The Theory of Accounting
Applied to Software
Justin Botillier, Torrey Jacobson,
Mindy Konno, Maxine Vang, John Zoller
Accounting Software Available
1.
2.
3.
4.
5.
6.
7.
Microsoft Dynamics
Peachtree (Sage Accounting Software)
QuickBooks
Everest Software
GnuCash
Grisbi
Dolphin Accounting Software
(formerly Microsoft Great Plains)
Project Accounting Software
Software Benefits

Financial management


Analytics


Instantaneous financial analysis
Broad range of flexible, customizable analytics, reporting and
budgeting options
Business Portal

Built on Microsoft .NET technology. Allows data and processes
to be accessed from a Web-based portal
Dynamics v. other packages

Integration with widely-familiar applications

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Pricing/Financing

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Developed by Microsoft which means it is built to work
seamlessly with their other products, such as Microsoft Office
and Microsoft SQL Server
Microsoft Office-like interface
$5,000 to $500,000. Module type packaging lets a company
create their own personal accounting package, eliminate
expense on unwanted options
Available from Microsoft Financing to reduce the burden of
expensive IT changes
Training


Online e-courses
Classroom training throughout the United States and Canada
Dynamics v. MAS90
*http://www.microsoft.com/dynamics/gp/product/mas90comparison.mspx
Dynamics Demos
http://www.microsoft.com/dynamics/gp/product/demos.mspx
GnuCash
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Open source software
(free)
Runs on Macintosh,
Windows, and Linux
computers
Keeps tract of bank
accounts, stock
options, income and
expenses
Grisbi



Open source accounting
software (free)
Runs on Windows,
Macintosh, Linux
computers
Provides basic
accounting
reporting/recording such
as managing third party
finances, expenditure and
receipt categories
Versions of Peachtree
1. Peachtree by Sage First Accounting
*Designed to support small serviceoriented businesses
2. Peachtree by Sage Accounting
*Add basic inventory features to support
retail establishments
Versions of Peachtree Cont.
3.
4.
Peachtree by Sage Complete
*Provides networking and multi-user support,
advanced inventory features, online banking, online bill
paying, job costing, time and billing, an audit trail, and
first-rate fixed asset management features.
Peachtree by Sage Premium Accounting
*Includes all the features found in Peachtree complete
as well as departmental accounting, serialized
inventory to assign serial numbers to them, company
consolidation to roll up and summarize data, progress
billing and employee compensation histories and
report customization.
*Also comes in industry-specific versions for
accountants, manufacturers and distributors.
New Features of Peachtree
Complete



Now offers online
banking – a longtime
QuickBooks feature
Download and import
transactions from
your financial
institution directly to
Peachtree
Bank list
New Features Continued


New online bill
payment features
New internal
accounting review
that removes
suspicious
transactions and
accounting mistakes
such as duplicate
transactions
Accounting Features


The sales section in Peachtree, allows you to
keep track of customers, sales, sales
representatives and tax codes. You can also
update your general ledger and sales journal as
well as create an account’s receivable report.
Account’s payable section, known as purchases,
allows you to keep track of vendors and writing
checks to making payment schedules
Accounting Features


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
Payroll lets you keep track of employee salary
and how much your company owes to
government.
G/L (General Ledger) section keeps a log of all
your transactions for 2 years. There are 13
periods within each year.
Inventory allows for adjustments as well as keep
track of how much inventory your business has.
Billing/Time keeps track of which customers are
being billed as well as time cards.
Accounting Features

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Analysis allow your to view how your business is
doing as a whole. For example you’ll be able to
see a payment aging report that allows you to
see what percentage of credit sales are paid on
time.
The Company section holds miscellaneous
features such as a tutorial on how to use
Peachtree and an alarm system that notifies you
of important events. It also has a Job Reports
feature that allows you to create report by job
lists, estimated job expenses etc.
Peachtree’s Strength



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Fast and smooth
download (less than 15
minutes)
Excellent tutorial that
walks you through
programs
Offers some 145
customized reports
Audit trail- allows you to
record and report any
changes made
Peachtree’s Weaknesses


Expensive constantly update the
software
Only runs on
Windows (not flexible)
Compared with QuickBooks

Has the upper hand when it comes to
inventory.
*Lets you track assemblies through
manufacturing
*Create master and sub-assemblies
*Adjust prices by percentages
*Apply LIFO, FIFO Weighted Average
and more
Compared with QuickBooks
Continued
Manufacturing firms should highly consider
using Peachtree
 Those in retail and service businesses that
are happy with QuickBooks have little
reason to switch because QuickBooks
offers an excellent wholesale and retailspecific edition.

QuickBooks
Basic Information
QuickBooks is an accounting software
program
 Designed for small businesses
 Produced by Intuit
 An “off-the-shelf” accounting information
system

How is QB different from Quicken?

Programs such as Quicken and Microsoft
Money are designed to help with personal
finances


This often involves little more than bank
account activity
QuickBooks and Peachtree are businessoriented

The program is set up around business
transaction cycles
Versions of Quickbooks
Features offered vary depending on the
version you have
 Main versions are:

Simple Start
 Pro
 Premier
 Enterprise Solutions

Differences between versions
Prices range from approximately $100 to
$6000 depending on the level of
complexity desired
 Simpler versions provide help with tracking
bills and day-to-day transactions
 More advanced versions offer payroll and
inventory functions
 Mac versions are also available

Using QB
Operation of QuickBooks differs somewhat
from textbook descriptions of accounting
processes
 Use of QuickBooks is modeled around
business processes rather than the nuts
and bolts of the accounting cycle
 This feature may be helpful to users
without a strong background in accounting

BA 211/317

Manual accounting cycle:

Journalize transaction
 Debit/Credit
Post to G/L
 Trial balance
 Adjust
 Statements
 Closing

Accounting QuickBooks Style
Major business processes are grouped in
the navigators
 To enter a transaction, go to the
appropriate navigator
 Click on the necessary document
 QuickBooks generally handles debit/credit
issues


Sometimes, a prompt is needed
Accounting QuickBooks Style
Each document represents a complete
entry or transaction
 Transactions are automatically journalized
and posted
 Reports and financial statements are
available at the click of a mouse

Financial Statements
With a manual system, financial
statements are only available when the
books are about to be closed
 With QuickBooks, the program will
produce reports and statements at any
time
 So no worries? Not quite…

Financial Statements

Beware of GIGO effect:
Statements/reports may not be accurate if
important information has not been entered
 The system will simply work with whatever
numbers it has

Drawbacks
Forms and processes are largely fixed
 Inventory features are difficult to find and
use


Qualifier: the program available to us is the
2002 edition, so this may have changed in
recent years
Hands-On Features
If necessary, journal entries can be made
manually
 QuickBooks usually comes with a
standardized chart of accounts


However, the user can alter this chart as
necessary to meet individual needs
Overall
Why accounting softwares are useful now
compared to back then?
 How is it related to our learning in BA 378?
 Internal controls

Questions?
Bibliography
http://www.users.bigpond.com/dunster1/Far%20Side.htm
http://www.smallbusinesscomputing.com/biztools/ar
ticle.php/3520081
http://accounting-software-review.toptenreviews.com/
peachtree-review.html
http://www.accountingsoftwareadvisor.com/peachtree/index.
shtml
http://www.peachtree.com/peachtreeaccountingline/complete/
http://quickbooks.intuit.com/
http://www.microsoft.com/dynamics/gp/product/demos.mspx