A manual bookkeeping system uses hardware and software to process bookkeeping transactions.

Modern computerized accounting systems are based on databases.

The major tasks that make up a computerized accounting system are called modules.

A manual bookkeeping system provides access to more timely information than a computer system.

Computer software includes the physical components of a computer.

Software is a set of instructions used to execute specific tasks.

Spreadsheet are a better tool to use for bookkeeping than accounting software.

With desktop software, the accounting software and financial data reside on each persons desktop or lap top computer.

Accounting software help should include built in help, well written instruction manuals, and online help.

The currently available bookkeeping software is too expensive for small businesses.

Some examples of common basic modules included in bookkeeping software are Chart Of Accounts, General Ledger, Cash Receipts, Cash Payments, Sales, Purchases, and Inventory.

A menu system is used to "tie" all the computer modules together.

A drop-down menu is a menu that displays a range of choices (list of options).

Choosing your bookkeeping software is your first step; but, learning it is critical.

Using a test company to learn accounting software is a waste of time.

Using input and export features slows down the process of setting up your system.

The Chart Of Accounts is one of the first tasks needing to be done whether using a computerized or manual bookkeeping system.

Backing up computer files is a waste of time.

The cash basis of accounting, not the accrual method, is the preferred method of accounting recommended by most accountants.

In many accounting programs account codes are optional.

Using a computerized accounting system eliminates the need for internal controls.

A computerized bookkeeping system insures that no errors are made in recording a business's transactions.

Many computerized bookkeeping systems eliminate the need for closing entries.

Control accounts serve the same purpose for both a manual and computerized bookkeeping system.

A computerized bookkeeping system eliminates the need for a General Ledger.

The accrual basis of accounting records income when cash is received and expenses when cash is paid out.

An inventory kit is defined as a group of inventory items packaged and sold together.

Cash Flow and Profits are both critical to the success of a business.

Common tasks associated with computer files are adding, editing, deleteing, and printing records.

A cash purchase occurs when a business pays for goods or services immediately.

A cash sale occurs when a business sells goods or services on credit.

A debit note (memo) is used to adjust the balance of a customer's account.

A Purchase Quote is not a formal accounting transaction.

Wholesale and retail types of businesses are examples of businesses that need to account for and maintain inventory records.

Starting Balances are normally only setup for Balance Sheet accounts for businesses migrating to a new accounting system.