ACC222_Week1_Haggins_Discussion1
Describe how a business could benefit from having either a chart of accounts in QuickBooks or a computer-based software account tracking. If a business is trying to prevent fraud, which is the best method to store information? Explain your reasoning.
A business can benefit greatly because when they set up chart of accounts in QuickBooks the system will have accounts such as assets, liability, equity, revenues, expenses, and it will assign each account a number like 1xx, 2xx, 3xx, 4xx, 5xx to begin tracking. “The chart of accounts follows a logical sequence, which reflects the way information is reported on the financial statements” (Oliver, 2019)
. The computer-based accounting software will do the same it just will not assign the accounts numbers; it will just place the information in the right category. I believe either choice will work for a business that is trying to prevent fraud. They will need to take all security methods to prevent this by creating unique passwords on a secure desktop and
only allow designated people to work on the account. For a computer-based software make sure that the program has privacy policies in place and great customer service to help with any breaches that may come up.
References
Oliver, L. (2019, Aug. 8). Medium
. Retrieved from How the Chart of Accounts Can Help You and Why You Should Care: https://medium.com/@lianabeloliver/how-the-chart-of-accounts-can-help-you-
and-why-you-should-care-cd2263d30d35
