How Computerized Accounting Systems Have Changed Business Accounting

The method of entering data by hand and calculating the total is a slow accounting process that often leads to errors. The advancement of technology led to the introduction of Computerized accounting courses in Mississauga and also computerized accounting courses Brampton and made the process simple and accurate. Nowadays, the financial software programs available can do far better accounting and that too with complete accuracy. 

The First Computerized Accounting Systems

Soon after World War II, the first computer systems IBM 9Pac was introduced and was used by business people. The machine could add up the total sales figure of each sales person. The machine was the first modern finance systems available at that time. 

The Introduction of SAP

A German company introduced SAP R/1 in 1972 and the software program was released in the market in 1973 and saw further development in 1975. SAP is the abbreviation for System Analysis and Program Development and could do purchasing, inventory management and invoice verification all by itself. 

By 2002, SAP became the third largest independent software company in the world. The latest version called SAP Business Suite 7 software was released in 2009 and came with different analytical tools that can measure different results to provide additional resources for business. 

Change from DOS to Windows

The financial software used by businesses during 1970s and 1980s were based on DOS and were found as a high-end or low-end application. The DOS-based accounting system that was developed by Katherine Burgum to manage their business dealings soon gained importance and was distributed as Great Plains accounting software. The product became hugely popular and was soon popped up. However, with the introduction of Microsoft Windows operating systems and accounting software, the popularity of DOS systems started diminishing and disappeared completely. With the introduction of object linking and open database connectivity (ODC), the accounting systems worked better than before. Great Plains brought out two more versions of Dynamics in the beginning of 1990s.One version worked on the Pervasive and C-Tree databases, a low end application while the other version was meant for the Microsoft SQL database. 

The SQL based database helped in simplifying the working of accounts payable, account receivable and different other accounting functions. The function of transferring data automatically between Spreadsheets that tied with each other was a big leap as there was no need for manual data entry. Business owners found it easier to manage their budget by going through the system generated reports. 

Another important feature for computerized accounting courses in Mississauga and computerized accounting courses in Brampton to switch from DOS to Windows programs was the facility to use pictures and color in place of text-based accounting system. The information provided was easier to read and communicate, especially those not familiar with the modern computing system. 

Computerized Accounting Programs

There were some other computerized accounting systems that were also popular like Peachtree and QuickBooks. Microsoft also brought out Small Business Accounting that later came to be known as Microsoft Office Accounting. The accounting software was meant for small businesses that had fewer than 25 employees. To cater to the middle order companies, Microsoft acquired Great Plains Software in 2001 that finally was renamed to Microsoft Dynamics GP after its enhancement. 

The introduction of computerized accounting courses in Mississauga and computerized accounting courses in Brampton for different accounting systems has made the job of financial management of companies a lot easier. Many of the tasks have been centralized with the emergence of modern software programs and have made the systems affordable for small and medium sized businesses by lowering manual involvement of accounting personnel. 

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