Dogot Bookkeeping Systems

Question 1

Define digital bookkeeping

Answer 1

Means storing your accounting records online either on a local server or in the icloud

Question 2

Define the cloud

Answer 2

The cloud refers to the internet, all info accessed remotely via the interent

Question 3

What’s an example of a digital bookkeeping system?

Answer 3

Sage business cloud accounting

Question 4

Digital bookkeeping systems can import trans from a number of sources, including…

Answer 4

Csv, third party files, bank records

Question 5

Define csv file

Answer 5

A comma separated values file… plain text that contains a list of data

Question 6

What is a csv file used for

Answer 6

To exchange data between different applicationd

Question 7

What are some benefits of using a digit bookkeeping system

Answer 7

Simple data entry and efficiency
Automatic generation of reports
Automation of task
Reduction of errors
Integration with other systems

Question 8

Simple data entry and efficiency

Answer 8

Manual data entry is more time consuming than processing transactions digitally

Question 9

Automatic generation of reports

Answer 9

Automatically creates a trail balance from the general ledger accounts

Question 10

Automation of task

Answer 10

Processes recurring entries
Makes duplication of automated and manual entries possible
Automatically balances the cash book
Automatically completes the transfer of data from the books of prime entry to the ledger
Automatically reconciles the receivables and payables ledgers to their respective control accounts

Question 11

Define recurring entries

Answer 11

A recurring entry is a journal entry that is recorded in every accounting period

Question 12

Reduction of errors

Answer 12

Transferring data manually is more likely to result in errors, digital doesn’t eliminate errors

Question 13

Integration with other systems

Answer 13

Connecting individual systems into a one single larger system that functions as one
The goal is to get various systems to talk to each other to speed up info flow and reduce operation costs
System integration used to connect both third party and internal systems

Question 14

What are the drawbacks of using digital bookkeeping system

Answer 14

Cost
Implementation and support
Potential errors
Specialised needs

Question 15

Cost downfall

Answer 15

The package cost is more expensive than a paper based system

Question 16

Implement and support downfall

Answer 16

Some assistance may be required when setting up
The purchase of annual maintenance

Question 17

Potential errors downfall

Answer 17

If the amount or frequency of a recurring entry changes it may create errors
Balance ledgers automatically entered aren’t always correct

Question 18

Specialised needs downfall

Answer 18

Specialised businesses may need to tailor a digital package or change the processes to use software successfully

Question 19

What can inaccuracies of accounting records lead to?

Answer 19

Incorrect info being held within the accounting system

Question 20

What can incorrect data lead to?

Answer 20

Variety of consequences depending on the system being used

Question 21

Manual system drawback

Answer 21

Incorrect entry on a supplies account may result in supplier not being paid on time or the wrong amount
Identifying the issue takes more time
Incorrect info provided to stakeholders

Question 22

Digital system drawback

Answer 22

Codes accountant do not know which code to enter for which trans … confusing is two codes are similar
If system automatically balances ledger, the errors may go unnoticed for a long time
Incorrect info provided to stake holders
Incorrect info may go undetected