What’s the difference between Accounting Software and Bookkeeping Software?
Accounting Software is designed to provide an accurate measure of the profitability of the business – but this will only be the case if you are using its full potential, including accruals, prepayments, depreciation etc. If you are not doing this it is pointless using Accounting Software for your bookkeeping as this will only cause unnecessary complications in its set-up and running, as well as causing headaches for your accountant who will have to work out each year’s “closing journals” for you to enter. Far better to utilise Bookkeeping Software which is easy to use and concentrates solely on balancing your bank and cash (plus sales ledger and purchase ledger if needed), doing your VAT and recording the basic analysis of your payments and receipts. More enables your bookkeeping data to be transferred over the internet to the accountant’s office. Let your accountant worry about all the accounting adjustments that are needed when preparing either Management Accounts or Year End Account
