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Accounting and Finance

In: Business and Management

Submitted By FABIANMAFURU
Words 10046
Pages 41
CHAPTER ONE 1.0 INTRODUCTION
Accounting software packages have become common place for many organizations in recording business transactions, preparing financial statements and analyzing operations. Accounting software has freed accountants from the manual recording and presentation of financial data. By using accounting software, financial transactions would be recorded more quickly and accurately at a relatively low cost. Moreover, accounting software packages increased overall operational effectiveness by improving both the quantity and quality of management information available (Collins, 1999; Fisher and Fisher, 2001; and Abu-Musa, 2004).

Years ago, when personal computers were just coming into their own, accounting software was relatively simple. Its single function was to automate the task of double-entry accounting and produce a straightforward balance sheet. As computers became more robust and integrated databases standardized, accounting software developers added more functions-including cost accounting, manufacturing resource planning, customer resource management, human resources, and payroll (Jones, 2002).

Mattingly (2001) stated that choosing the right accounting software is becoming more difficult as the software market becomes increasingly fragmented. In many cases, more product information makes decision-making more difficult rather than less. The risks of leaping into an expensive purchase decision are hard to assess. Collins (1999) also confirmed that selecting the appropriate accounting software for an organization requires a close investigation of many diverse areas. It has been observed that, in selecting accounting software many organizations emphasize on satisfying their current and short term needs for information and financial and non-financial reports, rather than their future and long term needs.
According to Collins (1999)

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