Sourcing of Accounting Software

The sourcing of Accounting software is an integral part of the computerized accounting system. An important factor to be considered before acquiring accounting software is the accounting expertise of people responsible in the organization for accounting work. People, not computers, are responsible for accounting. The need for accounting software arises in two situations : (a) when the computerized accounting is implemented to exchange the manual system or (b) when the present computerized system must get replaced with a replacement one insight of adjusting needs.

Every Computerized accounting is implemented to perform the accounting activity (recording and storing of accounting data) and generate reports as per the wants of the user. From this attitude. The accounting packages are classified into the next categories :
(a) Able to use
(b) Customized
© Tailored
Each of those categories offers distinctive features. The accounting software would depend upon the suitability to the organization especially in terms of accounting needs.

(a) Able to Use: Able-to-Use accounting software is suited to organizations running small/conventional business where the frequency or volume of accounting transactions is extremely low. This is because the value of installation is usually low and the number of users is restricted. Ready-to-use software is comparatively easier to find out and other people (accountant) adaptability is extremely high. This also implies that the level of secrecy is comparatively low and therefore the software is susceptible to data frauds. The training needs are simple and sometimes the seller (supplier of software)offers the training on the software free. However, this software offers a little scope of linking to other information systems.

(b) Customized: Accounting software could also be customized to satisfy the special requirement of the user. Standardized accounting software available within the market might not suit or fulfil the user requirements. However, when the user requires that inventory status be updated immediately upon entry of sales voucher and report be printed, the software must be customized.

Customized software is fitted to large and medium businesses and may be linked to the opposite information systems. The cost of installation and maintenance is comparatively high because the high cost is to be paid to the seller for customization. Secrecy of knowledge and software are often better maintained in customized software. Since the necessity to coach the software users is vital, the training costs are therefore high.

© Tailored: The accounting software is usually tailored in large business organizations with multi-users and geographically scattered locations. This software requires specialized training for users. The tailored software is meant to satisfy the precise requirements of the users and form a crucial part of the organizational MIS. The secrecy and authenticity checks are robust in such software and that offer high flexibility in terms of the number of users.

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