Accounting Software on Every Desktop: Implications for Business Education Carol Yacht, Author Jerome, AZ

Use the Accounting Software that is on Every Desktop Today’s Objective

Why integrate technology?  Because there is a gap between how we teach and what is done in the business world.  Because we need to teach students how technology has reshaped business.*  There is a 75% retention rate with hands-on practice. *W. Steve Albrecht, Brigham Young University; Robert J. Sack, University of Virginia; study published by American Accounting Association, Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

5% ____________Lecture 10%___________Reading 20%___________Audio-Visual 30%_____ ______Demonstration 50%___________Group Discussion 75%_____________Practice by Doing 90%: Teach Others - Immediate Use Retention Rates Learning Pyramid* Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005 *National Training Labs, Institute for Applied Behavioral Science; Bethel, Maine

What are the Critical Technology Skills? Windows Internet Word processing Spreadsheet Database Presentation Accounting software Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

2005’sTop Technology Issues* Paperless Office Radio Frequency Identification (RFID) Integration of Web-based activities Data mining and business intelligence Voice over Internet Protocol (VOIP) Viruses and Internet Security Document management techniques *Accounting Technology magazine Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

What software does business use? Microsoft Office Suite:  Word  Excel  Outlook, PowerPoint, Publisher, Access  Internet Explorer  Small Business Accounting /accounting/default.mspx Accounting: Quicken, Peachtree, QuickBooks, Microsoft Business Solutions-Great Plains, ACCPAC, Simply Accounting…. Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Software Integration Bus. Educ. courses Business Technolog y Skills Word Word Processing Publisher PowerPoint Excel Access IE Digital tools Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Software Integration Accounting courses Accountin g II AA; CYGL Peachtree QuickBook s Accountin g I Excel Great Plains MAS 90 & 200 Access Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Accounting Software Market* *A Strategy for Finding the Right Accounting Software, Journal of Accountancy, September 2003;  Entry-level software: Businesses with sales of up to $5 million; up to 20 employees; 5 million companies.  Small to medium business software: Business with sales of up to $100 million; up to 100 employees; 516,000 companies.  Small to medium enterprise software: Organizations with revenues up to $500 million; up to 500 employees; 84,000 companies.  Enterprise resource planning software: Organizations with revenues exceeding $500 million; up to 500 employees; about 17,000 companies.

Form-based-- source-document screens for data entry; e.g., purchase orders; sales orders; checks. Cash transactions and bank reconciliation. Customer and Vendor transactions. Numerous reports including financial statements. Payroll accounting option (fee-based service). Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

General Ledger Software Design Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005 Debit/ Credit Paradigm GL CyclePeachtree User's or Practitioner's approach

General Ledger System G/L CofAGJGL A/R CRJSJ A/P CDJPJ Inventory CGSJValuation Jobs Prof. Rep Job Ledger Payroll Pay. JrnlRegisters Tax Forms Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Market Share: QuickBooks/Peachtree/Other* Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005 *Accounting Technology, December 2002

Peachtree/QuickBooks Pros & Cons Peachtree reinforces traditional accounting.  QuickBooks does not follow the debit/credit paradigm. Peachtree is double-entry accounting.  QuickBooks is single-entry. Peachtree organizes records by monthly accounting periods.  QuickBooks has one set of data for the entire year. Peachtree is free to schools.  QuickBooks is purchased by schools. Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Peachtree & QuickBooks: CD version Software2005 Educational Cost2005 Retail Cost PeachtreeFree to schools artnerships.cfm $ QuickBooksEducational pricing $259 - $599 $ to $1,499.95

Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005 Application Service Providers: Web delivered ASP2005 Retail CostFree Trial Period ePeachtree$14.99/month30 days QB Online Edition $19.95/month30 days

Using Spreadsheets in Accounting In a spreadsheet accounting course, students apply accounting procedures to Excel. Topics include:  Excel tutorial - learn basic spreadsheet elements, such as how to move around, enter data, save, format, use page setup and print.  Accounting projects - use Excel templates to manipulate accounting data; analyze spreadsheets. Reinforce financial and managerial accounting concepts.  Model building - build spreadsheets from scratch. For example, payroll, depreciation, amortization schedules.  Case problems - advanced model-building projects. Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Excel balance sheet Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Excel income statement Carol Yacht, Author Accounting Software on Every Desktop February 19, 2005

Questions?