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Integrated vs. Accounting Approach
Author: Michael Cho Reference Number: AA-05844 Views: 2465 Created: 2015-05-09 12:05 Last Updated: 2015-05-09 12:10 0 Rating/ Voters

An integrated approach provides for input via extensions to accounting, such as POS, Billing whilst a pure accounting approach may have a disjointed solution, for example separate billing systems that are not connected to the accounting. The diversity of different practices exists and is a reality in the business world. Sage handles both for your convenience, and we would like to share additional viewpoints for both approaches.

Integrated

Accounting

 

Advantages

 

Advantages

Control

  • Availability of source document. (i.e.invoices) and process control for verification of GST/accounting impact.

Efficiency

  • A One-time entry satisfies both the source document requirement and automatically creates the accounting entry requirements and avoids double work.

 

Flexibility

  • This approach provides flexibility to detach the processes of billing to the accounting.

Considerations

Considerations

 

Flexibility

  • Controls and integration are necessary for better information integrity and business transparency and detail, however, this is balanced against flexibility. This will not an absolute disadvantage but a necessary consideration for each individual’s business.

Reduced Control

  • There is no direct control of the source document generation or changes, therefore it is likely that there will be a time difference or information gap between actual source document and the accounting entries.

Potential for more mistakes

  • As the process requires a re-key in of original data, this is always exposed to potential human mistakes.

 

Extra Work

  • As the processes are separate, (billing vs. accounting for example) the same information will be keyed in twice.
  • If there is multiple major industry code and the volumes are high then there is potential for a lot of manual work.

 

  • Sage UBS Accounting & Billing or Inventory
  • Sage 50
  • Sage UBS Accounting via Transaction File Maintenance

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