Digital bookkeeping systems

Question 1

What is the charts of accounts?

Answer 1

-list of all general ledger accounts the business will be using

Question 2

What are 7 benefits of a digital bookkeeping system?

Answer 2

1. can generate invoices + notes
2. data automatically transferred to ledgers
3. digital reconciliation
4. auto balancing off
5. generate TB’s
6. standing orders
7. supplier remittance advice can be generated

Question 3

What are 3 drawbacks of a digital bookkeeping system?

Answer 3

1.could result in duplication of entries
2. if recurring entries change, they will carry on using out of date info
3. entries could have been entered in incorrectly