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Report - Coursework Example

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Running any business requires maintaining financial details and having control over the operations. This is possible when regular account is maintained. For small businesses this is a challenge but bookkeeping records are essential to ascertain how the business has fared during the year…
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Moreover, when accounts are manually maintained it is usually kept pending until the last minute and that too for the purpose of filing tax returns. Accounting is not used as a business tool to keep track of where the business is heading and results is loss of control during the financial period. Bookkeeping software is also a manual system but within the defined parameters it is possible to produce essential information. The first advantage of using software is that small business would tend to maintain regular accounts than those which do not use software for bookkeeping (Articlebase, 2011). The bookkeeping software has a set of disciplines due to which it is able to produce data and records that are essential to exercise control over the business. It also helps in preparing the financial statement at the end of the year including for filing of tax returns. Records are less likely to lost or misplaced when maintained through software. Moreover financial performance can be improved through better financial control. In effect, book keeping software automates the manual maintaining of accounting and financial records. Accounting software saves time as it eliminates manual account calculations and record-keeping (Highland, 2011). The software handles chores in minutes which would take up a good number of man hours and hence can save on fixed salaries. ... Read More
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