Computerised Accounting System . . Flexibility An important consideration before sourcing an accounting software is flexibility, viz. data entry and the availability and design of various reports expected from it.
Also, it should offer some flexibility between the users of the software, the switch over between the accountants (users), operating systems and the hardware. The user should be able to run the software on variety of platforms and machines, e.g. Windows / , Linux, etc. .
. Cost of Installation and Maintenance The choice of the software obviously requires consideration of organisation ability to afford the hardware and software. A simple guideline to take such a decision is the cost benefit analysis of the available options and the financing opportunities available to the firm. Some times, certain software which appears cheap to buy, involve heavy maintenance and alteration costs, e.g.
cost of addition of modules, training of staff, updating of versions, data failure/restoring costs. Conversely, the accounting software which appear initially expensive to buyers, may require least maintenance and free upgrading and negligible alteration costs. . .
Size of Organisation The size of organisation and the volume of business transactions do affect the software choices. Small organisations, e.g. in non-profit organisations, where the number of accounting transactions is not so large, may opt for a simple, single user operated software. While, a large organisation may require sophisticated software to meet the multi-user requirements, geographically scattered and connected through complex networks.
. . Ease of Adaptation and Training needs Some accounting software is user friendly requiring a simple training to the users. However, some other complex software packages linked to other information systems require intensive training on a continuous basis.
The software must be capable of attracting users and, if its requires simple training, should be able to motivate its potential users. . . Utilities/MIS Reports The MIS reports and the degree to which they are used in the organisation also determine the acquisition of software.
For example, software that requires simply producing the final accounts or cash flow/ratio analysis may be ready- to-use software. However, the software, which is expected to produce cost records needs to be customised as per user requirements. © NCERT not to be republished