Advantage Of 50 Accounting

Great Essays
What are the benefits of using SAGE 50 accounting system for SME 's?

SAGE 50 is an easy to use accounting software that is most beneficial to small and medium enterprises. It supports businesses through growth and expansion and enables them to run the company 's accounts and payroll efficiently. SAGE 50 speeds up procedures in a business by simplifying accounting tasks and routines of an accountant, therefore controlling finances, customers and suppliers, foreign exchanges and VAT becomes much easier and quicker.

Controlling a company 's finances
Accountants analyse, plan and control the way in which the turnover and sales are generated. They help the management teams make the right investment decisions. The following are examples of how
…show more content…
Whenever you post a transaction in Sage 50 Accounts you will be required to input a tax code.

In SAGE 50 there are a number of reporting tools including profit and loss statements, balance sheets, mulit-year reporting, cash flow forecasts, flexible excel based reports, report templates and many more. These reporting tools are particularly important in management accounting as well as financial accounting and may well be of interest to stakeholders. These stakeholders may include suppliers, managers, shareholders, lenders and the government.

Suppliers will be interested in the financial position and performance of the company it is trading with as it will be able to determine whether they want to trade with the company based on the profit and cashflow of the business and will be able to set a suitable credit limit.

Managers will be interested in the financial statements as they have the responsibility of achieving company goals. Financial statements help in the process of making strategic and economic
…show more content…
For example, higher value fixed asset purchases will require authorisation by a Director. Also before payment is made, a supplier invoice should be checked against order to ensure it shows the correct goods, quantity and price. The invoice will also include any discounts agreed.

Management
Mangement is a particularly important control as it should be implemented from recruitment stage and should include the supervision of employees. Recruitment controls include background checks, references and evidence of qualification. Supervisory controls include training and oversight of employees and the drawing up of monthly management reports.

Although internal controls help to achieve reliable financial reporting, they do not always guarantee this. Internal control systems can fail in circumstances relating to fraud, corruption or business failure. The causes of breakdown resulting from human factors and computer systems may include:
Failure to follow policies and procedures
Staff carelessness - Not checking arithmetic calculations before entering them into the system
Lack of knowledge and

Related Documents

  • Decent Essays

    3.1 Explain the importance of financial viability for an organisation Good financial management is essential when starting your business and for the expansion of your business. Getting your finances in order means your business can work more efficiently and puts you in a better position when seeking funding for growth. Successfully managing your finances can create sustainability and growth for your business, so it's important to get it right. Whether it's balancing the books, budgeting or good cash flow management, you can help improve the financial health of your business.…

    • 566 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    e) Emergency procedures- Every staff member should be made aware or and trained in the companies emergency procedures. Being unaware of this could lead to serious illness or even death i.e using a lift or being un able to raise the alarm due to not knowing where the fire bells are in the event of a fire. f) Food handling and preparation- It is good practice to ensure any individual handeling or preparing food has the appropriate training.…

    • 1574 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Selecting the right accounting software for business is a daunting task. There are many applications on the market for the core business function within the company. When deciding which software application to use depends on the type of business you have and the complexity of the core accounting functions in your organization. The basic accounting functions of Accounts payable, receivable and debt collection are all common in an accounting package. Also, you need general ledger, billing and invoicing, and general accounting for purchase and sales orders.…

    • 486 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    The Financial Accounting Standards Board (FASB) has been the assigned organization in a private sector for establishing standards. These standards are important to be useful because it allows investors to make informed decisions. Financial information must be reliable, consistent and transparent. Transparency refers to high-quality financial statements that are clear and easy to understand. Being transparent in financial reporting allows investors, creditors and the market to properly evaluate business entity.…

    • 1619 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    The ACCT 6120 course helps us learn how the company is governed. The lecture and tutorial introduce and recap a series of accounting, corporate law and auditing theories and practice with a specific case in each class to analyze how the theories apply, which could better help us understand the theories as well as thinking more critically. Before studying this subject, we all think as an accountant, the corporate governance is a little bit far away from us. However, through the content of each week, from the principle conflict to sub-committees and finally CSR, the core of the issue is the accounting information. The accounting information is the incentive to drive the management of company to take some actions, for example, earning management…

