Sage accounting system is a computerized package in Accounting that has so many facilities to process your financial details. The system receives your financial information, classifies it and then summarizes the data in a way it can be accessed to allow the user to view their financial information in simplistic terms. The following are some of the many capabilities of a Sage system:
- Sage can print out invoices
- Updating customer and supplier records
- Making payments
- Automatic update of the general ledger
- Automatic altering of stock levels
- Automatic calculation of payroll
- Summarizes customer accounts with balances that are overdue.
- Valuation of stock
- Analyse sales
- VAT returns
Sage is one of the first computerized accounting software and because of its market dominance, Sage managed to attract more users before other packages had the chance. Accounting is an aging industry, full of traditionalists so those who started computerized accounting with Sage have mostly stayed with Sage. 90% of accountants in the UK acknowledge the Sage accounting format because of this, either using it in the past or still use it today, passing it on to their employees and the next generation of accountants. Sage have concentrated on providing users with solutions which are of great benefit them, they include features which are requested by their users and have remained loyal to the small and medium scale businesses instead of going to a more profitable option of the corporate.
Sage understand the need of their customers, the industries they work in and rapid advancements in a changing technology. This gave room for them to improve on their package to retain their current users whilst attracting new ones.
RULE OUT HUMAN ERROR
By having a completely computerized method of storing all of your financial information, you rule out the risk of human error, such as jotting down the wrong figures or misplacing information. Theses errors that seem small can have a disastrous effect on a business’s financial standing, so having an accurate computerized system is hugely beneficial to the user.
REAL TIME FINANCIAL INFORMATION
Because the system is updated in real time, you can access your account and see all the transactions and your cash flow which you have made to date. This is easy to use if you need to check you can afford unforeseen costs or to confirm which transactions have been processed.
LESS TIME CONSUMING
In Computerized Accounting, data entry can be carried out much quicker than if it were done manually, and the information only has to be entered into the system once, even if it’s to be used for so many purposes.
KEEP THINGS SIMPLE
When businesses expand and develop, accountancy becomes much more harder than before. Computerized accounting systems like Sage sift through all of the data easily, this make the process much more straightforward than manual accountancy or traditional accounting.
Finally, Sage accounting systems are fast, easy to use and efficient. This is the reason why they are much more cost effective than paper based accounting as the work requires less hourly paid work. Also, the systems cost very low monthly subscription cost.