Why an Integrated Financial Accounts?
Following are the reasons why you need an accounting package:
1. To know Income, Expenditure, Payment, Receipt, Assets, Liabilities, Profit, Loss.
2. The Law Demands it (Income Tax, Sales Tax).
3. To submit returns and reports (Income Tax, Sales Tax).
4. Audit Demands it.
5. It provides processed feedback to management to evaluate performace and take necessary actions.
6. To create accountability.
7. For posterity (Hand away responsibilities and system from one to another, one generation to another).
Following are the reasons why you need an integrated accounting package:
1. Primary reason is that integrated system is a part of the main application and is deliverd by the same vendor.
2. Almost 60% of your total accounting transaction comes from Purchase, Sale and Returns. If you’ve an integrated system you do not have to record this information again.
3. What you need to enter is only 40% of the balance accounting vouchers. They are receipt, payment, journal and contra vouchers.
4. All of these activities happen on a daily basis. This information is recorded as and when appears. You do not have to make separate vouchers for book-keeping.