Advantage Of 50 Accounting
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.
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