Accounting Software on Every Desktop: Implications for Business Education

Carol Yacht, AuthorJerome, AZ

www.mhhe.com/yacht

Use the Accounting

Use the Accounting

Software that is

on

Software that is

on

Every Desktop

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, 2000. http://aaahq.org/pubs/AESv16/toc.htm

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?

WindowsInternet

EmailWord processing

Spreadsheet Database

PresentationAccounting software

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

2005’sTop Technology Issues* Paperless OfficeRadio Frequency Identification (RFID)

www.microsoft.com/BusinessSolutions/scm_chip.aspx Integration of Web-based activitiesData mining and business intelligenceVoice over Internet Protocol (VOIP)Viruses and Internet SecurityDocument management techniques

*Accounting Technology magazine www.webcpa.com/article.cfm?articleid=9497&pg=acctech

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

www.microsoft.com/office/editions/prodinfo/smallbusiness/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

PublisherPowerPoint

ExcelAccess

IEDigital tools

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

Software Integration

Accounting courses

Accounting

II

AA; CYGLPeachtreeQuickBook

s

Accounting I Excel

Great PlainsMAS 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; www.aicpa.org/pubs/jofa/sep2003/johnston.htm

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

User's or Practitioner's

approachPeachtree

GL Cycle

Debit/Credit

Paradigm

General Ledger System G/L

CofA GJ GL

A/R

CRJ SJ

A/P

CDJ PJ

Inventory

CGSJ Valuation

Jobs

Prof. Rep Job Ledger

Payroll

Pay. Jrnl RegistersTax Forms

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

45% QuickBooks

35% Peachtree

20% Other

Market Share: QuickBooks/Peachtree/Other*

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

*Accounting Technology, December 2002

Peachtree/QuickBooks Pros & ConsPeachtree 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

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

Peachtree & QuickBooks: CD Peachtree & QuickBooks: CD versionversion

Software 2005 Educational Cost

2005 Retail Cost

Peachtree Free to schoolswww.peachtree.com/training/educational_partnerships.cfm

$399.95

QuickBooks

Educational pricing $259 - $599

www.intuitadvisor.com/education

$199.95 to $1,499.95

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

Application Service Providers: Application Service Providers:

Web deliveredWeb deliveredASP 2005 Retail Cost Free Trial Period

ePeachtree

$14.99/month 30 days

www.peachtree.com/epeachtree

QB Online Edition

$19.95/month 30 days

http://oe.quickbooks.com/

Using Spreadsheets in AccountingIn 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

AssetsCash 5,600$ Accounts receivable 2,000 Supplies 575 Prepaid insurance 2,200

Equipment 50,000$ Accumulated depreciation-Equipment 25,000

25,000 Total Assets 35,375$

LiabilitiesAccounts payable 2,300 Notes payable 7,000 Salaries payable 700

Total Liabilties 10,000$

Owner's EquityCapital 25,375

Total Liabilities and Owner's Equity 35,375$

Mike's Surf and SeaBalance Sheet

As of 12/31/03

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

Excel income statement

RevenuesService revenue 35,000$

ExpensesSalaries expense 8,700$ Rent expense 1,200 Utilities expense 800 Advertising expense 300 Insurance expense 400 Depreciation expense 5,000 Supplies expense 925

Total Expenses 17,325

Net Income 17,675$

Mike's Surf ShopIncome Statement

for the year ended 12/31/03

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

Questions?