Hardware and Software
One of the most important decisions a business will make is the purchase of computer hardware and software for the use of the business. Whether the company is a small Mom and Pop business or a large company with multiple locations, the criteria in deciding the appropriate automated accounting system is similar.
Some of the questions in buying a computer system are: What will be the cost? Will the software meet all the needs of our organization? What kind of internal and external controls will our business have to incorporate with the software system? How does management decide which employee has access to the information in the accounting system? What kind of reports can our company expect the software to generate for each department in our organization, and lastly what role will the Internet and Intranet play in our business? These are only a few of many questions and decisions a business will have to answer when considering the purchase of an automated computer system.
An option that is worth considering by executive management is hiring a Computer Systems Analyst. They can evaluate business procedures and make recommendations about the selection of computer hardware and software that would meet the company’s industry needs. They will also interview staff to specifically to identify what information is being processed, where it comes from, and where it goes. This detailed analysis of how information is processed is a significant consideration in the establishment of an automated computer system.
The purchase of hardware, software, printers and other peripherals are classified as assets, a part of the revenue cycle of a business. In protecting those assets, management must decide who has access to what information in the computer’s di ...