    • 939 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    All four basic statements are integral elements to analysis the financial health of a company. Both internal and external stakeholders (managers and investors) are interested in income statements, balance sheet and statement of cash flow. Income statements report the results of operations over a period of time and it provides information about earning per share. That is why investors are interested in this report the most.…

    • 265 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Sarbanes-Oxley Act

    • 833 Words
    • 4 Pages

    In short, managerial accounting stresses attention to the accurate and complete collecting of cost information by product or service and by responsibility center in order to project future actions, determine prices, control costs and assess performance (Brown, Sprohge, 1987, p. 42). In managerial accounting to stay focus on the computation and reading. Many people just look for the formula and the number and try to figure out the answer in that order, but it’s not just that simple. According to Cristian, The managerial account information should be relevant, accurate, timely and cost effective Managerial accounting should adopt itself to the changing circumstances (2014,…

    • 833 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Starbucks Analysis Paper

    • 1042 Words
    • 5 Pages

    Starbucks Analysis Tameshia Dixon Financial Accounting MBA-503 Module 3: Rules of Financial Reporting 07/17/2016 1354 Holland Rd. Greenville, NC 27834 252-916-0678 Tameshia.dixon@snhu.edu Abstact Every business that is formed needs to provide a way to protect the integrity of their organizations management and employees so that it can continue to grow and make money. An organization that is lacking a form of balance and checks systems are exposed to becoming victims of discourage theft in their organization, fraud and countless mistakes by not having standards to guide their organization, employees dissatisfaction, and prosecution. If an organization wants to provide a balance and check system, they need to implement a reporting control procedure system.…

    • 1042 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    This report provides an analysis and evaluation regarding Dorsey Landscape Inc. The included information can be located in the financial statements. This report is being made to discuss the profitability advantages and disadvantages of Dorsey Landscape Inc. Dorsey Landscape Inc. is a residential lawn care service targeting both middle-class and upper- class homes to do anything from basic lawn mowing to gardening needs. There are currently two local contracts with Preston Hill B &B and Grace’s Diner to provide landscaping service at $650 per month.…

    • 399 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    By one using this type of accounting one is able to determine how to better improve the overall state of the company. It will help improve long and short term goals, monitor progress, follow trends, and assist with the control of decisions. While all of these are important managers need to assure accounting ethics are being followed to accurately determine the success of the company. Financial and managerial accountings are both ways to track data of an organization and they have similarities and differences. The biggest difference between financial and managerial accounting is, financial accounting is to inform outside parties of the company’s economic state, and managerial accounting to provide information to the organization.…

    • 822 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Introduction 1. Zara’s financial statement analysis The financial statement is recognized as an efficient method of communicating the company’s financial status and statistics to its shareholders (CILT, 2014a, p. 17). In addition, it aims is to provide a detailed description of where the company stands from a financial perspective along with its performance in a specified period. Hence, an organization can plan and set their future economic decisions based on their performance reflected in the financial statements (CILT, 2014b, p. 18).…

    • 775 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    External Ethical Issues

    • 940 Words
    • 4 Pages

    Ethics can be described as an acceptable code of conduct or behaviour someone exhibits or is expected to display in a society. That behaviour is dictated by various scenarios or situations that are different in nature. For example in a company there are various ethical issues that dictate how the company runs. These ethical issues can be internal or external in nature. Internal ethical issues mainly involve the shareholders of a company, employees and the management.…

    • 940 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Upon the completion of this course I have come across topics that have interested me and increased my knowledge especially in the financial and accounting aspect. This course has introduced me to understanding the relationship between financial and accounting in making an effective strategic decision. In as much they sound alike they are different and used in different purposes, both accounts are important to the business but are used for different purposes. Financial statements are requirement for any organisation and are published at the end of a financial period for its stakeholder, shareholder and customers to see, they show reports of performance on a historic basis and what has been achieved over the years. At the time the statement is…

    • 1536 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    2. Written personal reflection on operational business decisions made within the game 2.1 Introduction This game simulates the entire process of factory production. Players will plan and control the process of factory production as a manager of the plant. 2.2 Operations in practice…

    • 1096 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The separation of ownership and control creates a need for independent monitoring, control guidelines and processes. The C suite of managers act as agents for the stakeholders. The Board of directors provides the rules and guidelines. The Financial Analyst provide the control and feedback to the users of the financial…

    • 718 Words
    • 3 Pages
    Improved Essays