Question

List eight uses of accounting softwares.

Hint:

Make use of accounting software’s multiple modules like invoicing, payroll, and taxation for an all-in-one solution.

Answer 1

The following are eight common uses of accounting software:
[(i)] Recording Transactions: Automatically records all financial transactions like sales, purchases, etc.
[(ii)] Ledger Management: Maintains all ledger accounts in a systematic and secure format.
[(iii)] Generating Reports: Produces Balance Sheet, Profit & Loss, and other financial statements.
[(iv)] Bank Reconciliation: Helps reconcile firm’s records with bank statements.
[(v)] Inventory Management: Tracks stock levels and valuation.
[(vi)] Payroll Management: Maintains salary records, deductions, and statutory compliances.
[(vii)] GST & Taxation: Automatically calculates GST and generates returns.
[(viii)] Budgeting and Forecasting: Assists in creating and comparing budgets.