Questions On The Sage Accounting Package

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Question 2 With reference to the Sage accounting package, identify the outputs it produces and divide them between those that are financial reporting and those that you would classify as management accounting. For the outputs you have designated as management accounting, critically evaluate them in terms or what you perceive to be user requirements and suggest two or more ways in which those outputs might be improved. Answer: There are two types of accounting Management and Financial. Sage provides outcomes for both Management as well as Financial accounting. It provides the insight needed to make the right decisions for the business giving a clear view of sales, customer service & financial performance which helps to keep focus on what…show more content…
It also helps management to easily identify who they owe money to. • Recording Fixed Assets- stores all the asset information in one place which makes it easier for revaluation, depreciation etc. • Aged Balance -This function helps to view in date range the balance of customer or supplier invoices pending payment. • Manages stock levels - helps the management to keep track of when stock 's running out and when it 's available. It also helps in recording sales or raising invoices. • Bank reconciliation- aids in the timely correction of bank errors, it can reduce accounting errors drastically and makes the finding of missing purchase and sales invoices possible. • Manages VAT- Keeps all VAT related information in one place with a whole section dedicated to managing and calculating VAT returns. Sage also securely submits VAT returns directly to HMRC. Outputs produced which are useful Financial Reporting are: The main outputs produced are: • Produces Profit & Loss Statement- helps to understand business performance and shows just how profitable each area of business is. Sage can be used to compare company’s projected performance with actual performance and also helps to detect any problems regarding sales so that adjustments may be made to recoup losses or decrease expenses. • Produces Balance Sheet – which is helpful to quickly see the financial strengths and
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