both responses should should be 160 words.

Aimee

In this discussion, we will be talking about accounting software packages. We will be talking about how it can be used in the steps of the accounting cycle. We will also talk about which steps it will simplify and how. We will also talk about which steps the software is not able to handle without human intervention. Also, the advantages and the disadvantages of using the accounting software will be discussed.

The first thing is that you need to figure out just what you need the software for. A lot of small businesses use accounting software programs just to help them get started or to help track finances. There are many types of accounting software packages for example QuickBooks, FreshBooks, Quicken and Simple accounting etc. The most used accounting software among small businesses is QuickBooks.

What are the steps of an accounting cycle? The steps to an accounting cycle are journal, ledger, unadjusted trial balance, adjusting entries, adjusted trial balance, financial statements and closing entries. Once you plug in all the business information into QuickBooks you can get started. QuickBooks makes it easy to get reports such as a balance sheet, financial statement, and so many more. All you need to do is just click on the report that you need and the dates you want QuickBooks will then generate the report.

As easy as it is to get any report you want in an instant. It takes time to plug everything in. You can take payments over the phone which means you still have to do it manually. For example, someone calls, and you need to bring the payments page up and find the invoice that they want to pay and plug in all the information. Just about everything is cloud based, or you can save it to a USB so it's safer.

The advantages of using an accounting software program is that you can generate any report quickly and neatly. The disadvantages for using an accounting software program is that it does cost a lot to have the license, and you would probably need an Information Technology (IT) person just in case something goes wrong.

Response:

Julian

In terms of analyzing and recording business transactions, the program that I am going to identify is one that has been used continuously for years in regards to bookkeeping and that is Quickbooks. Quickbooks is used as a small business accounting tool that manages income and expenses and keeps track of the businesses financial history. Along with those features, you can also use the program to invoice customers, pay bills, generate reports/ledgers, and prepare for your taxes. Quickbooks simplifies accepting, recording, sorting, and crediting by the use of its internal software which categorizes(services) and separates activity by time and date. It can run an accounts payable report that shows profit/loss reports, balance sheet reports, and statement of cash flows. It also has the ability to automatically calculate federal and state payroll taxes and submit paychecks to employees both in check form or direct deposit. In terms of human intervention, Quickbooks needs someone to enter data and possibly manipulate the numbers from month to month or yearly in order for the program to continue to accurately do its functions. The pros of Quickbooks is that it is easy to use, very efficient, good at generating accounting reports, the price, and it is also flexible with 3rd party applications(add-ons). The cons with Quickbooks is that it does not scan/track products/shipments used for an ecommerce business(inventory), data entry can sometimes pose a problem, it can sometimes crash, and it does not generate many reports outside of the accounting world.

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